The telecommunications industry remains a key force for growth, innovation, and disruption in many industries. Every technology generation opens up new possibilities for telecommunication players. Now, 5G technology is being tested and will be launched in certain markets later this year.
A new report from the International Data Corporation ( IDC) presents IDC’s initial forecast for the global 5G network infrastructure market for the period 2018-2022. 5G devices will start to hit the market, and end users can experience 5G technology.
From the infrastructure point of view, the mobile industry continues to test innovative solutions that use new spectrum, network virtualization, machine learning, and AI that create new value from existing network services. It is clear that 5G NR will enable faster speed and increased capacity at a lower cost per bit in the next mobile generation. 5G will usher a user with a large number of new applications where the speed will almost be 1000 times greater than 4G.
Although selected cities are experiencing 5G NR today, the full range of 5G potential will take several years to arrive, requiring additional standard work and testing. In combination, IDC expects the total network infrastructure market of 5G to grow from $528 million in 2018 to $26 billion in 2022 with a compound annual growth.
Mobile operators are preparing to adopt the technology by understanding the opportunities to capture value from new 5G options. Also, the adoption of the IoT grows to a certain extent with 5G technology. Mobile operators need to understand the need to increase their investment in this technology infrastructure. In the meantime, operators will need to upgrade their 4G networks to meet the growing demands.
5G, the next generation of technology, offers mobile operators more opportunities and requires more infrastructure investment. Mobile operators need to understand how network infrastructure will develop in the coming years to maximize their returns on 5G.