Saturday, June 22, 2024

IDC: Asia-Pacific 5G enterprise services to reach $8 billion in 2026

According to IDC’s Asia-Pacific (Excluding Japan) 5G Enterprise Services Forecast 2022–2026, 5G services revenue will grow from $106 million in 2021 to $8 billion in 2026, a compounded annual growth rate (CAGR) of +137%.

In the forecast, IDC looked at four service categories:

  • MNO 5G private network managed services (excluding equipment leasing) Revenues
  • Fixed Wireless Access (FWA) service revenues for enterprises
  • MEC (Multi-access Edge Computing) edge cloud service revenues
  • Network slicing service revenues

“It will take the telecom industry three to five years to fully develop 5G enterprise services, and equally the same amount of time for leading enterprises to conduct proofs of concept and trials before committing their business operations to depend on 5G,” said Bill Rojas, adjunct research director for IDC Asia-Pacific.

“But, the early trend is that private networking has received the most attention in all markets in the region due to the potential benefits for industries. Network slicing will be deployed initially in factories, warehouses, and Smart Airports, but eventually in outdoor settings such as Smart Ports, Smart Stadiums, Smart Campuses, and transportation hubs.”

The analyst firm said 5G FWA will act both as a stopgap in some markets such as the Philippines but also as an alternative to fiber broadband access where it is not available to specific buildings and neighborhoods, suburban zones, and remotely located residences.

Examples of markets deploying or expected to deploy 5G FWA include Australia, India, Hong Kong, New Zealand, the Philippines, Malaysia, Thailand, and Vietnam.

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