Northbrook, IL 60062 -- (SBWIRE) -- 06/08/2023 -- The global 5G FWA market is expected to be valued at USD 29.4 billion in 2023 and is projected to reach USD 153.0 billion by 2028; it is expected to grow at a CAGR of 39.0% from 2023 to 2028.
The market for fixed wireless access is flourishing globally owing to technological advancements ranging from LTE to 5G. The use of fixed wireless access enables the offering of broadband services to residential customers and small and medium-sized enterprises (SMEs) on a large scale with low connection latency.
The 5G FWA market includes major Tier I and II players like Nokia (Finland), Samsung Electronics (South Korea), Huawei Technologies (China), Ericsson (Sweden), Inseego (US), and others.
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5G FWA market for services to hold the highest market share during the forecast period
5G FWA services are predicted to be a game-changer in the global telecommunication industry. These services have been made available to households in 2022 across major countries like the US, Canada, China, South Korea, etc.
For instance, Samsung and T3 broadband collaborated on 5G-ready Citizens Broadband Radio Service (CBRS) network solutions to Mercury Broadband, a leading provider of high-speed Internet across rural markets in the US. The collaboration will enable Mercury to leverage CBRS to deliver FWA broadband connectivity and enhanced customer services in hard-to-reach, remote areas across several states.
Verizon has also increased the number of cities where it offers 5G fixed wireless for business customers from 3 to 24. Previously, the FWA 5G service was only available in select parts of Chicago, Houston, and Los Angeles.
The new additions include parts of 21 cities where its 5G Ultra-Wideband service using mmWave spectrum is available.
24-39 GHz operating frequency for 5G FWA to hold the highest market share in 2028
The game-changing breakthrough of 5G mmWave extended range increases the capacity of 5G fixed wireless access (FWA) solutions by making it possible to employ mmWave spectrum to serve a far greater number of residences than previously conceivable. By using this strategy, it is possible to reach semi-urban and rural areas by providing high-end "wireless fiber" services.
Verizon, AT&T, T-Mobile, and US Cellular operators use the mmWave spectrum in their 5G network infrastructures. Though the mmWave spectrum can transmit massive volumes of data at high speed, this band's signals can only travel a few thousand feet.
As a result, mmWave 5G infrastructures have mostly been confined to crowded downtown areas and are not expected to reach suburban or rural areas anytime soon.
Commercial application to hold the highest share of the 5G FWA market during the forecast period.
The commercial sector is one of the key targets for mobile service providers. Several vendors offer 5G FWA solutions to commercial users by launching commercial 5G networks and carrying out research and development activities to upgrade these commercial network solutions.
For instance, in September 2022, Nokia and Telia partnered to launch the world's first commercial 5G SA network with network slicing for FWA. Telia introduced 5G SA to commercial FWA broadband services, with Nokia being its sole vendor of 5G standalone (SA) cores.
Also, in August 2021, Verizon partnered with Corning to launch commercial in-building 5G millimeter-wave cell sites (indoor 5G) for enterprise customers. These in-building cell sites are being deployed in Verizon retail store locations and are set to be installed at WeWork locations across the US.
5G FWA market in Asia Pacific to hold the highest CAGR during the forecast period
The overall APAC region is home to a few of the fastest-growing and leading industrialized economies, such as China, South Korea, and Japan. It is witnessing dynamic changes in the adoption of recent technologies and advancements across industries.
According to GSMA, there will be 400 million 5G connections in the Asia Pacific by 2025. 5G adoption, as a percentage of total connections, is set to accelerate in Asia Pacific as the technology's footprint expands across the region.
5G is now commercially available in 14 countries, with several others, including India and Vietnam, expected to come on board in the coming years. These new networks and the expansion of existing ones in pioneer markets will drive the transition to 5G FWA.
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Opportunity: Partnerships among platform and hardware providers, mobile operators, and system integrators in emerging economies
The 5G ecosystem comprises 5G component and product manufacturers, network infrastructure and platform providers, system integrators, and end users. Presently, partnerships/collaborations between hardware manufacturers and mobile network operators in the context of 5G are limited to the US, China, Japan, and some European countries.
5G application platform providers, hardware vendors, and mobile operators have established strategic partnerships with the leading system integrators to accelerate the development and commercialization of 5G products and technologies. The stakeholders in the market are increasingly investing in the development of fixed wireless access-related components and equipment to harness the market potential of fixed wireless access.
They are forming strategic partnerships with other key players.
Challenge: Compatibility issues between traditional and 5G networks
The seamless shift from traditional networks to 5G fronthaul and backhaul networks is difficult to achieve. Usually, traditional fronthaul/backhaul networks are incompatible with the new, advanced fronthaul/backhaul equipment.
This creates compatibility issues leading to increasing infrastructure-related costs and results in the reluctance of organizations to employ advanced technologies. However, startup companies who are vendors for OEMs and established players in 5G FWA industry are using highly efficient advanced fronthaul/backhaul solutions to design and develop new systems based on the requirements of their customers.