5G Base Station Equipment Market - Forecasts from 2023 to 2028

The global 5G base station equipment market is projected to grow at a CAGR of 17.86% to reach US$43.273 billion by 2028, from US$16.144 billion in 2022.

GROWTH DRIVERS

Government Initiatives

The growth of the 5G base station market has been propelled by the regular initiatives undertaken by the respective government bodies to prompt the deployment of 5G technology at a faster rate. For example, the total cost tag for 5G implementation in the EU could go over €400 billion. The EU allocated more than €4 billion in funding for 5G projects between 2014 and 2020. The EU’S policy framework related to 5G is composed of both legally binding (hard law) and non-binding (soft law) frameworks. The following figure shows the EU’s policy documents and key targets relating to the deployment and security of 5G.

5G KEY TARGETS CONCERNING DEPLOYMENT AND SECURITY, EUROPE

Consequently, in March 2020, the White House developed the National Strategy to Secure 5G, which expands upon the National Cyber Strategy and outlines how the nation will protect 5G infrastructure both among the domestic territories and overseas. The associated Implementation Plan was published in January 2021. In addition, with the help of the National Strategy to Secure 5G and Implementation Plan, the United States is now on the right track to ensuring that the country is prepared to develop, implement, and manage reliable and safe 5G.

Growing Investments and Faster Deployment of 5G Technology

The rollout of 5G technology can be witnessed in various developed as well as developing economies across the globe. For instance, in India, the rollout of 5G began in October 2022, and the deployment is being undertaken at a much faster scale compared to 3G or 4G. According to the Ministry of Communication, India, 20,980 base stations were installed across 14 states/UTs by November 2022. With 5,829 base stations (938 Airtel and 4,891 Reliance Jio), Delhi has the most 5G base stations deployed, followed by Maharashtra, with 4,051 base stations.

Furthermore, the faster deployment of 5G has also been prompted by growing investments by major telecom operators.

• For example, in July 2020, Qualcomm announced an investment of US$97.1 million in India’s Jio Platform. The acquisition was undertaken to roll out advanced 5G infrastructure and services for the Indian audience.
• Moreover, in 2020, Ericsson delivered the USA’S first 5G base station to Verizon. The base station was manufactured in Ericsson’s new 5G production factory, established in Texas. Ericsson’s smart factory is expected to bring the 5G revolution to the country.

EMERGING OPPORTUNITIES IN THE GLOBAL 5G BASE STATION EQUIPMENT MARKET

Standalone

It is among the core elements of the 5G network. Connectivity, mobility, user authentication, and other essential management functions are implemented through Standalone (SA). Owing to its growing usage for the expansion of 5G technology, various market players are investing in expanding their distribution networks and product portfolios. For instance,

• In October 2022, India’s telecom operator Jio selected Ericsson for its 5G SA rollout. The 5G network for Jio will be built with Ericsson's energy-efficient 5G Radio Access Network (RAN) products and solutions (from the Ericsson Radio System range).
• In February 2023, Orange announced the launch of its commercial 5G SA network in Spain. Only Madrid, Barcelona, Valencia, and Seville will initially have access to its 5G+ service; further towns are anticipated to be introduced later this year. Due to the use of native 5G bands, indoor coverage will be better, there will be lower latency, devices will last longer, and security will be improved, according to Orange.

O-RAN

The emergence of several base station regulations and standards, in addition to their transition to open systems and developments in hardware performance, has enabled the global adoption of Open RAN, permitting the procurement of equipment from many manufacturers. Various O-RAN tests have been announced to understand the current system better.

• For instance, in March 2022, UK and Japan agreed to strengthen their cooperation to diversify the technology used in telecoms networks to support the move towards O-RAN. They agreed on several joint initiatives to support efforts to reduce the global overreliance on a small number of suppliers to build and maintain telecom networks.
• In January 2023, German operator 1&1 revealed plans to roll out its cloud-based Open RAN in additional locations nationwide in the upcoming weeks. The operator plans to roll out 5G (and 4G) services in several towns, including Hamburg, Essen, Düsseldorf, Wiesbaden, Mainz, Munich, and Freiburg, where nearly 50 masts are practically prepared.

GEOGRAPHICAL PRESENCE

The global 5G base station equipment market consists of some major countries, such as the USA, the UK, Japan, and South Korea, among others. The countries have undertaken various initiatives for the faster deployment of 5G technology, thereby promoting the growth of the 5G base station market as well. For instance, in December 2020, the Spanish government invested 4.3 billion euros to deploy 5G technology. According to Telefonica’s Spanish business head, 6 billion euros are required to deploy 5G technology in the country. The Spanish politician Irene María Montero also added that the government expects the market players to invest approximately 24 billion euros in 5G.

MAJOR PLAYERS IN THE MARKET

Some of the leading players in the market include Ericsson, Nokia, Fujitsu, and NEC. These firms have undertaken various business strategies such as product launches, investments, and partnerships to expand their product offerings. For instance,

• In October 2021, Ericsson and PowerLight demonstrated the world’s first wireless powered 5G base station. Ericsson has partnered with American laser pioneer PowerLight Technologies to develop the first secure, completely wireless-powered 5G base station due to the company's ongoing search for new technology to enhance the implementation of Radio Access Network (RAN) sites.
• In December 2021, NEC entered into contracts with Docomo. Through the partnership alliance, NEC Corporation and Docomo have successfully tested for 5G standalone (SA) in Tokyo. The testing used a 5G base station baseband unit (5G CU/DU) conforming to radio units (RUs) and O-RAN open interface specifications.

SEGMENTATION

The global 5G base station equipment market has been analyzed through the following segments:

By Deployment

• Urban
• Rural

By Architecture

• AAU
• BBU

By Technology

• O-RAN
• Traditional RAN

By Configuration

• Standalone
• Non-Standalone

By Frequency Band

• Sub-6 GHz
• mmWave

By Geography

• Americas
• United States
• Others
• Europe, Middle East, and Africa
• Germany
• UK
• Others
• Asia Pacific
• China
• Japan
• South Korea
• Others