According to the Market Statsville Group (MSG), the Global 5G Substrate Materials Market size is expected to grow at a CAGR of 25.3% during the forecast period, to reach USD 1,524.3 Million by 2030 from USD 197.9 Million in 2022.
In the 5G world, the PCB substrate materials may be referred to as building blocks of the 5G industry. It is the primary raw material required for acquiring the desired performance of a particular device or equipment. There is a vast range of materials catering to the electronics industry. Still, only specific characteristics of materials make them suitable for operating and existing in the high-frequency radio frequency (RF) world of 5G. With the growth in 5G systems and technology rollout, materials such as polymers and ceramics will play a paramount role in manufacturing 5G specific devices. The demand for multiple-input multiple-output (MIMO) antennas placed at 5G base stations will drive the demand for materials that have low dielectric constant, are cost-friendly, and improve antenna bandwidth and efficiency. Some companies working on advanced materials for 5G infrastructure are Dupont de Nemours, Inc., AGC Inc., and Rogers Corporation.
Global 5G Substrate Materials Market Definition
Fifth Generation (5G) is the latest communication backbone that will enable revolutionary applications in the industrial, financial services, medical, automotive, and defense sectors. 5G has enormous benefits, such as improvement in speed which is multi times that of 4G, latency, and density (supporting approximately one million internet of things (IoT) devices per square kilometer). The 5G technology will enhance the devices' overall security, speed, reliability, quality of service, and efficiency.
The Internet is the most helpful and important tool ever built in the entire human existence. It continues to transform how people connect with others, share information, and organize the flow of things. Today, the internet has an increasing presence in an individual’s life and enterprise operations and has, thus, become a vital part of humans’ life. In 2020, the total number of internet users worldwide stood at more than 4.5 billion, which accounts the major part of total population.
The 5G technology is in full swing to jump into the commercial market, and its uptake is constantly increasing among industries. The primary concern behind the growth of 5G technology is its infrastructural expense. Companies and enterprises need to make considerable investments to make their company 5Genabled in combination with the internet of things (IoT). These services require high-frequency operating devices and antennas. Material cost is a major contributor to the high cost of 5G infrastructure. The mm-wave components require high-performance materials with very low dielectric constant, are moisture-proof, and have low transmission losses, among other features.
In the 5G network deployment race, countries are pushing toward advanced 5G plans and building a more comprehensive core network of base stations and equipment. Countries such as China, the U.S., South Korea, and Japan have made significant strides toward being 5G ready and are investing heavily in 5G development. China is one of the leading countries excelling in various aspects of 5G deployment. This is mainly due to strategic planning by the government and their coordination with 5G-based industry players. Telecommunication vendors are manufacturing 5G infrastructure components and getting full support from governments of different countries. The positive impacts of the 5G rollout on a nation’s economic position incentivize various national governments to accelerate its deployment. For instance, the Chinese government has invested a bulk amount of $400 billion for 5G deployment in close coordination with 5G equipment manufacturers and technology providers. With the fast pace of 5G deployment, the demand for 5G substrate materials is expected to significantly shoot up in the global market, providing ample growth opportunities to 5G substrate material manufacturing companies.
Opportunities: Countries at a derived Stage of 5G RollOut Expected to Introduce Growth Opportunities for Material Manufacturers
The fifth-generation telecommunication technology, 5G, promises an evolution at the industry level. 5G technology enables industries with better connectivity and IoT capabilities, thus helping them uplift their annual revenue generation. 5G technology ensures high speed, low latency, and high throughput, which will be an advent of new advances in productivity and innovation in various industries. Developing countries in the initial phase of trials and infrastructure to set up 5G rollout may serve as bright opportunity areas for material manufacturers to invest in. Companies can invest or expand their manufacturing facilities in the countries to get close to their customers while preparing for the impending growth in the global 5G infrastructure. The governments of different countries are actively helping companies to invest in and work on developing 5 G-related equipment and materials to help them roll out 5G at an efficient pace in the planned timeline.
Restraints: Slower Transition from Older Communication Generation to 5G Technology
Transitioning to new network generations from older generations is a sign of development in the telecommunication industry. The most recent deployment in the telecommunication industry was the 5G network in 2019. The network came with major technical features such as enhanced mobile broadband, massive machine-type communications, and ultra-reliable low-latency communications. Though the network has been launched in countries such as Finland, South Korea, and Japan, there are still places that are far from embracing 5G technology.
This slow transition has always been a challenge with communication generations. 3G technology was launched in 2001 by NTT DOCOMO, but its global adoption was seen in 2008. 4G and 5G technologies were launched in 2009 and 2019, respectively, but their adoption has been slow, like the 3G technology. New technologies and communication generations require a new set of infrastructural and operating requirements, which is the primary reason for the slower adoption of new telecommunication standards. Currently, 61 countries worldwide have been able to deploy commercial 5G systems. Also, some African countries are still trying to achieve 4G capabilities. At this rate, it is expected that the majority of the world will achieve the 5G telecommunication standard by 2028.
This research report categorizes the global 5G substrate materials market as a market-based product, applications, and regions. Based on a geographical standpoint, the market is categorized into North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa (MEA).
By Application Type (Sales, USD Million, 2017-2030)
The 5G network antennas are printed circuit boards PCB that use various substrate materials such as Polytetrafluoroethylene, Polyimide, Liquid Crystal Polymer, ceramics, and glass. These materials are used as they have a low dielectric constant, low dissipation factor, high moisture absorption, and low manufacturing costs. With the exponential growth of the 5G industry, metamaterials shall allow technology and design evolution, thus providing a strong proposition for replacing conventional materials from 5G infrastructure shortly. Metamaterials are applied in 5G antennas, autonomous vehicles' millimeter-wave (mm-wave) radars, lidars, wireless chargers, and vibration dampers.
Asia Pacific to account for the highest market share during the forecast period
Asia-Pacific region held the largest market share in the global 5G substrate materials market in 2022 with more than 40% and is expected to grow at the highest CAGR during 2022-2030; the demand for 5G substrate materials varies according to geographical regions, depending on the demand of end-use applications. The 5G substrate materials market holds a major share in different regions of North America, China, Asia-Pacific and Japan, Europe, and the U.K. China is projected to account for the highest CAGR during the forecast period. This is mainly because China has the fastest-growing 5G infrastructure globally and some of the leading 5G substrate materials manufacturers.
China is one of the prominent players in the market operating across the globe. China has established national plans to completely deploy 5G, capture the profits from its domestic markets, enhance its industrial backbone, and attain a strong position in telecommunication equipment suppliers across the world. As China is the hub of primary raw materials required for the manufacturing of these advanced 5G equipment and materials, the country displays strong bargaining power of suppliers
The global 5G substrate materials market is highly competitive, with key industry players adopting numerous strategies such as new product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most market industries focus on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
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