5G adoption set to surge with cheaper, more available smartphones | Mobile | News | Rapid TV News
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A study from CCS Insight is predicting that the arrival of 5G-enabled iPhones, particularly in Europe and North America, along with existing momentum in China will push worldwide 5G connections to nearly a quarter of a billion by the end of 2020.
iPhone 12 14Oct2020 lands
Furthermore, the analyst says that if its projected growth is realised there will be more than triple this number in 2021 and as many as 3.6 billion by 2025.
CCS Insight expects global sales of mobile phones in 2020 to reach 1.54 billion units, 15% lower than in 2019 owing to the global Covid-19 pandemic. Given these drivers, CCS Insight projected more than 170 million phones to be connected to 5G networks by the end of 2020, out of a total universe of 260 million 5G mobile phones sold in 2020, jumping to 630 million in 2021.

The study found that South Korea remains the leading market for 5G adoption based on the proportion of connections, reaching 12% in August 2020. About a third of all mobile data traffic is now on 5G networks as operators continue to develop new applications for 5G and promote upgrades through attractive pricing. In contrast, major markets in Western Europe and North America have to date been held back by the lack of 5G-enabled iPhones, despite the fact that mobile operators have managed to continue 5G network roll-outs during the pandemic.

The launch of the 5G-compaitible iPhone 12 is set to change this picture totally, delivering said CCS Insight says will deliver a major boost to adoption of the technology in markets where Apple traditionally commands a significant market share, that is Europe and North America. “Prices of phones featuring the latest 5G technology have slid rapidly, with devices from prominent brands already reaching £299 or €349 in Europe. We expect prices to drop further before the end of the year,” observed Marina Koytcheva, vice-president of forecasting at CCS Insight.

In addition to cheaper and more available device, CCS Insight’s research also identified faster download speeds as the top reason that could convince people to sign up to 5G. Yet the study also suggested that even if people don’t actively look for 5G, the new phones they buy over coming months and years are increasingly likely to be 5G-enabled. It expected 60% of all phones sold in Western Europe and North America in 2021 to support 5G connectivity, growing to 85% in 2024.