The 5G era:
Age of boundless connectivity and intelligent automation.
Introduction:
The next generation of wireless connectivity is arrived.5G has the capacity to support a huge number of connections simultaneously while improving speed, latency, reliability and power consumption for handsets and internet of things devices. spectrum auctions are almost complete, the first 5G-ready smartphones have hit the market, and network deployment has begun around the world. currently, most 5G innovations involve the business-to-consumer(B2C) market, primarily because network operators are attempting to optimize operational costs and handset makers want to differentiate their products. more recently, many new opportunities have begun to open in the business-to-business (B2B) sphere.
As with transition from 3G to 4G, advanced electronics companies and industrial players are still uncertain about the benefits of new technology. Where is the value coming from, and who is going to capture it? What are the use cases where 5G performance enhancement will generate most value and demand? Many companies did not ask such question when 4G emerged and only achieved subpar returns. The danger exist that this scenario could repeat with 5G.
To provide greater clarity on future value pools for advanced electronics companies and industrials, we investigated the 5G network market through 2030, looking at over 150 potential B2B and B2C use cases, including their potential growth and technological requirements. we concentrated on 5G cases related to IOT in the business sphere, rather than the more predictable market for consumer handsets, because companies are still uncertain about the B2B space-- both the areas for greatest value capture and the timeline over which 5G IOT application will gain traction within business. we also looked at the introduction of 4G and other technologies to understand how 5G might evolve and interviewed experts to understand market nuances.
5G: A NETWORK OPPORTUNITY
5G is a more than just a generational step; it represent a fundamental transformation of the role that mobile technology plays in society. as demand for continuous connectivity grows, 5G is an opportunity to create an agile, purpose-built network tailored to the different needs of citizens and the economy.
THE 10 INSIGHT THAT WILL SHAPE THE 5G ERA
1. Transform the broadband experience
5G will transform the mobile broadband experience in early deployment and derive new intelligent automation use cases in later phases.
2. Deliver new technological capabilities
5G as a technology will evolve over time and leverage a variety of spectrum ranges, plus robust security, to support new use cases.
3. Unlock incremental enterprise opportunity
Enterprise services and solution will drive 5G's incremental potential.
4. Provide boundless connectivity economically
5G will start as an urban-focused technology and integrate with 4G to provide boundless connectivity for all.
5. Grow revenues by 2.5% CAGR
5G will deliver revenue growth to mobile operator, with a 2.5% CAGR in the early 5G era.
6. Balance competition & collaboration for services
Competition and collaboration between operator and other ecosystem players to provide service will intensify in the 5G era.
7. Embrace new models for infrastructure
New model for infrastructure ownership, competition and partnership will be required for the 5G era.
8. Advocate for supportive regulation
Regulation, licensing and spectrum policy will make or break the 5G opportunity.
9. Avoid technology & spectrum fragmentation
The industry should strive to avoid spectrum and technology fragmentation for 5G.
10. Support required service as default
Interoperable and interconnected IP communication services, including device-to-device, should be supported as default in the 5G era.
1. A comprehensive view of the 5G value proposition Players are intrigued by 5G because it immensely improves speed, latency, reliability, and power consumption while supporting while supporting more device connections. Although 5G does not yet provide optimal results for simultaneously because of because of current technological and infrastructure limitations, it will eventually become the technology of choice for critical communications that require extreme reliability and service quality, including those within industrial settings.
5G offers many advantage over other wireless technology
Archetypes of 5G IoT use cases
According to the 3rd generation partnership project, an organization that develops communications standards, 5G primarily delivers value by enhancing three application.
- Enhanced mobile broadband, which provides faster data rates across wide wide coverage areas to improve various functions, including ultra-HD video streaming.
- Ultra-reliable, low-latency communication, which increase the speed and quality of service in critical function, such as the control of robots and drones
- Massive machine-type communication, which involves the automatic generation, transmission, and processing of data among numerous machines with little to no human intervention.
5G IoT growth will occur in waves, with EMBB applications gaining traction first
2. Promising B2B 5G IoT use cases
Every new technology brings obvious advantages. What's less clear is where it can deliver business value- and that is the case with 5G IoT. To help companies direct their investment to the right areas, we analyzed over 150 potential B2B and B2C use cases that required either EMBB, URLLC, or MMTC. We also explored the the rationale for applying 5G to a use case. In some instances - what we refer to as distinctive use cases - 5G was a clear prerequisite or enable of better performance. For other use cases, however, 5G would not boost performance and was incorporated into devices so that they will be ready when connectivity standards inevitably move to 5G.
Companies will adopt 5G to enable new use cases or comply with future connectivity standards
For B2B, our analysis primarily uncovered 5G use cases in the following industry segments:
- Industry 4.0, including autonomous systems in factories.
- Smart cities, with application such as HD cameras to monitor safety
- Smart energy, such as smart grid control
- Connected offices , including sensor-based building management
- Smart security, including provision of emergency services
- Connected health, such as mobile medical monitoring
3. The 5G IoT value proposition for industry 4.0
Within factories and plants, the current connectivity options have several major drawbacks that make it difficult to implement industry 4.0 use cases. Wi-Fi networks often encounter interference, particularly in dense settings, and fixed connections are cumbersome and costly in large manufacturing environments. With the introduction of 5G, manufacturing companies will get a reliable alternative that enables the communication essential to many industry 4.0 applications, such as the wireless control that is especially critical for mobile tools, machines and robots.
Distinctive 5G IoT use cases in industry 4.0
When looking at distinctive use cases for industry 4.0, we found that manufacturing will drive most demand for B2B 5G IoT units from 2021 through 2030. At that point, manufacturing will account for over half of all 5G sales for distinctive use cases. For all years from 2021 to 2030, 5G IoT demand will be more moderate for other distinctive use cases within industry 4.0, including those related to construction and mining, supply chain, and agriculture.
For distinctive B2B use cases, almost half of all 5G IoT sales will be linked to industry 4.0 applications
Some of the most compelling distinctive use cases within industrial manufacturing relate to the following innovations.
1. Automated guided vehicle
2. 3-D bin picking
3. Real time process control
4. Augmented reality
5. Vision quality checks
6. Private-network opportunities
7. Independent networks
8. Shared networks
9. Mobile virtual network operator network
10. Network slicing.
4. Opportunities for advanced electronics companies and industrials
With demand for 5G IoT growing, we wanted to understand the market from the prospective of module and component suppliers. We therefore studied product demand, price trend, revenue pool and the best use cases.💀🐭
The 5G IoT module market
-- Standard modules. Used for classic 5G scenarios that require EMBB, such as ultra-HD video streaming.
-- Special-purpose modules. Designed for specific use cases that require URLLC, such as autonomous systems and mission critical control. Their price may be high, since they often must be designed for use in extreme temperatures or rugged conditions. Special purpose module also require additional R&D and are sold in lower quantities.
-- 5G LPWA modules. Used for long distance communication, such as transmission from sensors with low data rates. They will have an evolving and strong role in the growth of 5G IoT, since they help enable some MMTC applications.
The average selling price for 5G IoT module will decline and then stabilize, in line with historic price evolutions
B2B revenues for 5G IoT modules will soar between 2022 and 2030
Forecast B2B market, 5G IoT modules, 2022-30
Distinctive use cases will only represent 25% of the total revenue with industry 4.0 having the largest contribution
Forecast B2B market, 5G IoT modules, 2030
Revenue for module components will rise over time
B2B market for 5G IoT components
5. Strategic implications for advanced electronics companies and industrials
As with previous wireless technologies, 5G will foster innovation, enable new use cases, and trigger widespread adoption until it becomes standard. Companies see the writing on the wall, and they are already preparing to incorporate 5G into their operations and product offering, even if they have no immediate need for it. But what is the best path forward?
Advanced electronics players
Industrial automation players
Manufacturing players
For more information about 5G see this video
