5G adoption is gaining momentum in the consumer market as countries open up to a post-pandemic world.
In the enterprise space, IDC is predicting strong growth from US$106 million in 2021 to US$8 billion in 2026 for the Asia-Pacific (excluding Japan) region. That’s a compounded annual growth rate (CAGR) of 137 percent.
According to IDC’s Asia/Pacific (Excluding Japan) 5G Enterprise Services Forecast 2022–2026, 5G services revenue will grow from US$106 million in 2021 to US$8 billion in 2026, a compounded annual growth rate (CAGR) of 137 percent.
IDC’s revenue forecast covered four areas — MNO 5G private network managed services (excluding equipment leasing) , fixed wireless access (FWA) service for enterprises, MEC (multi-access edge computing) edge cloud service , and network slicing service .
“It will take the telecom industry three to five years to fully develop 5G enterprise services, and equally the same amount of time for leading enterprises to conduct proofs of concept and trials before committing their business operations to depend on 5G,” said Bill Rojas, Adjunct Research Director of IDC Asia/Pacific.
“But, the early trend is that private networking has received the most attention in all markets in the region due to the potential benefits for industries. Network slicing will be deployed initially in factories, warehouses, and smart airports, but eventually in outdoor settings such as smart ports, smart stadiums, smart campuses, and transportation hubs,” he added.
5G FWA will act both as a stop gap in some markets such as the Philippines but also as an alternative to fibre broadband access where it is not available to specific buildings and neighborhoods, suburban zones, and remotely located residences.
Markets deploying or expected to deploy 5G FWA include Australia, India, Hong Kong, Malaysia, New Zealand, the Philippines, Thailand, and Vietnam.
Chart source: IDC