5G spending to makeup 40% of the wireless network infrastructure market by 2025

According to a report from SNS Research, 5G networks are forecast to account for 40% of wireless network infrastructure spending by the end of 2025.

“The wireless network infrastructure market is currently in a phase of transition, as mobile operators seek to address increasing mobile traffic demands amidst global economic uncertainties,” SNS Research said. “This paradigm shift is bringing new challenges and opportunities to infrastructure vendors.”

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In 2016, 2G, 3G and 4G wireless network infrastructure spending reached $56bn.

Although this is expected to shrink by 4% to $53.8bn in 2017, SNS predicts that new investments into 5G networks in the following years will see the market swing back and achieve positive growth, resulting in a forecast 2% CAGR between 2017 and 2020.

With this in mind, SNS Research predicts that by 2020, 5G will account for 5% of all spending on wireless network infrastructure.

However, it also predicts that the further development of new technologies such as smart vehicles throughout the years 2020-2025 will see this rise to as much as 40% by the end of the period in question.