Advanced video to drive 5G consumer market over $30TN by 2030 | Media Analysis | Business
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In a hugely bullish forecast for the prospects of the next-generation communications industry, the Harnessing the 5G Consumer Potential report from Ericsson ConsumerLab predicts that over the next ten years 5G could generate up to $31 trillion in cumulative consumer revenue in the ICT industry.
Ericsson mobile gaming 5g 17Nov2020
Ericsson released a report In May 2019, that measured consumer interest across more than 30 use cases and their willingness to pay for them. The new 5G study builds on those insights through business potential forecasts, both for service providers and the larger ICT ecosystem.

In this bonanza, the study also estimates that communications service providers (CSPs) could earn $3.7 trillion of that total a figure that could increase further as new adjacent digital services opportunities arise. And in the short term, Ericsson says that CSPs could generate up to $131 billion by 2030 from digital service revenues alone, by proactively bundling and marketing 5G use cases.

Regarding these applications, the study observed that about two-fifths of these revenues were attributed to consumer spending on enhanced video, augmented reality (AR), virtual reality (VR) and cloud gaming over 5G networks. IT projects that AR is likely to drive more than half of all consumer spending on immersive media by 2030 – starting with gaming and extending to other areas like shopping, education and remote collaboration.

Key findings also highlight how the impact of the Covid-19 pandemic on personal finances and financial priorities may have affected consumers’ willingness to pay a premium for 5G subscriptions. In early 2019, the average consumer was willing to pay a 20% premium for 5G. As 2020 draws to an end, that figure has dropped to 10%. However, a third of early adopters globally said they were still willing to pay a 20% premium. Such high levels of early adopter take-up could help drive economic recovery, according to the report.

“It is clear that 5G will drive enormous opportunities for CSPs in consumer business over the decade,” said Jasmeet Singh Sethi, Head of ConsumerLab, Ericsson Research, commenting on the Harnessing the 5G Consumer Potential report. “As this journey is already underway, those CSPs that quickly and proactively evolve their consumer propositions are likely to be bigger winners.”

The report also projects that by proactively driving 5G consumer adoption, CSPs could gain 34% higher 5G average revenue per user (ARPU) by 2030. This could boost consumer revenues at a compound annual growth rate (CAGR) of 2.7% compared with flat revenue growth of 0.03% by taking a passive approach across the decade.