Ultra-low latency is one of the major factors driving the 5G services market. Latency in computer network refers to the time a data packet takes to travel. Lower latency leads to a higher data transmission rate. The ultra-low latency of 5G is almost 50 times lower than the current 4G network. The 5G technology is expected to provide a latency of 1 millisecond, whereas, in 4G, the latency rate is 50 milliseconds.
Because of this, 5G services would be high in demand for industrial applications and connected IoT ecosystems, as these applications and connections need faster and reliable network services.
“Among range, the short-range IoT devices segment is expected to account for the highest market share during the forecast period”
The short range IoT devices segment is estimated to show the highest market share in 2020 and expected to witness strong growth characteristics in the coming years. With emerging new application areas, short-range IoT devices need another type of connectivity solution that can fulfil the growing need for data speed.
For instance, in-building connectivity devices in manufacturing, healthcare, energy and utilities, and retail sectors demand low latency and high power, which are fulfilled by the 5G network.
“Among radio technology, the 5G New Radio (NR) standalone architecture segment is expected to have the highest growth during the forecast period”
The overall adoption of 5G NR standalone architecture is expected to increase during the forecast period, owing to a wide range of functionalities and core features that the architecture provides. The 5G NR standalone solutions have various new built-in capabilities such as network slicing, ultra-low latency, Control and User Plane Separation (CUPS), multi-Gbps support, and virtualization.
“Among regions, Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period”
The large population in APAC has created an extensive pool of mobile subscribers for telecom companies. The region is the largest contributor to the total number of mobile subscribers across the globe and would add more subscribers to its network in the coming years.
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It is a diversified region that houses a wide range of countries moving toward digital transformation. It is set to dominate the 5G market, due to its size, diversity, and the logical lead taken by countries, including South Korea, China, and Japan.
South Korea, China, and Japan are the prime APAC countries that have started several 5G-related activities. Asian telecom service providers, vendors, and government firms are determined to take the lead in 5G research and deployment.
The “5G IoT Market by Connection, Radio Technology, Range, Vertical and Region – Global Forecast to 2025” report has been added to ResearchAndMarkets.com’s offering.