US 5G Services Market Opportunity and Forecast (2025–2035)
The US 5G Services market is rapidly transforming how consumers, businesses, and industries communicate and operate in a digital age. 5G introduces massive advancements in network speed, latency, and connectivity, driving innovations across smart cities, autonomous vehicles, telemedicine, industrial IoT, and immersive technologies such as augmented reality (AR) and virtual reality (VR). Enhanced Mobile Broadband (eMBB), massive Machine-Type Communications (mMTC), and Ultra-Reliable Low Latency Communications (URLLC) are at the forefront of this evolution, serving as the backbone for high-bandwidth and mission-critical applications. Leading telecom operators, technology providers, and network equipment innovators are accelerating 5G infrastructure deployment, with new services and applications gaining nationwide traction. Major drivers of growth include explosive consumer and enterprise data demand, government spectrum policies, and significant investments from network operators. As the market matures, businesses of all sizes are seizing opportunities to leverage 5G’s transformative capabilities, setting the stage for a connected, intelligent future.
Latest Market Dynamics
Key Drivers
Surging Data Traffic and Network Digitalization: Major telecoms like Verizon are scaling their 5G deployment to handle exponential growth in data consumption from mobile devices, smart homes, and business applications in 2025. The demand for ultra-fast connectivity and robust network capacity continues to intensify as advanced use cases such as streaming, IoT, and cloud computing become ubiquitous.
Industrial Automation and Smart Infrastructure: Organizations are integrating 5G-enabled solutions to enable autonomous systems, real-time robotics, and intelligent infrastructure, particularly in manufacturing and logistics. For example, AT&T’s collaborations with industrial partners demonstrate how 5G is powering end-to-end automation and digital transformation for American businesses.
Key Trends
Expansion of Fixed Wireless Access (FWA): In 2025, T-Mobile is amplifying FWA rollouts to address connectivity needs in suburban and rural areas. This trend is helping bridge the digital divide by delivering high-speed broadband without traditional fiber, reflecting rising consumer expectations for ubiquitous access.
Edge Computing and Private Networks: Large enterprises like Cisco are increasingly adopting edge computing in tandem with private 5G networks, supporting low-latency applications in healthcare, manufacturing, and transportation. This enables secure, ultra-responsive services at the network edge.
Key Opportunities
Remote Healthcare Expansion: 5G’s ultra-low latency and high reliability are unlocking advanced telehealth solutions. Companies like Qualcomm, partnering with healthcare providers, are enabling real-time diagnostics, remote surgeries, and connected patient monitoring, offering unprecedented opportunities in digital health.
Connected and Autonomous Mobility: 5G’s support for vehicle-to-everything (V2X) and connected infrastructure is catalyzing the growth of smart mobility. Intel’s ongoing work in integrating 5G with AI for autonomous vehicle platforms exemplifies new horizons in transportation technology.
Key Challenges
Infrastructure Cost and Complexity: Building and upgrading nationwide 5G networks involves high capex and ongoing operational expenditures. Smaller providers and rural areas struggle with resource limitations, as seen in DISH Network’s phased deployment and related hurdles.
Cybersecurity and Data Privacy: The proliferation of connected devices introduces significant security concerns, especially for critical infrastructures. Companies such as Ericsson are emphasizing end-to-end security strategies, but scalability and evolving threats remain substantial challenges.
Key Restraints
Spectrum Availability and Regulatory Delays: Delays in government spectrum auctions and regulatory approvals slow down network expansion and innovation adoption, impacting timelines for market players like Nokia.
Device Compatibility and Consumer Adoption Rates: Despite industry momentum, a segment of consumers and enterprises remains hesitant to transition to 5G due to device costs or unclear ROI, limiting mass penetration, as observed in Samsung’s market analysis for 2025.
In 2025, Enhanced Mobile Broadband (eMBB) dominates the US 5G services market by type, accounting for 54% of the market share. eMBB’s leadership is driven by growing demand for high-speed video streaming and immersive applications. Ultra-Reliable Low Latency Communications (URLLC) follows, constituting 27% of adoption, largely associated with mission-critical use cases in healthcare, automotive, and industrial automation. Massive Machine-Type Communications (mMTC) holds 11%, reflecting increased M2M connectivity in IoT networks. Fixed Wireless Access (FWA) and other emerging types comprise the remaining 8%, catering to home and business broadband applications across underserved regions. The competitive landscape reflects how 5G’s versatile technology mix is cultivating diverse, high-growth use cases across consumer and enterprise environments.
Smart Cities lead as the top application category in the US 5G services market for 2025, with 34% of the share, underpinned by widespread deployment of smart grids, traffic management, and public safety solutions. Connected Vehicles represent 21%, propelled by advancements in automotive connectivity, V2X communications, and autonomous mobility initiatives. Remote Healthcare secures 16%, accelerated by the rising embrace of telemedicine, remote diagnostics, and connected devices. Industrial IoT holds 12%, reflecting smart manufacturing and logistics adoption. Augmented and Virtual Reality account for 10%, benefiting from 5G’s low-latency performance. Smart Homes make up 7%, as consumers adopt connected living solutions. The chart illustrates the evolving digital ecosystem, highlighting 5G’s foundational role across a range of high-impact applications.
US 5G Services Market Revenue (USD Million), 2020-2035
The US 5G Services market has experienced robust revenue growth, with revenue reaching $24,500 Million in 2025. The upward trajectory is projected to continue, fueled by large-scale network infrastructure investments, innovative applications, and broadening enterprise adoption. By 2030, revenue is expected to climb to $59,400 Million, and by 2035, to $108,600 Million. Growth is powered by accelerating digital transformation in sectors ranging from manufacturing and automotive to healthcare and entertainment. The chart highlights the market’s sustained momentum, reflecting the widening scope of 5G-enabled products and services across the US economy.
Year-over-year (YOY) growth in the US 5G Services market saw its highest rates in the early adoption years, with 2021 recording a 52% growth surge as operators ramped up nationwide rollouts. Subsequent years showed steady expansion, with YOY growth averaging between 25–35% through 2026 as 5G devices and new applications penetrated mainstream markets. Growth rates are expected to gradually normalize beyond 2028, approaching 10–15% as market saturation rises and 5G becomes a core infrastructure layer. The trend underscores a shift from early expansion to mature, innovation-driven market dynamics.
The South Atlantic region leads US 5G adoption in 2025 with a 30% market share, fueled by rapid urbanization and investment in smart infrastructure across states such as Florida and Georgia. The Pacific region follows at 27%, leveraging high-tech hubs in California and strong operator presence. The Midwest accounts for 22%, capitalizing on connectivity for manufacturing and logistics. The Northeast claims 15%, while the remaining 6% is distributed across Mountain and non-contiguous territories. This regional spread reflects diverse rollout strategies, with metropolitan investment driving early adoption and secondary markets closing the gap.
In 2025, the US 5G services market is highly consolidated, with AT&T holding a 28% share, Verizon at 25%, and T-Mobile US at 20%. These three major operators are leveraging extensive spectrum holdings and infrastructure leadership. DISH Network emerges with a 7% share, supported by strategic network buildouts, while Cisco and other technology leaders collectively make up the remaining 20%. The competitive landscape highlights the synergy between telecom giants and technology firms in delivering end-to-end 5G services.
Enterprises comprise 52% of 5G service buyers in the US by 2025, reflecting dominant demand from manufacturing, logistics, healthcare, and smart city projects. Consumer end-users account for 38%, driven by the increase of 5G smartphones and home broadband. Government and public sector buyers make up 10%, driven by investments in public safety, infrastructure, and smart mobility. This distribution illustrates the growing enterprise reliance on 5G for digital transformation and operational efficiency.
Study Coverage
Metrics
Details
Years
2020-2035
Base Year
2025
Market Size
24500
Regions
South Atlantic, Pacific, Midwest, Northeast, Others
June 2024: Verizon launched a new private 5G network service targeting industrial automation and logistics clients, focusing on ultra-reliable low latency communications (URLLC).
July 2024: AT&T expanded its fixed wireless access (FWA) coverage to 150 additional rural communities across the Midwest and South Atlantic regions, bridging the digital divide for underserved populations.
August 2024: Cisco introduced its 5G edge computing solution in collaboration with leading US hospital networks, enhancing real-time diagnostics and remote monitoring capabilities.
September 2024: T-Mobile US announced a partnership with Intel to develop 5G-enabled connected vehicle platforms and smart city V2X infrastructure.
October 2024: Ericsson unveiled an upgraded 5G radio access network portfolio featuring AI-driven network slicing optimization, supporting wider use in manufacturing and smart grids.
Frequently Asked Questions
About the Author
Lily
Senior Market Research Analyst
Lily is a Senior Market Research Analyst specializing in market research, industry analysis, and business consulting across Telecommunication. Lily brings a commercially grounded perspective to sectors shaped by changing demand, innovation, and competitive dynamics, helping turn complex market trends into clear strategic insights for business decision-makers. With 10+ years of experience across research, analytics, and strategic advisory roles, Lily has helped organizations translate data into actionable growth strategies.
