Swedish company Ericsson on Monday raised its estimate of global 5G subscriptions to 220 million by the end of this year, indicating faster-than-expected absorption in China.
The company expects that four out of ten mobile subscriptions in 2026 will be 5G, as service providers continue to build networks.
The current absorption of 5G networks in subscriptions and population coverage confirms that technology is spreading faster than any generation of communications.
The telecommunications equipment manufacturer, which previously forecast 190 million subscriptions, said it expects China to account for nearly 80 percent of the new forecast.
Fredrik Jejdling, Executive Vice President and Head of Networks at Ericsson, said: "The increase is largely due to rapid absorption in China.
"This is due to the national strategic focus, the intense competition among service providers, as well as the increase in smartphone sales supporting 5G networks at affordable prices.
"This year has seen a huge leap in society towards digitization, with the epidemic highlighting the impact of communication on our lives and working as a catalyst for rapid change," Ericsson said in its semi-annual report.
"About 15 percent of the world's population, or one billion people, are expected to be in a region covered by 5G networks by the end of the year," Gijdling said.
The company expects 3.5 billion 5G subscriptions by the end of 2026, accounting for more than 50 percent of mobile data traffic.
The Swedish company, which competes with China's Huawei and Finnish Nokia, added that 60 percent of the world's population will receive 5G coverage in 2026.
Ericsson won contracts from all three major operators in China to provide equipment for 5G networks.
The mobile network industry has faced a decline in demand for 4G and older network equipment, but spending on 5G networks in North America has helped to foster a return to growth.
The new generation of mobile technology provides great data speeds and supports a larger range of connected devices.
Ericsson predicts that 80 percent of mobile subscriptions in North America will be 5G by 2026.
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