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Worldwide 5G Network Infrastructure Revenue to nearly double by 2020

Worldwide 5G wireless network infrastructure revenue will reach $4.2bn in 2020, according to Gartner Inc. This is an 89% increase from the 2019 revenue of $2.2bn.

Moreover, investments in 5G NR network infrastructure will account for 6% of the total wireless infrastructure revenue of communications service providers (CSPs) in 2019, and that this figure will reach 12% in 2020, according to the Gartner forecast.

Sylvain Fabre, senior research director at Gartner, commented that the 5G wireless network infrastructure revenue would nearly double between 2019 and 2020.  “For 5G deployments in 2019, CSPs are using non-stand-alone technology. This enables them to introduce 5G services that run more quickly, as 5G New Radio (NR) equipment can be rolled out alongside existing 4G core network infrastructure.”

In 2020, CSPs will roll out stand-alone 5G technology, which will require 5G NR equipment and a 5G core network. This will lower costs for CSPs and improve performance for users, the report added.

Acceleration of services
With 5G services set to launch across major cities in 2019 and 2020 and services already having begun in the U.S, South Korea and some European countries, including Switzerland, Finland and the U.K. CSPs in Canada, France, Germany, Hong Kong, Spain, Sweden, Qatar and the United Arab Emirates have announced plans to accelerate 5G network building through 2020. According to Gartner estimates, at least 7% of CSPs worldwide have already deployed 5G infrastructure in their networks

In Oman, we could potentially see the deployment of 5G technology by the end of 2019 or early 2020. The country’s Telecommunications Regulatory Authority (TRA) had in a statement earlier this year confirmed that operators in the country have been provided ‘all the tools’ required to build networks and are working closely with all stakeholders to ensure smooth and efficient deployment of 5G technology.

Expanding cover to include new enterprises
Gartner predicts that CSPs will also aim 5G services at enterprises, though consumers continue to represent the main segment driving the 5G market. According to the report, 5G networks will cast the net wider to include new industries such as smart factories, autonomous transportation, remote healthcare, agriculture and retail sectors, as well as enable private networks for industrial users. Oman is already ahead of the curve with its first smart city project to be powered by 5G underway.

READ: Oman’s 5G Digital Transformation

Gartner does not see national 5G coverage occur as quickly as past generations of wireless infrastructure. “To maintain average performance standards as 5G is built out, CSPs will need to undertake targeted strategic improvements to their 4G legacy layer, by upgrading 4G infrastructure around 5G areas of coverage. A less robust 4G legacy layer adjoining 5G cells could lead to real or perceived performance issues as users move from 5G to 4G/LTE Advanced Pro. This issue will be most pronounced from 2019 through 2021, a period when 5G coverage will be focused on hot spots and areas of high population density.”

 

 

 

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