5G Infrastructure Market Estimated to Reach $44.9 Billion by 2025
Post COVID-19, the 5G infrastructure market is estimated to grow from $12.6 billion in 2020 and projected to reach $44.9 billion by 2025, at a CAGR of 28.97%, according to ResearchAndMarkets. The projection for 2025 is estimated to be down by 22.79% as compared to pre COVID-19 estimation.
The major factors driving the growth of the global 5G infrastructure market is the need for high data transfer speed with low latency, increasing adoption of IoT devices, rising implementation of automation technologies across the end-user industries, and exponential rise in data traffic.
Macro cells provide radio coverage for cellular networks and comprise the bulk of 4G/5G data traffic. Though macro cell sites are costly to deploy, they generate a higher average gross margin compared with small cells. Since one macro cell can cover several small cells.
The impact of COVID-19 on macro cells is expected to be high as operators are seeking to minimize their capital spending to remain in the growth stage.
However, the COVID-19 crisis has made end users realize the true value of automation, IoT, and digitalization, who are now anticipated to increase their focus on implementing 5G wireless technology across their facilities, leading to aggressive deployment of macro cells during 2020-2025.
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