The growth is attributed to the push made by last year’s pandemic and the heavy investments made by CSPs in growing the network. The report also talks about China continuing as the top performer in this space and over 60% of CSPs commercializing the 5G services by 2024.
Sharp Spike in 5G Infra Revenue
Determined as safe after a range of tests, the rollout of 5G is now helping many people around the world. From VR/AR technologies to IoT and others, 5G is powering most new technologies today. While it’s spreading rapidly in matured markets, developing countries will take time to adopt the new standard. Yet, Gartner’s prediction for this year’s revenue from worldwide 5G infrastructure will be well over 39%, at $19.1 billion. This is more than $5 billion growth over last year’s revenue of $13.7 billion. And the estimated spike in revenue is attributed to the work-from-home model, which most tech companies forcibly adopted due to last year’s COVID-19 pandemic. This situation has demanded everyone to set up “optimized and ultrafast broadband connectivity to support work-from-home and bandwidth-hungry applications, such as streaming video, online gaming, and social media applications,” said Michael Porowski, senior principal research analyst at Gartner. Also, the growth is attributed to investments made by Communication Service Providers (CSPs) in wireless infrastructure, as they shift to 5G small cells. Country-wise statistics reveal that the US will reach a $4.3 billion revenue mark due to their CSPs’ dynamic adoption of dynamic spectrum sharing and millimeter-wave base stations. In Western Europe, they grow upto $2 billion from $794 million in 2020, even though following a different tack of licensing spectrum, modernizing mobile core infrastructure, and navigating regulatory processes. Gartner’s report also says that the Greater China region will still be at the top of the list with an estimated 5G revenue of $9.1 billion.
