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5G Materials Market Overview
5G Materials Market size is projected to reach US$12.8 billion by 2027, after growing at a CAGR of 14% during the forecast period 2022-2027. 5G materials are extremely strong and resilient, weatherproof and heat resistant, and suited for any 5G application. Among the several 5G materials, popular ones include polytetrafluoroethylene, polyimide, and polyether ether ketone. It is colorless, non-toxic, and has strong temperature resistance. Liquid crystal polymers (LCPs) are nowadays, witnessing a surge in demand from 5G electronics applications, especially in components such as high-frequency connectors and board-to-board connectors. Copper-clad laminates is an integral part of printed circuit boards (PCB) which are used in telecommunication infrastructure such as base station. The Top (OTT) industry and artificial intelligence-based video creation are the driving factors for the 5G Materials Market. Privacy challenges and security solutions are the restraining factors for the 5G materials industry. The industries such as electrical and electronics, energy and utility including many others experienced pitfalls in covid, which disrupted the market growth of the 5G Materials Market.
Report Coverage
The “5G Materials Market Report – Forecast (2022-2027)”, by IndustryARC, covers an in-depth analysis of the following segments of the 5G Materials industry.
By Material: Gallium nitride (GaN), Gallium Arsenide (GaAs), Silicon-germanium (SiGe), Indium Phosphide (InP), Silicon-Carbide (SiC), and Others
By Substrate: Liquid-Crystal Polymers (LCP), Polyimides (PI), Polytetrafluoroethylene (PTFE), Polyphenol Ether (PPE), Polyphenylene Sulfide (PPS), Ceramics (Glass Ceramics, Flexible Ceramics, Low-Temperature Co-fired Ceramics (LTCC), and Others), Fluoropolymers, and Others
By Technology: Enhanced Mobile Broadband (eMBB), Ultra-Reliable Low Latency Communications (URLLC), and Massive Machine Type Communications (mMTC)
By Application: Antenna, Antenna Randome, Microwave Circuits, Power Amplifiers, Cables, Circuit Board (Flexible Printed Circuits (FPC) and Printed Circuit Boards (PCB)), Smart Surveillance, Virtual Reality & Augmented Reality, Enhanced Video Services, and Others
By End Use Industry: Telecommunication Industry (Mobile Operators, Internet Service Providers, and Others), Electrical and Electronics (Mobile Devices, Smart Devices, and Others), Energy & Utilities, Media & Entertainment, and Others
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, France, Italy, Netherlands, Spain, Russia, Belgium, and Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia and New Zealand, Indonesia, Taiwan, Malaysia, and Rest of APAC), and South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and Rest of the World (Middle East and Africa)
Key Takeaways
- Asia Pacific is the fastest-growing region in the 5G Materials Market. This growth is mainly attributed to the increased demand in the telecommunication industry.
- Enhanced video service is expected to be a significant segment owing to the surge in demand for ultra-high definition video services.
- 5G Materials play an important role in several industries, especially in the electrical and electronics and energy and utilities industry which are expected to provide significant growth opportunities for the global market.
Figure: Asia-Pacific 5G Materials Market Revenue, 2021-2027 (US$ Billion)
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5G Materials Market Segment Analysis – By Application
The enhanced video services segment held the largest share in the 5G Materials Market in 2021 and it is expected to grow with a CAGR of around 13.2% during the forecast period 2022-2027. 5G materials are majorly used in delivering video services to stream at ultra-high-definition scale and creating videos. The use of live streaming is becoming more common. This service may be greatly improved on all levels with the inclusion of 5G, including image quality, download times, interruptions, and lag. For many types of communication and media, faster information transfer holds a lot of promise. Large files and high-quality video will be sent to end-user devices more quickly through internet service provider networks owning to its faster, more dependable connection capable of handling greater data loads. According to Vidyard total video creation in 2021 increased by 178% over year on year. Thus, the increasing demand for enhanced video services is driving the growth of the 5G Materials Market.
5G Materials Market Segment Analysis – By End-Use Industry
The electrical and electronics segment held the largest share in the 5G Materials Market in 2021 and it is expected to grow with a CAGR of around 15.6% during the forecast period 2022-2027. The 5G materials, for instance, polytetrafluoroethylene (PTFE), are commonly used in electrical and electronics instruments. Peculiar characteristics of polytetrafluoroethylene (PTFE) are low coefficient of friction and nonreactivity. Owning to its excellent electrical insulation feature, it is used in switch gears, semiconductors, capacitors and more. There are specific instruments also like PTFE Nozzles for SF6 circuit breakers. According to Allianz Trade, semiconductor revenue in 2021 globally was US$553 billion. Thus, the surge in demand for 5G Materials in electrical and electronics is boosting the global market.
5G Materials Market Segment Analysis – By Geography
Asia-Pacific region held the largest share in the 5G Materials Market in 2021 up to 34%. This growth is mainly attributed to the increase in demand for 5G Materials in end-use industries in this region such as the telecommunication industry, electrical and electronics industry, and energy and utilities industry. Growth in the telecommunication industry in Asia-Pacific is further boosting the demand for 5G materials. Variety of components such as antenna, antenna randome, microwave circuits, power amplifiers, cables, circuit board and more are used by the telecommunication industry to deploy 5G services. Faster speeds, lower latency, increased connection density, and wider coverage are all promised by 5G communication technology. In the telecommunication industry, 5G represents an unmissable opportunity for businesses to give new and improved services to users that will help them develop their business, particularly on the B2B side. The innovation taking place in this industry is where business profitability is determined, as well as the fact that continual technological progress is a key lever for staying competitive in the long run. According to Twimbitt telecommunication industry in Asia in the 2nd quarter of 2021 grew by 9.9%. Thus, the growth in the telecommunication industry boosts the market growth.
5G Materials Market Drivers
A Surge in Over the Top (OTT) Industry
With over 40 businesses representing all types of content providers, the OTT industry is constantly growing and is one of the most competitive among rising marketplaces. Basic enablers for digital video streaming, such as affordable high-speed mobile internet, doubling of internet users in the last six years, and growing use of digital payments, have all contributed to the expansion. Furthermore, global streaming services have been made more accessible in India to encourage uptake. According to Media and Entertainment report, the Indian Over-The-Top industry is estimated to grow at a CAGR of 22-25% in the next decade. Thus, the growth in the Over-The-Top industry increases is fueling the growth of the 5G Materials Market.
Artificial Intelligence Based Video Creation
Artificial intelligence (AI) has advanced significantly and is now being utilized to create educational videos that have a business impact. Artificial Intelligence may now be used to film and edit videos. It also brings in a lot of job openings in the field. AI has become one of the most important technologies and the most in-demand tool for the video creation market, as well as the popularity of automation in many business operations, due to its abilities to sense, reason, act, and adapt. 5G materials serve extensively due to their characteristics such as nonreactivity, thermal insulation, and low coefficient of friction. According to Vidyard, 80% of videos generated in 2021 were user-generated as compared to 60% of user-generated videos in 2020. Thus, the surge in video creation is boosting the demand for 5G Materials.
5G Materials Market Challenges
Privacy Challenge and Security Solution
The privacy issue and security challenges are one of the major concerns of 5G materials. Security is not built into 5G networks, and major flaws still exist in the security systems. Users' privacy concerns revolve around location tracking, identity, and other personal information. International Mobile Subscriber Identification (IMSI) capturing attacks can disclose the identity of mobile subscribers in terms of identity. An attacker intercepts mobile traffic in a limited area by stealing the subscriber's device's IMSI to track an individual's activity. Thus, privacy challenges and security solutions are restraining the growth of the global market.
5G Materials Industry Outlook
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the 5G Materials Market. 5G Materials Market top 10 companies include:
1. AGC Inc.
2. Hitachi Chemical Company, Ltd.
3. ITEQ Corporation
4. Daikin Industries, Ltd.
5. DuPont SE
6. Kaneka Corporation
7. Panasonic Corporation
8. PolyOne Corporation
9. Kuraray Co., Ltd.
10. Rogers Corporation
Recent Developments
- In February 2022, IBM announced its acquisition of leading telecommunication consulting company Sentaca. This acquisition will help IBM in the hybrid cloud consulting business.
- In November 2021, Erricsion acquired a global cloud-based communication provider Vonage for US$6.2 billion. This acquisition exemplifies Ericsson's purpose to expand its wireless enterprise footprint and its global services.
- In March 2021, a Leading 5G Technology Company Airspan Networks went public through a Merger with New Beginnings Acquisition Corp. The newly combined entity is expected to be listed on the New York stock exchange (NYSE) under the new ticker symbol “MIMO.”
Relevant Reports
Polytetrafluoroethylene
(PTFE) Market- Forecast (2022-2027)
Report
Code: CMR 0167
Fluoropolymers Market- Forecast (2022 - 2027)
Report
Code: CMR 85757
Advanced Ceramics Market – Forecast (2022 - 2027)
Report Code: CMR 0268
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