Analysts at CCS Insight report that 5G is on the verge of becoming mainstream in several advanced markets, even though rollout progress has slowed in some regions.
CCS Insight forecasts that global 5G connections will triple to around 670 million this year and are expected to reach roughly 3.6 billion by 2025. Despite this rapid growth in mobile 5G, 5G fixed wireless access is likely to remain a specialist solution rather than a mass-market replacement for home broadband.
Marina Koytcheva, VP of Forecasting at CCS Insight, said:
“Although our near-term expectations have been dented, we remain optimistic that the global mobile industry will overcome these temporary challenges and will achieve 3.6 billion 5G connections worldwide in 2025.”
This year, about one in three smartphones sold globally is expected to support 5G networks. The analysts also expect 5G-capable handsets to become available at entry-level price points, with some models priced around $150 in 2022, helping to drive wider adoption.
South Korea and China continue to lead on 5G uptake. Approximately one-fifth of mobile subscriptions in South Korea already use 5G, and China is forecast to reach a similar milestone in 2021.
Kester Mann, Director of Consumer and Connectivity at CCS Insight, commented:
“In some pioneering countries, 5G is on the verge of hitting the mass market. Consumers’ thirst for connectivity is stronger than ever, and accelerating network roll-outs and affordable smartphones are making 5G increasingly accessible.”
As economies cautiously emerge from the pandemic, the demand for robust, reliable connectivity has grown more critical than ever.
The United States was the first country to launch a commercial 5G network, but initially it lagged in subscriber uptake. CCS Insight has observed a renewed push from US carriers over the past six months, spurred in part by the launch of the first 5G-capable iPhone. The firm predicts the US will reclaim its position as a 5G leader in 2021.
Many regions experienced a slowdown in 5G rollouts due to the pandemic, and a number of Western European countries also faced delays resulting from government decisions, spectrum auction postponements, and restrictions on certain equipment suppliers over national security concerns.
Several Western European nations have restricted equipment from vendors such as Huawei, ending long-standing supplier relationships that in some cases dated back decades. Operators that began 5G deployments with that hardware have faced costly and time-consuming efforts to remove and replace equipment.
Despite these setbacks, delays were generally shorter than initially feared, and operators across Western Europe have adapted quickly. According to CCS Insight, most Western European countries are now not far behind regional pioneers such as Switzerland, the UK, Finland, and Germany.
India has other pressing priorities at the moment, yet it is expected to move quickly toward broader 5G adoption in the coming years as intense competition between mobile operators and ambitions to develop domestic solutions drive investment.
Overall, while short-term challenges persist—ranging from COVID-19 uncertainties to component shortages and trade tensions—CCS Insight remains optimistic about the long-term trajectory of 5G. The firm believes these temporary obstacles are unlikely to derail 5G’s broader progress.
(Photo by Magnus Olsson on Unsplash)
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