What's the size of the 5G infrastructure market?

This blog post has been written by the person who has mapped the 5G infrastructure market in a clean and beautiful presentation

The 5G infrastructure market has exploded from $16.7 billion in 2023 to $34.2 billion in 2024—a staggering 105% growth rate that signals one of the most aggressive technology rollouts in telecommunications history.

What makes this market particularly compelling for entrepreneurs and investors is the clear visibility into massive spending commitments from telecom operators, governments, and enterprises, with projected revenues reaching $540 billion by 2030. The market offers multiple entry points across equipment manufacturing, software platforms, integration services, and vertical-specific solutions.

And if you need to understand this market in 30 minutes with the latest information, you can download our quick market pitch.

How big was the global 5G infrastructure market in 2024, and how has it grown compared to 2023?

The global 5G infrastructure market reached $34.23 billion in 2024, representing a massive 105% year-over-year increase from the $16.69 billion recorded in 2023.

This explosive growth reflects the transition from pilot deployments to commercial-scale rollouts across major markets. The doubling of market size in a single year indicates that 2024 was the inflection point where 5G moved from experimental technology to core infrastructure investment priority for telecom operators worldwide.

The growth rate significantly exceeded industry forecasts made in 2022-2023, which typically projected 40-60% annual growth rates. This acceleration was driven by three key factors: aggressive spectrum auction completions in major markets like the US and Europe, supply chain recovery from semiconductor shortages, and the maturation of standalone 5G core technologies that enabled full feature deployment rather than non-standalone upgrades.

For context, this growth rate surpasses even the early internet infrastructure boom of the late 1990s and represents one of the fastest technology infrastructure buildouts in telecommunications history. The $17.54 billion absolute increase in a single year equals the entire 4G infrastructure market size during its peak growth year in 2014.

What is the projected market size of 5G infrastructure in 2025, and what's the expected year-over-year growth rate?

The 5G infrastructure market is projected to reach $43.5 billion in 2025, representing a 27% year-over-year growth rate compared to 2024's $34.23 billion.

While this represents a significant deceleration from 2024's 105% growth, the 27% rate still indicates robust expansion and reflects the market entering a more sustainable growth phase. This moderation was anticipated as the market moves from initial deployment surges to steady-state buildout patterns.

The $9.27 billion absolute increase expected in 2025 demonstrates continued strong demand fundamentals. Industry analysts attribute this sustained growth to the shift toward standalone 5G core deployments, increased small cell densification in urban areas, and the beginning of enterprise private network rollouts at scale.

This growth trajectory positions 2025 as a critical year for market participants, as it represents the last period of relatively accessible market entry before the industry consolidates around established deployment patterns and vendor relationships. For investors, the 27% growth rate, while lower than 2024, still significantly outpaces traditional infrastructure markets and offers compelling returns.

If you want updated data about this market, you can download our latest market pitch deck here

What are the current forecasts for the 5G infrastructure market by 2026, and how do they compare with 2024 and 2025 figures?

Multiple forecasting models project different market sizes for 2026, reflecting varying definitions of 5G infrastructure scope and geographic coverage.

Research and Markets forecasts the hardware-only segment to reach $115.4 billion by 2026, while broader infrastructure estimates including services and software range from $65-85 billion. The variance stems from different methodological approaches to categorizing equipment, software licenses, integration services, and ongoing support contracts.

Comparing these projections to the baseline figures shows the market trajectory: $34.23 billion (2024) → $43.5 billion (2025) → $65-115.4 billion (2026), indicating a compound annual growth rate of 31-66% depending on scope definition. The hardware-focused forecast suggests particularly strong equipment demand as operators complete initial network builds and begin capacity expansion phases.

These projections indicate 2026 as the year when 5G infrastructure spending reaches mainstream infrastructure investment levels, comparable to traditional telecommunications CapEx categories. For entrepreneurs and investors, this timeline suggests optimal market entry windows closing by mid-2025 for equipment plays, while service and software opportunities may remain attractive through 2026-2027.

Need a clear, elegant overview of a market? Browse our structured slide decks for a quick, visual deep dive.

What is the estimated compound annual growth rate (CAGR) of the 5G infrastructure market over the next 5 and 10 years?

The 5G infrastructure market is projected to maintain a CAGR of 41.6% through 2030 and 31.6% through 2034, representing sustained high-growth characteristics unusual for infrastructure markets.

Which regions are contributing most to 5G infrastructure spending in 2025, and how is this expected to evolve by 2030?

Asia-Pacific dominates global 5G infrastructure spending with 54% market share in 2024, expected to maintain leadership through 2030 despite North America's higher per-capita investment rates.

North America currently accounts for approximately 30% of global spending but leads in per-site investment value, with average deployment costs 40-60% higher than Asia-Pacific due to labor costs and regulatory requirements. This region focuses on premium urban deployments and enterprise-grade private networks, generating higher average revenue per infrastructure dollar invested.

Europe represents roughly 25% of current spending, with growth driven by Digital Single Market initiatives and coordinated spectrum policy across EU member states. The region's 2030 outlook shows particular strength in industrial automation and smart city applications, potentially reaching 22-25% of global infrastructure spending by decade's end.

The most significant evolution expected by 2030 involves emerging markets: Latin America is projected to reach 7% of global spending (up from 3-4% currently), while Middle East and Africa could achieve 5% market share. These regions benefit from leapfrog deployment strategies, bypassing 4G infrastructure limitations and implementing 5G as primary broadband infrastructure in underserved areas.

China's spending, included in Asia-Pacific figures, remains the single largest national market with estimated 35-40% of global infrastructure investment, driven by state-directed deployment targets and domestic equipment manufacturer support.

What are the main segments driving 5G infrastructure revenues, and what are their respective market sizes today and projections for the next 5 years?

RAN (Radio Access Network) equipment currently leads with 37% market share, but core network platforms show the fastest growth trajectory at 32.4% CAGR through 2030.

If you want clear information about this market, you can download our latest market pitch deck here

Who are the top five players in the global 5G infrastructure space in 2025, and what are their current market shares?

The global 5G infrastructure market remains highly concentrated, with the top five vendors controlling approximately 89% of total revenues, though competitive dynamics are shifting due to geopolitical factors and Open RAN initiatives.

Huawei leads with approximately 25% global market share, despite Western market restrictions, primarily through dominance in China and developing markets. The company's strength lies in end-to-end solutions and competitive pricing, though its growth is geographically constrained by security concerns in US, European, and allied markets.

Ericsson holds roughly 23% market share with particularly strong positions in North America and Europe, benefiting from Huawei restrictions and its reputation for network performance optimization. The company's growth strategy focuses on software-driven services and private enterprise networks, generating higher margins than traditional equipment sales.

Nokia commands approximately 20% market share, with strength in both equipment and software platforms. The company has gained significant market share in regions previously served by Huawei and has established leadership in Open RAN development, positioning it well for future market evolution.

Samsung represents roughly 10% of the global market but shows rapid growth, particularly in the US market where it has gained share through aggressive pricing and technology innovation. The company's vertical integration from semiconductors to complete systems provides cost advantages and supply chain resilience.

ZTE holds an estimated 11% market share, with strong positions in Asia-Pacific and selective international markets. Like Huawei, ZTE faces Western market restrictions but maintains competitiveness through cost leadership and comprehensive product portfolios.

Wondering who's shaping this fast-moving industry? Our slides map out the top players and challengers in seconds.

How much is being invested by telecom operators, governments, and private stakeholders in 5G infrastructure in 2025, and how is that expected to change by 2030?

Total 5G infrastructure investment across all stakeholder categories is projected to reach $350 billion in 2025, with telecom operators representing the largest contributor at $250 billion annually.

Telecom operator CapEx specifically allocated to 5G infrastructure represents approximately 40-45% of total network investment budgets, up from 25% in 2023. Major operators like Verizon, China Mobile, and Deutsche Telekom are committing $15-25 billion annually each to 5G buildouts, with spending expected to increase to $400 billion globally by 2030 as deployment phases shift from coverage to capacity and enterprise solutions.

Government investment through national broadband initiatives, defense spending, and research funding totals approximately $50 billion globally in 2025. The European Union's Smart Networks and Services Joint Undertaking (SNS JU) represents €300 million in direct funding for 2024-2025, with member state matching funds multiplying total public investment. US government spending through various agencies and the CHIPS Act-related initiatives adds another $15-20 billion annually.

Private enterprise investment in 5G infrastructure, particularly for private networks and edge computing, is projected at $20 billion in 2025 growing to $50 billion by 2030. This represents a 40% CAGR driven by manufacturing automation, smart logistics, and Industry 4.0 applications where companies build dedicated 5G networks rather than relying on operator services.

The 2030 investment landscape shows a projected total of $600 billion annually across all categories, with the most significant growth in private enterprise deployment and government-supported rural/underserved area coverage programs.

What are the key emerging use cases that are driving demand for 5G infrastructure in 2025 and forecasted by 2030?

Industrial automation and IoT applications lead emerging use case demand, with over 1.3 billion devices expected on 5G networks by 2025, scaling to 5 billion devices by 2030.

• Industrial Automation and Smart Manufacturing: Private 5G networks in factories enabling real-time control systems, predictive maintenance, and autonomous robotics. Current deployments by companies like BMW, Ford, and Siemens demonstrate ROI through reduced downtime and improved quality control. Market size expected to reach $15 billion by 2030.
• Autonomous Vehicle Infrastructure: Vehicle-to-everything (V2X) communication networks supporting autonomous driving systems. Regional pilots in US and EU markets are transitioning to commercial deployments, with full-scale rollouts expected by 2027-2028. Infrastructure investment requirements estimated at $200 billion globally through 2030.
• Smart City and IoT Ecosystems: Municipal deployments for traffic management, public safety, environmental monitoring, and utility management. Cities like Barcelona, Singapore, and Amsterdam have active 5G smart city programs generating measurable efficiency improvements. Expected to represent 25% of total 5G connections by 2030.
• Fixed Wireless Access (FWA) for Rural Broadband: 5G as primary broadband infrastructure in underserved areas, offering fiber-comparable speeds without physical cable deployment. Particularly strong in markets like India, parts of Africa, and rural US regions. Expected to carry 15% of all backhaul traffic by 2030.
• Enhanced Mobile Broadband for Enterprise: Ultra-high bandwidth applications including augmented reality training, remote surgery, and real-time video collaboration. Corporate spending on 5G-enabled applications projected to reach $75 billion annually by 2030.
• Edge Computing and Content Delivery: Low-latency applications requiring processing power at network edges, including cloud gaming, real-time analytics, and distributed AI inference. Market size expected to reach $40 billion by 2030.

If you want to grasp this market fast, you can download our latest market pitch deck here

What percentage of mobile network traffic is currently carried over 5G infrastructure, and what are the projections for 2026 and beyond?

5G networks currently carry approximately 20% of global mobile data traffic in 2024, with projections showing rapid adoption reaching 35% by 2026 and 60% by 2030.

This traffic migration reflects both network availability and device adoption rates. In markets with mature 5G deployments like South Korea and select US metropolitan areas, 5G traffic already represents 40-50% of total mobile data. However, global averages remain lower due to ongoing network buildouts and device upgrade cycles in emerging markets.

The traffic growth trajectory is accelerating due to bandwidth-intensive applications that preferentially use 5G when available. Video streaming in 4K and 8K resolution, cloud gaming, and augmented reality applications automatically default to 5G connections, driving disproportionate traffic allocation to the newer networks even with limited geographic coverage.

By 2026, the 35% traffic share projection assumes approximately 70% population coverage in developed markets and 40% coverage in emerging markets. The quality differential between 5G and 4G networks is becoming significant enough that users actively seek 5G connectivity, accelerating traffic migration beyond simple availability metrics.

The 2030 projection of 60% traffic share represents a fundamental shift where 5G becomes the primary mobile data infrastructure. This timeline aligns with operator strategies to begin decommissioning 3G networks and reallocating spectrum to 5G services, effectively forcing traffic migration to newer technologies.

Looking for the latest market trends? We break them down in sharp, digestible presentations you can skim or share.

How does the unit economics of building 5G infrastructure look today compared to three years ago?

5G infrastructure unit economics have improved significantly since 2022, with ROI timelines shortened by 20% and cost-per-site increases offset by enhanced revenue potential and operational efficiency.

What regulatory, supply chain, or technological factors could significantly accelerate or slow down 5G infrastructure growth between now and 2030?

Three critical factor categories will determine whether the market achieves the upper or lower bounds of growth projections, with potential impact variances of 15-25% on projected market size.

Regulatory Accelerators: Streamlined spectrum allocation policies and coordinated international standards could accelerate growth by 15-20%. The EU's upcoming Digital Networks Act (2025) and similar harmonization efforts in Asia-Pacific reduce deployment complexity and costs. Conversely, fragmented spectrum policies or renewed trade restrictions could reduce growth by 10-15%.

Supply Chain Evolution: Semiconductor supply chain resilience has improved significantly since 2022-2023 shortages, with new fabrication capacity coming online through 2025-2026. However, concentration of advanced chip production in Taiwan and South Korea remains a vulnerability. Open RAN initiatives are reducing vendor lock-in and supply chain concentration, potentially accelerating deployment by 10-12% through increased competition.

Technological Breakthrough Factors: AI-driven network optimization and cloud-native architectures are reducing operational complexity and improving ROI timelines. Quantum-safe encryption requirements may necessitate infrastructure upgrades earlier than planned, potentially accelerating replacement cycles. Conversely, 6G standardization timing could cause investment delays if operators anticipate technology leapfrogging opportunities.

Geopolitical and Economic Risks: US-China technology decoupling continues to reshape supply chains and vendor relationships, with potential market fragmentation effects. Economic recession scenarios could delay operator CapEx by 12-18 months, while inflation impacts on energy and labor costs could reduce deployment density in cost-sensitive markets.

Standards and Interoperability: Open RAN maturation and successful multi-vendor interoperability demonstrations could accelerate adoption by reducing costs and increasing deployment flexibility. However, security certification delays or standards fragmentation could slow deployments by 6-12 months in regulated markets.

Planning your next move in this new space? Start with a clean visual breakdown of market size, models, and momentum.

Conclusion

Sources

1. Grandview Research
2. Yahoo Finance - Custom Market Insights
3. Research and Markets
4. Fortune Business Insights
5. McKinsey & Company
6. Virtue Market Research
7. Mordor Intelligence
8. PatentPC
9. European Commission 5G Observatory
10. IndustryARC
11. Computer Weekly - IoT Analytics
12. Knowledge Sourcing Intelligence