The global 5G fixed wireless access market size is expected to be valued at USD 29.4 billion in 2023 and is projected to reach USD 153.0 billion by 2028; it is expected to grow at a CAGR of 39.0% from 2023 to 2028.

The 5G FWA market includes major Tier I and II players like Nokia (Finland), Samsung Electronics (South Korea), Huawei Technologies (China), Ericsson (Sweden), Inseego (US), and others.

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5G Fixed Wireless Access Market Dynamics
Driver: Surging demand for high-speed Internet connectivity and broad network coverage with reduced latency and power consumption
The evolution of 5G is projected to take fixed wireless access to a new level using a wide range of radio spectrum. This is expected to enable consumers to achieve major capacity gains and low-latency connectivity. Thus, 5G fixed wireless access is anticipated to enhance network performance capabilities and offer more high-speed network coverage than existing connectivity networks.

The increasing adoption of connected devices, such as smartphones, laptops, and smart devices, in several commercial and residential applications, such as distance learning, autonomous driving, multiuser gaming, videoconferencing, and live streaming, as well as in telemedicine and augmented reality, is expected to support the demand for 5G fixed wireless access solutions to achieve extended coverage.

Restraint: Environmental impact of millimeter-wave frequency circuitries
The millimeter-wave spectrum faces several challenges, such as the high costs of components. Manufacturing small components requires high precision, which increases their manufacturing costs and results in non-line-of-sight issues. Millimeter waves are blocked by physical objects such as trees and buildings, resulting in loss of signals and reduced range. These disadvantages may lead telecommunication operators to increase the number of towers and use equipment based on new technologies.

Opportunity: Partnerships among platform and hardware providers, mobile operators, and system integrators in emerging economies
The 5G ecosystem comprises 5G component and product manufacturers, network infrastructure and platform providers, system integrators, and end users. Presently, partnerships/collaborations between hardware manufacturers and mobile network operators in the context of 5G are limited to the US, China, Japan, and some European countries. 5G application platform providers, hardware vendors, and mobile operators have established strategic partnerships with the leading system integrators to accelerate the development and commercialization of 5G products and technologies. The stakeholders in the market are increasingly investing in the development of fixed wireless access-related components and equipment to harness the market potential of fixed wireless access. They are forming strategic partnerships with other key players.

Challenge: Compatibility issues between traditional and 5G networks
The seamless shift from traditional networks to 5G fronthaul and backhaul networks is difficult to achieve. Usually, traditional fronthaul/backhaul networks are incompatible with the new, advanced fronthaul/backhaul equipment. This creates compatibility issues leading to increasing infrastructure-related costs and results in the reluctance of organizations to employ advanced technologies. However, startup companies who are vendors for OEMs and established players in 5G FWA industry are using highly efficient advanced fronthaul/backhaul solutions to design and develop new systems based on the requirements of their customers.