5G In Energy And Utilities Market Size, Share, Opportunities, And Trends By Type (Solid Oxide Fuel Cell (SOFC), Direct Methanol Fuel Cell (DMFC), Proton Exchange Membrane (PEM) Fuel Cell), By Application (Base Station, High Altitude Platform (HAPS)), By Solution (Off-Grid Power, Backup Power), And By Geography - Forecasts From 2024 To 2029

The 5G in energy and utilities market is projected to grow at a CAGR of 34.49% to reach US$1,040.890 million by 2029, from US$131.544 million in 2022.

GROWTH DRIVERS

• Improved efficiency

The transition to 5G is expected to enhance performance significantly. In test cities, the new network is already twice as energy-efficient as 4G. These initial deployments, conducted with emerging technologies and lightly loaded networks, showcase a notable improvement. The advancement is attributed to a technological leap forward in 5G, where the traffic load on networks can be greater with energy consumption at a similar level. This leads to a reduction in the share of electricity consumption per transported bit. 5G is anticipated to surpass 4G in efficiency concerning the amount of information delivered for a given unit of energy consumption. The progress is facilitated by technical and operational measures, including optimized processor and transmitter technologies and the implementation of network-sharing mechanisms.

For instance:

• The webinar on "5G use cases in the Power sector" that took place on April 27, 2022, brought together key figures from the Government, Industry, OEMs, and Academia across sectors to discuss the key capabilities and technologies of 5G supporting potential use cases in the Power Sector. During the webinar, speakers from the industry and startups showcased 5G use cases in the Power Sector. The 5G-enabled three scenarios - enhanced mobile bandwidth (eMBB), ultra-reliable low latency communication (uRLLC), and massive machine-type communication (mMTC). These had the technical characteristics of ultra-high bandwidth, ultra-low latency, and large-scale connectivity, playing a significant role in the power system's processes such as generation, transmission, transformation, distribution, consumption, dispatching, and emergency communication. They had the potential to transform Energy Power Control and Networks, comprehensively promoting the informatization of the power system. It was estimated that the 5G-enabled global digitalization revenues for ten major industries would be USD 1.3 trillion in 2026, with energy and utilities (water, electricity, gas, etc.) accounting for the highest share of 19%, or about USD 250 billion.
• In 2020, Ericsson took the lead in launching the SOGNO initiative, responding to the requirements of power network modernization. The initiative was created to cater to the increasing demand for distribution system operators (DSOs) seeking real-time insights into network operation and remote optimization processes. The primary aim was to ensure a cost-efficient, seamless, and secure power supply for customers. Funded as part of the EU's Horizon 2020 research and innovation program, SOGNO demonstrated that 5G networks exceed the ICT requirements for effective full-scale power network monitoring. Conducting tests in a live environment also provided valuable insights into configuring a 5G network to meet the actual needs of utility companies.
• Northumbrian Water utilized 5G technology to enhance the reliability and efficiency of the water network. A 5G digital map of the underground water network enabled engineers to actively manage hazards and risks across the extensive water network, covering 47,210km of water mains, pipes, and aqueducts in real-time. Additionally, the 5G network facilitated engineers in uploading and accessing centralized data without relying on Wi-Fi or cable connections. Through a 5G app, consumers could monitor their home's water supply and flow, identifying any unusual patterns to flag potential issues proactively.

Use of 5G in energy conservation and shift towards renewable energy

• In April 2022, a groundbreaking research project, the first of its kind in the UK, was initiated to explore and enhance the connections between 5G platforms and the energy sector. The aim was to improve flexibility and resilience, reduce consumer costs, and decrease carbon emissions. The integration of 5G and smart technology played a crucial role in promoting widespread renewable energy utilization, shifting from decisions made by centralized analogue energy systems to a decentralized approach. This decentralized system empowered individuals and their buildings to generate renewable energy and contribute to the network. The implementation of smart energy systems had the potential to save 7.7 billion tons of CO2 emissions, equivalent to over 23% of the global decarbonization required by 2050, compared to the current state of the energy sector. These reductions were a result of transformative changes in the approaches of the energy, mobility, transport, and communications sectors, aligning with the shift towards achieving net-zero goals.
• In August 2020, Vodafone utilized its 5G technology to establish connectivity among various smart devices gathering data from Centrica's gas plant located in Easington, County Durham. This plant handles gas processing from an underground facility, contributing to 70% of the UK's gas supply. The 5G-enabled technology facilitates the detection of leaks or equipment failures and promptly notifies staff, ensuring their safety and preventing service disruptions or wastage of vital natural resources.

EMERGING OPPORTUNITIES IN THE 5G DATA MANAGEMENT MARKET

5G Network Slicing

The utilization of 5G network slicing proves to be an optimal solution for enabling smart grid services by partitioning the 5G network into logically isolated networks, referred to as slices. This approach allows the power grid to customize specific slices flexibly, incorporating different network functions and varying service level agreements (SLAs) based on the distinct requirements of the various services within a power grid.

ZTE Corporation and Qualcomm, the Chinese telecommunications company, have jointly demonstrated a comprehensive 5G Time Sensitive Networking (TSN) solution designed for power grids. This solution aims to enhance the integration of renewable energy into power grids more efficiently by implementing 5G remote precise grid control. The integration involves ZTE's innovative Time Promised Communication (TPC) solution and Qualcomm Technologies' 3GPP Release 16 TSN capable 5G Research and Development (R&D) prototype device.

MAJOR PLAYERS IN THE MARKET

SEGMENTATION

The 5G in the energy and utility market has been analyzed through the following segments:

• By Application
  • Distribution
  • Remote Monitoring
  • Support and Maintenance
• By End User
  • Wastewater Management
  • Gas Utility Management
  • Electricity Grid Management
• By Geography
  • Americas
    • USA
    • Others
  • EMEA
    • Germany
    • UK
    • Others
  • APAC
    • China
    • Japan
    • South Korea
    • Others