5G-as-a-Service Market Value by Segment
Source Research:
5G-as-a-Service: Business Models, Challenges, and Opportunities
Currently, 5G-as-a-Service (5GaaS) remains fledgling, given the long history of Capital Expenditure (CAPEX)-heavy permanent private 5G network deployments. However, as more firms look to deploy their own as-a-Service (aaS) offerings, ABI Research anticipates the sector to grow to US$6.1 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 76%.
By segment, Infrastructure-as-a-Service (IaaS) will grow by 74%, Software-as-a-Service (SaaS) by 83%, while Network-as-a-Service (NaaS) will reach 72% growth. SaaS, which in this case only encompasses telco-specific software, will grow the fastest within this period as firms look to outsource the complexity of network setup, maintenance, and application-building. It is most easily reproducible, scalable, and adoptable due to their virtual nature, leading to greater growth. However, IaaS revenue dominates, given the costliness of implementing hardware structures on a subscription basis for firms implementing 5G connectivity.
Across segments, 5GaaS adoption is on an upward trajectory, and this growth will also be driven by the limitations that connectivity incumbent Wi-Fi imposes on next-generation enterprise technology, such as mobility use cases with Autonomous Guided Vehicles (AGVs), that require robust, low-latency handovers to ensure smooth operations. This technology is already being used as a complement to Wi-Fi, and this synergy will only continue.
5GaaS—especially systems with leased and compact hardware models—will help drive adoption throughout the private sector, as it allows for more affordable, impermanent use, enabling enterprises to test potential efficiency gains reaped from this technology.
