24/7 Customer Support
The Indian 5G market was valued at USD 7,065 million in 2022 and is projected to reach USD 1,78,546.1 million by 2031, growing at a CAGR of 43.8% during the forecast period of 2023-2031.
India is the fourth largest market for 5G phones, and its share of 5G smartphones crossed 14% in the quarter to June according. India is presently in an early phase of adoption of consumer 5G services, with 18% mobile subscribers are projected to use 5G by 2025.
In order to further explore the India 5G market, it is important to look at the current state of the companies providing 5G services to the Indian telecom market. Jio currently has the single largest 5G customer base in India. Airtel’s 5G network is currently available in several states, with plans to expand soon to cover the entire country. Additionally, Vodafone Idea is also set to launch its 5G services in the near future.
The number of 5G-enabled handsets in India is expected to grow to 144 million by 2025, according to a report by Ericsson. This growth is due to the increasing affordability of 5G-enabled devices, as well as India’s growing interest in 5G technology, with the government’s ambitious Digital India initiative being a major driving factor. As of now, Samsung, Xiaomi, Oppo, and Vivo are the leading manufacturers of 5G-enabled handsets in India.
To Get more Insights, Request A Free Sample
Favorable Government Policies and Initiatives
The Indian government is driving the growth of the India 5G market with policies and initiatives aimed at enabling the allocation of spectrum, providing infrastructure support, creating favorable regulations, and promoting research and development in 5G technology. These efforts include the allocation of spectrum for 5G services, the formulation of supportive regulations, funding for 5G trials and the establishment of 5G innovation centers, as well as various initiatives such as the National Digital Communications Policy 2018, 5G Testbeds and Trials Policy, 5G India Forum, Digital India initiative, Smart Cities Mission, and Make in India initiative.
Growing Demand for High-Speed Internet
The rapid growth of the India 5G market is driven by the increasing demand for faster and more reliable internet connections. 5G technology offers significant advantages over previous generations of mobile networks, including higher speeds, lower latency, and improved network capacity. These capabilities allow consumers and businesses to access and transfer data quickly and efficiently, leading to improved productivity, communication, and entertainment experiences. Additionally, 5G technology enables the development of cutting-edge applications in fields such as virtual and augmented reality, autonomous vehicles, the Internet of Things, and smart cities, offering a glimpse into a future of endless possibilities.
Lack of Spectrum Availability and High Cost of Deployment
The limited availability of spectrum for 5G services is a major challenge that hinders the growth of the India 5G market. Furthermore, the costs associated with spectrum acquisition, network infrastructure, and technology development are considerable, making it expensive to deploy 5G networks. In addition, security and privacy concerns related to the use of 5G technology, including data security and potential cyberattacks, are additional restraints on the growth of the 5G market in India. To overcome these challenges, the Indian government has identified various approaches to 5G network deployment, such as expanding the usage of spectrum resources, from sub-3 GHz used in 4G to 100 GHz and beyond, and deploying small cells. Additionally, utilizing mid-band spectrum, between 1GHz to 6GHz, would be an ideal solution as it can carry plenty of data while also traveling significant distances.
The India 5G market is segmented into three components: hardware, software, and services. The hardware segment, including 5G network infrastructure and devices, held a share of more than 60% of the market in 2022. The dominance of the hardware segment is attributed to the significant investments required for the deployment of 5G networks and the need for compatible devices to access 5G services. However, during the forecast period, the services segment is expected to exhibit the highest growth with a projected CAGR. The growing demand for 5G services, such as enhanced mobile broadband, IoT, and mission-critical applications, and the increasing adoption of 5G technology by consumers and businesses will drive the growth of the services segment in the future.
Based on connectivity, the India 5G market is categorized into Enhanced Mobile Broadband (EMBB), Ultra-Reliable Low Latency Communication (URLLC) and Massive Machine Type Communication (MMTC). The Enhanced Mobile Broadband (EMBB) segment holds an opportunity of US$ 93,549.8 Mn during 2023-2031. The Enhanced Mobile Broadband (EMBB) segment dominates the 5G market in India due to the growing demand for faster and more reliable mobile internet connections, which are enabled by 5G technology. The key benefits of EMBB for consumers and businesses in the India 5G market includes faster download and upload speeds, more reliable connections, enhanced support for multimedia and video applications and improved support for cloud-based services, enabling users to access and store data in the cloud more easily. Thus, this segment also holds the highest CAGR during the forecast period.
To Understand More About this Research: Request A Free Sample
Based on application, the India 5G market is segmented into industrial automation, monitoring & tracking, enhanced video streaming, AR & VR, smart surveillance, remote surgical operations, low-latency communication, V2X (Vehicle-to-Everything) communication, real-time analytics, Fixed Wireless Services and others.
The market is segmented into several applications, with Fixed Wireless Services holding the highest share in 2022. Fixed Wireless Services refer to the use of wireless technology for broadband internet services, providing cost-effectiveness, ease of installation, and increased coverage in rural and remote areas where traditional wired broadband services may not be available. Apart from fixed wireless services, other applications such as industrial automation, monitoring & tracking, enhanced video streaming, AR & VR, smart surveillance, remote surgical operations, low-latency communication, V2X (Vehicle-to-Everything) communication, real-time analytics are also driving the growth of the India 5G market.
Industrial automation is gaining popularity due to the increasing adoption of Internet of Things (IoT) technology, as well as its ability to reduce production costs, increase production speed, and improve product quality. Monitoring & tracking solutions are being used to track inventory levels and monitor production data, which helps in optimizing production processes and improving resource utilization. Enhanced video streaming applications are also becoming popular due to the rise of the 5G technology and improved bandwidth availability. The adoption of 5G technology is expected to further bolster the growth of the global industrial automation in the India 5G market, as it will enable faster communication over greater distances, improved video streaming, and better latency for wireless applications. The increasing demand for industrial automation in manufacturing and other industries is a major factor driving the growth of this market. Government initiatives, investments from private players, and technological advancements are also aiding the growth of the global industrial automation market.
The India 5G market is divided into several industries, including BFSI, IT & telecommunications, manufacturing, automotive, media & entertainment, healthcare, energy and utility, public/smart city or building, agriculture, government and public safety, supply chain and logistics, gaming and AR/VR, retail & e-commerce, education, and others. In 2022, the IT & telecommunications segment was the largest and is expected to maintain its dominance during the forecast period.
The telecommunication sector leads the India 5G market due to the growing demand for high-speed and dependable mobile and broadband services. The sector is well-positioned to take advantage of 5G's growth potential, which promises faster network speed, improved capacity, and better coverage.
The telecommunication segment of the Indian 5G market is dominated by companies such as Bharti Airtel, Reliance Jio, Vodafone Idea, and BSNL, among others. These companies will play a crucial role in the rollout and commercialization of 5G services in India.
List of Key Companies Profiled:
The India 5G market was valued at US$ 7,056 Mn in 2022.
The market is projected to record a CAGR of 43.8% during the forecast period.
High adoption rate of 5G Smartphones among the customers and the development of 5G Infrastructure are the factors driving India 5G market.
High Cost for deployment of 5G network may hinder the market growth.
Rising focus on building partnerships by 5G system integration providers is providing a lucrative opportunity for market growth.
The various segments analyzed in the India 5G market are based on component, connectivity, application and industry.
Hardware segment held the highest segmental share in 2022.
Fixed Wireless Services is the highest application segment in 2022.
Enhanced Mobile Broadband (EMBB) is the highest shareholding connectivity segment in 2022?
IT & Telecommunication is the highest end user industry in the India 5G market.
The key players in the India 5G Market are ZTE Corporation, Nokia Corporation, Adani Group, CommScope Inc., Airspan Networks, Samsung Electronics Co. Ltd., Reliance Jio, Bharti Airtel Ltd., Vodafone Group, AT&T, Inc., NEC Corporation, Verizon Communications, Inc., Cisco Systems, Inc., NTT and BT Group plc among others.
LOOKING FOR COMPREHENSIVE MARKET KNOWLEDGE? ENGAGE OUR EXPERT SPECIALISTS.SPEAK TO AN ANALYST