Global 5G Enterprise segment pegged for 42% CAGR: Analysis

Market analyst forecasts adoption of 5G technology in enterprises to grow very rapidly in the near future, as it provides low latency along with better efficiency.

5 Gsmartphone
Pixabay/geralt

The newly released "5G Enterprise Market - Growth, Trends, and Forecast (2019 - 2024)" report from ResearchAndMarkets.com (Dublin, IR) investigates how adoption of 5G technology in enterprises is forecasted to grow rapidly in the near future, as it provides low latency along with better efficiency. The analyst expects the 5G Enterprise segment to register a healthy CAGR of over 42% during the forecast period (2019-2024). 

As broadly stated by the analyst, implementation of 5G across the enterprises is projected to not just provide a faster network, but is also anticipated to provide an "extreme user experience anywhere and anytime, even when the user roams across different operators globally." The report describes how such will be made possible due to "federated network slicing that is expected to enable seamless platform-sharing among operators, at a global scale, for continuous and guaranteed user experience."

The analysis takes into accout how demand for mobile data services is increasing due to the numerous modes of subscription available to users. After the commercialization of 5G network connectivity, very high demand for 5G-enabled smartphones with high-speed internet connectivity is expected, which is expected to be a key driver for the market.  

As the number of mobile users with video-centric content across the enterprises are increasing at a rapid pace for longer periods of time, using increasingly powerful smartphones, demand for radio access network (RAN) bandwidth is also expected to drive the market in future. 

The "Large Enterprise" market sub-segment is anticipated to grow significantly over the initial forecast period.

The report investigates how, in order to provide reliable customized services using limited network resources while reducing capital expenditure and operating expense of 5G networks, network slicing has recently been introduced in the wireless industry as the primary enabler of network service convergence and on-demand customized services specifically to cater applications across the large enterprises.

Reliable connections of a large number of widespread low-power nodes, such as wireless sensors, are needed across the enterprises, notes the analyst, to meet demand where the integration of 5G networks will be able to connect millions of devices under the constraints of low power consumption, and at low cost-per-device.

"Extremely low latency and high reliability of 5G networks will required to meet the performance requirements of real-time, reliable and secure communications in some vertical industries such as interconnected branch and industrial production control," added a spokesperson for ResearchandMarkets.com.

As for the overall competitive landscape, ResearchandMarkets.com's analysts hold that the 5G enterprise market is moderately competitive and currently consists of only a few players. However, with the advancement in network architecture across more telecommunications services, new players are expected to be seen increasing their market presence, thereby expanding their business footprint across emerging economies. 

For competitive highlights, the report covers how in August 2019, Qualcomm Technologies, Inc. announced the launch of the Qualcomm Networking Pro Series platforms, its second-generation Wi-Fi 6 networking offering, designed to deliver Wi-Fi 6 connectivity experience across the widest range of applications. 

Also, in July 2019, the analyst cites for special importance how Cisco and Acacia Communications announced that they entered into a definitive agreement under which Cisco has agreed to acquire Acacia. An existing Cisco supplier, Acacia designs and manufactures high-speed, optical interconnect technologies that allow webscale companies, service providers, and data center operators to meet the fast-growing consumer demands for data.   

View the report's TOC.

More in Wireless/5G