5G Services Market Size, Share, Trends, Growth 2034

5G Services Industry Prospective:

The global 5G services market size was approximately USD 36.56 billion in 2024 and is projected to reach around USD 239.72 billion by 2034, with a compound annual growth rate (CAGR) of roughly 26.50% between 2025 and 2034.

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5G Services Market: Overview

5G services exemplify the next generation of mobile network technology, delivering enhanced connectivity, low latency, and ultra-fast data speeds. They enable real-time communication, drive innovations such as smart cities, remote healthcare, and autonomous vehicles, and support massive deployments of IoT. The global 5G services market is expected to expand rapidly, driven by exponential growth in mobile data traffic, the proliferation of AR/VR and cloud computing, and the emergence of Industry 4.0.

According to reports, global mobile data traffic is projected to surpass 160 exabytes per month by 2025. 5G is crucial for managing this growth, reducing network congestion, and offering speeds of up to 10 Gbps. Cloud gaming platforms, such as GeForce NOW, require low-latency networks and high-speed connections, as do those from Nvidia and Microsoft Cloud. 5G supports immersive AR/VR experiences and continuous gaming.

Moreover, 5G enables real-time communication between infrastructure and machines, which is crucial for intelligent lighting, smart traffic systems, and manufacturing automation. Industry 4.0 applications depend on 5G for real-time analytics and predictive maintenance.Although drivers exist, the global market is hindered by high spectrum and infrastructure costs, as well as limited rural coverage. Deploying 5G needs massive investments in small cells, spectrum licenses, and base stations. Operations in India and Europe face challenges due to delayed returns on investment and spectrum auction costs.

Additionally, in regions with sparse populations, the rollout of 5G is not economically feasible. Rural areas in South Asia, parts of the United States, and Africa still lack 4G, thus postponing the adoption and expansion of 5G. Still, the global 5G Services industry benefits from several favorable factors. Real-time remote surgery, patient monitoring, and wearable diagnostics are gaining prominence with the rise of 5G. The global 5G healthcare industry is projected to surpass USD 60 billion by 2030.

Additionally, 5G enables V2X (vehicle-to-everything) communication, which is crucial for autonomous driving. BMW, Tesla, and Ford are collaborating with telecom companies to explore navigation and receive real-time updates using 5G technology. Furthermore, edge computing with 5G reduces latency by processing data closer to users, resulting in faster data transmission. It supports vital applications in gaming, logistics, and security monitoring while also developing new industry domains.

Key Insights:

• As per the analysis shared by our research analyst, the global 5G services market is estimated to grow annually at a CAGR of around 26.50% over the forecast period (2025-2034)
• In terms of revenue, the global 5G services market size was valued at around USD 36.56 billion in 2024 and is projected to reach USD 239.72 billion by 2034.
• The 5G services market is projected to grow significantly due to rising device connectivity, broader digital transformation across various sectors, and increasing data consumption.
• Based on communication type, the Enhanced Mobile Broadband (eMBB) segment is expected to lead the market, while the Fixed Wireless Access (FWA) segment is anticipated to experience significant growth.
• Based on technology, the radio access technologies segment is the dominant segment, while the high-speed package access segment is projected to witness sizable revenue growth over the forecast period.
• Based on end-user, the IT & telecom segment is expected to lead the market compared to the healthcare segment.
• Based on region, North America is projected to dominate the global market during the estimated period, followed by Asia Pacific.

5G Services Market: Growth Drivers

The proliferation of cloud integration and edge computing propels market growth

The compatibility of 5G with cloud-native infrastructure and edge computing is a leading growth catalyst in the global 5G services market. It reduces latency and allows real-time data processing closer to the source. According to reports, 75% of enterprise data will be generated and processed at the edge by 2025, a surge from 10% in 2018.

Cloud providers, including Microsoft Azure, AWS, and Google Cloud, are partnering with telecom companies to build integrated 5G-edge infrastructures, enabling businesses to leverage high-performance and scalable networks for robotics, AI, and VR/AR applications.

Rising video streaming consumption and mobile data traffic considerably fuel the market growth

The unprecedented rise in mobile data usage, particularly driven by high-definition video gaming and streaming, is prompting telecommunications companies (telcos) to accelerate the rollout of 5G networks. According to Ericsson's Mobility Report, as of June 2024, overall mobile data traffic had increased by 36%, with video accounting for over 70% of global mobile data traffic. With 5G offering speeds up to 100 times more than 4G, telecom providers are embracing this to cater to the escalating user expectations for real-time content delivery and continuous streaming.

5G Services Market: Restraints

Consumer cost barriers and device compatibility negatively impact market progress

While 5G devices and smartphones are becoming increasingly accessible, they remain unaffordable for large segments of the global population, particularly in developing regions. In addition, not all existing 4G devices or infrastructure can be upgraded to 5G, requiring customers and enterprises to invest in new hardware. This constraint hampers user migration and restricts early revenue gains for service providers.

5G Services Market: Opportunities

Growth in 5G-Powered Healthcare Services positively impacts market growth

The healthcare industry offers a broader potential for 5G-based services like robotic surgeries, mobile diagnostics, wearable monitoring, and telemedicine. Reports estimate that 5G could unveil more than USD 60 billion in overall healthcare value by 2030 via real-time data processing and enhanced access.

Recent experiments in the United Kingdom and India have validated the success of 5G-based mobile ambulatory services and remote surgeries, offering fresh avenues for private-public collaborations and specialized 5G health service providers. This is a key opportunity for further progress of the global 5G services industry.

5G Services Market: Challenges

Low Return on Investment (ROI) in the Initial Phases restricts the market growth

Despite notable investments, several telecom operators are finding it complex to obtain early ROI because of slower adoption, unclear monetization models, and high operational costs. A Deloitte report stated that more than 40% of global telecom firms have not yet achieved breakeven on their 5G investments, primarily in areas where the average revenue per user remains low. Until enterprise and consumer demand scale up meaningfully, service providers may continue to experience hesitant investor sentiment and financial pressure.

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5G Services Market: Report Scope

5G Services Market: Segmentation

The global 5G services market is segmented based on communication type, technology, end-user, and region.

Based on communication type, the global 5G services industry is divided into Fixed Wireless Access (FWA), Enhanced Mobile Broadband (eMBB), Ultra-Reliable and Low-Latency Communications (uRLLC), and Massive Machine-Type Communications (mMTC). The Enhanced Mobile Broadband (eMBB) segment registered a remarkable share of the market owing to its focus on offering high data throughput, ultra-fast internet speeds, and unified streaming experiences for tablets, laptops, and smartphones. The extensive consumer demand for 8K/4K video streaming, VR/AR content, and cloud gaming has boosted its adoption. eMBB accounts for over 60% of the global 5G usage, driven by increasing smartphone penetration and rising consumer mobility worldwide.

Based on technology, the global 5G services market is segmented as Wi-Fi, high-speed package access, radio access technologies, and others. The radio access technologies segment held a substantial market share due to its vital role in enabling mobile broadband, unified mobility, and low-latency applications. RATs form the center of 5G infrastructure by allowing wireless communication among networks and devices through base stations. The segment comprises technologies like 5G New Radio in mmWave and sub-6 GHz spectrums. According to the GSMA, as of 2024, more than 75% of 5G investments are distributed towards improving radio access capabilities.

Based on end user, the global market is segmented into IT & telecom, banking, healthcare, retail & e-commerce, and others. The IT and telecom segment holds a majority share of the market, backed by IT service providers and telecom operators that lead in the deployment, commercialization, and testing of 5G services and infrastructure. They are dependent on 5G for network slicing, high-speed connectivity, and cloud-native frameworks. According to GSMA and Statista, the IT & telecom category accounted for over 35% of the global market in 2024, with telcos expanding non-standalone and standalone 5G networks worldwide.

5G Services Market: Regional Analysis

North America to witness significant growth over the forecast period

North America is expected to continue leading the 5G services market due to the aggressive and early deployment of 5G by major operators, high consumer demand and penetration, the presence of cloud giants, and strong technology infrastructure. North America, led by the United States, was the first region, among others, to commercially introduce 5G services.

Leading telecom firms, such as AT&T, Verizon, and T-Mobile, have heavily invested in 5G, with plans to encompass 90% of the U.S. population by 2024. The United States alone holds over 0.23 million 5G connections, as per GSMA Intelligence. North American industry benefits from the early adoption of 5G devices, with more than 70% of cell phones sold in 2024 compatible with 5G. Consumers are increasingly demanding ultra-fast speeds for cloud gaming, 4K streaming, and VR/AR applications.

Therefore, carriers experience a high average revenue per unit (ARPU), which enables them to sustain network upgrades and service innovation. North America is home to global technology giants such as Microsoft, Google, Apple, Qualcomm, and Amazon, which are deeply involved in the integration of 5G technology. These companies develop cloud platforms, 5G chips, and edge technologies, fostering scalability and innovation. Their impact helps fuel industrial and consumer adoption in sectors.

The Asia Pacific region is making remarkable progress in the 5G services industry, driven by a substantial 5G user base, China's dominance in 5G technology manufacturing, and surging demand for enterprise and consumer 5G services. In 2024, China alone had over 850 million 5G users, marking a larger share among others.

Leading operators, such as China Telecom, China Mobile, and China Unicom, have installed over 3.3 million 5G base stations worldwide. This enormous user base positions the APAC region as the leading powerhouse in terms of scalability. APAC houses a maximum of 5G device manufacturers and equipment, including MediaTek, ZTE, Huawei, and Samsung. These companies deliver core network chipsets, components, and smartphones worldwide. Regional prominence in the supply chain enables more cost-effective and faster rollouts of 5G technology.

Moreover, high smartphone penetration, growing digital economies, and rapid urbanization drive the demand for 5G across diverse sectors. For instance, in India, Bharti Airtel and Reliance Jio launched 5G in over 7,000 cities, with more than 200 million users projected in 2025. Currently, autonomous vehicles and smart factories are driving demand in enterprises in China and Japan.

5G Services Market: Competitive Analysis

The leading players in the global 5G services market are:

• AT&T Inc.
• Verizon Communications Inc.
• China Mobile Limited
• Deutsche Telekom AG
• SK Telecom Co. Ltd.
• Vodafone Group Plc
• Telefonica S.A.
• T-Mobile US Inc.
• Ericsson
• Nokia Corporation
• Huawei Technologies Co. Ltd.
• Samsung Electronics Co. Ltd.
• Qualcomm Incorporated
• ZTE Corporation
• Rakuten Mobile Inc.

5G Services Market: Key Market Trends

Growth of Standalone (SA) 5G networks:

Telecom operators are transitioning to standalone 5G infrastructure, which offers enhanced speed, improved latency, and network slicing capabilities. The leading providers, T-Mobile, AT&T, Reliance Jio, and China Mobile, are introducing complete standalone cores. This trend is enabling advanced applications, such as industrial automation and autonomous driving.

Development of 5G Fixed Wireless Access (FWA):

Fixed Wireless Access is a growing mainstream broadband substitute, especially in unexplored and rural regions. As of 2025, over 140 million homes worldwide use 5G FWA for their home internet connection. Telecoms like T-Mobile, Verizon, and Airtel are scaling fixed wireless access to decrease the gaps in last-mile connectivity.

The global 5G services market is segmented as follows:

By Communication Type

• Fixed Wireless Access (FWA)
• Enhanced Mobile Broadband (eMBB)
• Ultra-Reliable and Low-Latency Communications (uRLLC)
• Massive Machine-Type Communications (mMTC)

By Technology

• Wi-Fi
• High-Speed Package Access
• Radio Access Technologies
• Others

By End User

• IT & Telecom
• Banking
• Healthcare
• Retail & E-Commerce
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa