5G System Integration Market Opportunities And Innovations

(MENAFN- Straits Research) Introduction

5G system integration refers to the process of combining the physical and virtual components of an organisation using the newly upgraded systems or applications that are compatible with the ultra-fast 5G network.
5G System Integration offers seamless connectivity and data processing across multiple industries, including manufacturing, telecommunications, retail, information technology, and energy, among others. Important applications of this system integration include industrial sensors, smart city, gaming & mobile media, fast broadband/Ultra High Definition (UHD) television, industrial sensors, and smart city.

Market Dynamics The rising popularity of sdn and nfv are driving the market

A notable increase in demand for ultra-high-speed internet to decrease customer response time, as well as the increasing popularity of Software-Defined Networking (SDN) and Network Function Visualization, are some of the key factors driving the global market (NFV). In addition, the widespread adoption of collaborative robots and connected sensors increases the demand for 5G services to develop superior connectivity, which also contributes to the expansion of the market for system integration. According to a June 2020 publication by the European Commission (EC), eleven new 5G infrastructure projects under the 5G public-private partnership (5G-PPP) are scheduled to begin in September 2020 in Europe. The primary objective of this partnership is to capitalise on key growth opportunities in the development and innovation of 5G hardware along Europe's transnational corridor.

It also provides a significant advantage over the previous technology in the form of short lag times and an unlimited capacity for browsing. In addition to fast streaming and superior video quality, 5G system integration also promises immersive gaming experiences for the next generation. Providing multisensory digital high-definition content fueled by increased capacity to support essential technologies such as three-dimensional viewing, augmented reality (AR), and virtual reality is also among the most important advantages (VR).

Connected vehicles and smartphones are among the primary benefits of 5G system integration. This system integration enables the ultra-high-speed internet connection and seamless connectivity required to make autonomous vehicles and self-driving cars a reality. 5G networks enable high-speed communication between all objects on the road or along the side of the road, such as gas stations, stores, etc. The integration permits communication and data processing between infrastructure, networks, vehicles, and pedestrians. As users transition from traditional 4G technology to 5G, the use of advanced 5G smartphones will soon become commonplace. These newest smartphones would have all the features that people desired in their previous 4G-enabled phones, which is a key benefit of 5G system integration.

Regional analysis

North America dominated the global market in 2021, with a 34.6% share. This can be attributed to the presence of major IT and telecommunications companies, such as IBM Corporation, Microsoft Corporation, and Cisco Systems, Inc. Moreover, rising investments in deploying 5G infrastructure by key market players, such as AT&T Inc. and Verizon Communications Inc., are anticipated to generate a robust need to integrate overall infrastructure and applications across various verticals, including IT and telecom, energy, and utilities, and healthcare, to support 5G NR, frequency bands. This factor is expected to contribute to the overall expansion of the regional market.

During the forecast period, Asia-Pacific is expected to grow at the fastest rate, 28.8 per cent annually. In China, Japan, and South Korea, prominent telecom companies including China Mobile, China Telecom, KT Corporation, and SK Telecom are investing heavily in the deployment of fifth-generation networks. It is anticipated that the majority of these investments will target the implementation of next-generation infrastructure for various industry verticals, including transportation, energy and utility, healthcare, media and entertainment, and manufacturing. In the coming years, the above-mentioned countries' rapidly increasing investments in the installation of 5G infrastructure are likely to create a substantial market opportunity for system integrators. In addition, a rapid increase in the number of small and medium-sized IT companies in emerging economies such as China and India is expected to drive regional market expansion.

Key Highlights

• The global 5G system integration market size was valued at USD 15.93 billion in 2024 and is projected to reach from USD 20.25 billion in 2025 to USD 137.91 billion by 2033, growing at a CAGR of 27.10% during the forecast period (2025-2033).
• The rising popularity of online gaming and SDN & NFV technologies are some of the driving factors in the market.
• This market can be segmented on the basis of services, applications, verticals, regions and competitors.
• By 2030, North America is anticipated to have the largest market share, with the Asia Pacific emerging as the fastest-growing market.