Like its previous generations, launching 5G will also require ample groundwork. But with the accelerated rate of digital adoption globally, operators are swiftly towards implementing 5G. A survey by the Business Performance Innovation Network (BPI) found that two-thirds of the mobile operators (respondents participating in the survey) were ready to implement their first 5G commercial networks in the next 18 months and about 21% opined that commercialization will happen in about 2 years’ time.
Launch of 5G mobile technology is expected to disrupt the world of business significantly. 5G will enhance data speeds drastically, making large volume data transfers almost instantaneous. It will also reduce latency and increase reliability. Improvement of such stature will enable massive innovation and disruptive change in almost all industries eventually but, as the below chart depicts, automotive and cloud services industry are expected to be most affected.
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Respondents of the BPI survey believed 5G will have highest impact on the auto industry because of the recent increased industry focus on self-driving cars and electric vehicles (EV). Global 5G rollout will have a profound impact on the auto industry and can practically reshape the industry completely, states Capgemini. Not only will the technology inspire new models with enhanced capabilities but also give rise to new production processes and business models.
A positive impact of 5G would be on adoption of EVs. Although EVs are now available globally, the scope of growth is huge. 5G will facilitate better monitoring of battery levels, allow deployment of more recharge stations and enhance the overall EV experience significantly.
Autonomous or self-driving vehicles have made great improvements in recent years but couldn’t manage a successful commercial launch till now. 5G rollout can change that by enabling autonomous vehicles to access, store and process data at the required speed through better connectivity.
Let’s understand the capabilities of 5G technology – it basically offers two advantages – drastic increase of upload and download speeds and reduction in latency. According to CloudTech, 5G allows 10 Gbps up speed as opposed to 4G’s 15 megabits. Latency or the time taken for two devices connected by a network to respond to each other – for 5G is 1 millisecond as opposed to 4G’s 30 millisecond.
By bringing such drastic enhancements, 5G will allow exponential improvements in the world of cloud computing. Smoother and faster communication enabled by 5G will help cloud service providers to offer more innovative and efficient service to the industrial clients. The general sentiment in the cloud industry is quite positive for 5G and is also expected to boost investment in the sector.
A research supported by Huawei and conducted by STL Partners suggests that 5G rollout will add about 4% or $740 billion to manufacturing GDP in 2030. The current pandemic has catalyzed adoption of Industry 4.0 in most manufacturing units across the world. This rapid digital transformation will enhance productivity drastically by using data and technology.
5G will provide the data infrastructure and connectivity that can help the manufacturing sector to enhance its efficiencies to the fullest.
Retail industry, connected healthcare, logistics and transformation and smart cities are some of the other most important beneficiaries of the 5G technology launch. On the other hand, financial services, government and agriculture are expected to be the least affected sectors of 5G. However, when 5G is rolled out in its full might, it is expected to bring positive change in the overall world and also help in achieving the sustainability goals – hence every sector is waiting with excitement for the D-day.