5G Enterprise Market

Market Overview:

The global 5G enterprise market size reached USD 4.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 45.5 Billion by 2032, exhibiting a growth rate (CAGR) of 30% during 2024-2032. The growing need for high-speed connectivity among businesses and rising utilization of various smart and efficient electronic devices are some of the major factors propelling the market. In response to this growing need, key market players are expanding their frequency bands to provide enhanced service speeds, highlighted by T-Mobile's acquisition of an additional 2.5 GHz spectrum in March 2024, which boosted their download speeds by an impressive 29.64 Mbps. 

5G enterprise refers to the application of 5G technology in enterprise environments to deliver advanced connectivity solutions and support a wide range of business applications. It involves the deployment of 5G networks, devices, and services specifically tailored to meet the connectivity requirements of enterprises across various industries. It also plays a vital part in enabling and managing IoT deployments within enterprise environments. Furthermore, it presents the concept of network slicing, allowing enterprises to create virtualized and isolated network instances within a shared infrastructure.

At present, the increasing demand for 5G enterprises to run data-intensive applications in companies is impelling the growth of the market. Besides this, the rising adoption of remote working models wherein employees carry out official duties from their homes is contributing to the growth of the market. In addition, the growing integration of remote monitoring systems to analyze the activities of employees during work hours is offering a favorable market outlook. Apart from this, the increasing construction of smart cities around the world to improve living conditions is supporting the growth of the market. Additionally, the rising purchases of electric vehicles (EVs) and connected vehicles, as they are efficient and sustainable, is strengthening the growth of the market. Moreover, the increasing adoption of private networks among businesses to address their specific connectivity needs and customization preferences is bolstering the growth of the market.

5G Enterprise Market Trends/Drivers:

Rising digital transformation of businesses

At present, there is an increase in the occurrence of digital transformation in businesses to achieve operational efficiency and amplify production facilities. Digital transformation relies on the employment of cloud computing, artificial intelligence (AI), Internet of Things (IoT), and big data analytics for automation, improved data analysis, and enhanced communication. It can provide a competitive advantage by improving operational efficiency, streamlining processes, and enabling faster decision-making. It also enables businesses to respond to market changes more quickly, innovate faster, and stay ahead of their competitors. One of the most crucial aspects of the digital transformation of any enterprise is the integration of high-speed and stable 5G connectivity, as it helps them to expand their reach and tap into new markets, driving growth and revenue.

Increasing utilization of smart devices

Smart devices, including smartphones, tablets, and laptops, offer the opportunity to access the internet effortlessly and communicate with individuals who are in distant regions. Besides this, it consists of various consumer electronics which are integrated with smart features, such as smart refrigerators, smart air conditioners (ACs), and smart vacuum cleaners, which are connected to mobile phones and can be controlled remotely. Every smart device relies on internet connectivity to function properly and follow instructions provided by the users. Hence, as the rate of utilization of smart devices is increasing, the demand for 5G enterprises is also rising around the world.

Growing demand for high-speed connectivity

There is currently a rise in the proliferation of digital content and online services, which is significantly increasing the rate of data consumption. The streaming of high-definition (HD) videos, online gaming, video conferencing, cloud-based applications, and large file transfers are a few examples of data-intensive activities that require high-speed connectivity. Besides this, the adoption of cloud computing services is growing rapidly, which is increasing the demand for high-speed connectivity in enterprises. Moreover, the increasing adoption of work-from-home (WFH) models among corporate employees to maintain a proper work-life balance is propelling the demand for 5G internet. Furthermore, the rising utilization of various video conferencing platforms to communicate with individuals and discuss aspects of work is catalyzing the demand for 5G enterprises.

5G Enterprise Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global 5G enterprise market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on frequency, spectrum, network type, organization size, and industry vertical.

Breakup by Frequency:

• Sub-6Ghz
• mmWave
   

Sub-6Ghz dominates the market

The report has provided a detailed breakup and analysis of the market based on the frequency. This includes sub-6Ghz and mmWave. According to the report, sub-6Ghz represented the largest segment as it offers several advantages in terms of coverage and penetration compared to higher frequency bands. It includes various bands, such as 600 MHz, 700 MHz, 850 MHz, 900 MHz, 1.8 GHz, 2.1 GHz, 2.3 GHz, 2.6 GHz, and others. These frequencies are commonly used by existing 3G and 4G networks, and they are repurposed for 5G as well. Sub-6 GHz frequencies provide broader coverage and better signal propagation characteristics. It can reach longer distances and penetrate buildings and obstacles more effectively, which are typically used for high-capacity and low-latency applications. Furthermore, sub-6 GHz frequencies are well-suited for providing reliable connectivity in large office buildings, campuses, and other enterprise environments wherein extensive coverage is required.

Breakup by Spectrum:

• Licensed
• Unlicensed/Shared
   

Licensed holds the biggest share in the market

A detailed breakup and analysis of the market based on the spectrum have also been provided in the report. This includes licensed and unlicensed/shared. According to the report, licensed accounted for the largest market share.

Licensed 5G enterprise deploys 5G networks in enterprise environments using licensed spectrum. It ensures interference-free communication as it is dedicated to authorized service providers. It also allows for reliable and high-quality connections, minimizing the risk of congestion and maintaining a consistent user experience. It ensures compliance with regulatory requirements set by governing bodies, as licensed operators are obligated to adhere to certain standards, regulations, and guidelines related to network performance, security, and privacy. It is managed by authorized service providers, giving them full control over the network infrastructure, connectivity, and quality of service. Furthermore, it presents customized solutions and tailored service offerings for enterprise customers.

Breakup by Network Type:

• Hybrid Networks
• Private Networks
• Enterprise Network
• CSP Network
   

A detailed breakup and analysis of the market based on the network type have also been provided in the report. This includes hybrid networks, private networks, enterprise network, and CSP network.

Hybrid networks in 5G enterprises provide comprehensive and flexible connectivity solutions. These networks leverage the strengths of different technologies, such as 5G, Wi-Fi, and wired networks, to meet the specific requirements of enterprise environments.

Private networks in 5G enterprises are dedicated network deployments that are exclusively owned and operated by an enterprise or organization. These networks utilize 5G technology to provide customized connectivity and services tailored to the specific needs of the enterprise.

An enterprise network in 5G enterprise refers to the network infrastructure and connectivity solutions deployed within an enterprise or organization using 5G technology. It encompasses the network architecture, devices, and services that enable communication, data transfer, and collaboration among employees, departments, and connected assets within the enterprise environment.

Breakup by Organization Size:

• Small and Medium-sized Enterprises
• Large Enterprises
   

Large enterprises hold the biggest share in the market

A detailed breakup and analysis of the market based on the organization size have also been provided in the report. This includes small and medium-sized enterprises and large enterprises. According to the report, large enterprises accounted for the largest market share.

Large enterprises rely on 5G to enhance mobile connectivity for their employees, enabling faster access to cloud-based applications, real-time collaboration, and seamless video conferencing on mobile devices. They also often have extensive IoT deployments across their facilities, which require a 5G network. They utilize a 5G network for real-time monitoring, data collection, and analysis to optimize processes, improve efficiency, and enhance decision-making. They also require high-bandwidth applications, such as high-definition (HD) video streaming, virtual desktop infrastructure (VDI), and cloud services, which rely on a 5G network. Furthermore, large enterprises rely on 5G for edge computing to deploy computing resources closer to the network edge and extract actionable insights.

Breakup by Industry Vertical:

• BFSI
• Healthcare
• Retail and E-Commerce
• IT and Telecom
• Manufacturing
• Government and Public Sector
• Energy and Utility
• Media and Entertainment
• Others
   

IT and Telecom accounts for the majority of the market share

A detailed breakup and analysis of the market based on the industry vertical has also been provided in the report. This includes BFSI, healthcare, retail and e-commerce, IT and telecom, manufacturing, government and public sector, energy and utility, media and entertainment, and others. According to the report, IT and telecom accounted for the largest market share.

The IT and telecom sector deals with vast amounts of data traffic, and 5G provides significantly higher network capacity compared to previous generations of wireless technology. This increased capacity allows IT and telecom companies to handle the growing demands for data-intensive applications, streaming services, cloud computing, and IoT connectivity. They also need to transfer large files, facilitate real-time communication, and deliver data-intensive services to their customers. They rely on 5G for seamless collaboration, smooth user experiences, and the implementation of time-critical services. Furthermore, as IT and telecom deploy and manage Internet of Things (IoT) devices and networks, the demand for 5G networks is increasing in the sector.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest 5G enterprise market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

North America held the biggest market share due to the rising number of businesses undergoing a significant digital transformation by adopting advanced technologies, optimizing processes, and leveraging data-driven insights. Another contributing aspect is the increasing integration of artificial intelligence (AI), Internet of Things (IoT), and machine learning (ML) in business processes to improve operational efficiency and boost productivity.

Asia Pacific is estimated to expand further in this domain due to the increasing utilization of smartphones, tablets, and laptops to communicate with other individuals and access the internet. Apart from this, the rising availability of various smart consumer electronics, along with smart security systems, is bolstering the growth of the market in the region.

Competitive Landscape:

Key market players are investing in research activities to enhance their 5G network equipment, including base stations, antennas, and core network components. They are also improving the performance, capacity, and efficiency of their products to meet the evolving needs of enterprise customers. Top companies are developing specialized network services and solutions, such as network slicing, edge computing, and private network offerings, to cater to the specific requirements of enterprises. They are also actively forming partnerships and collaborations with other technology providers, enterprises, and industry stakeholders to drive innovation, develop industry-specific solutions, and create a robust ecosystem that supports the adoption of 5G technology in enterprise environments. Leading companies are integrating edge computing capabilities into their offerings for the seamless transfer of workloads between edge and cloud environments, providing enterprises with a flexible and scalable computing infrastructure.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• AT&T Inc.
• Cisco Systems Inc.
• Fujitsu Limited
• Hewlett Packard Enterprise Company
• Huawei Technologies Co. Ltd.
• Juniper Networks Inc.
• Nokia Corporation
• Oracle Corporation
• Samsung Electronics Co. Ltd.
• Telefonaktiebolaget LM Ericsson
• Verizon Communications Inc.
• ZTE Corporation

Recent Developments:

• In 2023, Cisco Systems Inc. and AT&T announced solutions to help businesses expand their connectivity for a growing mobile-first workforce by providing SD-WAN connectivity with add-on services.
• In 2023, Fujitsu Limited announced a strategic agreement with Informa D&B in Spain to deliver new value by presenting explainable AI technology (XAI) to the business and financial information industry.
• In June 2023, Hewlett Packard Enterprise Company announced the HPE Diversity Startup Program to provide equitable access to the HPE Green Lake Edge-to-cloud platform for women-owned and minority-owned startups.

5G Enterprise Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the 5G enterprise market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global 5G enterprise market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the 5G enterprise industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.