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5G Fixed Wireless Access Market to See CAGR of 97.47% from 2019 to 2026
March 22, 2019 | PRNewswireEstimated reading time: 2 minutes
The 5G fixed wireless access market is expected to grow from $396 million in 2019 to $46,366 million by 2026, at a CAGR of 97.47% from 2019 to 2026.
Major factors driving the growth of the 5G fixed wireless access market include growing demand for high-speed internet connectivity and broad network coverage with reduced latency and power consumption, increasing adoption of advanced technologies such as machine-to-machine (M2M)/Internet of Things (IoT) and millimeter-wave in 5G FWA. However, factors such as delay in making decisions related to the standardization of spectrum allocation, high infrastructural costs, adverse impact on the environment are expected to limit the growth of this market.
Services Segment to Grow at a Significant Rate Among Offerings in 2019
5G FWA services will be a game changer in the telecom industry. These services will be commercialized in 2019 in a few countries, such as the US, the UK, Germany, and Japan. Already, in October 2018, Verizon launched 5G FWA services in 4 major cities in the US, namely, Houston, Indianapolis, Los Angeles, and Sacramento. The company is offering a 3-month free trial period before paying USD 70 per month (or USD 50 per month for existing Verizon customers) and the promise of no data caps. These customers will also receive a free Apple TV 4K or Google Chromecast Ultra device at installation.
Semi-Urban Areas to Account for Largest Share of 5G Fixed Wireless Access Market by 2026
In semi-urban areas, the density of population is sparse and, by definition, remote from central offices. Hence, it requires significantly high investment to connect a subscriber with the network via wireline infrastructure. With high power transmission/reception and advanced antenna technologies, wireless links can effectively reach rural, outskirt areas without major construction work (i.e., only base stations and customer premises equipment need to be installed).
Residential Application is a Major Contributor to 5G Fixed Wireless Access Market
Currently, the focus of all major vendors in the 5G FWA market is to target residential customers, and over a three-fourth share of the total 5G FWA, the market is likely to be captured by residential users. For instance, in February 2017, Mimosa launched fixed wireless internet architectures called urban MicroPoP and rural GigaPoP, featured with Mimosa's new proprietary Spectrum Reuse Synchronization (SRS) technology. The company's 5G MicroPop and GigaPoP solutions represent the first commercially viable 5G solution for residential areas.
North America to Witness the Highest Growth during Forecast Period
North America is one of the leading markets for 5G in terms of R&D, network design/deployment, and presence of key players. In North America, the US is considered to have the most engaged user base, which is expected to grow with new subscribers. Full-fledged 5G implementation in North America is expected to boost on-demand video services. In the current scenario, the market for such services is continuously growing. The proliferation of 5G networks in the region is increasing mainly due to the presence of key market players.
For instance, Qualcomm Technologies (US), Mimosa Networks, Inc. (US), Cohere Technologies, Inc. (the US), Cellular South, Inc. (C Spire) (US), TELUS Corporation (Canada), United States Cellular Corporation (US), AT&T Inc. (US), Verizon Communications Inc. (US), Cisco (US) are among a few major companies in the 5G market that are actively participating in the development of 5G FWA solutions.
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