5G in the travel and tourism market could generate an estimated USD 32.6 billion by 2026
The data has been published in a Market Research Store report
According to the Market Research Store study, 5G in the travel and tourism market would generate revenue of around USD 32,600.5 million by the end of 2026, growing at a CAGR of around 4.8% between 2021 and 2026.
The transformation to the 5G ecosystem is expected to witness a growth rate of 3-4 times faster than other connectivity transformations. This is mainly due to the rapid advancement of network virtualization, as well as the increasing number of applications that require a latency-free connection. The faster data speeds and extremely low latency offered by 5G technology would improve the user experience of smooth virtual reality and augmented reality video calls and ultra-high-definition (UHD) videos. More remote points of a destination can be shared on social media with the addition of 5G and improved connectivity for travellers, creating a more connected tourism experience and helping to spread the economic benefits of tourism in an area.
Due to the aforementioned considerations, a rapid uptake of 5G services is expected, followed by rapid implementation of 5G services by other developing economies. The United States, the United Kingdom, South Korea, China, Japan and Germany are among the countries expected to roll out 5G services first. The first users are expected to be countries with a strong 4G infrastructure. Countries with flexible IoT connection platforms are expected to rapidly transition to 5G services.
5G networks provide an enhanced 1Gbps and 10ms internet experience, as well as a foundation for cloud and AI-based services. Various data-intensive applications, both personal and business-to-business, are gaining ground in the travel and tourism industry.
The growing popularity of IoT use cases in industries that require wide-area connectivity and the ability to handle many connections has fueled market demand for 5G. Massive IoT is fast becoming a new approach to IoT connectivity technology. Massive IoT is an exciting possibility for 5G, but in the early stages of the technology, telcos still rely on current cellular IoT standards such as NB-IoT. The mass diffusion of smart IoT nodes for a variety of situations is expected to be supported by 5G networks, becoming one of the reasons for the huge growth of the market.