Worldwide 5G network infrastructure revenue is set to grow 39 per cent to reach $19.1 billion in 2021, up from $13.7 billion in 2020, a Gartner report said on Wednesday.
5G is the fastest growing segment in the wireless network infrastructure market.
Communications service providers (CSPs) in mature markets accelerated 5G development in 2020 and 2021 with 5G representing 39 per cent of total wireless infrastructure revenue this year.
"The Covid-19 pandemic spiked demand for optimised and ultrafast broadband connectivity to support work-from-home and bandwidth-hungry applications, such as streaming video, online gaming and social media applications," said Michael Porowski, senior principal research analyst at Gartner.
Regionally, CSPs in North America are set to grow 5G revenue from $2.9 billion in 2020 to $4.3 billion in 2021 -- due, in part, to increased adoption of dynamic spectrum sharing and millimetre wave base stations.
In Western Europe, CSPs will prioritise on licensing spectrum, modernising mobile core infrastructure and navigating regulatory processes with 5G revenue expected to increase from $794 million in 2020 to $1.6 billion in 2021.
Greater China is expected to maintain the top global position in global 5G revenue reaching $9.1 billion in 2021, up from $7.4 billion in 2020.
While 10 per cent of CSPs in 2020 provided commercialisable 5G services, which could achieve multiregional availability, Gartner predicts that this number will increase to 60 per cent by 2024, which is a similar rate of adoption for LTE and 4G in the past.
"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 fibre to the home (FTTH) service as connectivity has become an essential remote work service," said Porowski.
"Users will also increasingly scrutinise CSPs for both office and remote work needs," he added.