Research Overview

Though in early stages, 5G will be adopted considerably faster than 4G based on the current rate experienced in China and South Korea. However, even with faster adoption rates of 5G, 4G will remain the more prevalent cellular technology through 2025. The APAC revenue from 5G is expected to grow from $2.13 billion in 2020 to $13.90 billion in 2025 with CAGR at 45.5% from 2020 to 2025. Growth is being driven by China in the consumer segment and the manufacturing sector, which is a top GDP contributor in most countries of the region, will boost 5G’s growth as APAC is a key manufacturing hub for the world. By 2025, the manufacturing industry will contribute 84% of 5G enterprise revenue and Australia will be among the top countries in the enterprise segment.

65% of consumers intend to upgrade their internet services, and 68% can pay more for 5G digital services with clear value add, and both indicate the relatively high potential for 5G within APAC. In terms of use cases, as 5G is a growth opportunity more suited for the enterprise segment, the more promising use cases will come from among the four more viable vertical industries, which are manufacturing, healthcare, automotive, and transportation, and in areas where 5G can differentiate better against 4G.

New concepts, such as private 5G networks, network slicing, and the B2B2X business model show promise of its potential to drive growth of 5G solutions in APAC. With enabling technologies in place, industries will have greater capability to innovate and this will give rise to new business models that were not possible before. By 2025, there will be more 5G solutions in APAC developed by large global companies, especially mission-critical applications. The differentiation factor will be the constant flow of innovation that is needed to sustain a competitive advantage in the digital world.