In a recent study by Juniper Research, the forecast for 5G service revenues in 2024 shows a substantial increase of 32%, reaching an impressive $400 billion. As consumer 5G adoption approaches saturation, the study emphasizes the crucial role of 5G Advanced and 5G RedCap (Reduced Capacity) in sustaining this growth, particularly by targeting enterprise IoT users.
The report defines 5G Advanced as the next evolutionary stage of 5G, unlocking fresh opportunities for operators. It strengthens 5G support for extended reality (XR), virtual reality (VR), and augmented reality (AR) applications. Artificial intelligence (AI) and machine learning are highlighted as key elements to enhance network performance.
RedCap, an emerging 5G standard outlined in R17 of the 3GPP specifications, is poised to leverage 5G network standards for high data rates, extended battery life, and low latency in specific IoT use cases. Juniper envisions a substantial boost in the IoT sector, with a projected 360 million 5G IoT devices on public networks by 2028, compared to 35 million in 2024.
Fixed Wireless Access (FWA) will also experience a speed boost through these technologies, allowing operators to offer network conditions comparable to fixed network service providers. The report emphasizes the need for operators to capitalize on existing billing relationships with consumers to promote their FWA solutions.
Looking ahead, the study explores the potential impact on 6G development. 5G Advanced is identified as a catalyst for 6G systems, contributing to a more efficient digital ecosystem. The report envisions immersive communication and interaction between humans and machines, requiring the advanced capabilities of 6G.
While the prospect of a 32% revenue hike is enticing for operators, the report suggests that realizing the full potential of nascent services may depend on the continued expansion of 5G standalone networks. Despite a slow global growth pace in operators investing in standalone 5G networks, the evolving landscape of 5G technologies remains a focal point for future developments.
