5G is on track to account for 15% 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 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 (AI), is poised to be a key driver of economic growth over the coming years,” Mats Granryd, Director General of the GSMA, said in a statement.
GSMA’s flagship Mobile Economy report series – published at the on-going MWC in Barcelona — reveals that a further 16 major markets worldwide will switch on commercial 5G networks this year. This follows on from the first 5G launches in South Korea and the U.S last year.
It is calculated that mobile operators worldwide are currently investing around USD$160 billion per year on expanding and upgrading their networks, despite regulatory and competitive pressures.
“While 5G will transform businesses and provide an array of exciting new services, mobile technology is also helping to close the connectivity gap. We will connect more than a billion new people to the mobile internet over the next few years, spurring adoption of mobile-based tools and solutions in areas such as agriculture, education and healthcare, which will improve livelihoods of people around the world,” said Granryd.
According to the report, mobile technologies and services generated 4.6% of GDP globally last year, a contribution that amounted to USD$3.9 trillion of economic value added. This contribution is forecast to grow to USD$4.8 trillion (4.8% of GDP) by 2023 as countries around the globe increasingly benefit from the improvements in productivity and efficiency brought about by increased take-up of mobile services.
Looking further ahead, GSMA predicts 5G will contribute USD$2.2 trillion to the global economy over the next 15 years, with key sectors such as manufacturing, utilities, and professional and financial services benefiting the most from the new technology.
source: GSMA Report