5G System Integration Industry Overview
The global 5G systems integration market size is estimated to reach USD 62.69 billion by 2030, registering a CAGR of 27.3% from 2022 to 2030, according to a new study by Grand View Research, Inc. Robust increase in the investments to deploy 5G network infrastructures across key countries, such as U.S., China, and Japan, has created the demand for integrating entire fifth generation infrastructure and applications across enterprises. This process will help enterprises to work as a centralized platform that will assist in reducing overall complexity. Thus, robust investments in building fifth-generation infrastructure, coupled with the growing need to set up a 5G-enabled ecosystem, are estimated to propel market growth.
Rapidly building smart cities have surged the adoption of numerous Internet of Things (IoT) devices across the globe. IoT devices require enhanced bandwidth to function appropriately. Thus, in order to provide high-speed broadband by supporting fifth-generation New Radio (NR), such as sub-6GHz and mmWave frequency bands, the entire infrastructure across these smart cities need to be upgraded in line with supporting fifth-generation radio network. Therefore, it is further estimated to boost the market growth from 2022 to 2030.
Moreover, with the evolution of industry 4.0, the adoption of industrial sensors and collaborative robots is gaining popularity in the manufacturing sector across the globe. Therefore, to deliver seamless network connectivity to these above-mentioned devices, it is anticipated to raise the demand for 5G system integration services to make entire manufacturing facilities compatible with supporting next-generation 5G NR.
Rapidly rising digital transformation has disrupted the entire operation of the manufacturing industry. This has increased the trend of the machine-to-machine (M2M) communications to increase overall productivity as well as streamline the whole process. As a result, this has further expanded the need for high broadband to deliver uninterrupted connectivity to industrial sensors and robots. Therefore, the growing need for high broadband connectivity to establish seamless communication between machines is expected to elevate the demand for 5G system integration services in the next few years.
Furthermore, with the emergence of new technologies, such as network slicing and software-defined networking (SDN), the adoption of 5G system integration will witness a rapid surge to reduce overall enterprise infrastructure costs. Moreover, highly trained professionals will be required to implement and manage the fifth-generation system integration services. This is anticipated to hinder the market growth over the forecast period.
Moreover, the outbreak of COVID-19 is considerably impacting the overall market growth. Many enterprise offices are temporarily working with limited workforce capacity in key countries, such as U.S., Japan, Germany, U.K., and South Korea. Besides, the network equipment providers have delayed the deployment of 5G infrastructure due to the pandemic. However, federal governments across the above-mentioned key countries set new guidelines to reopen the business offices and released packages to boost the economic growth. Therefore, it is anticipated to increase the demand for the global 5G system integration services over the forecast period.
5G Systems Integration Market Segmentation
Grand View Research has segmented the global 5G systems integration market based on services, vertical, application, and region:
Based on the Services, the market is segmented into Consulting, Infrastructure Integration, and Application Integration.
- The infrastructure integration segment dominated the market for 5G system integration with a market share of more than 38% in 2021 and is expected to register the fastest CAGR from 2022 to 2030. This is attributed to the surging demand for the integration of traditional network infrastructure with the next-generation network infrastructure. Thus, integration of legacy infrastructure facilitates users to access the same hardware with enhanced features, thereby reducing the additional costs of hardware. In addition, the infrastructure system integration services consist of network integration, building management, and Data Center Infrastructure Management(DCIM).
- The consulting segment is expected to expand at a CAGR of 31% in the forecast period. With the rapidly augmenting demand for 5G technologies, such as network equipment, business enterprises initially approach system integrators to build upgraded network architecture for their organizations.
Based on the Vertical, the market is segmented into Manufacturing, Energy Utility, Media Entertainment, IT Telecom, Transportation Logistics, BFSI, Healthcare, Retail, and Others.
- The IT and telecom segment dominated the market for 5G system integration with a share of 25.6% in 2021 and is anticipated to register a considerable CAGR from 2022 to 2030. This is attributed to surging demand for 5G integration services across various IT and telecom companies to support New Radio (NR) waves.
- As digitalization is becoming popular in the manufacturing sector, the production lines are being continuously automated to improve overall production efficiency. This has triggered the need for seamless wireless communicationbetween the industrial robots, actuators, sensors, and other devices mounted in manufacturing facilities.
Based on the Application, the market is segmented into Smart City, Collaborate Robot /Cloud Robot, Industrial Sensors, Logistics Inventory Monitoring, Wireless Industry Camera, Drone, Home and Office Broadband, Vehicle-to-everything (V2X), Gaming and Mobile Media, Remote Patient Diagnosis Management, Intelligent Power Distribution Systems, P2P Transfers /mCommerce, and Others.
- The home and office broadband segment dominated the global market with a share of 23.7% in 2021 and is expected to register a considerable CAGR from 2022 to 2030. This is attributed to the growing need for 5G system integration services to provide initially enhanced Mobile Broadband (eMBB) connectivity to consumers and enterprises. Moreover, a remarkable increase in IoT devices across rapidly building smart citiesworldwide is expected to surge the demand for 5G system integration services to make these devices compatible with next-generation network services.
- The adoption of connected sensors and collaborative robots is witnessing a significant rise in industrial applications across the globe. This is expected to drive the demand for next-generation data services to establish seamless connectivity, which, in turn, is projected to fuel the segment growth over the forecast period.
Key Companies Market Share Insights
The market is moderately fragmented due to the presence of several players operating in the market. Key players are focusing on making adequate investments in developing systems integration software, building partnerships and agreements, platforms, and other solutions to enhance their overall product portfolios. For instance, Huawei Technologies Co., Ltd. has announced an investment of around USD 350 million over the next three years. This strategic investment is expected to be focused on developing system integration services solutions, such as tools, platforms, and consulting services, related to 5G system integration across numerous verticals.
In October 2021, Accenture, Stellantis, and TIM Brazil are collaborating on a private 5G network trial project at the Stellantis plant in Goiana, northeastern Brazil. Stellantis has enhanced its automotive manufacturing productivity, safety, and business agility since the network's introduction in July. Some of the key players in the global 5G systems integration market include:
- Accenture Inc.
- Cisco Systems, Inc.
- Huawei Technologies Co., Ltd.
- Infosys Limited
- Tata Consultancy Services Limited
- Wipro Limited
- Radisys Corporation
- IBM Corporation
- HPE
- Oracle Corporation
- HCL Technologies Limited
- ALTRAN
- AMDOCS
- CA Technologies
- Hansen Technologies
- Samsung Electronics Co., Ltd.
- Ericsson
- Keysight Technologies
- ECI TELECOM
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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