China 5G Network Infrastructure Market - Forecasts From 2025 To 2030

Description

The China 5G Network Infrastructure Market is projected to grow at a CAGR of 4.78%, attaining USD 32.432 billion in 2030 from USD 25.677 billion in 2025.

China 5G Network Infrastructure Market Key Highlights

• Massive Scale Deployment: By the end of 2024, China concluded the year with approximately 4.19 million 5G base stations built and operational, a figure slated for further expansion by over 300,000 units in 2025 as the country pursues universal 5G coverage across all villages.
• Government-Driven Core Architecture: The nation's deployment strategy heavily favors Standalone (SA) 5G Core Network architecture, a key component enabling advanced capabilities like network slicing, cloud-native infrastructure adoption, and ultra-low latency services necessary for industrial automation.
• Industrial Internet Catalyst: Government-backed initiatives, such as the "5G+Industrial Internet" plan, have catalyzed the establishment of over 400 smart factories powered by 5G, directly driving the demand for private 5G network infrastructure and specialized RAN components.
• Spectrum Refarming for Capacity: The Ministry of Industry and Information Technology (MIIT) has permitted China Mobile to re-farm frequency resources in multiple bands below 3000MHz, previously used for 2G/3G/4G, for the public 5G mobile communication system, substantially increasing the effective capacity and coverage for 5G deployment.

The Chinese 5G Network Infrastructure Market represents the world's most extensive and rapidly scaled deployment of next-generation telecommunications technology, fundamentally driven by strategic national policy and robust state-owned enterprise investment. This landscape is not defined merely by consumer demand but by a top-down industrial imperative to integrate 5G capabilities across foundational sectors like manufacturing, energy, and logistics, positioning the infrastructure as a core enabler of the country's broader digital economy agenda. The focus is demonstrably shifting from basic enhanced Mobile Broadband (eMBB) coverage to specialized service delivery through advanced architectural components, particularly the Standalone 5G Core, which is essential for unlocking the true commercial and industrial value of the technology.

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China 5G Network Infrastructure Market Analysis

Growth Drivers

National-level directives mandating industrial digitalization propel the demand for 5G network infrastructure. The government's "5G+Industrial Internet" policy is a primary catalyst, directly increasing the demand for private 5G network installations, specialized Radio Access Network (RAN) equipment, and edge computing infrastructure within factory floors and industrial parks. Simultaneously, the mass adoption of 5G-enabled devices, reaching over 1.18 billion 5G connections across the three main operators by the end of 2024, necessitates continuous capacity expansion and densification of the public carrier networks. This surge in data traffic directly translates into an escalating demand for mid-band spectrum (1-6 GHz) RAN hardware, which offers the optimal balance of coverage and capacity to support enhanced Mobile Broadband (eMBB) scenarios. Furthermore, the strategic push for cloud-native 5G Core Network deployment drives the demand for specialized network function virtualization (NFV) software and Mobile Edge Computing (MEC) hardware platforms essential for ultra-low latency applications.

Challenges and Opportunities

The primary challenge is the exorbitant capital expenditure required for network densification, as 5G macro stations must be deployed at a density 1.2 to 1.5 times greater than 4G base stations to achieve continuous coverage. This cost pressure acts as a constraint on network operators, slowing the pace of universal high-band (mmWave) deployment. Concurrently, a significant opportunity exists in the accelerating adoption of Shared Infrastructure and Co-building and Sharing initiatives, officially promoted by the MIIT, which reduces the overall CapEx burden for individual operators and streamlines network rollout, thereby increasing the effective demand for shared RAN and backhaul equipment. Another key opportunity lies in the burgeoning need for Private 5G Networks within the industrial vertical, which presents a lucrative, high-margin segment for specialized infrastructure and solution providers, distinct from the commoditized public carrier market. The demand for AI-driven automation solutions for network management and orchestration also offers a high-growth opportunity for software and service components, as operators seek to reduce operating expenses (OPEX) associated with managing complex multi-generational networks.

Raw Material and Pricing Analysis

The Chinese 5G Network Infrastructure Market, being a physical product market encompassing RAN, core, and transport hardware, is directly exposed to global supply chain volatility. Key raw materials include advanced semiconductors, particularly those used in Massive MIMO and baseband processing units, as well as high-performance ceramics and specialized polymers for antenna radomes and low-loss PCB substrates. The pricing dynamic for core equipment like base stations is heavily influenced by domestic competition between major Chinese vendors like Huawei and ZTE, whose high-volume domestic market provides an economy of scale advantage that stabilizes and, in some cases, depresses unit prices compared to international markets. Furthermore, the global export restrictions on advanced semiconductors have compelled Chinese manufacturers to aggressively invest in domestic supply chain resilience, a strategy that is simultaneously driving the demand for specialized domestic component suppliers while potentially increasing the short-term unit cost of advanced hardware.

Supply Chain Analysis

The 5G infrastructure supply chain in China is characterized by strong domestic vertical integration, centered on equipment manufacturers like Huawei and ZTE. The primary production hubs for key hardware components—including base stations, core network gear, and optical transmission equipment—are situated across technology clusters in cities such as Shenzhen, Beijing, and Wuhan. This concentration creates a dependency on a localized ecosystem but grants significant control over manufacturing and logistics. A major complexity is the reliance on foreign entities for high-end, sub-10nm chipsets, necessary for the most advanced baseband units and high-capacity switching equipment, which introduces geopolitical risks and necessitates strategic inventory management. Conversely, the supply chain for passive infrastructure, such as fiber optic cables, towers, and site acquisition components, is highly localized and resilient, with companies like FiberHome dominating the optical fiber segment. The logistical complexity primarily involves the rapid deployment and commissioning of a massive number of small cells and distributed antenna systems (DAS) for network densification in hyper-dense urban environments.

Government Regulations

The government's regulatory framework serves as the primary steering mechanism for the entire market.

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In-Depth Segment Analysis

By Application Segment: Manufacturing and Industrial Automation

The Manufacturing and Industrial Automation segment represents a critical growth frontier, moving beyond the consumer-centric Enhanced Mobile Broadband (eMBB) application. This necessity is intrinsically tied to the national strategy of Industrial Internet development, which necessitates low-latency, high-reliability, and secure wireless connectivity to enable real-time control, monitoring, and automation of factory operations. Specifically, this segment drives demand for Private 5G Networks and Ultra-Reliable Low Latency Communication (URLLC) technology, a function optimally delivered by the Standalone (SA) core architecture with localized Mobile Edge Computing (MEC) capabilities. The application of machine vision for quality inspection, remote operation of machinery like bridge cranes in steel plants, and predictive maintenance relies on 5G's guaranteed performance, shortening product development cycles and reducing operational costs. For equipment vendors, this translates to a direct demand for customized small cells, integrated base stations with edge servers, and network slicing software to create dedicated, isolated virtual networks for diverse industrial processes. The complexity of legacy system integration also necessitates a high demand for specialized systems integration services layered atop the core infrastructure.

By Technology Segment: 5G Core Network

The 5G Core Network segment is the essential technology layer transforming the market from simple high-speed wireless access to a platform for sophisticated services. China's emphasis on Standalone (SA) core deployment is a strategic decision that creates a strong, non-negotiable demand for Cloud-Native architecture components, specifically Network Function Virtualization (NFV) and container-based infrastructure. Unlike Non-Standalone (NSA) architectures, the SA core enables network slicing, a key growth driver allowing telecom operators (the end-users of the core) to partition the network into distinct virtual slices, each tailored for a specific application—such as a guaranteed low-latency slice for autonomous vehicles or a high-bandwidth slice for media streaming. This capability fundamentally transforms the business model from a volume-based one to a quality-of-service one. The core network's evolution is also inseparable from edge computing integration, as the core must be distributed closer to the end-user or industrial site to achieve the requisite ultra-low latency, thereby propelling the demand for high-performance server hardware and virtualization software at the network edge.

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Competitive Environment and Analysis

The Chinese 5G Network Infrastructure Market is characterized by a high degree of concentration, with domestic companies dominating the supply side, largely due to strong government support and preferred procurement by state-owned telecom operators. The competitive landscape is defined by the capabilities of the major equipment vendors and the deployment strategies of the three primary carriers.

Huawei Technologies Co., Ltd.

Huawei holds a dominant strategic position, driven by its end-to-end portfolio spanning the RAN, core, and transport layers. The company's core strategy centers on continuous innovation in 5G-Advanced (5G-A) technology, as evidenced by its global pioneer status in 5G-A commercial deployment. This focus generates demand for its latest equipment upgrades, which promise tenfold performance improvements over baseline 5G. Huawei's verifiable key products include its Massive MIMO Base Stations and comprehensive Cloud Native Core solutions. The strategic positioning is to be the primary technology partner for China's industrial digitization, leveraging its massive scale and R&D investment to maintain its market share against both domestic and international competitors.

ZTE Corporation

ZTE Corporation is the second major Chinese vendor, providing a broad range of 5G solutions. ZTE's strategic positioning emphasizes high energy efficiency and simplified deployment solutions, targeting both the large-scale public carrier market and the complex private network sector. In February 2024, at Mobile World Congress (MWC), ZTE unveiled new 5G-A highlights, including the Uni-Radio (A+P) solution that integrates seven bands into a single radio unit, which directly addresses the operators' need for site simplification and reduced power consumption. Furthermore, its UniEngine platform integrates 5G core and RAN with simplified Operations and Maintenance (O&M), positioning it as a key provider for enterprises deploying their own private 5G networks, a high-growth demand segment.

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Recent Market Developments

January 2025: MIIT Sets Target for 4.5 Million 5G Base Stations by Year-End China's Ministry of Industry and Information Technology (MIIT) announced that the country ended 2024 with 4.19 million 5G base stations built and put into operation, confirming its status as the largest 5G network globally. The ministry concurrently set a target to increase this number by over 300,000, aiming for a total of approximately 4.5 million 5G base stations by the end of 2025. This capacity addition reflects the government's unwavering commitment to achieving "5G in every village" and ensures a continued, significant demand for new RAN and backhaul hardware throughout the period.

December 2024: China Mobile Allowed to Re-farm Low-Band Frequencies for 5G The MIIT formally permitted China Mobile to re-farm its existing frequency resources in multiple bands below 3000MHz, previously designated for 2G/3G/4G systems, for use in its public 5G mobile communication system. This regulatory action represents a substantial and immediate increase in the usable 5G spectrum for China Mobile, directly augmenting the carrier's network capacity and ability to enhance 5G coverage, thereby driving demand for multi-band capable RAN equipment that can utilise these re-farmed frequencies.

February 2024: ZTE Launches Simplified, Energy-Efficient 5G-A Solutions at MWC ZTE Corporation announced the launch of its innovative 5G-A (5G-Advanced) products at MWC 2024 in Barcelona. Key launches included the Uni-Radio (A+P), which achieves high integration by combining seven frequency bands into one radio unit, and an industry-unique 12TR RRU that demonstrates a 35% lower power consumption than the industry average through a new platform design. These product introductions directly respond to the market's expansion for site simplification and OPEX reduction through superior energy efficiency in the deployment of 5G-A capacity upgrades.

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China 5G Network Infrastructure Market Segmentation

• BY COMPONENT
  • RAN
  • 5G Core Network
  • Transport or Backhaul Network
  • Edge Infrastructure
  • Network Management and Orchestration
  • Others
• BY SPECTRUM BAND
  • Low-band (<1 GHz)
  • Mid-band (1-6 GHz)
  • High-band/ mmWave (>24 GHz)
• BY DEPLOYMENT TYPE
  • Public Carrier Networks
  • Private 5G Networks
  • Shared Infrastructure
  • Hybrid
• BY DEPLOYMENT MODE
  • Standalone
  • Non-Standalone
• BY END-USER
  • Telecom Operators
  • Manufacturing and Industrial Automation
  • Transportation & Logistics
  • Energy and Utilities
  • Healthcare
  • Education
  • Retail and Hospitality
  • Public Sector
  • Other Enterprises

Table Of Contents

1. EXECUTIVE SUMMARY

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities

3.4. Porter's Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations

3.7. Strategic Recommendations

4. TECHNOLOGICAL OUTLOOK

5. CHINA 5G NETWORK INFRASTRUCTURE MARKET BY COMPONENT

5.1. Introduction

5.2. RAN

5.3. 5G Core Network

5.4. Transport or Backhaul Network

5.5. Edge Infrastructure

5.6. Network Management and Orchestration

5.7. Others

6. CHINA 5G NETWORK INFRASTRUCTURE MARKET BY SPECTRUM BAND

6.1. Introduction

6.2. Low-band (<1 GHz)

6.3. Mid-band (1-6 GHz)

6.4. High-band/ mmWave (>24 GHz)

7. CHINA 5G NETWORK INFRASTRUCTURE MARKET BY DEPLOYMENT TYPE

7.1. Introduction

7.2. Public Carrier Networks

7.3. Private 5G Networks

7.4. Shared Infrastructure

7.5. Hybrid

8. CHINA 5G NETWORK INFRASTRUCTURE MARKET BY DEPLOYMENT MODE

8.1. Introduction

8.2. Standalone

8.3. Non-Standalone

9. CHINA 5G NETWORK INFRASTRUCTURE MARKET BY END-USER

9.1. Introduction

9.2. Telecom Operators

9.3. Manufacturing and Industrial Automation

9.4. Transportation & Logistics

9.5. Energy and Utilities

9.6. Healthcare

9.7. Education

9.8. Retail and Hospitality

9.9. Public Sector

9.10. Other Enterprises

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. China Mobile Limited

11.2. China Telecom Corporation Limited

11.3. China Unicom (Hong Kong) Limited

11.4. Huawei Technologies Co., Ltd.

11.5. ZTE Corporation

11.6. Ericsson China

11.7. Nokia Solutions and Networks (China) Co., Ltd.

11.8. China Information and Communication Technologies Group Corporation (CICT)

11.9. Comba Telecom Systems Holdings Limited (China)

11.10. FiberHome Telecommunication Technologies Co., Ltd.

12. RESEARCH METHODOLOGY

LIST OF FIGURES

LIST OF TABLES

Companies Profiled

China Mobile Limited

China Telecom Corporation Limited

China Unicom (Hong Kong) Limited

Huawei Technologies Co., Ltd.

ZTE Corporation

Ericsson China

Nokia Solutions and Networks (China) Co., Ltd.

China Information and Communication Technologies Group Corporation (CICT)

Comba Telecom Systems Holdings Limited (China)

FiberHome Telecommunication Technologies Co., Ltd.

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