- Over the next 10 years, telecom companies will be competing for a $3 trillion cumulative revenue in wireless services.
- 5G will drive nearly half of this revenue opportunity.
- By 2028, the average monthly consumption per 5G subscriber will be 84.4 GB.
The first stage of 5G specification in Release-15 will be completed by March 2019, and the second stage in Release-16 is expected to be finished by March 2020. It will certainly shake up the wireless entertainment landscape. Soon, you will see all businesses adapting to 5G technology. Several operators have already announced 5G trials and network launches.
The next generation of data consumption growth isn’t just about what content companies produce but how seamlessly users can access it and interact with it. Users will create more and more data about their locations, habits, and preferences that will offer a new set of experiences, driving a huge market opportunity for tech industries to utilize this data for better customer experience.
According to the new report conducted by Ovum and commissioned by Intel, over the next 10 years (2019-2028), the telecom companies will be competing for a $3 trillion cumulative revenue in wireless services, out of which 5G will drive more than 43% of this revenue opportunity (nearly 1.3 trillion).
By 2025, nearly 57% of the worldwide wireless media revenue will be created through 5G networks with high -bandwidth capabilities and machines that run on 5G. It will gradually overtake 3G and 4G by offering 15% to 50% faster speeds than 4G networks.
In the coming years, 4G wouldn’t be able to handle the content evolution to higher resolutions, increased video viewing times and more immersive experiences.
Image credit: Intel Infographics
By the end of 2019, the average monthly consumption per 5G user will reach to 11.7 GB. This will further increase to 84.4 GB by 2028 – at this point, video content will account for 90% of overall 5G traffic.
- In 2022, 5G will account for approximately 20% of total revenues, i.e. $47 billion of $253 billion.
- In 2025, it will reach 55% of total revenues, i.e. $183 billion of $321 billion.
- In 2028, nearly 80% of total revenues will be driven by 5G networks, i.e. $335 billion of $420 billion.
Media Demand Reflects Network Evolution
The report says that the fifth generation of cellular mobile communication technology will significantly increase data consumption, including home broadband, mobile media, and advertising. It will help unleash the full potential of interactive technologies like AR and VR (augmented/virtual reality).
Image credit: Intel
AR and VR are expected to drive more than $140 billion in cumulative revenues from 2021 to 2028. New media applications will achieve astonishing revenue levels in 2028: they will generate over $67 billion per year, which was the entire revenue of the worldwide mobile media market in 2017.
Now, businesses have begun formulating their strategy to embrace 5G capabilities. Before the 3G era, no one could have anticipated how mobile technology would look today. In the United States, 4G boosted an entirely new industry. Tech companies like Spotify, Uber, Netflix might not have been evolved without 4G networks.
The 5G technology is going to power a variety of innovations, from artificial intelligence to digitization of physical objects. It will offer lower latency (for more responsiveness) and facility to expand beyond mobiles and computers to encompass the cloud and billions of new devices connected to the network. An exciting new world lies ahead of us that businesses need to prepare for.