5G New Radio Market Report Scope & Overview:

The 5G New Radio Market was valued at USD 43.2 Billion in 2023 and is expected to reach USD 451.0 Billion by 2032, growing at a CAGR of 29.78% from 2024-2032.

The 5G New Radio Market is witnessing rapid growth, with adoption rates varying by region due to spectrum availability, regulatory policies, and infrastructure investments. Countries are expanding 5G NR infrastructure to enhance coverage and support next-gen applications. The integration of mmWave and Sub-6 GHz frequencies is crucial for balancing speed and range in deployments. Additionally, advancements in Standalone and Non-Standalone architectures are driving enhanced network capabilities, low latency, and improved connectivity for diverse applications. This report analyzes the impact of Open RAN in 5G NR deployments, the role of AI and automation in network optimization, and the evolution of 5G NR beyond Release 18 to support the 6G transition.

The U.S. 5G New Radio market is expected to grow significantly, rising from USD 11.84 billion in 2023 to USD 120.76 billion by 2032, with a CAGR of 29.46%. This growth is fueled by substantial investments from leading telecom providers like Verizon, AT&T, and T-Mobile to strengthen 5G infrastructure. Additionally, the rising adoption of IoT applications and increasing consumer demand for high-speed, reliable connectivity are accelerating market expansion.

5G New Radio Market Dynamics

Drivers

• The increasing need for ultra-fast data transmission in industries like autonomous vehicles, telemedicine, and smart cities is driving 5G NR adoption.

The increasing need for ultra-fast data transmission and low-latency communication is driving the adoption of 5G New Radio. Industries such as autonomous vehicles, telemedicine, smart cities, and industrial automation require reliable and high-performance connectivity, which 5G NR can deliver. Additionally, the surge in cloud gaming, AR/VR applications, and video streaming fuels market demand. Government initiatives and investments in 5G infrastructure, along with spectrum allocation for mmWave and Sub-6 GHz frequencies, further support market expansion. As consumers and enterprises seek seamless, high-bandwidth connectivity, telecom providers are accelerating 5G NR deployments, making it a fundamental component of next-generation communication networks.

Restraints

• The high cost of spectrum, small cell deployment, and fiber-optic backhaul makes 5G NR expansion financially challenging.

Despite its potential, the widespread adoption of 5G NR faces challenges due to high capital expenditures associated with infrastructure development. The deployment of small cells, fiber-optic backhaul, and advanced base stations requires significant investments. Additionally, the high cost of spectrum licensing adds financial strain on telecom operators. In rural and remote areas, the lack of return on investment discourages network expansion, leading to uneven coverage. Small and medium-sized enterprises may also struggle to afford 5G NR solutions. These financial hurdles slow down the pace of deployment and adoption, making cost-effective implementation strategies crucial for market growth.

Opportunities

• Enterprises in manufacturing, logistics, and healthcare are leveraging private 5G NR networks for secure, low-latency, and efficient operations.

The rise of private 5G networks presents a significant growth opportunity in the 5G NR market. Enterprises in manufacturing, logistics, healthcare, and retail are deploying dedicated 5G NR infrastructure to enhance security, optimize operations, and enable real-time data processing. Private 5G offers advantages such as customized network slicing, ultra-reliable low-latency communication, and enhanced mobility, making it attractive for mission-critical applications. Governments and regulatory bodies are also supporting enterprise 5G adoption by allocating spectrum for private networks. As industries embrace Industry 4.0 and automation, private 5G NR deployments will accelerate, driving new revenue streams for service providers and equipment vendors.

Challenges

• Limited spectrum allocation and varying global regulations hinder seamless 5G NR deployment and performance.

One of the key challenges in 5G NR adoption is limited spectrum availability and complex regulatory frameworks. The allocation of mmWave, mid-band, and Sub-6 GHz frequencies varies across regions, creating disparities in 5G performance and coverage. Additionally, concerns over interference, network congestion, and fair spectrum distribution complicate the regulatory landscape. Governments must harmonize spectrum policies to ensure seamless global 5G NR deployments. Moreover, stringent regulations surrounding cybersecurity, data privacy, and network interoperability create barriers for telecom operators and equipment vendors. Addressing these regulatory complexities is crucial for enabling scalable, secure, and efficient 5G NR implementation worldwide.

5G New Radio Market Segmentation Analysis

By Component

In 2023, the hardware segment dominated the market and represented a significant revenue share. The continuous growth of demand for advanced radio units including massive MIMO and beamforming, which enable higher coverage and capacity and help enhance optimization of resource, is a key factor driving the segment growth. Cloud-native architectures and virtualization — meanwhile, are gaining traction & enabling network operators to serve up services more optimally and at a lower cost.

The services segment is expected to register the fastest CAGR during the forecast period as managed services become more popular, particularly among operators looking to outsource non-core operations like network management and maintenance. This enables them to concentrate on their core business and realize cost savings. More so, network slicing enables operators to create logical networks on physical layer. This allows them to provide tailored services for individual use cases and industries and to optimize network resources.

By Operating Frequency

The Sub-6Ghz segment dominated the market in 2023 and accounted for more than 66% of share revenue. One of the major factors propelling the growth of this segment is the Sub-6 GHz spectrum bands' ability to provide high-speed connectivity to a large number of users while maintaining a good balance between coverage and capacity. As the data traffic continues to grow, it creates pressure in terms of the data rate, latency, and network efficiency.

The mmWave segment is expected to grow at the fastest CAGR over the forecast period. It is expected to grow in importance with the expansion of 5 G networks in the upcoming years, especially in densely populated urban areas with a high demand for high-speed data services. With the increasing prevalence of mmWave technology, companies are focusing on R&D to enhance the efficiency and reliability of mmWave components.

By Architecture

In 2023,  the non-standalone segment dominated the market with over 67% share of the total revenue. A major factor contributing to the growth of the segment is the ability of 5G NR NSA solutions to enable operators to deploy 5G radio access technology leveraging the existing 4G LTE core network, facilitating faster time-to-market and cost savings. NSA solutions allow operators to launch eMBB services and enhance their overall network performance as they prepare for a transition to standalone 5G networks.

The Standalone segment is expected to register the fastest CAGR during the forecast period. The 5G New Radio deployment in the Stand-alone model is becoming more popular in the industry and is expected to drive growth in the coming years. Standalone mode offers more advantages compared to non-standalone, such as a higher network speed and lower latency.

By Application

In 2023, the Enhanced Mobile Broadband segment dominated the market and accounted for a significant revenue share. The segment growth is mainly driven by the rising need for swift internet connectivity and data-rich applications like Virtual Reality, Augmented Reality, and high-definition video streaming. In response to this increasing demand, network operators are deploying advanced 5G New Radio infrastructure, which is capable of providing higher data rates, lower latency, and improved spectral efficiency.

Ultra-reliable low Low-Latency Communications segment is anticipated to register the fastest CAGR during the forecast period. The surge for mission-critical applications needing high availability and low latency will also influence the growth of the 5G New Radio market in the URLLC segment. One example is remote surgery and telemedicine, in which very low latency and excellent reliability are required to assure patient safety.

By Industry

In 2023, the telecom and IT segment dominated the market and held the largest revenue share. Key growth influencers of the segment are the increasing adoption of cloud-native technologies, due to their ability to allow operators to virtualize network functions and execute them on cloud infrastructure. 5G allows telecommunication companies to provide customer connectivity at speeds, bandwidth, and capacity never before possible.

The manufacturing segment is expected to register the fastest CAGR over the forecast period. One of the major factors driving the growth of the segment is the ability of 5G NR technology to facilitate real-time monitoring and control of manufacturing processes, resulting, in turn, in increased efficiency and productivity.

Regional Analysis

Asia Pacific dominated the market and accounted for 37% of revenue share in 2023. Some of the other factors contributing to the regional growth include the increasing adoption of 5G technology in several countries like China, Japan, South Korea and India. With a highly populous area coupled with an ever-increasing mobile population, this region is attracting a demand for high-speed internet access and effective applications. Moreover, these nations are also focused rather heftily on 5g infrastructure development, which is considered an opportunity for the telecom companies, and farming network equipment providers in these eastern markets.

North America is expected to have the fastest CAGR over the forecast period. With a rising demand for high-speed internet access, IoT applications, and cloud services, huge investments are being made in developing and implementing 5G infrastructure in the region.

Key Players

The major key players along with their products are

• Nokia – AirScale Base Station

• Ericsson – Radio System

• Huawei – 5G Massive MIMO

• Qualcomm – Snapdragon X80 5G Modem-RF System

• Samsung – 5G NR Access Unit

• ZTE – 5G Common Core

• Intel – 5G Network Solutions

• Cisco – 5G Cloud-to-Client Network

• Marvell – OCTEON Fusion-M Radio Access SoCs

• MediaTek – Dimensity 5G Chipset

• NXP Semiconductors – BTS7202 RX Front-End Module

• Skyworks Solutions – Sky5A RF Front-End Modules

• Broadcom – Monterey 5G Switching Portfolio

• Qorvo – QPA9822 High-Gain Driver Amplifier

• Radisys – Connect 5G RAN Software

Recent Developments

• January 2024: Ericsson and MTN Group extended their partnership to enhance mobile financial services across Africa, aiming to broaden financial inclusion from first-time users to high-end business applications by utilizing MTN's Mobile Money (MoMo) service on the Ericsson Wallet Platform. 

• October 2024: AT&T announced a multi-year agreement valued at over $1 billion with Corning Incorporated to purchase fiber, cable, and connectivity solutions, aiming to enhance its high-speed internet services and expand its fiber network across the United States.