5G service revenue is set to jump substantially next year as cellular subscriptions to 5G networks increasingly become predominant over 4G subscriptions, according to new data from Juniper Research.
In 2023, 5G revenues will reach $315 billion in 2023 up from just $195 billion in 2022. This represents growth of more than 60% in a single year and Juniper forecasts more than 600 million new 5G subscriptions will be created in 2023, despite an anticipated economic downturn in 2023.
Juniper said the growth of 5G networks will continue and more than 80% of global operator-billed revenue will be attributable to 5G connections by 2027.
Throughout the COVID-19 pandemic, the telecommunications industry remained strong and even grew due to more companies having employees work at home. Juniper said the telecom industry showed it was resilient against an economic downturn with it increasing importance for mobile internet connectivity. This also happens to be where 5G will thrive given its 10 times more powerful download speed compared to 4G.
“Despite the growth of the internet of things, revenue from consumer connections will continue to be the cornerstone of 5G operator revenue increase,” said Olivia Williams, researcher at Juniper. “Over 95% of global 5G connections in 2027 will be connected personal devices such as smartphones, tablets and mobile broadband routers.”
Among the growing trends in 5G networks will be “network slicing” that will act as an ideal platform for 5G private network revenue. This involves using next-generation core networks supporting network slicing technology that take a slice of a public 5G infrastructure and provides it to private network users.
