Kyocera is set to abandon development of 5G wireless base stations.

As reported by Nikkei Asia, the Japanese electronics manufacturer has abandoned the project, amid rising costs and competition.

Kyocera only started developing base station equipment two years ago, and in February stated ambitions to bring these 5G base stations to market in 2027.

The electronics vendor had planned to use artificial intelligence to reduce power consumption, lowering installation and operating costs.

However, Nikkei reports that development costs have been higher than expected, with Kyocera conceding that it's unable to generate enough profit to justify the costs.

The market is dominated by Huawei, Ericsson, and Nokia, which hold around 80 percent of the global market share.

Instead, Kyocera will focus on electronic components. The company will still continue development of 5G wireless relays that use millimeter-wave technology to enable high-speed, high-volume data transfers.

Kyocera is working with Japanese carrier KDDI to test this technology in Tokyo, as part of an effort to improve connectivity in dense urban areas.