Booming commercial demand, supportive government initiatives, and a rapidly growing ecosystem position 5G FWA CPE for remarkable growth in the global broadband market.

New Delhi, May 01, 2024 (GLOBE NEWSWIRE) — The global 5G FWA CPE market saw a market size of US$ 1,609.6 million in 2023. By 2032, this market is projected to reach a staggering US$ 18,925.6 million, reflecting a growth rate of 31.5% annually between 2024 and 2032.

The 5G Fixed Wireless Access Customer Premises Equipment (FWA CPE) market is experiencing a period of phenomenal expansion. In 2022 alone, shipments of 5G FWA CPE devices more than doubled, reaching 7.4 million units. This momentum is expected to continue, with forecasts predicting an 86% increase in shipments to 13.8 million units in 2023. Wherein, mmWave technology, a key component of high-speed 5G, is also experiencing a surge in popularity. Shipments of mmWave-capable devices doubled in 2022 and are projected to grow by over 70% in 2023. This rapid adoption signifies the increasing demand for ultra-fast wireless connectivity.

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Looking beyond the immediate future, the growth trajectory of the global 5G FWA CPE market appears sustainable with the ever-increasing demand for high-speed internet connections is a primary driver. The rise of technologies like the Internet of Things (IoT) and machine-to-machine (M2M) communication is further amplifying this need. Apart from this, 5G FWA offers a compelling solution for network providers to deliver high-speed broadband access in rural and suburban areas, where fiber optic infrastructure deployment is often cost-prohibitive. The ongoing evolution of 5G technology, coupled with the explosive growth in smartphone adoption, is creating a perfect storm for widespread 5G FWA adoption. Also, applications like video conferencing, distance learning, and remote working are driving demand for robust and reliable internet connectivity, which 5G FWA is well-positioned to deliver.

Regionally, the 5G FWA CPE market landscape is shifting. China’s share grew to 17% in 2022, while Europe’s share is projected to dip slightly to 23% by 2032. This trend is likely to continue, with the Asia-Pacific market expected to see significant user share expansion after strong deployment of 5G across all states of India. Wherein, telecom operators remain the primary sales channel for FWA CPE, accounting for 70% of shipments in 2022. This dominance is expected to strengthen further, with forecasts predicting a rise to 77% in 2023.

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Component Shortage, Adoption, Future Projection Paints an Interesting Picture of Global 5G FWA CPE Market

While component shortages appear to be a non-issue for most vendors, inflationary pressures are a growing concern. However, the outlook for pricing remains optimistic, with analysts predicting price parity between 5G and 4G CPE by 2025. This price convergence will further accelerate mainstream adoption. Speaking of adoption, the market is already experiencing significant traction. In 2023, 5G devices are predicted to constitute a staggering 40% of all shipments. Additionally, an impressive 535 operators have announced FWA service offers, with 455 having already launched services. This widespread availability is propelling 5G FWA towards mainstream adoption.

These findings are based on a comprehensive survey conducted in May and June 2023, which gathered insights from 27 leading CPE vendors. The study also predicts that the number of 5G FWA users worldwide will reach 40 million by 2025, highlighting the technology’s transformative potential. It’s worth noting the significant contribution of Taiwanese suppliers, who are estimated to have manufactured six million units of the projected 8.1 million units shipped in 2023. This underscores the global nature of the 5G FWA market.

Key Findings in Global 5G FWA CPE Market

Indoor 5G FWA CPEs: A User-Friendly and Cost-Effective Solution to Control More than 61% Market Share

Consumers are embracing the ease and affordability of indoor 5G FWA CPE market. According to Ericsson, 70% prefer self-installation, saving on professional fees.  These units are also cost-effective, with a total cost of ownership up to 40% lower than outdoor models. Improved signal reception is another advantage. Advancements like beamforming and massive MIMO have boosted indoor signal strength by 30%, with studies by Qualcomm showing 85% of households achieving good throughput using optimized indoor CPE placement.

Aesthetics and convenience are key factors as well across the global 5G FWA CPE market. Nokia’s survey found 65% of respondents preferred the look of indoor units, and 75% valued self-installation. This ease of use is fueling growth, with the number of households using 5G FWA for home broadband expected to reach 58 million by 2026, a staggering 480% increase. The data traffic on these networks is projected to surge by 88% annually from 2020 to 2025, driven by bandwidth-intensive applications like VR and streaming. Indoor CPEs also offer longevity and lower maintenance costs. Their lifespan is 20% longer than outdoor units due to reduced environmental exposure, and maintenance costs are up to 25% lower over their lifetime.

The ecosystem surrounding indoor 5G FWA CPEs is flourishing. The number of commercially available devices surged by 62% in 2021 alone, with indoor models leading the charge. Over 60 operators worldwide have launched 5G FWA services as of 2022, a 50% increase year-over-year. These factors all point towards continued dominance of indoor 5G FWA CPEs in the home broadband market.

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Commercial Users Driving Growth in 5G FWA CPE Market, Contribute Over 71% Market Revenue

Businesses are leading the charge in 5G Fixed Wireless Access (FWA) adoption, driven by their need for reliable, high-bandwidth internet. Cloud services, essential for many companies, require fast and stable connections. The average enterprise’s cloud traffic is expected to jump 25% annually by 2025. Additionally, the rise of the Internet of Things (IoT) adds to the demand for robust internet infrastructure, with businesses projected to have an average of 3,500 connected devices by 2025. Beyond technical requirements, 5G FWA offers significant cost savings. Traditional fiber optic installations can be expensive, reaching $150,000 per mile in urban areas. 5G FWA eliminates this need, providing a more economical solution. The return on investment (ROI) for businesses is also typically higher due to their larger scale. A single 5G FWA connection can support multiple operations, offering a superior cost-benefit ratio.

The commercial segment’s dominance in the 5G FWA CPE market is reflected in market size and growth projections. Already in 2023, the commercial segment held over 71.5% of the market share. Real-world examples showcase 5G FWA’s versatility. Large retail chains can use it to quickly set up new stores without waiting for wired infrastructure installation. Manufacturers can leverage it for IoT and smart factory solutions without extensive cabling. The healthcare industry can benefit from 5G FWA’s reliability for telemedicine and remote patient monitoring, projected to grow by 30% annually.

Governments and infrastructure investment are also propelling growth of the 5G FWA CPE market. The U.S. FCC is auctioning spectrum ideal for 5G FWA, benefiting businesses seeking high-speed internet. Global investment in 5G infrastructure is expected to exceed $1 trillion by 2025, with a significant portion allocated to FWA solutions. Telecom operators like Verizon are offering 5G FWA services specifically for businesses. CPE manufacturers like Nokia and Ericsson are developing advanced 5G FWA CPEs to meet these demands. With its ability to deliver high-performance connectivity and economic advantages, 5G FWA is transforming how businesses operate and connect.

Asia Pacific Become the Most Lucrative 5G FWA CPE Market, India to Remain at the Center

The Asia Pacific region is at the forefront of 5G FWA CPE market adoption, driven by several key factors. South Korea, China, India, and Japan lead the way in 5G penetration, with South Korea boasting an impressive 88% smartphone penetration rate. This strong 5G foundation positions the region for explosive FWA growth. 5G FWA is seen as a compelling alternative to traditional fixed broadband, especially in under-served areas where fiber optic infrastructure is limited. This technology is expected to bridge the digital divide and bring high-speed internet access to millions of households. Looking at regional specifics, South Korea and Australia have similar 5G availability rates exceeding 36%, with equally high smartphone penetration rates. This indicates a strong user base ready to leverage 5G FWA services. While these numbers are impressive, they outpace established markets in Europe where penetration rates hover around 20-30%.

Asia is expected to be a key driver of global 5G FWA CPE market shipments, with initial growth led by markets like South Korea, China, and Japan. China, in particular, has been a major contributor in the early stages of regional rollouts. However, its growth is expected to decelerate as the market matures. Meanwhile, India is emerging as a promising market with recent 5G FWA service trials conducted by Bharti Airtel and Ericsson. The recent allocation of 5G spectrum further strengthens India’s potential for future adoption.

The number of households using 5G FWA for home broadband globally is expected to reach 58 million by 2026, with Asia Pacific contributing significantly. FWA data traffic in the region is projected to surge, reflecting the increasing popularity of bandwidth-intensive applications like video streaming and VR. By 2029, the number of FWA connections in Asia Pacific is expected to more than triple, solidifying the region’s dominance in this space. The 5G FWA CPE ecosystem is also flourishing, with new entrants from Taiwan and Japan joining established players like Huawei and ZTE. Taiwan, in particular, is a major contributor, with shipments reaching an estimated 2.79 million units in the first half of 2023 alone.

India’s 5G FWA CPE market is poised for significant growth, driven by the need for high-speed internet and the potential to bridge connectivity gaps in rural areas. While challenges remain, particularly in terms of infrastructure costs and spectrum allocation, the demand for 5G FWA is expected to rise as the technology becomes more accessible and as use cases for high-speed internet continue to expand. The success of 5G FWA in India will depend on a collaborative effort between operators, regulators, and the government to overcome the hurdles and capitalize on the opportunities presented by this transformative technology.

Global 5G FWA CPE Market Key Players

Key Segmentation:

By Installation

By Branding

By End User

• Commercial

  • BFSI

  • Telcom

  • IT

  • Healthcare

  • Media and Entertainment

  • Retail

  • Education

  • Others

• Residential

By Region

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