COVID-19 update included
The content of this report will be updated with the latest scenarios based on the global COVID-19 Pandemic

5G System Integration Market Growth & Trends

The global 5G system integration market size is estimated to reach USD 31.41 billion by 2027, registering a CAGR of 23.8% from 2020 to 2027, according to a new study by Grand View Research, Inc. Robust increase in the investments to deploy 5G network infrastructures across key countries, such as U.S., China, and Japan, has created the demand for integrating entire fifth generation infrastructure and applications across enterprises. This process will help enterprises to work as a centralized platform that will assist in reducing overall complexity. Thus, robust investments in building fifth generation infrastructure, coupled with growing need to set up a 5G-enabled ecosystem, are estimated to propel the market growth.

Rapidly building smart cities have surged the adoption of numerous Internet of Things (IoT) devices across the globe. IoT devices require enhanced bandwidth to function appropriately. Thus, in order to provide high-speed broadband by supporting fifth generation New Radio (NR), such as sub-6GHz and mmWave frequency bands, the entire infrastructure across these smart cities need to be upgraded in line with supporting fifth-generation radio network. Therefore, it is further estimated to boost the market growth from 2020 to 2027.

Moreover, with the evolution of industry 4.0, adoption of industrial sensors and collaborative robots is gaining popularity in the manufacturing sector across the globe. Therefore, to deliver seamless network connectivity to these above-mentioned devices, it is anticipated to raise the demand for 5G system integration services to make entire manufacturing facilities compatible with supporting next-generation 5G NR.

Rapidly rising digital transformation has disrupted the entire operation of the manufacturing industry. This has increased the trend of the machine to machine (M2M) communications to increase overall productivity as well as streamline the whole process. As a result, this has further expanded the need for high broadband to deliver uninterrupted connectivity to the industrial sensors and robots. Therefore, growing need for high broadband connectivity to establish seamless communication between machines is expected to elevate the demand for 5G system integration services in the next few years.

Furthermore, with the emergence of new technologies, such as network slicing and software-defined networking (SDN), adoption of 5G system integration will witness a rapid surge to reduce overall enterprise infrastructure costs. Moreover, highly trained professionals will be required to implement and manage the fifth generation system integration services. This is anticipated to hinder the market growth over the forecast period.

Moreover, the outbreak of COVID-19 is considerably impacting the overall market growth. Many enterprise offices are temporarily under the shutdown in key countries, such as U.S., Japan, and South Korea. Furthermore, network equipment providers have delayed the deployment of fifth generation infrastructure due to the pandemic. However, many federal governments across key countries, such as U.S., Germany, and U.K., are planning to release new guidelines to reopen the business offices in the latter part of 2020. As a result, it is anticipated to increase the demand for fifth generation system integration services over the forecast period.

5G System Integration Market Report Highlights

  • The market in North America accounted for more than 30.0% share in 2019. The growth is attributed to rising investments by large 5G operators, such as AT&T, Inc. and Verizon Communications, in deploying 5G network infrastructures, along with growing demand for 5G system integration services across large enterprises to build a 5G-enabled ecosystem
  • The manufacturing sector is projected to witness the fastest growth over the forecast period owing to rising demand for fifth generation system integration services to provide seamless communication between sensors and robots
  • Large enterprises are increasingly focusing on building a 5G-enabled ecosystem on the account of intense competition in the market. This is expected to propel the demand for infrastructure integration services during the next few years
  • Prominent market players are aggressively focusing on building partnerships and entering into agreements to strengthen their overall product portfolios as well as to enhance the global market presence.