5G Infrastructure Revenue Forecast For 2020

5G Infrastructure Revenue Forecast For 2020

According to Gartner, revenue generated from 5G infrastructure will jump from $2.2 billion this year to $4.2 billion in 2020

As per other years, the evolution tracked and predicted by Gartner’s analysts is shown in the table below:

5G Revenues

Technology2018201920202021
5G$613 million $2.2 billion4,2 billion$6.8 billion

Source: Gartner Analysts (August 2019)

By 2020, operators are planning to use ‘standalone’ 5G; which provides ultra-low latency, facilitates a wider range of usability for new devices and supports advanced network-slicing functions; among other features.

5G services will launch in many major cities in 2019 and 2020. The following countries have announced plans to accelerate 5G network building through 2020: 

  •  U.S.
  •  South Korea 
  • Switzerland
  • Finland  U.K. 
  • CSPs in Canada
  • France
  •  Germany
  • Hong Kong
  • Spain
  • Sweden
  • Qatar 
  • the United Arab Emirates

Sylvain Fabre, senior research director at Gartner stated the following: “5G wireless network infrastructure revenue will nearly double between 2019 and 2020,” He proceeded “For 5G deployments in 2019, CSPs are using non-stand-alone technology. This enables them to introduce 5G services that run more quickly, as 5G New Radio (NR) equipment can be rolled out alongside existing 4G core network infrastructure.”

The coverage of 5G is expected to expand slower than 3G and 4G. However; Gartner think that this new technology will take over 6% of Telecommunication revenues in 2019 and 12% of it by 2020.

National 5G coverage will not occur as quickly as with past generations of wireless infrastructure,” said Fabre. “To maintain average performance standards as 5G is built out, CSPs will need to undertake targeted strategic improvements to their 4G legacy layer, by upgrading 4G infrastructure around 5G areas of coverage

A less robust 4G legacy layer adjoining 5G cells could lead to real or perceived performance issues as users move from 5G to 4G/LTE Advanced Pro. This issue will be most pronounced from 2019 through 2021, a period when 5G coverage will be focused on hot spots and areas of high population density.

Source: Gartner 

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