5G Network Will Contribute $700bn to Global Economy by 2030: Report

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A recent report compiled by a research firm IDTechEx, has shown that the 5G network is capable of contributing $700 billion to the global economy by 2030, with a compound annual growth rate of 20%.

“The global rollout of 5G is a revolutionary rise that represents one of the largest emerging markets in the coming 10 years. Over the next 10 years, global telecom operators will invest $1.2 trillion to $1.5 trillion in 5G network rollouts, most of which will be for sub-6GHz 5G,” notes the report.

“China alone expects 5.8% of its GDP growth to derive directly from 5G technology by 2030. Mobile and Internet operators in China have announced plans to spend YEN34 billion ($313 billion) on 5G this year.

“Equipment providers, including network equipment and user equipment, will benefit significantly from the massive rollout of 5G networks, with more than half of the telecom operators, including those in China, Japan and Europe, speeding up their 5G rollout and targeting a commercial launch between 2019 or 2020.”

Not only will 5G accelerate the growth and expansion of telecommunications, but the demand for 5G user equipment and services from other vertical applications will become the main drivers in seven to10 years, led by automotive, industrial automation and healthcare, according to IDTechEx.

It points out that 5G will bring opportunities in four different aspects: infrastructure, user equipment, 5G services and vertical applications. 5G rollout will also take place in three different stages: imminent market opportunities, coming market opportunities and dominative market opportunities.

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