Smart homes and offices epitomize environments where the systems and appliances utilized within residential and workplace settings leverage Internet of Things (IoT) technology, sensors, and interconnected services through communication networks. These systems allow for remote access, monitoring, and control. For instance, various elements within a home—thermostats, lights, locks, TVs, security cameras, audio speakers, and appliances—are integrated into a unified system accessible and manageable via a smartphone or touchscreen device.
The persistent demand from consumers in smart home and office domains revolves around reducing utility bills amidst the continuous escalation of energy costs. Leveraging remote-operated devices offers a solution to efficiently manage home appliances and heating, ventilation, and air conditioning (HVAC), ultimately enabling consumers to save time, effort, and energy while streamlining the operation of multiple devices.
Several Ethernet protocols have gained popularity within these devices, including BACnet, Z-Wave, ZigBee, Bluetooth, and Wi-Fi. These energy harvesting wireless technologies cater to self-powered wireless switches and sensors, effectively driving home automation and facilitating energy conservation. The adoption of wireless solutions in smart homes provides an array of benefits: heightened comfort, enhanced convenience, bolstered security, reduced energy consumption, and unparalleled flexibility courtesy of battery-free wireless devices, all contributing to substantial cost savings for consumers.
Manufacturers have actively engaged with leading industry clients and developers to furnish secure, low-power, end-to-end solutions, aimed at revolutionizing consumer interactions with and management of automated devices. Consequently, integrating smartphone applications or web-based tools emerges as a pragmatic approach to seamlessly synchronize with electrical devices and sensor interfaces within these environments.
The burgeoning ownership of Internet-enabled smart devices stands as a linchpin driving market growth. As consumers increasingly embrace these technologically advanced devices, the market for smart home and office solutions continues its upward trajectory.
In essence, the convergence of IoT technology, wireless protocols, and energy-efficient solutions within smart homes and offices underscores the transformative impact on consumer lifestyles. The amalgamation of convenience, energy savings, enhanced control, and cost-effectiveness serves as a compelling driver, fostering a paradigm shift in the way residential and workplace environments are managed and experienced.
Report Attribute/Metric | Details |
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Segment Outlook | Services, Vertical, Application, and Region |
5G System Integration Market Size was valued at USD 7.9 Billion in 2022. The 5G System Integration market industry is projected to grow from USD 10.1 Billion in 2023 to USD 71.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 27.70% during the forecast period (2023 - 2032).
Growing enterprise adoption of Network Function Visualisation (NFV) and Software-Defined Networking (SDN), as well as increasing demand for high-speed bandwidth capacity, are the key market drivers enhancing the market growth.
Figure 1: 5G System Integration Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
5G system integration is the process of integrating both virtual and physical components of any organisation with new, upgraded systems or apps so they can function over the revolutionary 5G network. Businesses can now deploy updated network infrastructure to increase overall operational efficiency and lower overall process costs thanks to the growing demand for high-speed bandwidth capacity. Therefore, it is predicted that the need for 5G system integration services would be driven by the aggressive implementation of updated network infrastructure across organisations to give increased services to their clients. Major international producers are looking for ways to bolster the fourth industrial revolution (Industry 4.0) by adopting cutting-edge digital technologies. Thanks to innovations like big data analytics, industrial wireless cameras, and collaborative robots, manufacturing facilities can take a great step towards smart and data-driven flexible operations.
Additionally, in order to compete in a highly competitive climate, various manufacturers have created and applied the aforementioned technologies. In order to provide unified communication to these 5G technologies, manufacturers must integrate them with next-generation networks. By providing continuous connectivity and remote monitoring, this also helps to reduce operational downtime and expenses overall. Therefore, it is predicted that over the forecast period, demand for 5G system integration services would increase due to the robust implementation of the industrial internet of things (IIoT) and the rising demand for 5G services to provide unified connectivity.
Various businesses around the world are aggressively focused on integrating their legacy network infrastructure with the new incoming 5G technologies in response to the development of fifth-generation mobile network services. To operate smoothly over a centralised network, these businesses are fusing their current on-premise apps and cloud networks with cutting-edge 5G technologies. By decreasing the overall response time to consumers, this integration method enables businesses to utilise high bandwidth capacity with low latency for their operations, enhancing overall operational efficiency. The market for 5G systems integration is therefore anticipated to be driven by a sharp increase in demand for fast broadband to shorten response times overall. Thus, driving the 5G System Integration market revenue.
The 5G System Integration Market segmentation, based on Services, includes consulting, infrastructure integration, and application integration. Infrastructure integration segment dominated the global market in 2022. The increasing desire for the fusion of current network infrastructure with next-generation network infrastructure is to blame for this. Therefore, integrating legacy infrastructure enables users to access the same gear with improved functionalities, lowering the cost of hardware as a result. In addition, network integration, building management, and Data Centre Infrastructure Management (DCIM) are included in the infrastructure system integration services.
Figure 2: 5G System Integration Market, by Services, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The 5G System Integration Market segmentation, based on Vertical, includes manufacturing, energy & utility, media & entertainment, IT & telecom, transportation & logistics, BFSI, healthcare, retail, and others. IT and telecom segment accounted for largest share in the global market in 2022. This is explained by the rising demand for 5G integration services from different IT and telecom firms to support New Radio (NR) waves. The demand for 5G system integration services in the IT and telecom sector is expected to increase due to rising demand for integrating enterprise network infrastructure and data centre network hardware.
The 5G System Integration Market segmentation, based on Application, includes smart city, collaborate robot /cloud robot, industrial sensors, logistics & inventory monitoring, wireless industry camera, drone, home and office broadband, vehicle-to-everything (V2X), gaming and mobile media, remote patient & diagnosis management, intelligent power distribution systems, p2p transfers /mcommerce, and others. Home and office broadband segment dominated the global market in 2022. This is due to the increased demand for 5G system integration services to initially link consumers and businesses to enhanced mobile broadband (eMBB).
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America 5G System Integration Market dominated this market in 2022 (45.80%). This is linked to the presence of major IT and telecom businesses including Cisco Systems, Inc., IBM Corporation, and Microsoft Corporation. A significant need to integrate overall infrastructure and applications across numerous verticals, such as IT and telecom, energy and utilities, and healthcare, is also anticipated as a result of growing investments in the deployment of 5G infrastructure by major market players like AT&T Inc. and Verizon Communications Inc. This element is predicted to accelerate the regional market's overall growth. Further, the U.S. 5G System Integration market held the largest market share, and the Canada 5G System Integration market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: 5G SYSTEM INTEGRATION MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe 5G System Integration market accounted for the healthy market share in 2022. This is due to rising government expenditures on implementing cutting-edge solutions across many departments, an increase in industrial automation using the internet of things (IoT), an increase in the use of energy-efficient production methods, and an increase in the demand for reasonably priced goods in this region. Further, the German 5G System Integration market held the largest market share, and the U.K 5G System Integration market was the fastest growing market in the European region
The Asia Pacific 5G System Integration market is expected to register significant growth from 2023 to 2032. Famous telecom companies are investing a lot of money to build fifth-generation networks in China, Japan, and South Korea, including China Mobile, China Telecom, KT Corporation, and SK Telecom. So, in the upcoming years, system integrators in the market stand to benefit significantly from the fast expanding investments in constructing 5G infrastructure across the aforementioned countries. Moreover, China’s 5G System Integration market held the largest market share, and the Indian 5G System Integration market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the 5G System Integration market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, 5G System Integration industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global 5G System Integration industry to benefit clients and increase the market sector. In recent years, the 5G System Integration industry has offered some of the most significant advantages to medicine. Major players in the 5G System Integration market, including Accenture Inc., Huawei Technologies Co., Ltd., Cisco Systems, Inc., Infosys Limited, Tata Consultancy Services Limited, Wipro Limited, Radisys Corporation, IBM Corporation, HPE, Oracle Corporation, HCL Technologies Limited, ALTRAN, AMDOCS, CA Technologies, Samsung Electronics Co., Ltd., Ericsson, Keysight Technologies, and Hansen Technologies, are attempting to increase market demand by investing in research and development operations.
A broad range of services and solutions are offered by Accenture Plc (Accenture) in the areas of strategy, consulting, digital, technology, and operations. Agribusiness, automotive, finance, financial markets, chemicals, media and technology, and communications are just a few of the industries that the organisation serves. Accenture manages business operations for corporate functions like marketing, sales, supply chain management, finance, and accounting. Additionally, it provides services tailored to particular industries, including as banking, platform trust and safety, insurance, and health services. In addition to Asia-Pacific, the corporation also conducts business in the Americas, Europe, Africa, and the Middle East. Dublin, Ireland serves as the headquarters of Accenture. At the Stellantis facility in Goiana, northeastern Brazil, Accenture, Stellantis, and TIM Brazil will work together on a private 5G network pilot project in October 2021.
A provider of telecom services is Bharti Airtel Ltd (Bharti Airtel). The business offers mobile services, digital TV services, and telemedia services. It provides fixed line, high speed broadband via DTH, 2G, 3G, and 4G wireless services, enterprise services, including domestic and international long distance services to carriers. The business offers phone, data, managed services for data centres, network integration, enterprise mobile applications, and digital media to large corporations, small and medium-sized organisations, and the government. The business Bharti Airtel operates throughout Africa, Sri Lanka, Bangladesh, and India through its subsidiaries and branch offices. The headquarters of Bharti Airtel are in New Delhi, India. The business declared in 2021 that Bharti Airtel Limited and Qualcomm Technologies, Inc. would collaborate to speed up the deployment of 5G in India.
March 2020: Fujitsu strengthened its position in the market by launching the first private 5G network for use in commerce in Japan.
May 2020: Self-optimizing network (SON) technology from Cisco was acquired by HCL Technologies to boost its 5G capabilities and competitiveness.
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