The North America 5G network and tower deployment market is expected to reach US$ 7,100.97 million by 2028; it is estimated to register a CAGR of 11.9% from 2022 to 2028.
The rising number of government initiatives to deploy and promote the adoption of 5G networks is propelling the growth of the North America 5G network and tower deployment market. Moreover, the adoption of automation across major industries, such as manufacturing, retail, healthcare, and education, is also influencing the rise in 5G network services in the region. For instance, 7-Heaven, a retailer in Canada, launched mobile checkouts across the nation in November 2021. Similarly, Couche-Tard also launched touchless self-checkout systems across its 7,000 stores in the US, Canada, and other European countries in January 2022. These factors are expected to increase the demand for new 5G tower deployments, thereby contributing to the North America 5G network and tower deployment market growth over the forecast period.
The 5G network towers across urban areas across North America operate through electricity, whereas those operating in rural areas are run through diesel. This increases the adverse effect on the environment. However, with companies being more conscious about their environmental contribution, the tower companies are integrating solar panels for the network tower operation across the region. These initiatives are expected to propel the North America 5G network and tower deployment market the growth during the forecast period.
In 2021, the 4G technology accounted for the highest number of subscribers. However, the 5G technology is expected to grow ata an exponential rate and account for 63% of the total mobile subscribers by 2025. This rise in the rapid adoption rate of 5G technology is due to an increase in technology penetration such as artificial intelligence, automation among various end users, and integration of IoT-enabled devices across commercial and residential applications. For instance, as per the GSMA Mobile Economy report 2022, the total global cellular IoT connections in 2021 were recorded to be 2,099 million. However, according to the same report, the total IoT cellular connections are expected to reach 4,075 million by 2025, with North America contributing 235 million new IoT cellular connections by 2025. Thus, the rise in the adoption of IoT connections across the region is predicted to assist in the growing North America 5G network and tower deployment market share over the forecast period.
The rapidly growing population across the region is influencing the constantly growing smart phone and mobile and home broadband subscribers. For instance, according to GSMA 85% of the North American population will adopt smart phone by 2025, thereby contributing to the demand for 5G network services.
North America is one of the strongest geographical regions in terms of economic strength and stability majorly due to presence of developed countries such as the U.S. and Canada in this region. This is a positive growth factor for the 5G network and tower deployment market, as companies are financially strong, and they invest heavily in research and development to offer advanced network services. The above-mentioned factors are projected to positively contobute towards the North America 5G network and tower deployment market.
The North America 5G network and tower deployment market size is segmented into component, location, frequency band, small cell tower, and country. Based on component, the North America 5G network and tower deployment market analysis is segmented into small cell, 5G mobile core network, and radio access network. Based on location, the North America 5G network and tower deployment market size is bifurcated into ground tower and rooftop tower. Based on frequency band, the North America 5G network and tower deployment market analysis is segmented into low band, medium band, and high band. Based on small cell tower, the North America 5G network and tower deployment market is categorized into femto cells, pico cells, and micro cells. Based on country, the North America 5G network and tower deployment market is segmented into the US, Canada, and Mexico.
American Tower Corporation, Crown Castle, SBA Communications, Qualcomm Inc., and Verizon Communications Inc. are a few North America 5G network and tower deployment market players profiled in this market study. Phoenix International Towers, DISH Network L.L.C., CommScope Inc., Mavenir, and AT&T Inc are few other notable North America 5G network and tower deployment market players profiled in the report.
The major end-users of the 5G network and tower deployment market include residential, commercial, and industrial users. The rising population across the region and the growing adoption of smart phone among them is increasing the demand for 5G network services. Moreover, the rising automation across commercial and industrial sectors is further propelling the demand for 5G network services, which is further propelling the growth of the North America 5G network and tower deployment market.
Impact of COVID-19 Pandemic on North America 5G Network and Tower Deployment
The communication service providers (CSPs) to roll out better 5G connectivity plans to address the increased internet demand across North America region. The CSPs has deployed their 5G rollout connectivity; however, they had to expand their existing data consumption packages to facilitate the growing demand for internet across the region. Additionally, the stringent government rules and regulations across the region to maintain distance for combating the spread of SARS-CoV-2 further influenced the adoption of advanced technologies across industries such as retail and education to maintain their daily course of action with the integration of self-checkout systems or online education platforms. This propelled the demand for enhanced network connectivity, thereby marginally impacting the growth of the North America 5G network and tower deployment market, thus reviving the market growth from Q2 2020.
According to a new market study titled "North America 5G network and tower deployment Market Forecast to 2028 – COVID-19 Impact and Regional Analysis – by Component, Location, Frequency Band, and Small Cell Tower," the market is expected to grow from US$ 3,607.88 million in 2022 to US$ 7,100.97 million by 2028; it is estimated to grow at a CAGR of 11.9% from 2022 to 2028. The report provides trends prevailing in the market along with drivers and restraints.
Over the last couple of years, North America has experienced a rise in the adoption of advanced network technologies for residential, commercial, and industrial applications. This rise in demand for such technologies has influenced the growing service offerings by network service providers across the region. A few major 5G network providers in North America include Disk, C Spire, UScellular, T-Mobile, AT&T, and Verizon. Further, a few of the major services provided by these companies include:
• T-Mobile launched its 5G network services across North America on December 2, 2019. However, the Metro by T-Mobile prepaid service started offering access to their network on December 6, 2019.
• US cellular's started offering its 5G network services on March 6, 2020. The services are offered across various states of the US, such as Wisconsin, Maine, California, Oregon, Iowa, Oklahoma, North Carolina, Washington, etc.
• Dish, in September 2021, launched its beta version of the 5G network. Similarly, C Spire, a privately held wireless service provider in the US, launched its 5G fixed wireless network service in December 2018, which is available across Mississippi.
Various other 5G network service providers across North America include Charter, Comcast, Starry, Next-tech Wireless, US Mobile, Mint Mobile, Bell Mobility, Rogers Wireless, Telus Mobility, and Cellcom. These service providers are increasing their investment in expanding their services across major cities across the region. Thus, the rising offering of 5G services by numerous network service providers is driving the growth of the North America 5G network and tower deployment market.
5G network is the fifth-generation technology for broadband connections in the telecommunication industry. According to Groupe Speciale Mobile Association (GSMA), there will be over 1.1 billion 5G network subscribers across the globe by 2025. There is a rising demand for advanced network services to enable efficient and real-time communication across industries and personal applications. The increase in investments by communication service providers (CSPs) and regional government bodies is further enhancing the development and deployment of 5G network services across developed and developing countries in North America. Major 5G network solution providers operating across the region include Verizon, AT&T, Huawei, Cisco Systems, Ericsson, and Nokia. The adoption of 5G is constantly growing across North American markets such as the US and Canada, owing to factors such as post-pandemic economic recovery, rise in adoption of 5G smartphones, and expansion of network coverage by CSPs. Moreover, the 5G network rollout by mobile operators in reasonable subscription plans for commercial and residential applications across North American countries is also contributing to the North America 5G network and tower deployment market growth. Additionally, the increase in research & development expenditure by CSPs is constantly enhancing the effectiveness of the 5G network technology. For instance, Qualcomm Technologies, Inc. integrated mm Wave into its 5G offerings for optimal utilization of 5G network capabilities. The fixed wireless access systems integrated with mm Wave technology can be deployed in cost-effective solutions when installed across a highly populated residential or commercial area.
American Tower Corporation, Crown Castle, SBA Communications, Qualcomm Inc., and Verizon Communications Inc. are key North America 5G network and tower deployment market players profiled in the research study. The mentioned North America 5G network and tower deployment market players adopt organic growth strategies, such as product launches and expansions, to sustain their position in the North America 5G network and tower deployment industry.
North America 5G Network and Tower Deployment Market Revenue and Forecast to 2028 (US$ Million)
The North America 5G network and tower deployment market size is segmented into component, location, frequency band, small cell tower, and country. Based on component, the North America 5G network and tower deployment market analysis is segmented into small cell, 5G mobile core network, and radio access network. Based on location, the North America 5G network and tower deployment market size is bifurcated into ground tower and rooftop tower. Based on frequency band, the North America 5G network and tower deployment market analysis is segmented into low band, medium band, and high band. Based on small cell tower, the North America 5G network and tower deployment market is categorized into femto cells, pico cells, and micro cells. Based on country, the North America 5G network and tower deployment market is segmented into the US, Canada, and Mexico.
North America has experienced an increase in the number of smartphone users over the last decade. The growing percentage of the young population and the rise in penetration of internet adoption across North American countries have increased the demand for smart mobiles and mobile subscriptions. For instance, according to GSMA, in North America, the subscription penetration is expected to grow from 84% in 2021 to 85% by 2025. In 2021, the adoption of smartphones in the region accounted for 82%, which is expected to reach 85% by 2025.
North America has been the pioneer in the rapid adoption of new and advanced technologies. The presence of multiple industries and their constant investment in technological advancements and the rise in demand for fast data transmission from commercial and residential broadband subscribers are propelling the demand for 5G networks across the region, thereby boosting the North America 5G network and tower deployment market growth.
