The 5G market will grow to $1.23 trillion by 2026, according to a new report by Ericsson announced at the Mobile World Congress (MWC) in Barcelona on Monday. And the networking standard is poised to benefit industries including energy utilities, manufacturing, and healthcare the most.
“This means that industries see the value of 5G, and we will be there to grasp that opportunity,” Ericsson CEO Börje Ekholm said during the event, according to a press release.
Indeed, a number of companies have announced new efforts in 5G, which is slated to be the next generation network connectivity. Earlier this month, AT&T entered advanced discussions to determine trial locations for its Project AirGig wireless gigabit internet service. And Verizon recently announced the $1.8 billion purchase of XO Communications to focus on fixed wireless and gigabit speeds.
Ericsson’s report, released in partnership with consulting firm Arthur D. Little, examined the impact of 5G technologies on industry. “5G will be a major technology in growing industrial digitalization, creating and enhancing industry digitalization use cases such as immersive gaming, autonomous driving, remote robotic surgery and augmented reality support in maintenance and repair situations,” the report stated.
Ericsson studied eight industries that it predicts will be most impacted by 5G technology, in terms of the percent of revenue of the $1.233 trillion they are expected to draw. Here they are, along with the top challenges they face that 5G has the ability to address:
1. Energy utilities (20%)
The energy utilities industry faces challenges including oil supply imbalance and instability, fracking advancements, and carbon constraints, as well as new decentralized business models, and renewable energy generation, which 5G can address.
2. Manufacturing (19%)
Top manufacturing challenges that 5G can mollify are hypercompetition with no sustainable competitive advantages, increased volatility from business cycles and product lifecycles, and the creation of the “smart factory” thanks to the rise of the Internet of Things (IoT) and automation.
3. Public safety (13%)
In the public safety realm, 5G can help with growing public surveillance efforts including CCTV and wearable cameras, cyber attacks, and the rise of the IoT devices used in public safety efforts.
4. Healthcare (13%)
Healthcare is a strong match for 5G capabilities, because it can help cut down healthcare costs for the aging population, and improve patient access to mobile and other care.
5. Media and entertainment (10%)
The media and entertainment industry faces challenges stemming from interactive and immersive forms of entertainment and the shifting role of the consumer as co-creator of content. The expansion of digital content through new platforms and market players such as Netflix and Hulu has also changed the industry.
6. Public transport (10%)
5G will impact the public transportation realm in that it could help fulfill the promises of infotainment during travel in environments of increased increased urbanization and intermodality. And with connected buses and trains, it could lead to more predictive maintenance and helping get route information to passengers.
7. Automotive (8%)
The automotive industry is facing changes due to autonomous and connected cars, car sharing services, and electric mobility with decreasing battery costs.
8. Financial services (6%)
The financial services industry has been disrupted by online payments and e-wallets, as well as changing customer relationships with online and mobile transactions, and structural changes including state involvement and fiscal measures.
As ZDNet reported, at MWC, Ericsson also announced its Connected Vehicle Marketplace; its launch of gigabit-speed LTE with US mobile carrier T-Mobile; and its media content-delivery solution with Telstra and 21st Century Fox.