mmWave 5G Market Trends

Growth Drivers

• Demand for High-Speed Connectivity: The mmWave 5G Marketis bolstered by an unparalleled demand for swift internet connectivity, with 2022 witnessing a leap in internet speeds by 20% year over year, reaching a national average of 119.03 Mbps. Tracking back to the 1980s, consumer internet use has surged by 62% annually, reflecting a profound shift in digital consumption habits. This relentless pursuit of rapid data services, powered by emergent technologies demanding high bandwidth like 4K/8K video streaming, AR, and VR propels the adoption of 5G mmWave, establishing it as a linchpin in the trajectory of a global internet services expansion.   
• Urban Development & Emerging Use Cases: As the second-largest telecom market globally, India’s substantial subscriber base of 1.079 billion as of December 2023, showcases the burgeoning potential of 5GmmWave technology, particularly in untapped rural areas with a teledensity of 58.8%. In contrast, urban regions have a much higher teledensity of 133.76%, reflecting industry saturation and the need for advanced solutions like mmWave to address the dense data traffic. The deployment of 5G mmWave in these varied demographics is expected to revolutionize connectivity, enabling new use cases across the vast consumer spectrum, from smart cities in urban centers to digital inclusion initiatives in rural localities.
• Infrastructure Expansion & Device Ecosystem:   Network densification stands as a critical driver in the 5G mmWave market’s growth, with operators expanding infrastructure through a denser array of small cells to meet urban demand. In parallel, the availability of mmWave-compatible devices is escalating, fueling market penetration. As of 2023, the expansion is synchronized with the increased internet speeds and consistent year-on-year growth in consumer internet usage since the 1980s. This synergy between infrastructure and device availability is crucial for the adoption and widespread utilization of mmWave’s high-speed capabilities, marking a new era in high-capacity, low-latency communication services.  

Challenges

• High Deployment Costs: Expanding 5GmmWave technology comes with steep deployment costs due to the need for high-density small-cell networks. To cover areas effectively, carriers face substantial expenses from installing numerous cells, exacerbated by mmWave’s limited coverage and direct line of sight requirements. Until economies of scale are achieved and costs decrease, the proliferation of mmWavw will hinge on overcoming financial hurdles. 
• mmWave’s range limitations render it less suitable for suburban and rural areas, potentially slowing adoption outside dense urban environments where its high capacity is less critical.
• The transition of mmWave 5G necessitates extensive underground fiber installations and a compatible device ecosystem, demanding significant infrastructural changes and market adaptation for widespread utilization.