Gartner estimates that 5G infrastructure investments could hit $8.1 billion in 2020, reaching nearly half of the $16.4 billion investment in 4G and long-term evolution (LTE) networks. The firm predicts that 5G infrastructure investments could exceed 4G by 2022.
Meanwhile, 5G smartphone shipments are expected to nearly double in 2021, hitting 544 million units. All of this means that companies involved in the rollout of 5G infrastructure and smartphones could keep enjoying solid tailwinds next year. Here’s why.
The number of 5G base stations across the globe is expected to increase at a rapid pace in the coming years, with one third-party estimate suggesting a CAGR of 50% through 2026.
In a recent article on The Wall Street Journal, investors could get an idea about how important the 5G network is not only for the future but for now.
“The U.S. military is preparing to fight on a new battlefield: the 5G networks going up around the world,” according to the article. “The Pentagon is testing how lightning-fast 5G networks could transform warfare, from training and logistics to mission planning and communications to new battlefield tactics like the deployment of drone swarms. It is throwing a lot of money at harnessing the new technology—partly, analysts say, with an eye on China, which has made 5G a military priority.”
The numbers in the sector are eye-popping. “The global 5G services market size is estimated to reach USD 41.48 billion by 2020 and expand at a compound annual growth rate (CAGR) of 43.9% from 2021 to 2027,” according to a Grand View Research report.
The growth of 5G should impact many business sectors, from manufacturing, energy, and utility to media and entertainment, retail, and construction.
AmpliTech Group, Inc. (OTC: AMPG) seems to be in a good position to take advantage of the booming 5G and can help investors benefit from the infrastructure side.
The company recently announced that it has signed Non-disclosure agreements with two companies to enter into discussions and share each other’s information for the purpose of advancing development of next generation 5G/6G subsystems for cellular and satellite communications. The companies are MPT Corp. and Orban Microwave. Each company has the expertise and years of experience in the design and development of antennas and subsystems that will be an integral part of the GPS and 5G infrastructure. These subsystems will enable high-speed, high capacity 5G/6G networks that will be installed into infrastructure for retrofitting and improving the connectivity for cellphones, satellites, autonomous vehicles, and many other everyday applications.
In a prior press release, AmpliTech also announced that its recent patent filings relating to low noise cryogenic 5G/6G compatible amplifiers in chip form uniquely position the company for market leadership in the 5G arena.
The parts covered by the patents will be used in the development of subsystems for satellite, wireless, and 5G infrastructures, as well as advanced military and commercial markets and will be a core component in towers and cell sites. This proprietary technology was previously not available in chip form for cryogenic applications. The 2 patents filed for MMICs (chips) and cryogenic amplifiers will allow AMPG to enter the market for large volume applications such as cell phones, laptops, IoT devices, 5G small cells, and all types of wireless networks.
The new products offer a significant advantage in signal clarity and performance that results in higher speed data, fewer dead zones and dropped calls, increased range and coverage, as well as reduced cost of deployment of 5G infrastructure. The new products will be slated for production by middle of next year. Fawad Maqbool, CEO stated: “Our unique and proprietary 5G compatible technology will be available to enhance and promote faster, cost-effective deployment of the 5G, Wi-fi 6e, and 5G NR networks worldwide. We are positioned well to take the lead in this rapidly growing market due to our unique and unparalleled low noise amplifier performance.”
NEW PRODUCTS, NASDAQ UPLIST …
AmpliTech has introduced new products that will be manufactured in their Specialty Microwave subsidiary, which was acquired last year. The combined engineering and manufacturing resources should complement the new product development of subsystems for satellite, wireless, and 5G infrastructures, as well as advanced military and commercial markets.
New Products Summary:
- Lowest power consumption (0.5V@12 mA) 5G Front End in connectorized and chip form for 4G/5G network infrastructure
- Lowest power consumption (0.5V@3 mA) cryogenic 5G Front End in connectorized and chip form for 4G/5G network infrastructure
- Desktop/Benchtop and compact wideband Power Amplifiers over frequency range of 1 to18 GHz to be used in Satcom rack mount systems as well as test equipment used by integrators and manufacturers of various communication systems such as cellular base stations, simulators, and point to point wireless radios
- Waveguide to Coaxial Adapters for all Satcom and Satellite internet gateway systems (from C band to Ka band, or 2 GHz to 26.5 GHz)
CEO, Fawad Maqbool, stated, “The new products are a direct result of following our strategy to grow our top line and broaden our customer base, while maintaining the quality, performance, and throughput to address the demands of mainstream technologies as they grow at an exponential rate. We strive to keep pace and be part of that growth and to reach a leadership position in all areas of wireless communication.”
AmpliTech also noted the effect of Covid -19 and the impact it has had to its progress. Although the Company has experienced short-term closing, vendor and supply chain interruptions, and staff availability issues, it expects these to be temporary, as the economy gets back to normal in the coming months.
CFO, Louisa Sanfratello added, “We are continuing to expand our IP and product base to match our product technology to the needs of the rapidly rising demand of wireless technology and infrastructure. The Company is also proceeding with our effort to pursue a Nasdaq uplist. This all should add significant value to the Company as a key technology developer and partner to major players in these markets.”