Joy Agwunobi
The race towards next-generation connectivity is gaining unprecedented momentum, with 5G technology emerging as the fastest adopted mobile network standard in history.
According to the McKinsey Technology Trends Outlook 2025, global 5G connections have now reached 2.25 billion, marking a pace of adoption four times faster than that of 4G at a comparable stage.
The report attributes this surge to rising consumer and enterprise demand for high-speed internet, low-latency communication, and enhanced network solutions that underpin digital transformation across industries. Beyond personal mobile use, the spread of 5G is increasingly tied to innovations such as smart cities, autonomous vehicles, AI computing, and next-generation industrial automation.
North America and China lead 5G adoption
Regional adoption trends show North America at the forefront, with 77 percent population coverage already achieved and adoption projected to hit 89 percent by 2030. Greater China follows closely with 88 percent expected adoption, demonstrating the scale of investments and infrastructure buildout across these markets.
McKinsey analysts note that these developments are laying the groundwork for 6G technologies, which are currently at an experimental stage. Unlike 5G, which focuses primarily on bandwidth, latency, and reliability, 6G is expected to integrate advanced sensing capabilities, enabling networks not just to connect devices but to generate data themselves.
One milestone highlighted in the report is the commercialisation of 5G-Advanced (5.5G) in 2024, a transition technology with integrated sensing and communications features. This evolution is expected to serve as a bridge to 6G, transforming networks into large-scale sensor systems that will power applications such as industrial robotics, environmental monitoring, and precision healthcare.
Network slicing and private wireless markets expanding
As 5G networks mature, network slicing—the ability to create dedicated virtual segments of a network with specific performance parameters—is gaining traction. The global network-slicing market is projected to hit $1.69 billion in 2025, up nearly 50 percent from $1.13 billion in 2024. This growth, Mckinsey notes is being fuelled by demand from industries requiring tailored connectivity for critical operations.
Similarly, the private wireless network market is set for explosive growth, expanding from $6.27 billion in 2024 to $32.86 billion by 2032, at a CAGR of 23 percent. Private 5G is finding applications in sectors such as manufacturing, healthcare, transportation, and logistics, where secure and dedicated connectivity is essential. However, high upfront costs and deployment complexity remain barriers to faster rollout.
The expansion of artificial intelligence is also shaping connectivity demand. The report observes that the explosion of AI data centers is driving a surge in fiber optic infrastructure, which provides the backbone for high-speed, low-latency computing.
Meanwhile, non-terrestrial networks (NTNs), including satellite constellations in low-Earth orbit (LEO) and high-altitude platforms, are now commercially viable. While NTNs are not expected to replace terrestrial mobile networks due to high costs, they are extending coverage to underserved and remote regions, offering a new layer of global connectivity.
Operators are increasingly adopting digital twin technologies—virtual replicas of physical systems—to monitor and optimise networks. These tools, enhanced by IoT and AI, are improving efficiency, sustainability, and innovation in managing fiber and private-wireless systems.
Another transformative shift is the rise of AI-RAN (artificial intelligence–radio access network), which replaces traditional chips with GPUs to support both telecom and AI workloads on the same infrastructure. This enables telcos to monetise AI workloads while boosting network efficiency, though implementation requires significant fiberisation and virtualisation.
While infrastructure buildout has accelerated, the report warns that talent shortages are emerging as a bottleneck. Demand for skills in IoT, 5G, and AI is outpacing supply, even as hiring for traditional network engineering and software roles slows. Closing these gaps will be critical to unlocking the full promise of next-generation networks.
The talent market, once marked by aggressive hiring during early 5G rollouts, has shifted to a more measured pace as operators prioritise refining and optimising existing assets. Yet, the report noted that expertise in automation, AI integration, and emerging connectivity solutions remains in short supply.
Opportunities and uncertainties ahead
Looking forward, McKinsey identifies key uncertainties shaping the future of advanced connectivity. Achieving global consensus on 6G standardisation remains a challenge, as regional priorities may fragment the path to deployment. Additionally, the energy demands of scaling massive IoT and AI-driven applications raise concerns over sustainability, making efficient network design and power management critical.
Commenting on the analysis, Martin Wrulich, senior partner in Vienna, observed that the emergence of 6G will mark a fundamental shift in telecoms, stating: “6G will introduce new capabilities like sensing, which could allow telcos not just to transport data, but to become producers of data themselves—a fundamental shift in the value chain.”
Zina Cole, partner in New York, highlighted the rising demand for data center connectivity, noting that “one of the most pronounced connectivity trends last year was the surge in data center connectivity demand driven by AI. Hyperscalers are investing heavily in fiber, while private capital interest and new market entrants are accelerating the pace of infrastructure development.”
The report notes that advanced connectivity is part of the 13 technology trends shaping the global economy in 2025. These technologies are not only expanding consumer experiences but also turning once-hypothetical concepts into reality. Integrations with non-terrestrial networks, the rise of AI-RAN, and the buildout of private wireless systems are redefining how people, businesses, and societies interact.
According to McKinsey, as AI continues to disrupt industries worldwide, connectivity is becoming even more central to digital innovation. For telecommunications companies, this presents both an opportunity and a strategic challenge: whether to evolve into value creators that monetise new capabilities, or remain as value connectors facilitating communication.
