As we look to the year 2023 and beyond, we see a world that is connected in ways never before possible. 5G is transforming the way we work, play and live. The global 5G market is expected to grow at a 17% CAGR between now and 2028, according to MarketWatch. With 5G, we can anticipate seeing faster data speeds and higher bandwidth. It's predicted that this will result in a significant increase in the number of connected devices that rely on fast, reliable data transfers.
The number of connected gadgets is expected to increase significantly as 5G becomes available. Current estimates put the number of 5G devices at about 700, almost a third of which were introduced in 2022. Regardless of recent economic struggles, 2023 will be a year of continued growth. The Ericcson Mobility Report 2022 forecasts that the stand-alone (SA) enablement of smartphones will be a focal point, as more 5G SA services are deployed and NR-DC is introduced to support FR2 (high-band spectrum).
Where can we expect to go with 5G in 2023?
Linking FWA, fixed wireless access (the combination of LTE and 5G NR), the first 5G SA network, and the introduction of SA-enabled smartphones will be critical for the growth of the market. The market landscape is set to benefit from the advent of network slicing, introducing many alluring new components. It is anticipated that rivalry in the chip and device sector will drive further expansion.
The customer experience and rise in remote work
The customer experience will continue to be the main driver, with a growing number of customers preferring to access their services through their mobile devices. Another key factor driving demand for 5G connectivity is the growing popularity of connected vehicles and the Internet of Things (IoT) in the enterprise sector. The widespread adoption of remote working due to the COVID-19 pandemic will also boost demand for 5G services and devices.
While we have a handle on the technological aspect of 5G, the availability of network capacity and the cost of deployment are factors that need to be considered. The U.S. will be a primary driver of 5G deployment, but the Chinese government is also expected to make investments to support the growth of the industry. China is expected to have the largest number of 5G base stations in the world by 2023 – with 77,000 in Shanghai alone.
Other emerging markets are also expected to support the growth of 5G. In South Korea, the government has launched an expansion plan to enable the deployment of expansive 5G base stations. Japan is also expected to invest heavily in 5G to support the development of IoT in the automotive and healthcare sectors. By 2026, Japan is expected to have more 5G-connected devices than 4G devices, according to the International Trade Administration.
The best in IoT connectivity
Perle is proud to partner with IoT device manufacturers by offering serial to ethernet solutions. To learn more about how Perle provides efficient, reliable connectivity via industrial switches and terminal servers, visit our Case Studies by Industry page.
