5G to add $2.2 tn to global economy by 2034

In future, manufacturing, utilities and professional and financial services will benefit the most from 5G technology

5G will contribute $2.2 trillion to the global economy over the next 15 years according to new GSMA’s flagship Mobile Economy report series launched at MWC Barcelona 2019.

The key sectors which will benefit from 5G sectors include: manufacturing, utilities and professional and financial services benefitting the most from the new technology.

5G is on track to account for 15 per cent of global mobile connections by 2025, as the number of 5G network launches and compatible devices ramps up this year, according to a new GSMA report. The report reveals that a further 16 major markets worldwide will switch on commercial 5G networks this year, following on from the first 5G launches in South Korea and the US in 2018.

It is calculated that mobile operators worldwide are currently investing around $160 billion per year (capex) on expanding and upgrading their networks, despite regulatory and competitive pressures.

“The arrival of 5G forms a major part of the world’s move towards an era of intelligent connectivity, which alongside developments in the Internet of Things (IoT), big data and artificial intelligence, is poised to be a key driver of economic growth over the coming years,” said Mats Granryd, Director General, GSMA.

The number of 5G connections will reach 1.4 billion by 2025 – 15 per cent of the global total. By this point, 5G is forecast to account for around 30 per cent of connections in markets such as China and Europe, and around half of the total in the US.

By 2025, the number of global IoT connections will triple to 25 billion while global IoT revenue will quadruple to $1.1 trillion.

An additional 1.4 billion people will start using the mobile internet over the next seven years, bringing the total number of mobile internet subscribers globally to 5 billion by 2025 (more than 60 per cent of the population).

Mobile technologies and services generated 4.6 per cent of GDP globally last year, a contribution that amounted to $3.9 trillion of economic value added. The mobile ecosystem also supported almost 32 million jobs in 2018 (directly and indirectly) and made a substantial contribution to the funding of the public sector, with more than $500 billion raised through general taxation.

By 2023, mobile technologies and services is forecast to grow to $4.8 trillion (4.8 per cent of GDP) by 2023 as countries around the globe will increasingly benefit from the improvements in productivity and efficiency brought about by increased take-up of mobile services.

 

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