5G to make up 40% of wireless equipment spend by 2025

12 Dec 2017

Spending on 5G network equipment is expected to grow to account for 40% of all wireless network spending by the end of 2025, SNS Research predicts.

The research firm's latest reports on the wireless infrastructure market also project that spending on 2G, 3G and 4G network equipment declined 4% this year to $53.76 billion.

But the company predicts that investments in 5G new radio rollouts and heterogeneous network (HetNet) equipment will see the market return to positive growth, with an estimated 2% CAGR between 2017 and 2020.

By 2020, 5G networks are expected to account for nearly 5% of all spending on wireless network infrastructure, SNS Research said. This will increase to 40% by 2025 due to heavy investments in new radio as well as next generation core and transport networking infrastructure.

“The wireless network infrastructure market is currently in a phase of transition, as mobile operators seek to address increasing mobile traffic demands amidst global economic uncertainties,” SNS Research said.

“This paradigm shift is bringing new challenges and opportunities to infrastructure vendors.”

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