5G network infrastructure revenue to grow by more than $5 billion in 2021: Gartner

A new report from Gartner has predicted a revenue growth of 39% for the worldwide 5G network infrastructure market in 2021. The estimated $19.1 billion in revenue will far surpass 2020’s figure of $13.7 billion, according to Gartner. 

Michael Porowski, senior principal research analyst at Gartner, said the COVID-19 pandemic “spiked demand for optimized and ultrafast broadband connectivity to support work-from-home and bandwidth-hungry applications, such as streaming video, online gaming and social media applications.” 

“Business and customer demand is an influencing factor in this growth. As consumers return to the office, they will continue to upgrade or switch to gigabit fiber to the home service as connectivity has become an essential remote work service,” said Porowski. “Users will also increasingly scrutinize CSPs for both office and remote work needs.”

The shift corresponded with an acceleration in 5G development in 2020 and 2021 thanks to communications service providers (CSPs) in mature markets. Gartner found that 5G accounted for 39% of the total revenue brought in from wireless infrastructure this year. 

The report also noted that investment in other wireless infrastructure is waning “rapidly” across “all regions” as CSPs shift to 5G small cells.

Through increased adoption of dynamic spectrum sharing and millimeter wave base stations, CSPs across North America will reach $4.3 billion in 5G revenue in 2021, up from $2.9 billion last year. 

CSPs in Western Europe are taking a different tack, focusing on licensing spectrum, modernizing mobile core infrastructure and navigating regulatory processes as they slowly grow 5G revenue from $794 million in 2020 to nearly $2 billion in 2021. 

Gartner added that the Greater China region would still retain its top spot, with $9.1 billion in 2021 through 5G revenue.

By 2024, Gartner predicts that 60% of CSPs will provide commercializable 5G services.

Gartner researchers also touted the 10-Gigabit-capable symmetric-PON (XGS-PON) technology, which they believe will be used by 60% of the Tier-1 CSPs by 2025.

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