ABI Research noted that the 5G Core market is expanding, with a total of 35 networks currently operating in 5G SA mode
Global 5G subscriptions are forecast to reach 3.1 billion in 2027, up from 934 billion subscriptions in 2022, according to a recent report by intelligence firm ABI Research.
The report stated that the global 5G market will expand at a compound annual growth rate (CAGR) of 27% during the 2022-2027 period.
5G traffic is forecast to increase from 293 Exabytes (EB) in 2022 to 2,515 EB in 2027, at a CAGR of 54%, according to the report.
ABI Research noted that the 5G Core (5GC) market is expanding, with a total of 35 5GC networks currently operating in 5G Standalone (SA) mode. 5GC is expected to lead to a growth in devices connected to the network and the traffic routed through it, the firm added.
“5GC holds potential for operators to monetize further existing cellular connectivity for traditional mobile broadband (MBB) use cases but also offers scope for operators to expand cellular capabilities in new domains. Additionally, 5GC also offers innovation potential for committed telcos to establish new operating models for growth outside of the consumer domain,” said Don Alusha, senior analyst for 5G core and edge networks at ABI Research.
“A 5G cloud packet core can potentially unlock new transactions that supplement existing volume-centered modus operandi with a local, bottom-up value play for discrete engagements. But the power of a bottom-up model is not enough. To monetize a 5G cloud packet core at scale, some of the existing top-down intelligence is needed too. Learning how to operate in this hybrid top-down and the emerging bottom-up, horizontally stratified ecosystem is a journey for NTT Docomo, Rakuten Mobile, Singtel, Softbank, and Telstra, among other CSPs,” the analyst added.
5G Fixed Wireless Access (FWA) subscriptions are forecast to reach 72 million by 2027, representing 35% of the total FWA market, according to a recent report by ABI Research.
Although LTE FWA services have already been widely deployed worldwide, they often cannot provide the speed needed to compete with wired broadband connections, ABI noted. 5G FWA is set to offer data rates rivaling the range of fiber, making it a “competitive alternative to wired broadband solutions,” the company said.
ABI also highlighted that North America, Western Europe and the Asia Pacific region are driving 5G FWA deployments. In North America and Western Europe, MNOs are using 5G FWA to compete with DSL broadband services. According to the research firm, major U.S. operators, like T-Mobile US, see a huge opportunity with 5G FWA because two-thirds of its residential customers living in urban and suburban areas are dissatisfied cable customers, making up a significant amount of potential 5G FWA customers.
