Introduction
5G represents a significant leap from its predecessor, 4G, offering speeds up to 100 times faster and laying the groundwork for cutting-edge technologies such as virtual reality (VR) and autonomous vehicles.
This report will delve into the current state of 5G adoption, its implications for smartphone sales, market dynamics, regional variations, and the challenges and opportunities that lie ahead.
Key Statistics
- 1.7 billion people use 5G in 2024. And it is expected to reach 4.6 billion by 2028, nearly half the world’s population.
- 54% of smartphones shipped in 2023 are 5G-enabled. This is projected to rise to 80% by 2027.
- 23.6% increase in 5G device shipments in 2022.
- Samsung has 18.4% market share in Q2 2024, Apple has 15.6% market share. Xiaomi has 14.5% market share, growing quickly.
- North America and Europe are adopting 5G rapidly.
- Emerging markets in Asia, Africa, and Latin America are slower due to high costs.
- By 2029, 60% of global mobile subscriptions will be 5G.
Global 5G Adoption Rates
As of 2024, over 1.7 billion people use 5G, with projections indicating this number will reach 4.6 billion by 2028. By then, nearly half the global population will be connected to 5G.
5G’s rapid growth is driven by its faster download speeds, lower latency, and ability to support numerous devices simultaneously—ideal for an increasingly connected world.
What is 5G?
5G is the next evolution beyond 4G, offering speeds up to 100 times faster. This allows for near-instant downloads and supports emerging technologies like virtual reality (VR), and self-driving cars. 5G networks also excel in high-density areas like stadiums, where many devices need to stay connected.
Why 5G Matters?
5G’s impact extends beyond faster mobile connectivity. It’s crucial for developing smart cities, improving industries like healthcare with remote surgeries, and enhancing manufacturing efficiency. By 2029, 5G is expected to account for 60% of global mobile subscriptions, with countries like the U.S. and South Korea leading adoption.
Sources: TheInfluencerForum |Ericsson
Impact on Smartphone Sales
In 2023, 5G smartphones accounted for 54% of global shipments, with this figure projected to reach 80% by 2027. The growing demand for faster internet, lower latency, and enhanced connectivity is driving smartphone upgrades, especially in regions with widespread 5G networks.
Despite global economic challenges affecting overall smartphone shipments, 5G-enabled devices continue to grow at a significant rate. In 2022, 5G device shipments rose by 23.6%, a trend expected to continue as 5G becomes the dominant technology in the smartphone market.
As 5G adoption expands, especially in developed markets, consumers are increasingly upgrading their phones to leverage better network performance, solidifying the shift towards 5G smartphones.
Sources: TheInfluencerForum |SemiConductor-Today
Market Dynamics and Competition
The 5G smartphone market in 2024 remains highly competitive, with Samsung, Apple, and Xiaomi leading the industry.
Samsung holds the largest global market share of 5G phones at 18.4% in Q2 2024, driven by the success of its Galaxy S24 series and budget-friendly Galaxy A models. Samsung’s focus on integrating AI features and innovation in foldable devices further strengthens its position.
Apple follows with a 15.6% market share, maintaining a strong presence despite challenges in regions like China. It continues to perform well in Europe and Latin America, fueled by steady demand for premium products.
Xiaomi, the fastest-growing manufacturer, holds a 14.5% share. Its rapid growth is attributed to competitive pricing and innovation in its Redmi and Note series, helping it surpass Apple in certain markets.
With rising competition in both premium and budget segments, the 5G smartphone landscape is becoming more diverse and dynamic.
Sources: IDC
Regional Variations
The impact of 5G on smartphone sales varies significantly by region. In North America and Europe, 5G adoption has surged, driven by substantial investments in infrastructure and strong consumer demand for faster internet and better connectivity. With extensive coverage already in place, many consumers are upgrading to 5G models.
Conversely, emerging markets in parts of Asia, Africa, and Latin America are still in the early stages of 5G deployment. The slower expansion of 5G networks in these regions is due to the high costs of infrastructure and lower consumer purchasing power.
In Asia, countries like China and South Korea are leading in 5G adoption, while others are just starting their rollout. Similarly, in Latin America, Brazil is making progress, but widespread adoption will take time.
Challenges and Opportunities
While 5G offers exciting possibilities, it also presents several challenges that could slow its adoption, particularly in certain regions.
High Cost
One significant barrier is the high cost of infrastructure. Implementing 5G networks necessitates substantial investment in new equipment, including towers and antennas, to support faster speeds and increased bandwidth.
This financial strain can be particularly challenging for low- and middle-income countries, where funding these upgrades may delay widespread 5G adoption.
The cost of 5G smartphones also poses a hurdle. Although prices are gradually decreasing, 5G-enabled devices remain generally more expensive than their 4G counterparts. For consumers in emerging markets, these higher costs can limit access to 5G, as many are unable or unwilling to upgrade their phones.
However, as manufacturing processes improve and 5G technology becomes more common, device prices are expected to decline, making them more affordable over time.
Telecom operators also face significant investment challenges in transitioning from 4G to 5G. Building 5G networks involves not only upgrading existing infrastructure but often creating entirely new systems.
This transition requires considerable upfront costs, including the purchase of expensive spectrum licenses. Moreover, telecom companies must ensure network compatibility with new technology while continuing to serve existing 4G users, complicating the upgrade process.
Benefits
Despite these challenges, the benefits of 5G are anticipated to drive significant growth in smartphone sales. Key to this growth is the technology’s ability to support advanced applications such as augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT). These features are transforming how users interact with devices and their surroundings.
- AR and VR: 5G enables the real-time processing necessary for immersive AR and VR experiences, making these applications more accessible. For instance, AR can enhance shopping by allowing customers to virtually try on products, while VR can revolutionize entertainment with realistic, lag-free experiences.
- IoT: Designed to support a vast number of simultaneously connected devices, 5G is critical for the growth of IoT, which encompasses everything from smart homes to smart cities. As 5G networks expand, more consumers can integrate smart devices into their daily lives, driving demand for 5G-capable smartphones.
Overall, while challenges remain, the potential of 5G to enable new and exciting technologies will continue to propel smartphone sales growth in the coming years.
Conclusion
Right now, over 1.7 billion people are enjoying the benefits of 5G, and it’s expected to grow to 4.6 billion by 2028. This shows that 5G is about more than just better phone calls and internet.
However, getting everyone to use 5G isn’t easy. The costs of building the necessary infrastructure, the price of 5G devices, and the complicated switch from 4G to 5G networks are big challenges, especially in developing areas.
On the bright side, the quick rise in 5G smartphones shows that people want better connectivity and more advanced features in their devices.
In the end, even though there are obstacles on the way to widespread 5G access, the benefits of this technology are clear and significant.
