5G Industry Vertical

5G is expected to bring about fundamental structural economic changes, such as significantly lower broadband pricing as a whole, and much greater flexibility for vertical industries including enterprise, industrial, and government market segments in terms of how they connect public to private networks. The use cases for the 5G applications market are many and varied in terms of type, industry vertical focus, and requirements.  Correspondingly, each scenario will have its own network configuration of requirements and parameters.

 

5G will be significantly faster than LTE with much lower latency due to faster overall throughput. However, there are many challenges including the fact that the new radio component via millimeter wave (mmWave) RF has a high degree of attenuation (loss over the air and when hitting solid objects). Therefore, the industry needs to deploy smart antennas (with beamforming and MIMO). Also, the higher frequency mmWave RF is line of sight based because of the high degree of fading. Because of all of the aforementioned, there must also be many more cell sites deployed than ever before – like a factor of 10X or more.

 

5G device is the key enabler of the entire 5G ecosystem creating an era of innovative use cases in many industries. Not just the 5G enabled smartphone, the 5G device ecosystem welcomes many other types of devices such as portable devices or system, unmanned devices, home devices, and similar other devices.

 

The merger between connected IoT ecosystem and 5G capabilities broadened the use of diversified system and devices in the ecosystem.  The new ecosystem creates various innovative use cases such as autonomous drones, vehicle on-board units, smart city applications, and many other applications that ultimately helps increasing efficiency and productivity for governments, enterprises, and businesses especially in post pandemic world.

 

5G ecosystem invites not only customer premises equipment (CPE) devices but also various types of non-CPE devices such as smart masks, smart shoes, and similar devices. Some of the CPE devices include hotspot device, routers, IoT modems and other devices.

 

5G Market in Industry Vertical Dynamics

With 5G, the application horizon will also be multiplied and diversification will be the new reality. Connected factories, autonomous car and connected traffic system, remote machine operation, mission critical application like disaster recovery, cloud robotics and many more will the new reality. Business applications will also be shifted from software driven automation to increasingly greater programmability and data driven service systems.

 

The business market for 5G will be a major growth area. The vast majority of 5G service provider profits will result from the business market rather than the consumer segment. The latter will generate additional revenues, but margins will be very thin as compared to business segments including enterprise, industrial, and government sectors. Accordingly, the business to business (B2B) market is viewed as significantly more attractive than the business to consumer (B2C) market for 5G by Mind Commerce. We see the 5G business services market developing as communication service providers offer both B2B direct as well as B2B to business (B2B2B) through third party channels.

 

One of the primary 5G B2B market opportunities will be fixed wireless access (FWA) to enterprise and industrial customers as a complement (not a replacement) to cable, fiber and Ethernet. For certain situations, such as time sensitive networks that require ultra-reliability, 5G will be an alternative to other wireless options. However, WiFi 6 will be a viable option vs. 5G for indoor, driven by scenario specific issues such as existing wireless, solution requirements, and overall economics.

 

The 5G business services market will also be very important in support of private wireless networks for both fixed wireless WAN connectivity for business-owned networks as well as carrier turn-key solutions involving both 5G and edge computing deployments. Communication service providers will position turn-key offerings as a “future-proof” alternative to enterprise and industrial customer network ownership. Part of this turn-key value proposition is carrier managed services as opposed to the business customer managing in-house and/or hiring a third party for network and/or application management.

 

However, some business and government customers will indeed choose to deploy and operate their own private wireless networks, relying upon carriers in these scenarios only for network-as-a-service based WAN access to connect private wireless networks to the public network. For these use cases, enterprise and industrial customers will not require any other 5G business services market offerings. Instead, they will only require connectivity and communications with the public communications service provider (e.g., no computing) and may utilize their own computational infrastructure. In these scenarios, the enterprise or industrial customer will manage their own edge computing dependent apps, or more likely, hire their own third-party team to manage on their behalf.

 

The 5G B2B market will also be very important for smart cities, arguably much more important than B2C smart city applications. By way of example, Mind Commerce sees 5G business services market comprised largely of point solutions like the aforementioned fixed wireless WAN connectivity for businesses. One very good example of a point solution is surveillance cameras as 5G will allow for placement virtually anywhere in an outdoor environment that there is line of sight with a 5G smart antenna.

 

 

Overall, 5G is anticipated to make a huge impact on the global economy. On the supply side, the cost-per-bit will plummet with 5G. This is due to both 5G being more efficient than its predecessors as well as providing competition to wired broadband solutions such as cable and fiber. Connectivity and transport cost structures will hasten their already downward trajectory as communication options increase substantially.

 

5G Market in Industry Vertical Report

The report evaluates the development and deployment trend of 5G core technology along with the progress of enabling technologies. It also addresses specific role of value chain partners and potential application areas in various industry verticals. Under each industry vertical, the report pinpoints specific trends, use cases, the device and application, successful case studies, and ROI analysis from enterprise perspective.

 

The report also addresses specific business application under each industry verticals along with 5G enterprise subscription and the specific device deployment unit. The report additionally covers 5G device and service companies along with exclusive recommendation for stakeholders and projections of 5G market in each of industry vertical, 5G enterprise subscription, and 5G device unit deployment during 2022 – 2030.

 

Report Benefits

  • Understand 5G technology, current deployment trend, and enabling technology
  • Understand the market dynamics and the role of value chain partners
  • Learn 5G relevance with vertical industries along with key trends, 5G device, 5G application, case studies, and ROI analysis under each industry vertical
  • Learn 5G device and service strategies of vendor companies
  • Learn the market projection for 5G device, application and security solution in each industry vertical during 2023 – 2028 along with 5G enterprise subscription and 5G device unit deployment
  • Learn exclusive recommendation for 5G value chain partners 

 

Select Findings

  • 5G is expected to create USD $631 billion market opportunity in vertical industries by 2030
  • Smart Building industries will lead the market followed by automotive and aerospace industry
  • 5G Apps and service will occupy highest market share comparing 5G CPE/Non-CPE Device and 5G security solution
  • 5G enterprise subscription poised to reach 6 billion by 2030
  • 5G enterprise device unit deployment poised to reach 1.7 billion by 2030
  • North America will lead the market followed by APAC region