5G System Integration Industry Is Setting The Pace

In 2022, the 5G system integration industry had a size of USD 10.03 billion, which is forecasted to expand to USD 68.17 billion by 2032, with an impressive CAGR of 21.12% expected during the period spanning from 2023 to 2032.

The rapid implementation of better network infrastructure across all businesses in order to provide consumers with superior services will be the driving force behind the need for 5G system integration services.

Market Growth:

In addition to the historical consumer emphasis that previous generations excelled in, 5G has concentrated on offering cellular connection for corporate sectors since its creation and initial standardization in the 3rd Generation Partnership Project (3GPP).

5G is considerably more to the business community than just "4G plus another G." The unique characteristics of 5G enable brand-new connectivity and applications across several industry verticals. The telecom sector must modify its solutions to meet more stringent requirements than it is accustomed to in the enterprise arena if it is to successfully take advantage of the potential. Offering customized E2E 5G solutions necessitates a solid background in system integration skills. For a number of reasons, system integrators (SIs) are ideally suited to take this position. 

Automotive & Industrial Manufacturing, Energy & Utilities, and Logistics & Ports. These industries are leading the industry since they are more interested in private cellular connectivity.

Regional Analysis:

The adoption of 5G is increasing globally, and the North American industry is setting the pace. 5G is already opening up possibilities for new, diversified services, client verticals, and service and business models across North America. 

The third and final installment of our Ericsson Spotlight Series on 5G software examines automation's role in effective 5G services and what North American Communication Service Providers (CSPs) are doing right now to fully use 5G Core.

In the last segment, Arvinder Anand, Vice President and Head of Architecture and End-to-End Solutions for North America Digital Services at Ericsson, discusses with Dr. Sally Eaves, Senior Policy Advisor, Global Foundation Cyber Studies. Working directly with some of the top CSPs in North America, Arvinder gives his perspective on the need for automation and how they are utilizing it to reduce complexity and take full advantage of the opportunities presented by 5G.

The Asia Pacific area is now home to some of the most advanced 5G nations, and it is predicted that over the next four years, the region's 5G industry will continue to expand quickly. In the Asia Pacific area, 2.8 billion people, or nearly two-thirds of the total population are now subscribers to mobile services, and by 2025, that number is expected to rise to 3 billion, or 70% of the total. 

Through the Horizon 2020 Program, the European Commission has committed public money totaling more than €700 million to support this effort. Alongside these initiatives is a worldwide strategy to guarantee the development of a 5G consensus. To meet the traffic level anticipated by 2025, EU investment in 5G standards and research is required. Additionally, networks and Internet architectures in developing fields like machine-to-machine (M2M) communication and the Internet of Things will be strengthened by EU financing. (IoT).

5G System Integration Industry Report Scope:

Report Coverage Details
Market Size in 2022 USD 10.03 Billion
Projected Forecast Value in 2032 USD 68.17 Billion
Growth Rate from 2023 to 2032 CAGR of 21.12%
Largest Market North America
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

Market Dynamics:

Drivers:

TSN-based industrial communication with 5G integration system

How can industrial communications stay on top in a time of digital transformation? Here, we discuss how the future's smart factories may be created by combining 5G with time-sensitive networking (TSN). Industry 4.0, is another name for the digital transition now taking place in the industrial automation sector. By improving the observability, control, and planning of the automation system, connecting the real production environment to a digital representation can lead to flexibility and efficiency advantages. Information is available throughout a factory because of the interconnection of several pieces of equipment, gadgets, the cloud, and humans. 

TSN for wireline and 5G for wireless are the communication technology enablers for this change. For a variety of services, including time-sensitive applications that demand predictable, dependable, and low-latency communications, both technologies have been developed to deliver convergent communication on a single network infrastructure. With the advent of TSN and 5G wireless communication, there are considerable advantages that may be attained for industrial use cases, for instance owing to enhanced flexibility in the deployment of industrial equipment and the network. Therefore, it is projected that the rising industrial automation needs would propel the 5G system integration industry ahead. 

Restraints:

Regularity standards and security issues

Despite the widespread deployment of 5G networks, coverage still has to be enhanced in many locations. Because of this, businesses could be hesitant to invest in a system with sparse coverage, which might prevent the broad adoption of 5G technology. The complexity of 5G devices and networks might make them more vulnerable to security problems. Once the security concerns are better recognized and minimized, businesses may be eager to use 5G technology. Businesses may find it difficult to integrate the technology across diverse systems and devices as there is presently no universal standard for 5G networks. The incompatibility of this lack of standardization with existing infrastructure may prevent 5G systems from working together.

Opportunities:

Advancement in the fourth industrial revolution

5G and related private wireless technologies have the potential to completely change sectors and businesses as we go into the next stage of the global economy, when innovation and automation will be more important than ever.

For more asset-intensive industries like manufacturing, logistics, energy, and transportation, their influence will be particularly significant. This is because asset-intensive sectors primarily rely on physical assets that cannot be digitally replaced, in contrast to information-based and/or digital native industries like e-commerce. Digital asset management will be used to change these industries' physical assets. Future factories may use 5G and private wireless to power sensors, raw data, autonomous robots, additive manufacturing systems, VR and AR, and AI-enabled manufacturing platforms to boost output and productivity, perhaps by as much as 30%. Additionally, they can increase worker safety and maximize the use of limited resources.

Service Type Insights:

The highest industry share for 5G system integration was held by the infrastructure integration sector, which had a revenue industry share in 2022. The infrastructure system integration services cover infrastructure management for buildings, networks, and data centers.

The consultancy category is predicted to expand in 2022 over the forecast period. Due to the constantly growing need for 5G technologies, such as networking equipment, business companies initially resort to system integrators to design updated network architecture for their firms.

Vertical Insights:

In terms of value in 2022, the IT and telecom category led the 5G system integration industry. Due to rising interest in integrating business network infrastructure and data center network hardware, the need for 5G system integration facilities in the IT and telecom sector is anticipated to develop.

In many significant ways, 5G improves communication technology to suit shifting demands: faster data-throughput rates, decreased latency, cost savings, enhanced system capacity, and huge simultaneous device connection all at an affordable price. However, these systems must support a considerably larger range of devices in order to enjoy these advantages, independent of their latency support, coverage area, etc.

Application Insights:

The industry for a home and office broadband had the greatest revenue share in 2022, and it is expected to expand significantly between 2023 and 2032. The need for 5G system integration facilities to link customers and companies to better mobile broadband is on the rise, which is the cause of this. The considerable growth in IoT devices across rapidly growing smart cities across the world is also expected to raise the need for 5G system integration services to enable such systems adaptive to next-generation network services. 

Recent Development:

  • 2021- Bharti Airtel Limited, the leading provider of communications solutions in India, and Qualcomm Technologies, Inc. will collaborate to speed up the introduction of 5G in that nation. Airtel will collaborate with device partners and network manufacturers utilizing Qualcomm 5G RAN Platforms to deploy 5G networks that are virtualized and Open RAN-based.

Major Key Players:

  • Accenture Inc.
  • ECI TELECOM 
  • Huawei Technologies Co., Ltd.
  • Keysight Technologies
  • Cisco Systems, Inc.
  • Samsung Electronics Co., Ltd.
  • Infosys Limited
  • Ericsson
  • Wipro Limited
  • Ericsson
  • Tata Consultancy Services Limited
  • Hansen Technologies
  • Radisys Corporation
  • HPE
  • IBM Corporation
  • Oracle Corporation
  • ALTRAN
  • HCL Technologies Limited
  • CA Technologies
  • AMDOCS

Market Segmentation:

By Services 

  • Infrastructure Integration
  • Consulting
  • Application Integration

By Vertical

  • Energy & Utility
  • Retail
  • Manufacturing
  • Healthcare
  • Media & Entertainment
  • Transportation & Logistics
  • IT & Telecom
  • BFSI
  • Others

By Application 

  • Collaborate Robot /Cloud Robot
  • Smart City
  • Industrial Sensors
  • Wireless Industry Camera
  • Logistics & Inventory Monitoring
  • Drone
  • Vehicle-to-everything (V2X)
  • Home and Office Broadband
  • Gaming and Mobile Media
  • Intelligent Power Distribution Systems
  • Remote Patient & Diagnosis Management
  • P2P Transfers /mCommerce
  • Others

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