5G enterprise services revenue to reach $8 bn: IDC

AUG 27, 2022

5G enterprise services revenue in Asia Pacific (excluding Japan) will grow from $106 million in 2021 to $8 billion in 2026, a compounded annual growth rate (CAGR) of 137 percent, according to IDC.

IDC Asia Pacific 5G Enterprise Services

Fixed Wireless Access (FWA) service revenues for enterprises will achieve CAGR of 73.5 percent.

MNO 5G private network managed services (excluding equipment leasing) revenues will achieve CAGR of 64.6 percent.

MEC (Multi-access Edge Computing) edge cloud service revenues will achieve CAGR of 125 percent.

Network slicing service revenues will achieve CAGR of 268.8 percent.

Enterprises will be deploying network slicing initially in factories, warehouses, and Smart Airports, but eventually in outdoor settings such as Smart Ports, Smart Stadiums, Smart Campuses, and transportation hubs.

“It will take the telecom industry 3-5 years to fully develop 5G enterprise services, and equally the same amount of time for leading enterprises to conduct proofs of concept and trials before committing their business operations to depend on 5G,” said Bill Rojas, Adjunct Research Director for IDC Asia Pacific, in the report.

5G FWA will act both as a stopgap in some markets such as the Philippines but also as an alternative to fiber broadband access where it is not available to specific buildings and neighborhoods, suburban zones, and remotely located residences.

Examples of markets deploying or expected to deploy 5G FWA include Australia, India, Hong Kong, New Zealand, Philippines, Malaysia, Thailand, and Vietnam.

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