The next-generation wireless communication market is projected to grow from an estimated USD 35.8 billion in 2024 to USD 95.0 billion by 2030, achieving a CAGR of 17.6%. This growth is driven by the increasing demand for advanced communication solutions, the expansion of the telecommunication industry, and government initiatives to bolster the global IT sector.
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Organizations are adopting innovative strategies to deploy 5G networks, including reducing the cost of small cells and generating interest among vertical players and MNOs. Software-defined networking (SDN) and network functions virtualization (NFV) offer virtualized, efficient network solutions, enhancing functionality via centralized operations.
To meet the rising need for seamless voice and data connectivity, numerous service providers have invested in 5G network realization. These developments include cost-effective small cells providing enhanced bandwidth options. Additionally, C-RAN advancements for 5G enable features such as network slicing and mobile edge computing (MEC).
The growing requirement for reliable communication in sectors like public safety, defense, and healthcare significantly propels market demand. For instance, in the U.K., over 3 million households gained access to full-fiber broadband in 2021–2022.
Key Market Insights:
- Hardware Dominance: Hardware leads with 45% revenue in 2024, comprising routers, modems, fiber-optic cables, and more.
- Software Growth: Software sees the highest CAGR (17.9%) during the forecast period due to its role in scalability and data traffic management.
- Cellular and Wi-Fi Segments: Cellular contributes 35% of revenue in 2024, while Wi-Fi is expected to grow at a CAGR of 18.2%, driven by IoT adoption.
- Regional Trends: North America leads with 45% market share, while APAC experiences the fastest growth (CAGR 17.9%) due to technological advancements and smart city projects.
- 5G Impact: Deployment of 5G significantly enhances the IT sector, with 5G access available to nearly half of U.S. mobile users in 2023.
