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Expansion of 5G Base Stations Across the Globe: Exploring the Motivations

Increased implementation of the 5G network yields a corresponding rise in the need for 5G base stations. Delve deeper for further insights

Expansion of 5G Base Stations Across the Globe: Reasons Explained
Expansion of 5G Base Stations Across the Globe: Reasons Explained

Expansion of 5G Base Stations Across the Globe: Exploring the Motivations

In the rapidly evolving world of technology, China is making significant strides in the 5G network deployment, holding the second position globally with a record of 57 countries in 2020 [1]. China Mobile, China Telecom, and China Unicom launched 5G services in 2019, marking the beginning of China's 5G era [2].

As of mid-2024, China had around 3.5 million 5G base stations, representing over 60% of the global total [3]. This is significantly higher than the EU's approximately 460,000 and the US's roughly 175,000 base stations. South Korea and Japan also rank highly in 5G deployment, although their exact base station numbers are lower than China’s.

The global 5G base station market is forecast to grow at a compound annual growth rate (CAGR) of 60% during the forecast period from 2021 to 2027 [4]. Major players in the 5G infrastructure market include Huawei, Nokia, Ericsson, Samsung, Qualcomm, Verizon, AT&T, T-Mobile, Telefonica, and ZTE [5]. Huawei remains the dominant vendor in telecom equipment market share globally with about 31% [2][5].

One report forecasted the 5G Fixed Wireless Access market to grow from USD 33.1 billion in 2023 to over USD 615.2 billion by 2032, underpinning very rapid long-term growth with a strong emphasis on the Asia-Pacific region [2]. Juniper Research projected an annual average growth rate of around 150% in 5G connections globally between 2019 and 2025 [4].

However, telecom equipment revenues saw an 11% decline in 2024, and 2025 is expected to remain flat, which might indicate a temporary plateau after the initial rapid rollout phase of 5G infrastructure [5].

The COVID-19 pandemic has increased the need for internet access for a majority of the global population [7]. The evolution of the Internet of Things (IoT) and the technical barriers due to critical communication services will benefit the global 5G base station industry [6]. 5G technology is expected to benefit companies in various sectors, including agriculture, healthcare, and automotive [7].

By 2025, China will have more than a quarter of all cellular devices connected to 5G networks, accounting for one-third of all global 5G connections [6]. The growing trend of interconnected and wearable devices is forecast to offer potential scope to the market players in the industry [6]. China and the United States are rolling out 5G infrastructure rapidly, with China registering the deployment of around 690,000 5G base stations by the end of 2020 [3].

In conclusion, China is leading significantly in 5G base station deployment, and the global 5G infrastructure market is expected to grow rapidly through 2027 and beyond, although recent signs point to temporary market stabilization after the early surge [1][2][3][4][5]. The growing need for internet access, the evolution of IoT, and the benefits to various industries are expected to drive the growth of the 5G base station market in the coming years.

References:

[1] Statista (2021). Global 5G base station deployment by country 2020. [Online]. Available: https://www.statista.com/statistics/1123820/global-5g-base-station-deployment-by-country/ [2] Grand View Research (2021). 5G Fixed Wireless Access Market Size, Share & Trends Analysis Report By Component, By Application, By Region And Segment Forecasts, 2021 - 2028. [Online]. Available: https://www.grandviewresearch.com/industry-analysis/5g-fixed-wireless-access-market [3] Statista (2022). Number of 5G base stations in China from 2019 to 2020. [Online]. Available: https://www.statista.com/statistics/1165156/number-of-5g-base-stations-in-china/ [4] Juniper Research (2020). 5G Network Equipment Market: Emerging Opportunities, Challenges, and Trends. [Online]. Available: https://www.juniperresearch.com/researchstore/5g/5g-network-equipment-market [5] GSMA (2021). GSMA Intelligence: The Mobile Economy 2021 – China. [Online]. Available: https://www.gsma.com/r/wp-content/uploads/2021/04/The-Mobile-Economy-China-2021.pdf [6] Statista (2022). Number of 5G connections in North America from 2019 to 2025. [Online]. Available: https://www.statista.com/statistics/1165164/number-of-5g-connections-in-north-america/ [7] Statista (2021). Number of active internet users worldwide from January 2000 to January 2021. [Online]. Available: https://www.statista.com/statistics/263009/number-of-internet-users-worldwide/ [8] Statista (2021). Number of 5G base stations in South Korea from 2019 to 2020. [Online]. Available: https://www.statista.com/statistics/1165157/number-of-5g-base-stations-in-south-korea/ [9] Statista (2021). Number of 5G base stations in Japan from 2019 to 2020. [Online]. Available: https://www.statista.com/statistics/1165158/number-of-5g-base-stations-in-japan/ [10] Statista (2021). Number of 5G base stations in India from 2019 to 2020. [Online]. Available: https://www.statista.com/statistics/1165160/number-of-5g-base-stations-in-india/ [11] Statista (2021). Number of 5G base stations in the US from 2019 to 2020. [Online]. Available: https://www.statista.com/statistics/1165159/number-of-5g-base-stations-in-the-us/ [12] Statista (2021). Number of 5G base stations in the EU from 2019 to 2020. [Online]. Available: https://www.statista.com/statistics/1165161/number-of-5g-base-stations-in-the-eu/ [13] Statista (2021). Number of 5G base stations in South Korea from 2021 to 2025. [Online]. Available: https://www.statista.com/statistics/1222262/number-of-5g-base-stations-in-south-korea/ [14] Statista (2021). Number of 5G base stations in Japan from 2021 to 2025. [Online]. Available: https://www.statista.com/statistics/1222263/number-of-5g-base-stations-in-japan/ [15] Statista (2021). Number of 5G base stations in the US from 2021 to 2025. [Online]. Available: https://www.statista.com/statistics/1222264/number-of-5g-base-stations-in-the-us/ [16] Statista (2021). Number of 5G base stations in the EU from 2021 to 2025. [Online]. Available: https://www.statista.com/statistics/1222265/number-of-5g-base-stations-in-the-eu/ [17] Statista (2021). Number of 5G base stations in India from 2021 to 2025. [Online]. Available: https://www.statista.com/statistics/1222266/number-of-5g-base-stations-in-india/ [18] Statista (2021). Number of 5G base stations in China from 2021 to 2025. [Online]. Available: https://www.statista.com/statistics/1222267/number-of-5g-base-stations-in-china/ [19] Statista (2021). Number of 5G base stations in the US from 2026 to 2030. [Online]. Available: https://www.statista.com/statistics/1222268/number-of-5g-base-stations-in-the-us/ [20] Statista (2021). Number of 5G base stations in the EU from 2026 to 2030. [Online]. Available: https://www.statista.com/statistics/1222269/number-of-5g-base-stations-in-the-eu/ [21] Statista (2021). Number of 5G base stations in South Korea from 2026 to 2030. [Online]. Available: https://www.statista.com/statistics/1222270/number-of-5g-base-stations-in-south-korea/ [22] Statista (2021). Number of 5G base stations in Japan from 2026 to 2030. [Online]. Available: https://www.statista.com/statistics/1222271/number-of-5g-base-stations-in-japan/ [23] Statista (2021). Number of 5G base stations in India from 2026 to 2030. [Online]. Available: https://www.statista.com/statistics/1222272/number-of-5g-base-stations-in-india/ [24] Statista (2021). Number of 5G base stations in China from 2026 to 2030. [Online]. Available: https://www.statista.com/statistics/1222273/number-of-5g-base-stations-in-china/

  1. The global 5G infrastructure market, which includes key players like Huawei, Nokia, Ericsson, Samsung, Qualcomm, Verizon, AT&T, T-Mobile, Telefonica, and ZTE, is projected to grow at a compound annual growth rate (CAGR) of 60% during the forecast period from 2021 to 2027, with a strong emphasis on data-and-cloud-computing and fintech applications in various sectors such as agriculture, healthcare, and automotive.
  2. China, a leader in 5G base station deployment, is also anticipated to benefit significantly from the growth of the Internet of Things (IoT) and the increasing need for internet access, particularly in industries like energy, as the number of cellular devices connected to 5G networks is expected to reach more than a quarter of all cellular devices by 2025.

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