5G Infrastructure: The Backbone of Network Development of the Future

5G, the fifth generation of cellular networks, is the fastest wireless technology ever created. It is expected to provide faster downloads and have a huge impact on how people work and run their businesses. Moreover, 5G technology can increase accessibility for people through connected appliances, autonomous vehicles, and other remote applications. With the rising demand for improved and fast technology, 5G infrastructure market would become one of the fastest-growing markets in the near future.

According to Allied Market Research, the global 5G infrastructure market is expected to grow at a colossal CAGR of 95.8% during the forecast period of 2018 to 2025. The technology provides several advantages such as high-speed data transmission, higher efficiency, communication between autonomous vehicles, traffic evaluation, and crowd flow to ensure public safety. Moreover, due to the increased adoption of smart cities concept, 5G technology is expected to be the backbone of future development, which would provide new opportunities for market growth.

The 5G infrastructure market growth is backed by the increasing demand for mobile broadband services. However, high investment, challenges in implementation, and privacy & security concerns may become a setback for market growth. The most affected sector with the introduction of 5G technology is the automotive and transportation sector. Considering the changing needs of the customers, several companies indulged in the manufacturing of 5G network-driven appliances.

For instance, Huawei, a Chinese multinational technology company, closely monitored the changing needs of the customers and introduced 5G communication devices that would meet the diversified service requirements. Moreover, in May 2020, Huawei announced the launch of its carrier consulting service and 5G consulting portfolio. The Huawei 5G consulting services provides consulting in the areas of 5G industry, 5G product planning, and innovation, service network synergetic planning, and large-scale 5G service development for carriers.

The company has already provided 5G consultancy services to China, Europe, the Middle East, Africa, and the Asia Pacific region. Developing itself with changing times and trends has helped Huawei in becoming the biggest market player in the 5G infrastructure market. However, the pandemic is likely to harm the 5G industry leading to a downfall of the market.

Covid-19 Impact on 5G Infrastructure Market

The temporary halt in production has slowed down the growth of the market drastically. Moreover, the shipment of 5G products has declined due to the safety measures that need to be taken during this time. The shutdown of production and shipment has adversely affected the market growth. The sales of the 5G infrastructure market are largely based on expanding subscribers or users of the technology. Due to the pandemic, the customer base has also decreased. Moreover, the closure of retail shops and a decrease in the disposal income of potential customers have reduced the overall investment in the 5G technology market. Furthermore, the lockdown has delayed the launches of 5G technology-driven products.

However, with major parts of the world resuming its industrial activities, the market is likely to grow but at a slower pace. It may only be a matter of time until the potential customers get attracted toward the technology. With the changing needs of users, the 5G infrastructure market is expected to surge in the coming years. With the benefits of the technology, its adaptation is probable to be extensive. However, the growth of the market may slow down due to the pandemic but may pick up soon once the production and shipment of the products resume, and the disposal income of the customer’s get increase.

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