Potential economic impact of 5G

GSM Association (GSMA), the trade body represents the interests of mobile network operators worldwide with more than 800 mobile operators and 250 companies in the broader mobile ecosystem, forecasts that there will be 670 million 5G subscribers in Asia Pacific by 2025 and 5G connections are set to reach 1.1 billion. The number represents only 60% of total 5G subscribers as 5G will provide coverage to one third of the world’s population.

A more positive condition of 5G forecasted by Frost and Sullivan on February 1 that the 5G subscription in Asia will be as high as 50% of the worldwide subscription by 2022, with revenue of US$4.5 billon or 143.5 billion baht.

However, Frost and Sullivan marks that will be around 280 million 5G subscribers in Asia at that time, compared to more than 3.16 billion 4G subscribers in 2018. The number of 280 million subscribers is counted very tiny portion.

To put it in a nutshell, if 5G coverage throughout the world, the economic value will definitely surge into hundred thousand or trillions.

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Qualcomm’s report on 5G influential to the global economy states that by 2035, 5G will create revenue equally to Gross Domestic Product (GDP) with the value of US$12.3 trillion, comparable with consumption value of USA all year or higher than those countries like China, Japan, Germany, UK and France in combined.

Definitely, partial value from wireless telecom deployment is the direct revenue from 5G subscription of service operators in each country, including new applications, new generation of games, and much more services which will be able to provide due to higher speed and capacity of the network.

Qualcomm believes that 5G will enable the IT and telecommunication industry to generate US$ 1.4 trillion of revenue becoming the most second revenue industry, following to manufacturing. In 5G era, it will be US$3.4 trillion , accounted for 28% of the world economy.

In addition, 5G will directly impact the economy such as a popularity of autonomous vehicles, 24X7 automation manufacturing, new applications that has never been before such as a use of commercial drone for wide space farming.

Qualcomm calls them the “value chain” which is forecasted to have US$3.5 trillion totally by 2035, equally to altogether revenue of 13 companies of top Fortune 100 including WallMart, Apple and Google.

In 2016, Rocky Mountain Institute estimated that always-connected autonomous vehicles will have total potential economic impact of over US$ 1 trillion per year. Texas Transportation Institute also believes that possible system which will be taken place on 5G availability will enable the US to save 3.1 billion gallons of fuels wasted due to traffic congestion each year.
World Health Organization’s report on the World Road Safety also states that this system will save 12 million of manpower each year.

Meanwhile, enthusiasm in 5G technology will lead to a huge investment. According to IDG, a provider of IT and telecom market research, 5G will create “new” types of telecommunication industry. The IoT phenomenon will make some 26 billion connected digital devices in almost everyone’s pocket on the planet with 26 billion devices.

A report of Siera Wireless recently indicates that a lot of companies want to make a step ahead before the forthcoming 5G storm. Siera Wireless states that there will be a great deal of investment for 5G and in mid-2020, the investment will achieve US$247 billion, the very fast increasing within a short period.

Application developers in gaming and business all have well realized how this big change impact to their businesses. 5G leads to higher data consumptions, open for creative “big data” business and cloud, as well as other businesses related to “sensors” embedded in device and digital infrastructure.

In addition, 5G makes a huge employment becoming a core engine to driving new sustainable jobs in the future. A report of IHS states that 5G network will support 22 million jobs globally in 2035. At the end 5G will definitely transform business to be the next milestone, it’s just the question of when.

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