Major Applications of the 5G Fixed Wireless Access Network | COVID-19 Impact Analysis

The 5G fixed wireless access market is expected to grow from USD 396 million in 2019 to USD 46,366 million by 2026, at a CAGR of 97.47%.

The growing demand for high-speed internet connectivity and broad network coverage with reduced latency and power consumption, increasing adoption of advanced technologies such as machine-to-machine (M2M)/Internet of Things (IoT) millimeter-wave in 5G FWA are a few major factors driving the growth of the 5G FWA market. However, delay in making decisions related to the standardization of spectrum allocation, high infrastructural costs, and adverse impact on the environment are expected to limit the growth of this market.

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By offering, services segment is expected to be largest contributor to 5G fixed wireless access market during forecast period

The evolution of 5G is likely to take fixed wireless access services to a new level with the use of a wide range of radio spectrum owing to which consumers can achieve major capacity gains and low-latency connectivity. 5G FWA is likely to enhance network performance capabilities and deliver high-speed network coverage compared to currently used connectivity networks. Further, increasing adoption of connected devices, such as smartphones, laptops, smart devices, in several commercial and residential applications, such as distance learning, autonomous driving, multi-user gaming, video conferencing, live streaming, telemedicine, and augmented reality is expected to generate the demand for 5G FWA services to achieve extended coverage. Already, in October 2018, Verizon launched 5G FWA services in 4 major cities in the US, namely, Houston, Indianapolis, Los Angeles, and Sacramento. The company is offering a 3-month free trial period before paying USD 70 per month (or USD 50 per month for existing Verizon customers) and the promise of no data caps. These customers will also receive a free Apple TV 4K or Google Chromecast Ultra device at installation.

5G fixed wireless access market for semi-urban areas to grow at highest CAGR from 2019 to 2026

The 5G FWA market will somewhat behave according to different spectrums used across different areas. For instance, in sub-urban areas and urban areas, the higher spectrum would be preferred, whereas rural areas can use lower frequencies for FWA services. Initially for the first few years, this market will be majorly dominated by the semi-urban areas, post which we can see a larger impact of FWA in rural areas. With high power transmission/reception and advanced antenna technologies, this 5G FWA could be a game changer for semi-urban customers.

5G fixed wireless access market for residential applications to grow at significant rate from 2019 to 2026

5G fixed wireless is an ideal alternative mainly for residential customers as users can get gigabits of speeds at a competitive price, with no installation issues. There are more than 2 billion families across the world. Observing the current industry trend, less than half of the families are likely to opt for a fixed copper or fiber broadband connection by 2023. In many countries, it is not economically viable to build a fixed broadband infrastructure. Based on ITU data, the addressable market can be close to 1 billion households, with either no or poor fixed broadband connectivity.

North America to hold major share of 5G fixed wireless access market in 2019

North America is expected to hold the largest share of the global 5G FWA market during the forecast period. In North America, the US is considered to have the most engaged user base, and a similar trend is expected to continue with the addition of new subscribers. With full-fledged 5G implementation in North America, it is expected to boost on-demand video services. In the current scenario, the market for such services is growing continuously. Companies such as AT&T (US) and Verizon (US) are driving the telecom sector, but both these players are looking to diversify their business from core mobile services and compete more effectively in internet services. In October 2018, Verizon launched 5G FWA services in 4 cities in the US.

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Key Market Players

Major players in the 5G fixed wireless access market include Qualcomm Technologies (US), Nokia Corporation (Finland), Samsung Electronics (South Korea), Huawei (China), Ericsson (Sweden), Mimosa Networks, Inc. (US), Cohere Technologies, Inc.  (US), Siklu Communication, Ltd.  (Israel), AT&T Inc. (US), Verizon Communications Inc.  (US), Cisco (US), Arqiva (Hampshire), Cellular South, Inc. (C Spire) (US), Orange S.A. (France), United States Cellular Corporation (US), TELUS Corporation (Canada), Telefónica (Spain), Mobile Telephone Networks (MTN) (South Africa), Swisscom (Switzerland), and Hrvatski Telekom (Croatia).

5G FWA to enable Wireless Broadband Everywhere: Market overview and projections

5G fixed wireless access (FWA) is likely to enhance network performance capabilities and deliver high-speed network coverage compared to currently used connectivity networks. With up to 100 times more capacity than 4G networks, 5G would enable cost-efficient FWA deployments on a massive scale. Using larger ranges of the radio spectrum to provide consumers with low latency connectivity (1ms) and significant capacity gains, the evolution of 5G is expected to take FWA to a new level.

According to Sachin Garg, Associate Vice President, Semiconductor and Electronics at MarketsandMarkets, “the market potential for 5G FWA is massive, and it is poised to disrupt broadband internet connectivity over the next few years by fundamentally restructuring fronthaul networks. Although the technology is still in its early stages of development, telecommunication players have begun evaluating how they would harness telecom networks to generate business value and prepare for the new competitive realities that the technology would bring. The 5G FWA market is expected to grow from USD 0.4 billion in 2019 to USD 46.4 billion by 2026, growing at a CAGR of 97.5%.”

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5G FWA - deliver services like fiber-based broadband & provide data speeds higher than current broadband
It’s challenging to upgrade or deploy the foundation infrastructure in densely populated urban areas due to the high cost of projects in civil works and complexities associated with high-rise buildings. FWA could overcome the challenge by providing a wireless connection with high throughput and low latency everywhere, whether replacing aging wireline infrastructure or establishing a connection with a new network node. 5G FWA is expected to have a massive impact on developed countries, such as the US, the UK, Germany, and Japan where there is a sizeable disparity in broadband accessibility between major cities and sparsely populated rural areas.

The mobile industry has turned its head to find a new territory, and the most discussed “above 6 GHz band” for 5G today is 28 GHz, which has been permitted for use in the US and South Korea. The spectrum has emerged as the preferred band for the initial deployments of 5G-based FWA networks. Countries such as the US, the UK, South Korea, and Japan have announced their 5G spectrum strategies, indicating that the period during 2018–2020 is the right time for the deployment of 5G commercial systems, using mmWave bands.

Increasing demand for data services to drive 5G FWA market

FWA is the most cost-effective way of providing a broadband solution to customers compared to fiber connectivity. “The increased demand for data services is primarily driven by the growing use of consumer electronics and data-intensive applications such as virtual and augmented reality, 3D, and ultra-HD video. More bandwidth is required to support the increasing data traffic. 5G is expected to provide 1,000× more bandwidth than its predecessor broadband generations—3G and 4G. Therefore, the growing data traffic would force network operators to provide high-speed bandwidth to their consumers”, says Anand Shanker, Senior Analyst, Semiconductor and Electronics at MarketsandMarkets. In October 2018, Verizon launched a 5G FWA service in 4 US cities, namely, Houston, Indianapolis, Sacramento, and Los Angeles.

5G FWA to have major impact in semi-urban and rural areas

In semi-urban areas, the density of population is sparse and, by definition, remote from central offices. Hence, it requires significantly high investments to connect a subscriber with the network via wireline infrastructure. With high power transmission/reception and advanced antenna technologies, wireless links can effectively reach rural, outskirt areas without major construction work (i.e., only base stations and customer premise equipment need to be installed). In several situations, operators are required to provide temporary coverage in some areas of the country where there usually is very little or no demand; for example, a skiing resort in winter. FWA is a flexible, quick, and cost-effective solution to satisfy the rural/temporary requirement.

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Residential applications expected to continue to dominate 5G fixed wireless access

Currently, the focus of all major vendors in the 5G FWA market is to target residential customers, and over a three-fourth share of the total 5G FWA market is likely to be captured by residential users. 5G FWA is an ideal alternative mainly for residential customers as users can get gigabits of speeds at a competitive price, with no installation issues. Fixed wireless internet is one of the innovative solutions to connect homes and businesses in rural, remote, and hard-to-reach areas that lack access to internet services. A growing need for higher speed broadband networks opens the door for new players. With 5G FWA, the high cost of entry into the market would no longer be an obstacle for new entrants, and the technology could help to bridge the digital divide.