The launch and adoption of 5G in 2019-20 is expected to boost the Augmented Reality (AR) and Virtual Reality (VR) in the Indian market. The 5G networks which can provide a million connections within a square kilometer is expected to take the usage of IoT and the growth of on-demand video services to the next level.
The 5G is the fifth gen cellular mobile communications. It succeeds the 4G (LTE/WiMax), 3G (UMTS) and 2G (GSM) systems. 5G performance targets include high data rate, reduced latency, energy saving, cost reduction, higher system capacity and massive device connectivity. The first phase of 5G specifications in Release-15 will be completed by March 2019, to accommodate early commercial deployment. The second phase in Release-16 will be completed by March 2020, for submission to the ITU as a candidate IMT-2020 technology.
ITU IMT-2020: The ITU IMT-2020 standard provides for speeds up to 20 gigabits per second and has only been demonstrated with millimeter waves of 15 gigahertz and higher frequency. The more recent 3GPP standard includes any network using the NR New Radio software. 5G New Radio can include lower frequencies, from 600 MHz to 6 GHz. However, the speeds in these lower frequencies are only modestly higher than new 4G systems, estimated at 15% to 50% faster.
The 5G technology is expected to cater to the demand and provide the business frameworks needed beyond 2020. In addition to driving a connected society, 5G wireless technology will bring about socio-economic transformation through improved productivity, sustainability and well-being. Mobile 5G seems to be the next big thing in the global digital connectivity ecosystem. As the world is moving towards 5G networks, India is expected to play a leading role in formulating the technology standards under the Digital India program. The 5G market in India is expected to show a triple-digit growth rate during the forecasted period.
The 5G connections in India are expected to generate approximately USD 20 Billion revenue for the telecom companies by 2025. This is because Indian mobile companies are looking forward to providing high HD premium videos to their users by embracing 5G networks.
The India 5G market is classified into SIM cellular connections and SIM M2M cellular connections. These are further divided into data per user and 5G data traffic for each category. In India, SIM cellular connections hold the majority of the market share, whereas SIM M2M cellular connections are anticipated to grow at an increasing rate.
With the adoption of 5G, the networks can provide a million connections within a square kilometer, and this has become critical for companies who are working within the AR and VR segments.
Key drivers, growth factors and challenges:
Key Drivers: The major growth factors driving the India 5G market are continuous evolution towards enhanced bandwidth, lower latency, enhanced security and openness of mobile networks. 5G networks will provide affordable high speed connections to the vast population across rural and urban areas at reasonable prices, thereby reducing digital inequality.
Expected Growth in Figures: The 5G chipset market is expected to grow from USD 2.03 Billion in 2020 to USD 22.41 Billion by 2026, at a CAGR of 49.2% from 2020 to 2026.
Threats and Key Players: The region faces growth challenges, such as regulatory pressures, and new operator launches, with Airtel, Vodafone, BSNL, Idea, and Reliance Communication as key players.
The major driver for the growth of this market is the growing demand for high-speed internet and broad network coverage with reduced latency and power consumption. Moreover, increasing M2M/IoT connections and increasing demand for mobile data services are propelling the market growth.
In the IC type segment, ASIC is expected to hold the largest share of the 5G chipset market during the forecast period. Demand for ASICs in high-end smartphones is likely to be the key factor propelling the growth of the market. Many companies are in the process of developing ASIC chipsets to emerge as early providers and showcase commercial readiness for 5G.
In the operational frequency segment, sub-6 GHz frequency is expected to hold the largest share of the 5G chipset market. The market for mmWave frequency band (between 26 and 39 GHz) is expected to witness the highest growth during the forecast period. The wide availability of this frequency band and the ability to cater to multiple 5G use cases are likely to be the prime factors driving the adoption of this spectrum. High bandwidth offered by mmWave spectrum and the improving participation of telecom service providers in this spectrum are fueling the growth of this frequency band.
In the product segment, devices are expected to hold the largest market share. Demand for 5G-enabled smartphones is likely to be the key factor propelling the growth of the 5G chipset market. In addition, the development of cellular modems for consumer devices such as smartphones, tablets and laptops by companies such as Qualcomm (US) and Intel (US), and their partnerships with leading OEMs and carriers are expected to boost the growth of 5G devices by 2020.
Among the various end-user industries covered in this report, consumer electronics is expected to hold the largest market share. In the consumer electronics segment, 5G connectivity would have a major impact on smartphones, tablets, AR and VR devices, and wearable devices, among others. Smartphones and tablets will be the key attraction in the consumer electronics market for 5G network.
By region, North America is likely to hold the largest market share in terms of revenue in 2020. High demand for advanced technologies such as connected cars, machine-to-machine communication and artificial intelligence will offer huge opportunities for the growth of the 5G chipset market in North America. Moreover, North America is one of the leading markets for 5G in terms of R&D in 5G technology, network design/deployment and the presences of key market players. The market in APAC is expected to grow at the highest CAGR from 2020 to 2026. The growth of on-demand video services and IoT will drive the growth of the market in APAC.
The key restraining factors for this market are high hardware cost involved in terrestrial network densification and fragmented spectrum allocation. Qualcomm Technologies (US), Intel (US), Nokia (Finland), Samsung Electronics (US), Huawei (China), and Xilinx (US) are some of the leading players in the 5G chipset market. These companies focus on organic as well as inorganic growth strategies for their market expansion. New product developments/ launches and collaborations/ partnerships remain the key strategies for companies such as Intel, Nokia, Qualcomm, Samsung, and Qorvo. In January 2018, Intel (US), Deutsche Telecom (Germany), and Huawei (China) conducted the world’s first over-the-air test showcasing 5G interoperability and development testing (IODT) based on the Release 15 NSA 5G NR specification. The test was based on Huawei’s 5G commercial base station and Intel’s third-generation 5G NR Mobile Trial Platform.
Rise in the Use of Smart Devices and Increase in IT Security Budgets are Driving the Global Network Traffic Analysis Solutions Market
Rise in the use of smart devices and increase in IT security budgets are major factors that are expected to fuel the network traffic analysis solutions market across the globe. In the modern age, almost all industries require computers and the Internet in order to execute their work. The work is mostly done through websites or web-based applications. Increase in the use of the Internet worldwide opens new doors for data breaches and attracts new cyber-attacks on end-users across various sectors. Therefore, to minimize/ eliminate the chances of cyber-attacks, various organizations are compelled to increase their IT spending on advanced network security solutions. This, in turn, is expected to drive the network traffic analysis solutions market during the forecast period. Furthermore, proliferation of 5G technology is anticipated to create new opportunities for the growth of the network traffic analysis solutions market around the globe.
|Capability||Description||5G target||Usage scenario|
|Peak data rate||Maximum achievable data rate||
|User experienced data rate||Achievable data rate across coverage area||1 Gbit/s||eMBB|
|Latency||Radio network contribution to packet travel time||1 ms||
|Mobility||Maximum speed for handoff and QoS requirements||500 km/h||
|Connection density||Total number of devices per unit area||
|Energy efficiency||Data sent/received per unit energy consumption (by device or network)||Equal to 4G||eMBB|
|Area traffic capacity||Total traffic across coverage area||10 (Mbit/s)/m2||eMBB|
Development of 5G: Development of 5G is being led by companies such as Huawei, Intel and Qualcomm for modem technology and Lenovo, Nokia, Ericsson, ZTE, Cisco, and Samsung for infrastructure. AT&S is supporting the current roll-out of the 5G mobile communications generation with high frequency (HF) optimized interconnect solutions by developing and producing hybrid-printed circuit board (PCB) structures. Worldwide commercial launch of 5G is expected in 2019-20, with US & UK leading.
Progress of 5G Network Deployments in US and UK
|AT&T||To Be Announced|
|Verizon||Oct 1, 2018|
|Charter Communications||End 2018|
United Kingdom: EE, a large mobile network operator in the UK, plans to trial a 5G network in October 2018
3G VS 4G VS 5G
|Technology||Broadband with CDMA/IP technology||Unified IP and seamless combination of LAN/WAN/WLAN/PAN||4G+WWWW|
|Service||Integrated high-quality audio, video and data||Dynamic information access, variable devices||Dynamic information access, variable devices with all cabalities|
After the launch of 5G in 2019-20, the demand for video services, AR and VR services, 5G chipsets, 5G-related equipment, IoT related services and solutions is expected to rise phenomenally.