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5G:The Future Revenue Powerhouse in Telecommunications

5G The Future Revenue Powerhouse in Telecommunications

As technology evolves at a breathtaking pace, 5G has quickly become a hot topic. This technology transcends mere speed improvements, representing a key to ushering us into a new digital era. Imagine streets filled with autonomous electric vehicles, returning home to experience the metaverse through AR glasses, or remote surgical procedures performed by top surgeons in the United States. The possibilities with 5G are virtually limitless.

For any entrepreneur or investor, keeping an eye on the future market trends of 5G mobile networks is increasingly crucial. This article delves into numerous data analyses to explore the upcoming trends and opportunities in the 5G market.

Ubiquitous Internet and Surging Data Usage

Since 2018, the global usage of mobile data has exploded. The average monthly usage was about 22.37 EB (note: 1 EB = 1 billion GB) at the time. According to predictions by the German research institute Satista, this figure is expected to exceed 329.4 EB by 2028. This sharp increase in usage not only highlights technological advancements but also reflects the growing information needs of modern society.

5G: The Future Revenue Powerhouse in Telecommunications

The rise of 5G is timely, catering to this surge in data. Data from 2023 shows that many users already enjoy 4K/HD videos through 5G, with nearly half relying on it for video calls. This underscores 5G’s role in enhancing entertainment and communication experiences, emphasizing its central position in our daily lives.

5G: The Future Revenue Powerhouse in Telecommunications

Moreover, 5G’s application in various scenarios is rapidly becoming widespread, from a plethora of apps and mobile games to live streaming and experiencing AR games. The behavior patterns of 5G users indirectly prove the technology’s versatility and potential. This trend not only demonstrates the broad application prospects of 5G technology but also suggests that it will pioneer new possibilities in numerous fields. With further development, 5G is set to revolutionize our lifestyles and interaction modes.

5G Era: A Steady Revenue Growth

In the telecommunications industry, 5G is seen as a primary driver for future revenue. The global communications service market’s revenue trend from 2017 to 2028 shows steady growth, with 5G playing a significant role. In 2017, revenue was at $1.3 trillion, and with the gradual rollout and adoption of 5G services, it is expected to reach $1.58 trillion by 2028.

5G: The Future Revenue Powerhouse in Telecommunications

Observing the annual revenue growth rate, there was a surge in 2021 as the demand for internet usage increased post-pandemic, with growth rates expected to stabilize around 2% up to 2028. This robust growth indicates that despite facing economic fluctuations and market changes, the communications service market remains resilient and growth-oriented. The introduction of 5G, especially its high speed and low latency, injects new momentum into the market, not only upgrading existing services but also fostering new services and applications, thereby creating new revenue streams.

5G: The Future Revenue Powerhouse in Telecommunications

As 5G penetrates different industries and consumer applications, from smart homes and remote work to advanced IoT solutions, the business opportunities it unveils are becoming increasingly apparent. Enterprises and investors are exploring innovative business models and revenue channels through this trend, which will be crucial for the growth of the communications service industry in the coming years.

4G is Sufficient; Can 5G Seize a Larger Market Share?

With the introduction of 5G phones and the continuous improvement of base station deployment, the global market’s acceptance of 5G technology has significantly increased. From 2016 to 2019, 4G technology dominated the market, but with the rise of 5G, the market landscape began to change rapidly. In 2021, 5G’s market share reached 8% for the first time, and by 2022, this figure rose to 12%. By 2030, 5G is expected to capture an impressive 54% market share, while 4G will decline to 36%, clearly demonstrating the rapid growth and adoption of 5G technology.

5G: The Future Revenue Powerhouse in Telecommunications

This momentum indicates that 5G technology is not only occupying an increasingly significant position in the communications market but is also driving the industry into a new phase of innovation and growth. With technological advancements and the development of applications, 5G is expected to continue expanding its market influence in the coming years, becoming the new norm in mobile communication technology.

KSCC Insight and Suggestions

  1. The widespread consumption of data will drive the emergence of innovative services: With the significant increase in mobile data usage, consumers’ demands for data speed and quality are rising. This compels service providers to innovate their offerings to meet these demands, such as developing new multimedia streaming platforms and AR/VR applications. As 5G technology matures and becomes more prevalent, we anticipate the birth of more 5G-based innovative services and applications.
  2. The rapid development of 5G technology will bring sustained revenue growth to the communications service industry: Market data currently shows that the industry’s revenue has seen stable growth following the launch of 5G. This trend suggests that 5G will not only upgrade traditional communication services but also promote new business models and revenue sources, especially in the enterprise market, opening up business opportunities in smart factories, remote operations, and the IoT.
  3. The widespread application of 5G will accelerate digital transformation and influence consumer behavior: As 5G’s market share continues to expand, by 2030, it is expected to become the dominant mobile communication technology. This will speed up the digital transformation process, affecting consumer behavior and expectations. From work styles to daily life, 5G’s high-speed connections and low latency will make remote collaboration more efficient and entertainment and education more interactive, thereby profoundly impacting various aspects of society.

KSCC is a management consulting company in Taiwan. Our services include corporate in-house training, consulting, and leadership management.For more information about our corporate services, please feel free to visit our website: https://www.kscthinktank.com.tw/custom-training/

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