New Study Reveals 5G's Transformational Impact on Global Economy, Predicts a Potential GDP Boost of US$500 Billion by 2030

31 May 2023

According to a new report by global technology intelligence firm ABI Research, 5G connectivity will contribute US$508 Billion to global GDP by 2030. As 5G enables automation and digitization, even in highly critical use cases, this GDP surge will be driven by voice and connected worker use cases in industrial environments.  Deployments within manufacturing are expected to account for almost a third of global GDP contributions, followed by energy generation, including mining and oil and gas, transportation, healthcare, and agriculture.

 “These numbers underscore the vast size of the opportunity and the transformative potential that 5G connectivity can have on global economic productivity – be it through the public macro-network, a dedicated network slice, or a private cellular network,” says Leo Gergs, Principal Analyst, Enterprise Cellular Connectivity and 5G Markets at ABI Research.

Recent geopolitical events have put enterprises across the globe in a difficult position as they strive for increased automation, efficiency enhancements, and quality improvements to ensure their profitability. While the Covid pandemic – and subsequent social distancing and “lockdown” measures – seem long gone, enterprises that were forced to close are still feeling the aftermath today. “The very same enterprises that were forced to reduce their labor force – either through layoffs or short-time working arrangements. 5G-enabled automation will help reduce the demand for manual labor,” Gergs explains. “Also, soaring production costs have put a price tag on energy efficiency and sustainability considerations. Consequentially, enterprises are desperately looking to invest into increasing their efficiency and improving the quality of their goods or services.”

5G is perfectly capable of delivering on the key requirements. According to ABI Research calculations, a single factory, for example, can reduce its consumption by several thousands of kilowatt hours per year and save several hundred dollars by avoiding cable drops. At the same time, mines or oil/gas fields can increase their output by tens of thousands of dollars per year by avoiding production standstills by minimizing critical emergencies through condition-based monitoring. Gergs point out, “It is remarkable, in this context, that the telco industry so far is fighting a hard battle to bring cellular connectivity technology to enterprises.”

For 5G to unfold its full transformative potential, technology providers must understand that enterprises are interested in solutions, not technologies.  “At the heart of this, providers should accept that the enterprise domain requires a completely different value proposition, i.e., focusing on applications, services, and business outcomes rather than fancy technology jargon, that tends to go above the head of enterprise owners,” Gergs says. “What counts for enterprises, especially during economic hardship, is a convincing argument that includes Return on Investment (ROI) calculations, enterprise applications, and comparison scenarios to other wireless connectivity technologies. After all, Wi-Fi will not magically cease, and enterprises will not rip out all their existing connectivity to deploy 5G,” Gergs concludes.

These findings are from ABI Research’s 5G Contribution to Global Economic Activity market data report. This market data is part of the company’s 5G Markets research service, which includes research, data, and analyst insights. Market Data spreadsheets comprise deep data, market share analysis, and highly segmented, service-specific forecasts to provide detailed insight into where opportunities lie.

About ABI Research

ABI Research is a global technology intelligence firm uniquely positioned at the intersection of technology solution providers and end-market companies. We serve as the bridge that seamlessly connects these two segments by providing exclusive research and expert guidance to drive successful technology implementations and deliver strategies proven to attract and retain customers.

ABI Research 是一家全球性的技术情报公司,拥有得天独厚的优势,充当终端市场公司和技术解决方案提供商之间的桥梁,通过提供独家研究和专业性指导,推动成功的技术实施和提供经证明可吸引和留住客户的战略,无缝连接这两大主体。

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