5G Devices Market Report Scope & Overview:

The 5G Devices Market was valued at USD 168.7 Billion in 2023 and is expected to reach USD 2378.4 Billion by 2032, growing at a CAGR of 34.20% from 2024-2032.

This report explores the 5G Devices Market, focusing on key trends shaping the industry. The adoption of 5G devices varies across regions, influenced by network availability, affordability, and consumer demand. The expansion of 5G networks is progressing at different rates globally, with some countries achieving near-complete coverage while others are in the early deployment stages. Leading smartphone manufacturers are driving 5G adoption through increased device shipments, with competition intensifying among major brands. Beyond smartphones, the penetration of 5G-enabled IoT devices and wearables is rising, transforming industries such as healthcare, automotive, and industrial automation. Additionally, this report introduces new insights into emerging 5G chipset technologies, private 5G network adoption, advancements in 5G modems, and regulatory policies impacting market growth.

5G Devices Market Dynamics

Driver

• The increasing need for low-latency, high-bandwidth internet is driving 5G device adoption across industries like gaming, healthcare, and smart cities.

The rising demand for high-speed and reliable mobile internet connection is one of the key factors affecting the growth of the 5G devices market. Consumers and businesses need low latency and high bandwidth for applications from video streaming, and online gaming to augmented reality or remote work tools. For instance, healthcare, smart cities, and autonomous vehicles depend on 5G-enabled devices to enhance productivity and efficiency. Telecom providers and governments are investing in 5G, thus benefiting device adoption. The market is likely to grow in the coming years, thanks to several 5G-compatible smartphones, routers, and IoT devices.

Restraint

• The expensive deployment of 5G networks and high device costs limit adoption, especially in developing economies.

Although it has many benefits, the expense involved in generating the technology and infrastructure solutions for 5G smartphones and IoT devices remains prohibitive for many consumers. In contrast, the high cost of smartphones with 5G could deter consumers in developing economies, restricting market penetration. Widespread networking needs for 5G infrastructure are significantly investment-heavy for telecommunications companies, particularly in certain areas, which presents a hindrance. The requirement of existing base stations, antennas and fiber-optics to be upgraded to be 5G compatible presents difficulties for network covers as well. This means that adoption sometimes takes longer in some markets, notably areas with lower purchasing power or a lack of investment in infra.

Opportunity

• The growing use of 5G-powered IoT, autonomous vehicles, and smart city applications presents a major market opportunity.

The growing number and range of 5G-powered IoT devices, smart home applications, and industrial automation present a massive opportunity for the market. Many industries now adopt 5G-enabled IoT devices to boost productivity and efficiency as seen in manufacturing, healthcare, transportation, and energy. 5G-connected sensors and devices are enabling smart cities to provide real-time data analytics, optimize traffic flow, and improve public safety initiatives. Moreover, demand for 5G-enabled devices is also being driven by the growth of autonomous vehicles, remote healthcare solutions, and AI-driven applications. As coverage widens and costs appear less daunting, businesses and consumers will turn to 5G-based IoT ecosystems, spurring long-term market growth.

Challenge

• Cybersecurity threats, data breaches, and privacy issues pose risks, requiring strong security frameworks and regulations.

These facts create serious security and privacy challenges, as the technology is designed to provide ultra-fast data transmission and connect huge amounts of devices. Consumers and businesses with 5G-capable devices face risks from cybersecurity threats, data breaches, and network vulnerabilities. The convergence of IoT, AI, and cloud-based solutions significantly expands the attack surface that companies must protect, requiring manufacturers and service providers alike to prioritize data protection and regulatory compliance. A continuation of state-sponsored cyberattacks, network surveillance, and data privacy regulations create obstacles in market adoption. Improving encryption, security measures and regulatory frameworks to tackle these challenges is crucial in maintaining consumer trust and market stability.

5G Devices Market Segmentation Analysis

Form Factor

In 2023, the phones segment dominated the market and held the highest revenue share. Mobile phones are an important part of everyday life with millions of users around the world. With the switch over to 5G comes faster and more reliable data, but also many potential use cases, such as AR, VR, and IoT, which are best experienced on mobile. Phone manufacturers have also realized the potential value of the market and have been making high investments to integrate 5G technology,  further boosting the 5G devices market segment.

The laptop segment is expected to register the fastest CAGR during the forecast period.  Bringing 5G connectivity to laptops expands these devices usage options, allowing users to connect to the internet at near-device speeds even while away from Wi-Fi hotspots. The combination of laptops with 5G capabilities ensures both functional performance and reliable connectivity, making them a great solution for remote workers.

By Spectrum

In 2023, the sub-6 GHz segment dominated the market and accounted for 49% of revenue share. Sub-6 GHz frequencies provide a good balance of both coverage and capacity. Therefore, this enables opportunity for both wide area coverage delivering useful data speeds, making devices in this frequency range suitable for urban and rural environments. This range will be more common and accessible, as it corresponds to the first phase of 5G deployments.

The mmWave segment is expected to register the fastest CAGR during the forecast period. It is a result of its specific abilities and the increasing requirement for faster, low latency here. MmWave technology runs on super high frequencies to provide much faster data than sub-6 GHz counterparts.

Regional Landscape

In 2024, the Asia Pacific 5G devices market dominated the market and accounted for 36% of revenue share. The enormous population in the region, especially in countries like China and India, has led to a whopping increase in demand for 5G devices. As urbanization continues to grow globally and smartphone penetration increases, consumers want to enjoy the benefits of high-speed 5G networks. In addition, Asia Pacific is home to some of the biggest 5G device manufacturers in the world, from top smartphone designers to leading network equipment providers.

North America's regional market is expected to be the fastest-growing market during 2024-2032. North America, especially the U.S. hosts a few of the world’s biggest tech giants and pioneers of the telecom sector. There is also the fact that the region has been the leader in 5G network deployments with strides on this front having also been made across the region. Additionally, North America has a technology-friendly customer base who readily adopts cutting-edge technology.

Key Players

The major key players along with their products are

• Samsung Electronics – Galaxy S24 Ultra 5G

• Apple Inc. – iPhone 15 Pro Max

• Huawei Technologies – Mate 60 Pro 5G

• Xiaomi Corporation – Xiaomi 14 Pro 5G

• OPPO – OPPO Find X6 Pro 5G

• Vivo Communication Technology – Vivo X100 Pro 5G

• OnePlus – OnePlus 12 5G

• Google LLC – Pixel 8 Pro 5G

• Sony Corporation – Xperia 1 V 5G

• Motorola Mobility – Motorola Edge 50 Ultra 5G

• Nokia Corporation – Nokia XR21 5G

• ZTE Corporation – ZTE Axon 50 Ultra 5G

• Lenovo Group – Lenovo ThinkPad X1 Fold 5G

• ASUS – ASUS ROG Phone 7 Ultimate 5G

• Realme – Realme GT 5 Pro 5G

Recent Developments

• February 2024: At the Mobile World Congress (MWC) 2024, Qualcomm unveiled the X85 5G modem, touted as the fastest and most battery-efficient 5G connection for Android devices, marking a strategic move to enhance its offerings in the Android ecosystem. 

• October 2024: T-Mobile and AT&T prepared to release their first devices utilizing RedCap, a 5G specification designed for Internet of Things (IoT) devices, including wearables and sensors, signaling a shift towards more power-efficient 5G connectivity solutions. 

• December 2024: EE announced a free speed boost to its 5G services for 28 million customers across 50 UK towns and cities, as part of the expansion of its 5G standalone network, aiming to enhance user experience with improved speed and reliability.