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Exponential Growth Projected
As the demand for faster internet speeds increase, exponential growth is expected for the 5G infrastructure market. Furthermore, 5G capability allows greater scalability so it can accommodate more growth over time as needed, resulting in the need for more industrial real estate.
Per MarketResearch.biz, “investments in 5G infrastructure is expected to be double as compared to setting up of legacy networks as operators strive to meet demand for increased capacity and deploy 5G.”
Major drivers of revenue include government initiatives that will help fund 5G technology infrastructure. Furthermore, MarketResearch.biz is projecting that the global 5G infrastructure market will be valued at nearly $0.8 billion in 2019, and is expected to register a compound annual growth rate (CAGR) of 48.8%.
Huawei Not Hindering Buildup
Reports surfaced that Chinese telecommunications equipment giant Huawei could potentially hinder the buildup of the 5G infrastructure. China’s state media argued that banning Huawei would reduce competition and drive up the cost of implementing 5G technology, but according to experts, that claim doesn’t hold weight.
Domestic telecom giants like Nokia, Ericsson and Samsung can supplant Huawei’s efforts.
“Even if Huawei was permanently excluded from the U.S., its competitors like Nokia, Ericsson, Verizon and AT&T, to name a handful, have the scale to ensure that the U.S. is fully catered for. Qualities like speed are unlikely to suffer in the U.S. in this scenario,” Vinod Nair, a Singapore-based senior partner at advisory and investment firm Delta Partners, told CNBC via email.
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