Global 5G network infrastructure revenue will reach 19 billion U.S. dollars

Communication service providers (CSPs) in mature markets accelerated the development of 5G in 2020 and 2021, and this year 5G accounts for 39% of total wireless infrastructure revenue

According to Gartner's latest forecast, global 5G network infrastructure revenue is expected to grow by 39% in 2021, reaching 19.1 billion U.S. dollars, higher than 2020's 13.7 billion U.S. dollars.

 

According to the analyst firm, communication service providers (CSPs) in mature markets have accelerated the development of 5G in 2020 and 2021, and 5G will account for 39% of total wireless infrastructure revenue this year.

 

Michael Porowski, senior principal research analyst at Gartner, said: "The COVID-19 pandemic has surged in demand for optimized and ultra-high-speed broadband connections to support work from home and high-bandwidth applications such as streaming videos, online games, and social media applications. ...

 

5G is the fastest growing segment of the wireless network infrastructure market. According to Gartner, in the market segments that include wireless infrastructure in this forecast, the only important opportunity for investment growth is 5G.

 

In all regions, investment in traditional wireless power generation is rapidly deteriorating, and as CSP shifts to 5G small cells, expenditures on non-5G small cells will also decline.

 

Table 1: Global wireless network infrastructure revenue forecast (millions of dollars)

Source: Gartner (August 2021)

 

From a regional perspective, the 5G revenue of North American CSPs will increase from US$2.9 billion in 2020 to US$4.3 billion in 2021, partly due to the increased adoption of dynamic spectrum sharing and millimeter wave base stations. In Western Europe, CSP will prioritize licensed spectrum, mobile core infrastructure modernization and regulatory processes, and 5G revenue is expected to increase from US$794 million in 2020 to US$1.6 billion in 2021. It is expected that Greater China will maintain its position as the number one in the world. In 2021, 5G revenue will reach 9.1 billion U.S. dollars, higher than 2020's 7.4 billion U.S. dollars.

 

Although 10% of CSPs will provide commercial 5G services in 2020, which can achieve multi-region availability, Gartner predicts that this number will increase to 60% by 2024, which is similar to the past LTE and 4G adoption rates.

 

Gartner customers can learn more in the reports "Predictive Analysis: Global Communication Service Provider Operation Technology" and "Forecast: Global Communication Service Provider Operation Technology 2019-2025, Update for the Second Quarter of 21".

 

Gartner is a research and consulting company and a member of the Standard & Poor's 500 Index. It provides business leaders with insights, recommendations and tools to achieve the priority of critical tasks.

 

The company is a consultant and resource for more than 14,000 organizations in more than 100 countries.