Market Overview

The global market size of 5G (the fifth generation cellular network technology)-related devices (circuits, substrates, major parts/devices, materials, and assessment systems) based on the shipment values at manufacturers for 2020 is expected to reach 11,088,900 million yen.

5G is often characterized as faster speed, larger capacity, and lower latencies than previous generations, together with connectivity allowing multiple simultaneous connections. Naturally, demand for 5G differs by application. Today, telecommunication environment is required more extensively than before for applications and technologies. For example, Wi-Fi and cellular networks are necessary in smart meters and smart farming, Internet of Things streamlines various tasks at factories and plants, RFID tags facilitates automation at retailers and distribution businesses, and LoRA-WAN contributes in new approaches in diverse industries. 5G provides denser networks and is expected to increase connectivity among various types of terminals furthermore.

Initial frequency bands for 5G use 3 to 6 GHz (in many cases in the 3.3-3.8 GHz bands). Because 5G spectrum shares these frequency bands with the existing wireless networks, the bandwidth available for 5G is somewhat limited, and therefore, there is a limit in the communication speed according to the bandwidth. In addition to the spectrum of 28GHz already allocated in Japan, 39GHz and 60GHz spectrums are to become available for 5G accordingly throughout 2020s.

Noteworthy Topics

Progress in Technological Development toward “Beyond 5G”

Beyond 5G refers to the next-generation cellular network technologies following 5G, which is normally 6G, but may include 7G in some conditions. Because the status may vary, “Beyond 5G” is an appropriate expression.

5G is expected to bring about higher download speed and reduce latencies significantly. After a while, however, many of the connected IoT devices are projected to become incompetent for impeccable processes, as the networks for the IoT environment becoming more complicated to allow various new IoT devices to work, and increasing demand for data imposes significant burden to the networks.

Therefore, urgent development toward “Beyond 5G” is needed as soon as possible. In fact, R&D institutions and network vendors all over the world have already commenced the technological development for achieving “Beyond 5G,” including International Telecommunication Union (ITU) establishing the Focus Group Technologies for Network 2030 (FG NET-2030) in 2018. In the domestic working groups, use of THz bands, 100Gbps or more of transmission speed (10 times faster than 5G), 1msec or less of latency time which is almost zero latency, connection density of 10 million terminals per square kilometers, etc. are considered as the goals.

Future Outlook

The global 5G-related devices market size, based on the shipment values at manufacturers, is expected to achieve 69,593,000 million yen by 2030.

2020 is the year when 5G service provision has been expected to fully start. However, investment to the services has been delayed due to COVID-19 pandemics. Nevertheless, 5G can be essential for new lifestyles of “living with COVID-19 infections,” bringing about major telecommunication carriers to start groping for new 5G business from such a viewpoint.

Therefore, there are both an advantage and a disadvantage in the influence of COVID-19 pandemics to the future market: The advantage is new applications toward “With Corona” lifestyles while the disadvantage is delayed capital investment. The market forecast is likely to be affected by COVID-19 pandemics until 2022.

Research Outline