Global spending on 5G network infrastructure will total USD 19.1 billion in 2021, up 39 percent from 2020 and overtaking LTE investment for the first time, according to the latest forecast by Gartner. As 5G deployment accelerates in mature markets, the technology is set to account for 39 percent of total wireless infrastructure revenue this year, the analysts said.
Gartner's report on the wireless infrastructure market found that 5G is the fastest growing segment and the only significant opportunity for investment growth as spending in other segments, such as non-5G small cells, is set to decline.
5G infrastructure spending is expected to grow 22 percent to USD 23.2 billion in 2022. While LTE equipment spending was higher than in the 5G segment in 2020 at USD 17.1 billion, Gartner expects this to drop by 15 percent to USD 14.6 billion in 2021 and decline further to USD 12.1 billion.
By region, operators in North America are set to see revenue from 5G grow to USD 4.3 billion in 2021 from USD 2.9 billion in 2020, thanks in part to increased adoption of dynamic spectrum sharing and millimeter wave base stations.
In Western Europe, 5G revenue is expected to increase to USD 1.6 billion from USD 794 million in 2020, with China is expected to maintain the No.1 spot at USD 9.1 billion in 2021, up from USD 7.4 billion in 2020.
Gartner's analysts expects 5G Coverage in Tier-1 Cities to grow from 10 percent in 2020 to 60 percent in 2024, a similar growth rate achieved by LTE previously.
