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5G to comprise more than 40% of spending on wireless network infrastructure by 2025

5G to comprise more than 40% of spending on wireless network infrastructure by 2025

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According to SNS Research, by the end of 2025 5G networks will comprise over 40% of spending related to wireless network infrastructure, compared to around 5% of all spending on wireless network infrastructure in 2020.

The spending amount will see a considerable growth due to the notable investments anticipated between 2020 and 2025 in 5G New Radio (NR), Next Generation (NextGen) core and transport (fronthaul/backhaul) networking infrastructure.

The mammoth report package – at more than 1500 pages – consists of a pair of comprehensive reports that evaluates the traditional 2G, 3G, 4G & 5G wireless network infrastructure market and the emerging HetNet submarket. The report package presents a detailed evaluation of the key market drivers, challenges, regional CapEx commitments, vendor strategies, and includes regional and global revenue and unit shipment projections for wireless network infrastructure, macrocell and the mobile transport submarkets from 2017 to 2030.

Revenues from 2G, 3G and 4G wireless infrastructure throughout the world amounted to nearly $56 billion in 2016, and in 2017, it is estimated that the market will see a 4% contraction basically due to a decline in standalone macrocell RAN infrastructure spending. However, the market will once again witness increase at an estimated CAGR of 2% between 2017 and 2020 on account of investments in HetNet infrastructure and launch of 5G NR from 2019 onwards, the researchers argue.

In other 5G related news, Ericsson in its latest Mobility Report last month saidthat there will be 1 billion subscriptions for 5G by 2023, covering over 20% of the world’s population by the end of that period.

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