Global 5G Enterprise Market Report and Forecast 2024-2032

Global 5G Enterprise Market Size

The global 5G enterprise market reached nearly USD 4.74 billion in 2023. The market is projected to grow at a CAGR of 30.0% between 2024 and 2032 to reach a value of around USD 63.37 billion by 2032.

5G Enterprise Market Outlook

• As per industry reports, in the first half of 2023, 5G availability varied significantly across selected markets in Asia Pacific and Europe.

• Hong Kong (SAR) led with 42.3% availability, demonstrating the region's advanced infrastructure and early adoption of 5G technology. 

• As per 5G enterprise market analysis, Australia's 5G availability was substantial at 36.6%, reflecting its commitment to enhancing digital connectivity.

5G Enterprise Market Growth

5G enterprise refers to a type of enterprise equipped with 5G technology. In other words, this type of enterprise uses 5G technology to meet an organisation’s demands, such as fast data speed, great connectivity of multiple devices, and lower latency, among others.

Two major factors that will accelerate the 5G enterprise industry are better connectivity and speed, and more network capacity. With ultrafast data transmission rates and low latency, 5G can support real-time communication and advanced technologies such as IoT, augmented reality, and high-definition video conferencing, raising operational efficiency and innovation for enterprises. Moreover, the high density and large throughput in data of the 5G connected devices support smart infrastructure expansion and, therefore, complex digital solutions drive digital transformation at large across industries, bolstering the growth of the 5G enterprise market.

Key Trends and Recent Developments

Higher bandwidth, increased 5G usage in banking firms and expansion of Industry 4.0 are a few factors shaping up new 5G enterprise market dynamics and trends.

February 2024

Wipro and Nokia announced the launch of their 5G private wireless for enterprises. This joint solution will provide a secure, integrated operational infrastructure with a 5G Private Wireless Network Solution for enterprises looking to scale their digital transformation.

August 2023

VVDN Technologies announced the availability of a reliable, secure, deployment-ready end-to-end 5G Enterprise solution. The Private 5G solution includes VVDN's indigenously designed ORAN Radio Units, customised CU/DU, and 5G Core. This solution is fully designed, developed, integrated, and tested by VVDN.

Higher bandwidth

5G technology offers high bandwidth, increased reliability, and improved efficiency to enable easy management of large amounts of data, which is boosting its adoption across enterprises. In addition, the emergence of technologies, such as video analytics, AR/VR, and IoT, among others, is providing impetus to the 5G enterprise market growth.

Adoption in banking firms

The heightening adoption of 5G technology by banking firms and fintech services to personalise customer experiences, understand customer behaviour patterns, and customise design offerings for clients in real-time is one of the key trends of the 5G enterprise market.

Expansion of Industry 4.0

The rapid expansion of Industry 4.0 is a major market driver. The growing use of industrial robots, artificial intelligence (AI), and connected sensors, among others, is further boosting the deployment of 5G across enterprises.

5G Enterprise Market Trends

One of the key trends found within the 5G enterprise industry is an increased acceptance of private 5G networks. Most companies are starting to invest in their own dedicated 5G infrastructure so that they get better control over current concerns regarding security, performance, and network customization. The growing interest in private 5G networks is driven by the fact that different kinds of businesses are considering it as the right solution to improve data privacy, transmit large amounts of data at very high speeds, and ensure reliable communication for mission-critical applications. The use of a private 5G network enables an enterprise to optimise its operations, providing a base for advanced technologies like IoT and automation, increasing productivity in the process, and thereby aiding the demand of the 5G enterprise market.

Industry Outlook

The Growth in Smartphone Users Aids the Demand for 5G Enterprises.

South Korea, a country noted for its very high level of technological development, hit 35.3% in terms of 5G availability, marking fast deployment and consumer adoption of 5G services. France led Europe's principal market with 27.1% availability, underpinning the robustness of its telecommunications infrastructure.

In Thailand, 5G Availability reached 26.8 percent because of the quickly rising demand for digital services and policies enacted by the government to support digital transformation. In Spain, availability accounted for 24.5 percent, which is the strongest for 5G in Europe. Germany and the UK both showed 22.3 and 20.5 percent availability, respectively, which maintained steady progress toward 5G deployment, developing a strong focus on improving connectivity that will spur growth and innovation. The Philippines posted 19.8 percent, powered by continued 5G coverage expansion efforts that are geographically challenged combined with actions to place them better regionally in terms of 5G enterprise demand growth.

Compared with the huge scale and rapid technological advancement in China, its 18.1% availability was pretty low. Italy followed with 16.4% availability, impelled by strong efforts from the local telecom industry and government backing. Next came New Zealand, with 16% availability, underlining its commitment to getting its digital infrastructure in order. Singapore, with 15.7%, would be able to sustain a competitive position in its regional market thanks to strategic investments that country had been making in 5G. In Japan, 14.9 percent availability attested to continued network expansion driven by growing consumer and industrial demand. Malaysia and India, with 8.6 percent and 8.4 percent availability, respectively, were emerging 5G markets that were very much focused on initial deployments and tackling infrastructural and regulatory challenges.

The growth in smartphone adoption increases the growth of 5G enterprise industry. China leads the global smartphone market with 974.69 million users, indicating a vast consumer base and a high penetration rate of mobile technology. India follows with 659 million smartphone users, reflecting significant growth in mobile connectivity. The United States has 276.14 million smartphone users, highlighting a mature and saturated market. Indonesia, with 187.7 million smartphone users, demonstrates significant mobile growth in Southeast Asia. Brazil's 143.43 million smartphone users reflect the largest mobile market in Latin America. Russia, with 106.44 million smartphone users, signifies a robust mobile market in Eastern Europe. Japan has 97.44 million smartphone users, indicative of a technologically advanced and highly connected society. Nigeria's 83.34 million smartphone users represent the largest mobile market in Africa. Mexico, with 78.37 million smartphone users, illustrates the expanding mobile connectivity in Latin America. Pakistan's 72.99 million smartphone users indicate significant growth in mobile technology adoption.

5G Enterprise Industry Segmentation

“Global 5G Enterprise Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Based on communication infrastructure type, the segmentation includes:

• 5G radio access networks

• 5G core networks

• Transport networks

Based on enterprise type, the market is classified into:

• IT and telecommunication

• BFSI, retail, and e-commerce

• Manufacturing

The major regional markets for 5G enterprise include:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

5G Enterprise Market Share

As per 5G enterprise industry analysis, the manufacturing sector accounts for a significant portion of the global market share. 5G-enabled devices are witnessing a heightened demand in the manufacturing sector to facilitate the remote monitoring of production assets and the maintenance and management of devices.

In addition, the low latency and stable connectivity of 5G technology enables reality troubleshooting, which leads to effective and quick repair of manufacturing devices and equipment. Moreover, the growing use of 3D printing in the manufacturing sector is likely to propel the demand for 5G infrastructure across warehouses and manufacturing units in the forecast period.

Global Demand for High-Speed Connectivity and Low Latency Enhances Reliability for 5G Enterprise.

• 5G technology offers significantly faster data transfer rates compared to previous generations, enhancing business operations and enabling new applications.

• The ultra-low latency of 5G networks is crucial for real-time applications such as remote surgery, autonomous vehicles, and industrial automation.

• 5G networks can support a much higher number of connected devices simultaneously, facilitating the growth of IoT (Internet of Things) and smart devices in enterprise settings.

• The improved reliability of 5G networks ensures more stable and consistent connectivity, which is critical for mission-critical applications in various industries, and ultimately accelerates the 5G enterprise demand.

High Deployment Costs, Limited Coverage, and Complex Integration Can Pose Security Concerns and Regulatory Challenges.

• The massive investment that 5G requires in infrastructure—additional towers, small cells, and fibre optics—can impede mass adoption.

• Although the strides are high, it is clear that 5G networking, especially, has yet to reach all corners, especially outreaches and rural areas of the country, greatly curtailing its accessibility and benefits.

• The integration of 5G into enterprise systems and infrastructure could, therefore, turn out complex and require huge adjustments or investments.

• With this increased connectivity and data flow within the 5G network, there might be issues with security and privacy, which can only be countered through very strong measures of cybersecurity.

• Various countries have different regulatory environments and approval processes that make the deployment and adoption of 5G technology very slow.

Digital Transformation and IoT Expansion Increases Its Emerging Applications.

• The 5G enterprise market revenue is augmented by the capability it has brought for accelerated digital transformation that allows advanced applications, like AI, machine learning, and big data analytics to work appropriately.

• New application possibilities in fields like augmented and virtual reality, remote work, telemedicine, and smart cities are facilitated by 5G technological capabilities.

• 5G's ability to handle thousands of devices at the same time in real time extends the Internet of Things into more sectors and will disrupt industries with new levels of efficiency and innovation in areas such as manufacturing, health, and logistics.

• 5G nurtures further global collaboration and connection, thus making it easier for businesses to work and innovate across the globe.

5G Enterprise Market Regional Analysis

The 5G enterprise industry in Asia Pacific is likely to witness considerable growth over the forecast period, driven by the growing number of 5G network subscription enterprises in Southeast Asian countries, such as Thailand and Malaysia. Many enterprises take advantage of the benefits that 5G infrastructure offers with respect to safety, security, and speed of data access to increase productivity and profitability.

Meanwhile, the 5G enterprise market share in North America is significantly contributing to the global market demand, which can be attributed to the surging cloud-based enterprise applications in the region.

Competitive Landscape

Key 5G enterprise market players focus on infrastructure expansion, next-generation technology development, and partnerships toward progress in connectivity, security, and network customization to foster innovation and adoption across industries.

Cisco Systems, Inc. is a multinational digital communications technology company that offers solutions related to networking, cloud, and cyber security, among others. It was founded in 1984 and is headquartered in California, the United States.

Telefonaktiebolaget LM Ericsson is a leading telecommunications company that provides 5G network and telecommunication products and services to various businesses. It was established in 1876 and is headquartered in Stockholm, Sweden.

Huawei Technologies Co., Ltd. is a company that offers information and communication technology (ICT) infrastructure, along with smart devices. The company was founded in 1987 and is headquartered in Shenzhen, China.

Other market players include Nokia Corporation, NEC Corporation, Samsung Electronics, Verizon Communications, and Juniper Networks, Inc., among others.

Competitive Factors in the Global 5G Enterprise Market

• Delivering reliable, high-performance 5G services requires heavy investments in innovative network infrastructure, including base stations, small cells, and fiber optic networks.

• Non-stop innovation in 5G technology—including network slicing, edge computing, and massive MIMO—can be executed to further enrich service offerings.

• How to deal with diversified regional regulatory requirements and compliance is one of the driving factors for market entry and operation, hence supporting the 5G enterprise industry revenue globally.

• It will be able to attract special market niches with customized, one-of-a-kind 5G services such as private networks to enterprises, special IoT solutions, and applications that have stringent security requirements.

• Increased network coverage and scalable infrastructure will be required by a huge number of connected devices and applications, supporting the enterprise demand.

• It shall have very strong cybersecurity to protect the data and integrity of the network from attacks in compliance with strict data protection regulation laws.

• High service quality and reliability with excellent customer support achieve high customer satisfaction and loyalty. 

• Competitive models of pricing and cost-effective solutions can attract more enterprise customers, including small and medium-scale businesses. Effective marketing strategies and branding can improve market penetration and brand recognition, thus being more likely to create a prominent presence.

• A well-developed 5G ecosystem would mean a very wide range of device, application, and service compatibility—making it more appealing to enterprise customers. Constant and considerable investments in research and development are needed to maintain leadership through ongoing innovation and remaining at the forefront of any new technological shifts. 

• Seamless integration of 5G solutions with enterprises' current IT systems and infrastructure can make adoption easy and pave the way to new 5G enterprise market opportunities.

Key Indicators for Demand in the Global 5G Enterprise Market.

• Enterprises want to gain a competitive edge through innovative services that provide super experiences. This sees them adopt 5G technology to improve their service deliveries.

• 5G enterprise investments are also fostered by government policies and incentives that favour the implementation of 5G infrastructure and services.

• The adoption of 5G technology will have to do with the necessity of real-time flow tracking, increasing automation, and improvement in the efficiency of supply chain management.

• The exponential increase in data consumption and the need for high-speed data transfer and processing capabilities drive enterprises to adopt 5G networks, thus aiding the 5G enterprise market growth.

Key Indicators for Price in the Global 5G Enterprise Market.

• The cost of building and maintaining 5G infrastructure, including base stations, small cells, fibre optics, and network hardware, significantly influences pricing, hindering the 5G enterprise market growth.

• Regulatory policies and requirements, including compliance costs and taxes, can affect the pricing of 5G services.

• Ongoing operational and maintenance expenses, such as energy costs, labour, and repair services, affect the pricing of 5G services.

• Broader economic factors, such as inflation, exchange rates, and economic growth, can influence costs and pricing in the 5G enterprise market.

Key Highlights of the Report

5G Enterprise Market Report Snapshots

5G Enterprise Market Size

5G Enterprise Market Growth

5G Enterprise Market Trends

5G Enterprise Market Share

5G Enterprise Companies

5G Enterprise Market Regional Analysis