future 5g technology
The adoption of 5G continues to surge, with a peak in 5G smartphone volumes expected in 2021E. In the future, 5G will likely provide substantial enterprise opportunity which corporates are just beginning to recognize. It is expected that 5G will exceed $180 billion in NorthAmerica by 2030.
In this report, J.P. Morgan Research examines the future of 5G through the lens of consumer demand and global adoption, sharing market forecasts and exploring enterprise use cases.
This growth was helped by new launches such as the 5G iPhone, which saw Apple achieve a 47% share of the 5G smartphone market. 5G adoption correlated with growing smartphone sale volumes – following 1Q and 2Q troughs, volumes reached 355 million in 3Q20 and 374 million in 4Q20.
then considering the future growth of 5G adoption, consumer demand will be key as it can be monetized. For example, Korea, where current consumer demand is strong, has built out 5G enabling speeds that are three to five times faster than 4G. Consumers there are now using two to three times more data, and they’re willing to pay more for it too with an average of a 20% premium on 5G. Looking ahead, a meaningfully higher take rate is now expected, with 5G anticipated to reach 1 billion subscribers faster than the 1.5 to two years it took for 4G.
One thing is certain: Innovation can't stop at the network layer. Even with 5G, connectivity will become a commodity when broadly deployed worldwide, just as 4G/LTE is today. Instead, CSPs must integrate services that use communication as a platform for connected experiences rather than simply offering the communication capability alone. They must not let themselves be relegated to mere connectivity partners, shouldering the infrastructure investment while over-the-top (OTT) providers use it to scoop up higher-margin revenues.
On-Demand Webinar: Unlocking New Revenue Streams with 5G Network Slicing
Network Slicing Is Key to Monetizing 5G
Network slicing is key to this transformation. This 5G technology enables operators to logically partition network resources for different applications, use-cases, or customers. In doing so, it creates opportunities to cut bottom-line costs and increase top-line revenues through new services.
On the cost savings side, network slicing minimizes capital expenditure because it allows operators to reallocate resources on demand over common infrastructure when a specific end-user, human or machine, isn't using them. Beyond that, it also offers the opportunity to increase revenues from tailored services that address specific customer segments. Rather than offering a single class of service that not all customers will find useful, operators can offer differentiated services on a per-customer basis that enterprise and residential users will find more appealing.
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