While only 10% of communication service providers (CSPs) in 2020 commercialized 5G services, Gartner predicts that this number will increase to 60% by 2024, which is a similar rate of adoption for LTE and 4G in the past.
“Business and customer demand is an influencing factor in this growth. As consumers return to the office, they will continue to upgrade or switch to gigabit fiber to the home (FTTH) service as connectivity has become an essential remote work service,” said senior principal research analyst at Gartner. “Users will also increasingly scrutinize CSPs for both office and remote work needs.”
The rapid shift in customer behavior is driving growth in the global passive optical network (PON) market as well. CSPs are willing to invest more in 10-Gigabit-capable symmetric-PON (XGS-PON) to differentiate themselves in customer experience and network quality.
Hence, Gartner estimates that by 2025, 60% of Tier-1 CSPs will adopt XGS-PON technology at a large scale to deliver ultrafast broadband services to residential and business users, up from less than 30% in 2020.
Following this, the worldwide 5G network infrastructure revenue is on pace to grow 39% to total $19.1 billion in 2021, up from $13.7 billion in 2020. In 2023, the revenue is anticipated to reach $23.2 billion because of accelerated 5G development in various key markets globally.