5G is expected to drive an extra $12 trillion of annual sales in the next fifteen years.
Here’s where it is likely to make the biggest impact.
By Yuko Takeo for Bloomberg
Self-driving cars, remote robotic surgery, autonomous weapons — all that and much more is set to be delivered via the 5G wireless network, which promises to transform our lives and add trillions of dollars to the global economy every year.
New products, services, business models and entire industries will be born as 5G provides a huge leap forward in speed, capacity and connectivity.
Now economists are putting a number on the coming transformation, with IHS Markit estimating 5G will drive an extra $12 trillion of annual sales in 2035. That’s about the size of China’s economy last year.
For consumers, the first changes will be faster mobile data speeds — eventually up to 100 times quicker than those of 4G, letting people download full-length movies in seconds. At work, the trend will be greater automation of tasks and digital connectivity, driving a new wave of productivity gains for some industries.
While the rollout of 5G is already underway in South Korea and select U.S. cities, the most dramatic changes are still some years away. Many will come with risks and painful disruptions.
Here are some ways 5G will change the world.
Internet of Things
The internet of things refers to all the machines and devices linked through the internet, and its enormous growth is likely imminent as 5G comes online. There are expected to be 125 billion devices linked by 2030, up from 11 billion last year, according analysts at DBS Group Research.
This leap forward in connectivity will be key to the spread of artificial intelligence and machine learning, enabling massive amounts of data to be collected from remote and mobile sensors and analyzed in real time. This will drive everything from home appliances that order groceries to autonomous vehicles to smart cities. China’s ambition to dominate these industries of the future including the 5G technology itself, as outlined in the Made in China 2025 blueprint, has contributed to trade tensions with the U.S.
