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5G Services Market Size, Share, Growth & Industry Analysis, By Communication Type (Enhanced Mobile Broadband (eMBB), Ultra-Reliable and Low-Latency Communications (uRLLC), Massive Machine-Type Communications (mMTC), By End User (Individuals, Enterprises), and Regional Analysis, 2021-2031 2024-2031
Pages: 160 | Base Year: 2023 | Release: January 2025 | Author: Sunanda G.
5G services refer to the wide range of applications and offerings enabled by 5G technology, providing enhanced connectivity solutions to consumers and businesses.
These services offer high-speed, low-latency, and massive connectivity capabilities of 5G networks, enabling high-definition video streaming, cloud gaming, and IoT connectivity. 5G services support industries with private networks, smart cities, autonomous vehicles, and remote healthcare, driving innovation across sectors.
5G Services Market Overview
Global 5G services market size was valued at USD 85.15 billion in 2023, which is estimated to be valued at USD 110.33 billion in 2024 and reach USD 819.75 billion by 2031, growing at a CAGR of 33.18% from 2024 to 2031.
The significant growth of the market is largely driven by the need for faster internet speeds. With the increasing consumption of high-definition video content, cloud gaming, and real-time communication, users demand more bandwidth and lower latency. This surge in demand for high-speed connectivity in personal and professional settings is a critical factor propelling the rapid expansion of 5G services.
Major companies operating in the global market are China Mobile International Limited, Verizon, AT&T Inc., China Telecom Corp. Ltd., China Unicom Ltd., NTT Communications Corporation (NTT Docomo), SK Telecom Co., Ltd., KT Corp., Vodafone Group, Deutsche Telekom AG, Orange Business, Airtel India, Reliance Industries Limited (Reliance Jio Infocomm Ltd.), Telstra Enterprise International, T‑Mobile USA, Inc., and others.
The rapid expansion of 5G networks worldwide is driving the growth of the 5G services market. As network providers continue to roll out 5G infrastructure across major regions, the global coverage of high-speed, low-latency networks is increasing. This widespread deployment enables consumers and businesses to access advanced 5G services, stimulating demand for applications requiring faster data transfer and more reliable connectivity.
Market Driver
Growing adoption of 5G connected devices
The proliferation of Internet of Things (IoT) devices in healthcare, manufacturing, and smart cities significantly contributes to the growth of the 5G services market. IoT solutions require networks that can handle large volumes of connected devices, deliver ultra-reliable low-latency communications, and support vast data transmission.
5G’s capabilities align with these requirements, ensuring the effective operation of smart devices and enhancing the scalability of IoT networks. As IoT applications continue to expand globally, the demand for 5G services will increase, driving market growth.
Market Challenge
High cost of 5G infrastructure deployment
A significant challenge for the growth of the 5G services market is the high cost of infrastructure. The extensive investment required for constructing 5G networks, including base stations, spectrum licenses, and backhaul connectivity, is a major barrier for many operators.
To address this, companies are increasingly adopting strategies such as public-private partnerships, sharing network infrastructure, and leveraging advanced technologies like network virtualization and cloud computing to reduce operational costs.
Additionally, some operators are focusing on phased rollouts in high-demand areas, optimizing resource allocation, and leveraging 4G networks as complementary infrastructures to accelerate 5G adoption.
Market Trend
Network slicing, paving the way for adoption of 5G network
Network slicing, a key feature of 5G technology, is playing an important role in driving the growth of the 5G services market. By enabling operators to create tailored, dedicated networks for specific applications or industries, network slicing ensures that 5G networks can efficiently support diverse use cases with varying performance requirements.
This flexibility allows manufacturing, logistics, and entertainment segments to benefit from customized connectivity solutions. The growing adoption of network slicing by operators and businesses will continue to accelerate the expansion of the market.
Segmentation |
Details |
By Communication Type |
Enhanced Mobile Broadband (eMBB), Ultra-Reliable and Low-Latency Communications (uRLLC), Massive Machine-Type Communications (mMTC) |
By End User |
Individuals, Enterprises (Manufacturing, Healthcare, Transportation, Media & Entertainment, Government, and Others) |
By Region |
North America: U.S., Canada, Mexico |
Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe | |
Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific | |
Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa | |
South America: Brazil, Argentina, Rest of South America |
Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
The Asia Pacific 5G services market share stood at around 36.35% in 2023, with a valuation of USD 30.95 billion. Asia-Pacific countries, particularly China, Japan, and South Korea, are at the forefront of smart city initiatives, aiming to enhance urban infrastructure, improve sustainability, and optimize public services using advanced technologies. 5G is a vital part of smart city projects, enabling real-time data exchange between connected devices and infrastructure.
Furthermore, with a rapidly growing population, increasing urbanization, and a robust middle class, the demand for high-speed, reliable internet is soaring across the region.
This demand is being driven by a tech-savvy population, an increase in connected devices, and the growing dependence on digital services such as online education, e-commerce, and telemedicine. The need for faster, more reliable internet connections, which 5G provides, is thus propelling the growth of the market in Asia-Pacific.
Europe is poised for significant growth at a robust CAGR of 33.87% over the forecast period. European governments are strongly supporting the deployment of 5G networks through favorable regulatory policies and strategic investments. Initiatives such as the European Commission’s Digital Decade plan and national 5G strategies are accelerating the rollout of 5G infrastructure, providing a robust foundation for the growth of the 5G services market.
The increasing popularity of mobile gaming, augmented reality (AR), and virtual reality (VR) in Europe is driving the demand for 5G services. The high-speed, low-latency nature of 5G networks is crucial for providing seamless and immersive digital experiences, making it a key enabler for the growth of the digital entertainment sector in the region.
The global 5G services market is characterized by a large number of participants, including both established corporations and rising organizations. Companies are adopting strategies like new product launches to accelerate the growth of the market, with key advancements such as the world’s first commercial deployment of 5G Advanced (5G-A) technology playing a crucial role.
This groundbreaking launch demonstrates how companies are pushing the boundaries of 5G capabilities by introducing more advanced, high-performance solutions.
By integrating 5G-A technology into real-world applications, such as enhanced mobile broadband, low-latency communication, and support for the IoT, businesses are setting new standards. These innovations are meeting the growing demand for more robust, future-proof services, driving adoption across multiple sectors and significantly contributing to the market expansion.
Recent Developments (Partnerships/Agreements/New Product Launch)