5G to add $2.2TN to global economy over next 14 years | Mobile | News | Rapid TV News
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According to the 2020 edition of The Mobile Economy report from the global trade association for mobile companies, the GSMA, 5G is moving from hype to reality as millions of consumers migrate to the new infrastructure.
5G Samsungtruck 26Aug2019
The report calculated that mobile technologies and services generated 4.7% of GDP globally in 2019, a contribution that is said to have amounted to $4.1 trillion of economic value added. This contribution is forecast to grow to $4.9 trillion. Overall, 5G is forecast to contribute $2.2 trillion to the global economy by 2034, with key industries such as manufacturing, utilities, and professional and financial services benefitting the most from the new technology.

Recent research by UK operator O2 revealed the transformative impact 5G connectivity could have on the UK’s live entertainment industry, predicting that 5G could boost the sector by as much as £2.3 billion over the next ten years, rejuvenating live experiences with the likes of technology such as virtual and augmented reality, both of which will benefit from faster connectivity.

The report notes that 5G has gained significant traction over the past year and is now live in 24 markets worldwide, supported by an expanding roster of 5G devices and growing awareness among consumers. In all 46 operators in 24 markets had launched commercially available 5G networks by 30 January 2020 and GSMA expects that a fifth of mobile connections to be running on 5G networks by 2025.

“The mobile operator worldwide investment forecast will be more than a trillion dollars over the coming years, focused on rolling out advanced networks to serve both consumer and enterprise customers,” said Mats Granryd, director general of the GSMA.

Yet even if 5G has arrived, the Mobile Economy 2020 report also showed that 4G was the world’s dominant mobile technology last year, supporting more than half (52%) of global connections. Moreover it says that despite the emergence of 5G, 4G will continue to grow over the coming years, increasing to account for 56% of connections by 2025.

The comms industry was found to be investing heavily in 5G and the GSMA noted that mobile operators are expected to spend $1.1 trillion worldwide between 2020 and 2025 in mobile Capex, roughly 80% of which will likely be on 5G networks.