5G subscribers in Asia, North America to surpass 1.1 billion by 2023—triple the 4G pace

July 25, 2019
In contrast, 4G's subscriber base in the two regions amounted to just 417 million units in 2014 five years after that technology’s initial deployment.
IHS Markit
In the first 5 years of system rollouts, 5G subscribers will significantly outpace 4G subscribers.
In the first 5 years of system rollouts, 5G subscribers will significantly outpace 4G subscribers.

According to IHS Markit (London, England), the rollout of 5G technology will proceed at a blistering pace, with the number of subscriptions in Asia and North America set to exceed 1 billion units by the technology’s fifth year of deploymentnearly triple the total for 4G during the same time period.

Starting from a negligible level this year, 5G subscribers in the Asia Pacific and North America regions will soar to 1.1 billion units by 2023. In contrast, 4G’s subscriber base in the two regions amounted to just 417 million units in 2014 five years after that technology’s initial deployment.

Several factors will contribute to 5G’s rapid rise, including the early availability of a large number of compatible devices. “During 4G’s first year of launch, there were only three smartphones available to consumers that supported the standard,” said Elias Aravantinos, principal analyst at IHS Markit. “On the other hand, 5G boasts at least 20 smartphone designs available for release to the market this year. This demonstrates the high degree of market readiness for 5G, and its capability to attain high volumes more quickly than 4G.”

While North America initially will lead the world in terms of 5G installed base, the Asia-Pacific region will rise rapidly and surpass it in 2021. By 2023, Asia Pacific will have a 5G installed base of 785 million, dwarfing the 294 million total for North America. “Asia Pacific is destined for 5G market domination thanks to the massive deployment of the technology in China and India,” Aravantinos said. “Led by deployment in these countries, 5G will reach its so-called ‘golden year” in 2023, when 5G will be present in most handsets.”

A raft of 5G-enabled smartphones will be introduced or have already been rolled out in 2019. In North America and Asia, 5G phones on the market this year include the Motorola Moto Z3 with the 5G Moto Mod, the Samsung Galaxy S10 5G and the LG V50 5G. In Europe, 5G models will include the Xiaomi Mi Mix 3 5G, the Oppo Reno 5G, the OnePlus 7 Pro and the Huawei Mate 20 X and Mate X.

In addition to the ready availability of phones, 5G demand will be stimulated by its compelling capabilities. While today’s 4G phones often require data buffering that slows down performance, 5G smartphones will be able to perform such tasks instantaneously. With today’s 4G LTE service, downloading a high-definition movie might take 10 minutes, but with 5G technology this could take a matter of seconds. In practice, these faster speeds will allow for the seemingly instant transfer of data.

The lower latency of 5G will substantially reduce lag and help improve streaming applications like online gaming, video calling, and interactive live sports experiences, among others.

As network operators and smartphone makers across the globe race to deploy 5G, IHS Markit has launched “5G First Look,” a new service that provides insight into the world of 5G and how 5G networks perform. It includes 5G readiness benchmarks, 5G smartphone teardown analysis, and first-look results from comprehensive, scientific 5G network performance testing in South Korea, the United States, Switzerland and the United Kingdom—with more countries and regions added as 5G networks launch across the globe.

SOURCE: IHS Markit; https://technology.ihs.com/615884/5g-subscribers-in-asia-and-north-america-set-to-rise-to-11-billion-by-2023

About the Author

Gail Overton | Senior Editor (2004-2020)

Gail has more than 30 years of engineering, marketing, product management, and editorial experience in the photonics and optical communications industry. Before joining the staff at Laser Focus World in 2004, she held many product management and product marketing roles in the fiber-optics industry, most notably at Hughes (El Segundo, CA), GTE Labs (Waltham, MA), Corning (Corning, NY), Photon Kinetics (Beaverton, OR), and Newport Corporation (Irvine, CA). During her marketing career, Gail published articles in WDM Solutions and Sensors magazine and traveled internationally to conduct product and sales training. Gail received her BS degree in physics, with an emphasis in optics, from San Diego State University in San Diego, CA in May 1986.

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