5G Module Market by Applications (Fixed Wireless Access Customer Premises Equipment, Router, Internet of Vehicles, and Others (Head-mounted Display, Notebook PC, and Drone)), End-Users (IT & Telecom, Manufacturing, Healthcare, Transportation & Logistics, and Others), and Regional Analysis (North America, Europe, Asia-Pacific, and LAMEA): Global Opportunity Analysis and Industry Forecast, 2021–2028

Global 5G Module Market Analysis

The global 5G module market size is predicted to garner a revenue of $468,271.9 million in the 2021–2028 timeframe, growing from $7,400.0 million in 2020, at a healthy CAGR of 70.8%.

Market Synopsis

Technological advancements related to 5G services are expected to drive the global 5G module market growth during the forecast timeframe.

However, the high investment cost for manufacturing 5G module along with the up gradation of the technology is anticipated to hamper the market growth during the forecast period.

According to the regional analysis of the market, the Asia-Pacific 5G module market share is anticipated to grow at a CAGR of 72.1%, by generating a revenue of $106,719.2 million during the review period.

5G Module Overview

Modules typically have some memory, a small processor, and voltage management. A second radio and various extra features, such as a GPS radio or a GNSS system, are often incorporated. Since the debut of commercial 5G networks, a wide range of 5G gadgets, in addition to smartphones, have been launched in the market. 5G modules help vendors build new goods and accelerate commercialization by not only providing 5G connectivity to end devices, but also by assisting vendors in developing new products.

Covid-19 Impact on 5G Module Market

The coronavirus pandemic has unleashed a series of unprecedented events affecting every industry. Individuals, society, industries, and the global economy continue to be impacted by the COVID-19 situation around the world. The fundamental concepts of 5G services have been updated as a result of many government directives. The pandemic has halted the creation of the 5G foundation in some locations. The steps taken to slow the spread of the disease have had an impact on the timeframe for the completion of the 5G infrastructure. India's Department of Telecommunication, for example, has postponed its spectrum auction till further notice. A number of manufacturers and telecommunications providers in the industry have suffered as a result of this development.

Integration of Internet of Things (IoT) with 5G Services is Anticipated to Drive the Market Growth

5G network technology allows IoT devices to increase their performance and dependability in the (IoT) era. The introduction of 5G-enabled internet of things aims to extend the capabilities of sensor-based internet of things to actuators, robots, and drones, allowing for distributed coordination, low latency, and dependable job execution in the hands of humans. Furthermore, the IoT commercial viability is contingent on its capacity to communicate with other IoT devices, smartphones & tablets, computer programs, and other electronic equipment. The Internet of Things can connect and transport information quicker than ever before thanks to 5G network technology, creating a market potential for the 5G modules sector.

To know more about global 5G module market trends, get in touch with our analysts here.

High Investment Cost in 5G Might Restrict the Market Growth

The move from 4G to 5G technology would necessitate massive investments for the manufactures as they would have to setup the whole technology as well as network related upgradation. The cost of 5G infrastructure is influenced by the required throughput density, periodic interest rate, and base station pricing. These costs must be cut in order to execute effective and ultra-dense micro cell deployments. The issue for communication services providers (CSPs) in migrating to 5G is justifying multibillion-dollar investments in new network equipment needed to change their network to a virtualized infrastructure, transfer services from 3G to 4G to 5G, and safeguard their business from ever-increasing interruptions and cyber threats.

Technological Advancements are Expected to Increase the Opportunities in the 5G Module Market

The growing popularity of IoT use cases in a variety of industries that require wide-area connectivity and the ability to handle a large number of connections has spurred the demand for massive IoT solutions. Massive IoT is gradually gaining traction as a new focus for IoT connectivity. Massive IoT is an intriguing possibility for 5G, but Telcos are currently reliant on current cellular IoT standards, such as NB-IoT, in the early stages of the technology. 5G networks are expected to allow the widespread deployment of intelligent IoT nodes in a range of settings. It will also provide a firm platform for the widespread adoption of critical communications services.

To know more about global 5G module market opportunities, get in touch with our analysts here.

Source: Research Dive Analysis

The internet of vehicles sub-segment is predicted to have the fastest growth rate of 71.8% and register a revenue of $123,201.9 million during the forecast period. The growing demand for connected vehicles in the developed and the developing countries is anticipated to boost the market growth in the near future. The rising demand for tracking, security, and sharing of the information related to accidents to emergency contacts is projected to boost the market demand over the coming years. The increasing demand for connected vehicles which are equipped with software, sensors, and other technologies will increase the safety of the cars and boost the sub-segment market growth.

Source: Research Dive Analysis

The transportation & logistics sub-segment is anticipated to have the fastest market growth during the forecast period and generate a revenue of $138,765.8 million by 2028, growing from $2,090.5 million in 2020, with a CAGR of 72.2%. With the help of high speed 5G connectivity, the security authorities will be able to monitor the roads and other places with the help of cameras and receive the data of the security breaches and the accidents similar to real time data. Additionally, more comprehensive electronic traffic signaling systems that can help in achieving optimized traffic flow management are anticipated to drive the growth of the transportation & logistics sub-segment.

Global 5G Module Market, Regional Insights:

The 5G module market was inspected across North America, Europe, Asia-Pacific, and LAMEA.

Source: Research Dive Analysis

The Market for 5G Module in Asia-Pacific to be the Fastest Growing

Asia-Pacific 5G module market is anticipated to have the fastest growing market during the forecast time period and reach $106,719.2 million by 2028, with a CAGR of 72.1%. This growth is majorly due to the presence of the key network providers as well as the presence of the key market players. Additionally, due to the Asia-pacific region's large mobile subscriber base, businesses are becoming more competitive and focusing on providing superior customer service. Due to customer base size, variety, and strategic leadership by countries such as Singapore, South Korea, China, Australia, and Japan, the area is poised to dominate 5G, edge computing, blockchain, and 5G core technologies.

Competitive Scenario in the Global 5G Module Market

Product launches and mergers & acquisitions are common strategies followed by major market players.

Source: Research Dive Analysis

Some of the leading 5G module market players are Amazon, Apple, AT&T, Vodafone, Huawei, Google, Samsung, Sierra Wireless, Telit, and Quectel.

Porter’s Five Forces Analysis for the Global 5G Module Market:

• Bargaining Power of Suppliers: 5G module market contains huge concentration of distributors & suppliers and therefore, the distributors & suppliers’ control is predicted to be reasonable, resulting in moderate bargaining power of dealers.
  Thus, the bargaining power of the suppliers is considered to be moderate.
• Bargaining Power of Buyers: Buyers might have moderate bargaining power, significantly because of high players functioning in the 5G module market.
  Therefore, the bargaining power of the buyer is moderate.
• Threat of New Entrants: Companies entering the 5G module market are adopting technological innovations such as artificial intelligence, internet of things, and others. But since the investment cost is high,
  the threat of the new entrants is moderate.
• Threat of Substitutes: There are no substitutes for 5G module.
  Thus, the threat of substitutes is low.
• Competitive Rivalry in the Market: The competitive rivalry among industry leaders is rather intense, especially between the global players including Telit, Quectel, and AT&T. These companies are strengthening their footprint worldwide. 
  Therefore, competitive rivalry in the market is high.