5G market expected to cope well with difficult economic times globally
(Baonghean.vn) - The difficult economic situation and geopolitical instability around the world are holding back the growth of the mobile phone market, but the 5G sector has overcome those difficulties and achieved good results.
Global 5G connections are expected to reach 1.21 billion by the end of this year, up from 620 million at the end of 2021, according to new research from global analytics firm CCS Insight. The Covid-19 pandemic has had a major impact on 5G technology in its early years, but things are starting to pick up despite ongoing uncertainties in many parts of the world, CCS Insight said.
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According to data released in July 2022 by the Global Mobile Suppliers Association (GSA), by the end of June 2022, 1,454 5G-enabled devices had been announced globally, of which 1,105 devices had been commercialized on the market, accounting for 75.9% of the announced 5G devices. Of the 1,105 5G devices commercialized on the market, 5G smartphones dominated with 772 devices.
With the rapid development of 5G-enabled devices, mobile operators are taking advantage of the opportunity to deploy 5G mobile networks and 5G services that have been delayed due to the impact of the Covid-19 pandemic. In addition, semiconductor chipmakers and telecommunications equipment manufacturers are also prioritizing the high-end 5G market, a market with strong consumption demand.
“The world continues to face a bleak macroeconomic and geopolitical outlook in 2022, along with supply chain challenges,” said James Manning Smith, senior analyst at CCS Insight, in a statement. “However, the migration of mobile subscriptions to 5G networks is expected to make good progress, with the number of 5G connections forecast to nearly double in 2021 to over 1.2 billion in 2022.”
“5G connectivity is now a standard feature of high-end smartphones and is being pushed into the mid-range segment. It is forecasted that 681 million 5G-enabled smartphones will be launched in 2022, accounting for 44% of total mobile phone sales, indicating that the 5G smartphone market is growing.”
While mobile broadband usage on phones, tablets, laptops and the like will account for 99% of 5G connections this year, there are also other emerging technologies on the horizon, including fixed wireless access (FWA) and the Internet of Things (IoT), according to CCS Insight research. The analyst firm also forecasts that 5G-based IoT connections will reach 9 million by the end of this year and 455 million by 2026, while 5G fixed wireless connections will grow 160% this year to 7 million globally and reach 83 million by 2026.
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| Forecast of 5G connectivity by region in the world from 2018 to 2026 (Source: CCS Insight) |
Commenting on the growth of fixed wireless access, analyst James Manning Smith said: “Competition in the fixed wireless access segment is heating up, especially in the North American market. In the US, mobile operators such as T-Mobile, Verizon and AT&T are considering 5G fixed wireless access as an integral part of their 5G development strategy, and this has brought success, with T-Mobile reporting the acquisition of more than 1 million customers.”
According to CCS Insight, China, North America, and Western Europe will help drive global 5G mobile broadband connections to 4 billion by 2026, accounting for 45% of all global mobile broadband connections. However, the company also noted that markets such as India, the Middle East, and Africa will continue to lag behind the rest of the world.
References
[1] https://telecoms.com/515831/5g-market-expected-to-cope-well-with-tough-economic-times/
[2] GSA: 5G Device Ecosystem - July 2022
