5G Fixed Wireless Access Market

Global 5G Fixed Wireless Access Market Size (2023 to 2028)

The global 5G fixed wireless access market size is expected to grow from USD 38.05 billion in 2023 to USD 176.39 billion by 2028, growing at a CAGR of 35.9% from 2023 to 2028.

Fixed wireless access allows connection between two fixed locations or buildings using wireless communication devices or systems. Wireless communication devices or systems perform fixed wireless operations with a radio or other wireless links. Typically, the fixed wireless connection is part of a wireless LAN infrastructure. The main purpose of a fixed wireless link is to allow data communication between two sites or buildings.

MARKET DRIVERS:

Some of the main factors that are supposed to drive the growth of the global 5G fixed wireless access market include the growth in demand for high-speed internet connectivity and broad network coverage with reduced latency and power consumption and an increased adoption of advanced technologies such as machine-to-machine (M2M)/Internet of Things (IoT) and millimeter waves in 5G FWA. A 5G solution can deliver speed in gigabits per second. 5G can provide a download speed of around 25Gbps. This speed is 10-20 times faster than 4G speed. Therefore, due to faster speeds and low latency, this technology competes directly with fiber-type or high-speed broadband access networks.

The growth of the 5G fixed wireless access market is expected to be driven by the increased capacity of the wireless network and the high speed offered by high-frequency millimeter waves. Millimeter waves occupy a relatively unused portion of the electromagnetic spectrum between 30 GHz and 300 GHz, providing excellent performance and increased capacity.

Furthermore, the growth in demand for high-speed internet connectivity is expected to drive the growth of the 5G fixed wireless access market. Additionally, the increasing adoption of advanced technologies such as machine-to-machine (M2M) and the Internet of Things (IoT) are some of the other factors driving the 5G fixed wireless access industry. In addition, the increase in data traffic would force network operators to provide high-speed bandwidth to their consumers. Therefore, since 5G provides more bandwidth than 4G and 3G, the 5G fixed wireless access market is likely to grow.

MARKET RESTRAINTS:

However, high infrastructure costs can hamper this industry's growth. Also, the delay in decision-making related to the standardization of spectrum allocation, high infrastructure costs, and adverse environmental effects are expected to slow the growth of the global 5G fixed wireless access market during the projection period.

Impact of COVID-19 on the 5G fixed wireless access market:

As governments in different countries declare states of emergency due to the spread of COVID-19, companies are increasingly adopting a work-from-home culture to keep their businesses operational and allow employees to follow the guidelines. Trends such as working from home, social distancing, and online education are driving the growth of the 5G fixed wireless access market. Although the pandemic has slowed down the efforts of the global wireless industry to formulate different standards and organize trade shows related to wireless communication, the technology is being used to combat the impact of Coronavirus in different industries and countries. The spread of COVID-19 has slowed down investment in fixed wireless 5G due to delays in 5G rollout plans by telecom operators. The commercial sector, which includes hospitality, real estate, and retail, is severely affected by this pandemic, as governments in several countries around the world have announced full closures at the national level to contain the spread. This resulted in the suspension of activities at points of sale, restaurants, hotels, and construction activities. However, the impact of Coronavirus on the 5G used in these sectors is not high as most of the installations in these sectors rely on wired communication technologies.

REPORT COVERAGE:

This research report on the global 5G fixed wireless access market has been segmented and sub-segmented into the following categories.

5G Fixed Wireless Access Market – By Application:

• Residential
• Commercial
• Industrial
• Government

The commercial fragment is relied upon to record the most elevated CAGR during the conjecture time frame. Nonetheless, the private portion is relied upon to rule the market during the gauge time frame because of its points of interest, for example, monetary suitability and rapid network at a serious cost. According to data from the International Telecommunication Union, nearly 970 million households worldwide have poor or no fixed broadband connectivity, creating an opportunity for FWA deployments.

5G Fixed Wireless Access Market – By Offering:

• Hardware
• Services

In 2019, the services segment was the main contributor to the global 5G fixed wireless access market and a similar trend is expected to be observed over the forecast period. By territories, the market has been segmented into urban, semi-urban, and rural.

5G Fixed Wireless Access Market – By Operating Frequency:

• Sub–6 GHz
• 26 GHz–39 GHz
• Above 39 GHz

The sub-6 GHz frequency segment is foreseen to record the highest share in the 5G fixed wireless access market by 2026. The main difference between the sub-6 GHz and MMWave bands is their difference in coverage terms and domestic penetration. MMWave tapes have a low coverage footprint due to their RF properties. Frequencies in this band cannot penetrate solid objects such as walls. MMWave requires more sites than sub-6 GHz to provide similar coverage. For example, based on simulations conducted by Kumu Networks, the 26 GHz spectrum is estimated to require 7 to 8 times more sites than the 3.5 GHz spectrum.

5G Fixed Wireless Access Market – By Demography:

• Urban
• Semi-Urban
• Rural

In terms of value, the semi-urban segment is estimated to account for the largest share of the 5G fixed wireless access market in 2026. The growth of this segment can be attributed to the fact that in semi-urban areas, the population density is low. Therefore, these areas require significantly high investments to connect subscribers to a network through wired infrastructures.

Because of high force transmissions/gatherings and progressed antenna innovations, remote connections can adequately arrive at rustic zones with no significant development as just the base station and gear should be introduced at the client premises.

5G Fixed Wireless Access Market – By Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa 

North America, trailed by Europe, is relied upon to overwhelm the 5G FWA market from 2022 - 2027 because of the presence of cutting-edge IT foundation, the high centralization of market major parts in the district, and the accessibility of skillful specialized mastery. In North America, the United States is assessed to have the most noteworthy CAGR because of the fast speed of 5G rollout and developing client base.

KEY MARKET PLAYERS:

Telefonaktiebolaget LM Ericsson (Sweden), Samsung Electronics (South Korea), AT&T Inc. (US), Huawei Technologies Co., Ltd (China), Qualcomm Technologies (US), Verizon Communications Inc.  (US), Nokia Corporation (Finland), Siklu Communication, Ltd (Israel), Mimosa Networks, Inc. (US), and Cisco Systems, Inc. (US).

RECENT HAPPENINGS IN THE MARKET:

• Samsung Electronics Co., Ltd. and Fastweb announced an agreement to conduct Italy's first 5G Fixed Wireless Access (FWA) trial in the commercial spectrum.