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The technology could spur trillions of dollars in new investment and benefit a number of industries. 5G brings with it the possibility for fundamental industry change, by enabling a whole new set of services based on its strengths. If these services are properly enabled by the right mix of infrastructure and devices, they could create serious benefits for both governments and businesses; by the year 2035, 5G could enable an estimated $12.3 trillion in global economic value, according to a report published by IHS Markit, nearly equivalent to the value of all US consumer spending in 2016, and equal to more than all combined consumer spending in China, the United Kingdom, Japan, France, and Germany that year. Between 2020 and 2035, IHS Markit expects that 5G will contribute 0.2% of the average annual global GDP growth of 2.9%, a contribution equivalent to total current GDP in India, the world’s 7th-biggest economy. At a regional level, a European Commission report published in 2016 estimated that that 5G investment will help create 2.3 million jobs in European Union member states, while a study conducted by the Korea Telecom research institute KT EMRI has suggested that commercial use of 5G in South Korea may generate 47.8 trillion won ($42 billion) in local value. While this new value could be broadly distributed, certain industries may be able to unlock more of it than others as the first networks start rolling out - with features like enhanced mobile broadband connectivity and lower latency. A study conducted by the 5G Alliance for Connected Industries and Automation has estimated that digitalization-related revenue based on 5G at information and communications firms may exceed $1.2 trillion by 2026, of which approximately $234 billion would be accounted for by related manufacturing aspects. With government support, this commercial impact can have social benefits - as long as commitments are made to aligning industry goals with public-sector goals in the interest of socio-economic progress. For example, 5G could improve so-called “cooperative collision avoidance” for self-driving cars, by ensuring that information is passed among sensors on thousands of connected cars in the same area reliably and in real time - even in areas without network coverage. This could potentially help to reduce deaths and injuries from road traffic accidents, which are both a significant problem in many countries (annual worldwide road traffic deaths reached 1.35 million in 2018, according to the World Health Organization) and a potential impediment for industries banking on the mainstream use of self-driving vehicles.

5G Value Creation


5G Mobile Network