Operator‑billed 5G service revenue will reach £278 billion ($315bn) globally in 2023, rising from £172 billion ($195bn) in 2022, according to new data.

A new study from Juniper Research said this represents growth of more than 60% between 2022 and 2023. The research predicted this increase in revenue will be driven by accelerating migration of cellular subscriptions to 5G networks, owing to operator strategies that minimise or remove any premium over existing 4G subscription offerings.

It forecasts that more than 600 million new 5G subscriptions will be created next year, despite the anticipated economic downturn in 2023.

The report suggested that the growth of 5G networks will continue, and more than 80% of global operator‑billed revenue will be attributable to 5G connections by 2027.

The telecommunications industry demonstrated its robustness against the impact of the Covid-19 pandemic, and the report projected that the growth of 5G will also be resilient against likely economic downturn faced by the UK next year, which is driven by today’s increased reliance on mobile Internet connectivity.

Research co-author Olivia Williams noted: “Despite the growth of the internet of things, revenue from consumer connections will continue to be the cornerstone of 5G operator revenue increase.

“Over 95% of global 5G connections in 2027 will be connected personal devices such as smartphones, tablets and mobile broadband routers.”

In addition, the report predicted that the ability of standalone 5G networks to offer ‘network slicing’ will act as the ideal platform for the growth of 5G private network revenue.

Standalone 5G uses next‑generation core networks supporting network slicing technology, which can be used to take a ‘slice’ of public 5G infrastructure and provide it to private network users.

This, in turn, helps mitigate the cost of private 5G network hardware and increase its overall value proposition, all against a background of deteriorating macro-economic conditions.

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5G is being touted as the next generation of connectivity globally and has already been adopted across several industries and sectors.

Data collected by Juniper Research back in September suggested that revenue generated from 5G Fixed Wireless Access (FWA) services will rise from around £450 million in 2022 to £2.1 billion by the end of next year. The research said that the growth will be driven by 5G’s advanced network capabilities.

In Scotland several ‘testbeds’ have been launched by the Scotland 5G Centre to further develop future 5G technologies.

The recently announced facility and testbed in Aberdeen will allow businesses of all sizes to test and develop new 5G applications and accelerate new digital services and operations in the region.

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