5G set to takeover after hitting new highs in revenue

5G infrastructure is set to boom worldwide, with revenue predicted to grow by up to 39% in 2021, according to a report by analyst firm Gartner.

Overall, 5G spend is on track to grow to a total of $19.1 billion this year – up from $13.7 billion in 2020.

Proving to be the fastest-growing segment in the wireless network infrastructure market, 5G has officially made up 39% of total global wireless infrastructure revenue.

Gartner attributes the Covid-19 pandemic with helping the boost in revenue as it saw an increased demand for optimised and ultrafast broadband connectivity to support working from home, video streaming and online gaming.

As investment in 5G has strengthened, telecoms operators have shifted spending away from older connectivity technology such as 2G, 3G and 4G. Revenue from 4G infrastructure is expected to hit $14.5 billion in 2021, down from $17.1 billion in 2020, while 3G and 2G revenues are also set to drop from $3.1 billion in 2020 to $1.9 billion this year.

Hybrid working and more people transitioning from home to the office means there is a demand for smooth and reliable connectivity which should mean 5G networks will only continue to grow. Gartner also forecasts that 5G will grow to reach 60% of ‘Tier 1’ cities by 2024 as the demand for smart cities, homes and offices increase.

Communication service providers will also benefit from this increase with a range of network services that collaborate well with 5G, such as passive optical network, on offer.

“The Covid-19 pandemic spiked demand for optimized and ultrafast broadband connectivity to support work-from-home and bandwidth-hungry applications, such as streaming video, online gaming and social media applications,” said Michael Porowski, senior principal research analyst at Gartner.

“Business and customer demand is an influencing factor in this growth. As consumers return to the office, they will continue to upgrade or switch to gigabit fibre to the home (FTTH) service as connectivity has become an essential remote work service.”