5G-Advanced Market Trends and Forecast
The future of the global 5g-advanced market looks promising with opportunities in the smart energy, smart medical, media entertainment, smart transportation and industrial manufacturing markets. The global 5g-advanced market is expected to grow with a CAGR of 29.7% from 2025 to 2031. The major drivers for this market are increasing demand for high-speed connectivity, growing adoption of data-intensive applications, and rising investments in telecommunications infrastructure.
• Lucintel forecasts that, within the type category, infrastructure is expected to witness higher growth over the forecast period due to it involves the foundational physical assets and investments required for technologies like 5g and data centers.
• Within the application category, smart energy is expected to witness higher growth due to the growing demand for energy efficiency.
• In terms of region, APAC is expected to witness the highest growth over the forecast period due to high demand for connectivity across sectors.
Emerging Trends in the 5G-Advanced Market
The 5G-Advanced market is in a transition mainly because of new emerging technological innovations and changing consumer needs. This is as the implementation of 5G networks becomes more widespread, and key emerging trends are currently shaping the future of connectivity. Mainly, these trends indicate improvement in technology and increased application of 5G across industries. The following trends represent those shifts in the market where the importance of 5G-Advanced is rising.
• Edge Computing Integration: The 5G Advanced market has an essential trend known as edge computing. In essence, edge computing reduces latency by bringing computing closer to the data source so that it can process large sets of data at faster speeds. This is significantly crucial for industries that require real-time processing, such as autonomous vehicles, smart manufacturing, and healthcare. The integration of edge computing with 5G networks improves the overall performance and efficiency of these applications, opening the way for innovation in sectors requiring low-latency solutions.
• Increased Adoption of Industrial IoT (IIoT): The rollout of 5G-Advanced networks is greatly benefiting the Industrial Internet of Things (IIoT). IIoT needs high-speed, reliable, and low-latency connections for real-time data transfer and decision-making. The capabilities of 5G-Advanced will provide a robust infrastructure for IIoT, enabling industries such as manufacturing, logistics, and agriculture to implement automation, predictive maintenance, and smarter systems. As the cost of 5G infrastructure continues to decrease, we are likely to see a massive increase in IIoT adoption across industries.
• Private 5G Networks: Private 5G networks are gaining speed, especially in the enterprise sector. Major companies are looking for the deployment of their own 5G networks for providing greater security, control, and customization of their specific needs. In the case of manufacturing, energy, and healthcare industries, private 5G networks provide special solutions to completely enable seamless communication and ensure more data privacy and efficient operational management. This also allows enterprises to protect critical infrastructure while reaping the benefits of 5GÄX%$%Xs faster speeds and capabilities.
• Virtual and Augmented Reality (AR/VR) Applications: 5G-Advanced will enable the next generation of virtual and augmented reality (AR/VR) applications. Ultra-low latency and high bandwidth in 5G enable immersive experiences, especially in sectors such as gaming, education, and healthcare. VR and AR applications, including remote surgery and virtual classrooms, are becoming more realistic and interactive with the enhanced capabilities of 5G networks. This is likely to boost the demand for AR/VR devices and new business models based on virtual interactions
• Expanding 5G-Advanced on Autonomous Vehicles: Autonomous vehicles are another key application benefiting from 5G-Advanced technology. 5G’s ultra-reliable low-latency communication (URLLC) capabilities allow autonomous vehicles to exchange real-time information with surrounding infrastructure and other vehicles. This will be pivotal in ensuring safety and improving traffic flow. The integration of 5G in autonomous vehicles is accelerating with advancements in vehicle-to-everything (V2X) communication systems, enabling more efficient autonomous driving and smart transportation solutions.
These trends transform the 5G-Advanced market through new technologies, enhancements of existing systems, and the enhancement in the application scope of 5G for various industries. With the advance in 5G networks, it forms a basis for future enhancement, thereby facilitating the rise of an increasingly interconnected, efficient, and digital world.
Recent Development in the 5G-Advanced Market
The 5G-Advanced market has witnessed massive developments, especially in terms of the employment of 5G technology, and the manner in which it is being applied and implemented across various industries. These developments have been brought about by continuous investments from governments, operators, and businesses to test the limits 5G can reach. From private networks to new applications, these are some of the most important recent developments in the market.
• Deployment of Private 5G Networks: The trend among private 5G networks has increased rapidly due to its deployment for enterprises with dedicated, secure, and low-latency communication. Such deployment includes automation in the manufacturing, health, and logistics industries with the aid of private networks, including remote monitoring and data processing. It also enhances more customized and reliable connectivity to business systems with increased control over their infrastructure and security.
• Advancements in Industrial Automation: 5G-Advanced is playing a key role in industrial automation as it allows companies to improve efficiency through the Internet of Things and real-time data analysis. With 5G, enhanced speeds and lower latencies enable autonomous machines, predictive maintenance, and optimized production. Automotive and manufacturing sectors are also experiencing increased productivity due to such technological advancements that contribute to industry 4.0.
• 5G with AI and Machine Learning: Other leading market development includes 5G AI/ML integration, with the potential for high bandwidth and low latency being a convincing combination used to optimize operation in real-time, automate the execution of complex processes, and unveil insights from large amounts of data. This synergy is particularly impactful in sectors such as healthcare, finance, and logistics, where AI can be used to enhance decision-making efficiency.
• Government support for 5G infrastructure: Governments around the world are becoming more supportive of 5G-Advanced infrastructure, as this is seen as a potential means of boosting the economy. For instance, the U.S. government has budgeted billions of dollars to further expand 5G networks in underserved areas. This kind of support will be important to ensure that all people have an equal opportunity to access 5G technology, create jobs, and remain competitive globally.
• Development of 5G for Smart Cities: Urban initiatives through smart city innovations are booming with the advent of 5G-Advanced technology. Urban authorities are using 5G to enable applications such as traffic management, energy optimizations, public safety, and waste management. This technology thereby enhances the efficiency of urban systems with more sustainable, connected, and livable cities for the residents.
These advancements are molding the 5G-Advanced market as they bring forward the frontiers of what 5G technology can offer. As these developments continue to take their shape, they are opening avenues for new applications, business opportunities, and improvements in how industries operate.
Strategic Growth Opportunities in the 5G-Advanced Market
This market is expected to open up great growth opportunities across segments of businesses, driven by all forms of innovations in connectivity and increasing demand for high-speed, low-latency applications. As businesses and governments are investing in next-generation infrastructure, 5G-Advanced technologies can unlock new avenues for growth across a range of industries. A transformative solution for the modern economy-from enhancing industrial automation to enabling the mass adoption of autonomous vehicles, 5G-Advanced has defined applications that are changing the face of todayÄX%$%Xs economy. Below are the five key areas of growth across applications that are shaping the future of 5G-Advanced.
• Industrial Automation and IoT: Industrial automation can be considered one of the most promising directions for 5G-Advanced growth. With low latency and reliable connectivity, 5G is paving the way for IIoT to be big. Manufacturers can utilize real-time data to optimize production, monitor the health of equipment, and automate processes. 5G-Advanced also supports smart factories where connected devices can interact seamlessly to drive operational efficiency. This is reducing costs and enhancing productivity in industries such as automotive, oil and gas, and manufacturing, making it a key growth area for 5G technology.
• Smart Cities:5G-Advanced holds the potential to revolutionize the development of smart cities. From traffic management systems to optimizing energy usage, public safety, and waste management, 5G technology allows for real-time data transmission for smarter urban planning. The ability to connect billions of devices in a city creates a seamless ecosystem that improves the quality of life for residents. Cities worldwide are embracing 5G as a foundation for implementing smart city projects, which will drive investments in infrastructure, technology, and services.
• Autonomous Vehicles and Transportation: There is growth in the concept of autonomous vehicles (AVs) as another strategic opportunity fuelled by 5G-Advanced. With the URLLC capability of 5G, AVs can communicate with other vehicles, road infrastructure, and traffic management systems in real-time. This means that transportation systems become safer and more efficient. As different manufacturers, tech companies, and governments place greater emphasis on improving AVs, 5G-Advanced will play a crucial role in further mass deployment. The transportation sector will benefit from faster and more reliable communications to improve driving experiences and safety.
• Health Care and Telemedicine: 5G-Advanced is opening up growth opportunities in healthcare, especially in telemedicine and remote patient monitoring. Ultra-low latency and the high bandwidth of 5G make it possible to provide high-quality video consultations, remote surgeries, and real-time data analysis from wearable devices. Healthcare providers will deliver more tailored care, improve the outcomes of their patients, and reduce the workload on hospitals and clinics. Also, 5G-enabled health applications open doors to digital health systems, thus improving the availability of medical services worldwide, even in the remote or less serviced areas.
• Entertainment, AR/VR, and Gaming: With 5G-Advanced, the entertainment sector has explosive growth opportunities, especially in augmented reality, virtual reality, and gaming. To be successful, these experiential technologies require high data rates and ultra-low latency, which 5G promises to deliver. Users will experience highly interactive games, live-streamed events, and virtual worlds without much delay. As customers increasingly demand more quality content and new entertainment experiences, 5G-Advanced is helping business deliver next-level entertainment, and in the process, create new revenue streams.
5G-Advanced shall unlock massive growth in each of the various industries. The strategic opportunities of 5G-Advanced across industrial automation, smart cities, autonomous vehicles, healthcare, and entertainment indicate that 5G-Advanced is not only an upgrade in telecommunication but is the basis of innovation. 5G-Advanced accelerates digital transformation, and with its increasing adoption, these industries are about to experience massive growth.
5G-Advanced Market Driver and Challenges
The 5G-Advanced market is influenced and shaped by both technological, economic, and regulatory factors, especially in terms of adoption and roll-out. Chief drivers include: connectivity advances to meet increased, faster data-transfer demands, but also an emerging push toward automaticity. Challenging and slowing the processes are high investment costs for creating network infrastructure and cybersecurity threats from malicious activities besides regulatory barriers among others. Below, we have discussed the key drivers and challenges affecting the 5G-Advanced market.
The factors responsible for driving the 5g-advanced market include:
1. Technological Advancements in Connectivity: The fast technological advancements in 5G connectivity are one of the main growth drivers of the market. It supports a vast range of applications that were impossible with the earlier generations through better network architecture, ultra-low latency, and greater bandwidth. Industries such as manufacturing, healthcare, and autonomous driving need to handle large volumes of data in real-time. With the evolution of 5G networks, their capacities will propel innovations further, making it an essential technology for the modern digital economy.
2. More Demand for IoT and Smart Devices: The penetration of IoT devices has provided much boost for the demand for 5G-Advanced. With billions of connected devices on the horizon and in use all over the globe, 5G networks should be able to provide the amount of speed, reliability, and scalability needed by these devices. The support given to massive machine-type communications puts 5G-Advanced above the rest with applications in smart cities, industrial IoT, or smart homes, which is majorly driven due to the IoT devices and application demand.
3. Global Economic and Digital Transformation: The continuous global digital transformation is in need of accelerating and improving network speeds as the demand for high-speed data connectivity in every aspect, from digital enterprises to smart cities, is rapidly increasing. Businesses across industries are moving more and more toward 5G-Advanced with the hope that it will enhance productivity, automate operations, and open new revenue streams. Because of the shift to a digital-first economy, 5G-Advanced is an economic catalyst for many industries such as healthcare, finance, and manufacturing.
4. Government and regulatory body support: The governments and regulatory bodies are actively facilitating the rollout of 5G networks that include 5G-Advanced. In many regions, government policies, funding, and spectrum allocation initiatives have helped create a favorable environment for 5G infrastructure growth. In the context of broader digital strategies, governments are prioritizing 5G as a critical component for economic growth and innovation, encouraging private investment and facilitating cross-sector collaborations. This support is accelerating the deployment of 5G networks across the world.
5. Increasing investment in network infrastructure: Telecom and private companies are heavily investing in 5G-Advanced network infrastructure. In the future, further expansion of 5G infrastructure will be needed to provide a high-speed and low-latency communication infrastructure to meet future demand. In general, it would be better for telecom operators to upgrade their service offerings through 5G to attract more customers and establish new revenue streams. These investments will be key in ensuring that the 5G networks remain scalable and resilient, supporting wide adoption of next-generation applications.
Challenges in the 5g-advanced market are:
1. High Infrastructure and Deployment Cost: The key challenge for the telecom operators to deploy 5G-Advanced infrastructure is related to the costs of deployment. The construction of new towers, upgrading existing networks, and procuring the right spectrum are extremely expensive. Such costs may put a significant constraint on the small operators, hindering the fast and large-scale deployment of 5G-Advanced. Reducing these cost-related challenges can be crucial in making 5G networks universally available.
2. Cybersecurity and privacy issues: As the numbers of connected devices and critical applications increase, the concern for security and data protection will also escalate. Cyber criminals will target the 5G-Advanced network, especially the high-value application, such as autonomous driving, and smart city. The process of securing a 5G network and providing data protection builds trust and brings out the real potential of the 5G technology. A weak cybersecurity framework could hamper adoption and deployment.
3. Regulatory and Spectrum Management Issues: Regulation and spectrum management is one of the biggest challenges when it comes to 5G-Advanced networks. Spectrum allocation varies from one country to another, which in turn leads to fragmented 5G deployments across different regions. Uncertainty related to network sharing, security protocols, and pricing models also raises complexity. In this regard, governments and international organizations must devise clear and harmonized policies for collaboration and ease of network rollouts across various regions.
The 5G-Advanced market is a combination of the drivers and challenges that will shape it. On the one hand, the technological advancements, increased demand for IoT, and strong support from the government are acting as stimuli for growth. On the other hand, high infrastructure costs, cybersecurity concerns, and regulatory hurdles present major challenges. Overcoming these challenges while exploring the growth drivers will help unlock the potential of 5G-Advanced technology to ensure its successful deployment across industries.
List of 5G-Advanced Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies 5g-advanced companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the 5g-advanced companies profiled in this report include-
• AT&T
• China Mobile
• China Telecom
• China Unicom
• Ericsson
• Huawei
• Mediatek
• Nokia
• Qualcomm
• T-Mobile
5G-Advanced Market by Segment
The study includes a forecast for the global 5g-advanced market by type, application, and region.
5G-Advanced Market by Type [Value from 2019 to 2031]:
• Infrastructure
• Services And Solutions
5G-Advanced Market by Application [Value from 2019 to 2031]:
• Smart Energy
• Smart Medical
• Media Entertainment
• Smart Transportation
• Industrial Manufacturing
• Others
5G-Advanced Market by Region [Value from 2019 to 2031]:
• North America
• Europe
• Asia Pacific
• The Rest of the World
Country Wise Outlook for the 5G-Advanced Market
Recent times have revealed tremendous growth about the 5G-advanced market across geographical locations. Technical advancement, further adoption, and investment in its implementation are contributing factors in that region. America, China, Germany, India, and Japan are the spearheading countries due to the successive roll-out process of 5G networks but contribute to 5G progress differently. All these countries are clearly making great strides in increasing network speeds, coverage, and new applications such as autonomous vehicles, smart cities, and industrial automation. LetÄX%$%Xs break down the upgrades in each of these key markets.
• United States: 5G-Advanced deployments are picking up pace in the United States. Verizon and AT&T-the top telecom companies-increased their 5G coverage, focusing on low-latency applications, such as augmented reality (AR) and virtual reality (VR). The business solutions for the enterprise sector also improved with 5G connectivity, which created space for innovations like edge computing. The development of 5G infrastructure is funded by the U.S. government, giving technology companies scope for further investment. These advancements are expected to make the U.S. a leader in 5G-Advanced innovation and economic growth.
• China: China has made significant strides in the 5G-Advanced market, positioning itself as a global leader in 5G deployment. The country’s government has heavily invested in its 5G infrastructure, encouraging both domestic and international companies to participate. Huawei and ZTE have been some of the telecom giants that have spearheaded ChinaÄX%$%Xs fast 5G rollout. China has focused on industrial applications, especially on smart manufacturing. China is a leader in developing smart manufacturing with 5G helping to boost automation and efficiency in factories. China continues to drive cutting-edge 5G-Advanced development in Asia, especially with the upcoming 6G research phase.
• Germany: Germany is the key player in EuropeÄX%$%Xs 5G-Advanced landscape. The government of the country has focused on the development of 5G networks and has collaborated with Deutsche Telekom and other leading telecom operators. Germany is concentrating on developing a secure 5G ecosystem for industrial applications, such as precision farming, smart cities, and autonomous vehicles. The German government also plans to integrate 5G with its industry 4.0 initiatives, supporting the digital transformation of manufacturing. 5G will continue to drive growth in Germany’s high-tech industries while improving national connectivity and productivity.
• India: India is experiencing rapid growth in the 5G-Advanced market, with recent spectrum auctions making 5G a reality. The government’s push for a Digital India has helped to fuel this progress, and major telecom operators, such as Jio and Airtel, are at the forefront of 5G deployment. The Indian focus is to improve rural connectivity, provide cheap internet, and enable 5G for social applications such as telemedicine, education, and digital banking. IndiaÄX%$%Xs rollout of 5G-Advanced is also seen to play an important role in developing smart cities and boosting economic growth.
• Japan: Japan has been focusing on using 5G-Advanced to enhance both consumer and industrial services. Major telecom providers, like NTT Docomo and SoftBank, have already started deploying pervasive 5G networks across the country. The focus areas for Japan are considered to be smart city projects, robotics, and autonomous driving. The government is also planning to work with businesses to create a 5G-Advanced ecosystem that will allow growth in sectors like health care, logistics, and transportation. Japan is also exploring 5G for its Olympic Games legacy, with a long-term vision to create a connected society for the future.
Features of the Global 5G-Advanced Market
Market Size Estimates: 5g-advanced market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
Segmentation Analysis: 5g-advanced market size by type, application, and region in terms of value ($B).
Regional Analysis: 5g-advanced market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the 5g-advanced market.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the 5g-advanced market.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
FAQ
Q1. What is the growth forecast for 5g-advanced market?
Answer: The global 5g-advanced market is expected to grow with a CAGR of 29.7% from 2025 to 2031.
Q2. What are the major drivers influencing the growth of the 5g-advanced market?
Answer: The major drivers for this market are increasing demand for high-speed connectivity, growing adoption of data-intensive applications, and rising investments in telecommunications infrastructure.
Q3. What are the major segments for 5g-advanced market?
Answer: The future of the 5g-advanced market looks promising with opportunities in the smart energy, smart medical, media entertainment, smart transportation and industrial manufacturing markets.
Q4. Who are the key 5g-advanced market companies?
Answer: Some of the key 5g-advanced companies are as follows:
• AT&T
• China Mobile
• China Telecom
• China Unicom
• Ericsson
• Huawei
• Mediatek
• Nokia
• Qualcomm
• T-Mobile
Q5. Which 5g-advanced market segment will be the largest in future?
Answer: Lucintel forecasts that, within the type category, infrastructure is expected to witness higher growth over the forecast period due to it involves the foundational physical assets and investments required for technologies like 5g and data centers.
Q6. In 5g-advanced market, which region is expected to be the largest in next 5 years?
Answer: In terms of region, APAC is expected to witness the highest growth over the forecast period due to high demand for connectivity across sectors.
Q7. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 11 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the 5g-advanced market by type (infrastructure and services and solutions), application (smart energy, smart medical, media entertainment, smart transportation, industrial manufacturing, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. Which region will grow at a faster pace and why?
Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.5. What are the business risks and competitive threats in this market?
Q.6. What are the emerging trends in this market and the reasons behind them?
Q.7. What are some of the changing demands of customers in the market?
Q.8. What are the new developments in the market? Which companies are leading these developments?
Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to 5G-Advanced Market, 5G-Advanced Market Size, 5G-Advanced Market Growth, 5G-Advanced Market Analysis, 5G-Advanced Market Report, 5G-Advanced Market Share, 5G-Advanced Market Trends, 5G-Advanced Market Forecast, 5G-Advanced Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.