With 5G becoming more common, it will increase global gross domestic product (GDP) by $ 8 trillion by 2030, according to a 5G economic forecast from Nokia. A $ 4.5 trillion investment in 5G and related technologies will support this growth, the researchers said.
Nokia uses the term â5G +â to encompass 5G and related technologies, including edge cloud infrastructure, private networks, augmented intelligence, automation, sensing and robotics, as well as platform business models. -form and as a service.
Contributors to the Nokia report, titled â5G Business Readiness Reportâ, included several senior executives from Nokia and Nokia Bell Labs and two futurists.
The report was also based, in part, on a survey of technology purchasing decision makers in key industries in eight countries, including the United States. And the impact 5G is likely to have on business and industry is a key focus of the report.
An important trend impacting Nokia’s 5G economic forecast is the investment of various industries in information and communications technology (ICT). This is essential as 5G + technologies will represent an increasing percentage of ICT spending in the future.
Although only a small fraction of ICT spending is spent on 5G + technologies today, 5G + will account for the majority of ICT spending within six or seven years, according to Nokia’s 5G economic forecast. By 2030, 5G + technologies will represent $ 4.5 trillion in total ICT spending of $ 6 trillion.
Sectors Nokia considers “digitally mature” have invested the most in ICT, but that is about to change, according to the report.
âWith several years of heavy spending on ICT – in which digital industries have spent 70:30 more than physical industries while they only have 25% of the workforce and only 30% of the workforce. GDP – digital industries have reached a level of digitization maturity that has enabled them to tackle the COVID-19 challenge aggressively. “
Digitally mature industries include communications and media, banking, securities and insurance, while ‘physically lagging’ industries that under-spend on ICT include construction, agriculture, mining , wholesale trade, performing arts and entertainment, and accommodation and food services.
In between are âleading physicalâ industries such as manufacturing, healthcare, transportation, retail, education, government, and utilities. These industries have reached a “moderate level of digitization, with a high potential for significant improvement”, according to the researchers.
While overall ICT spending is expected to grow 6.5% per year over the next decade, physical industries will experience an increase of 40% greater than digital industries, according to the report.
The authors don’t fully explain why they expect to see this change. But some other data in the 5G Economic Forecast report offers clues as to why this could be happening.
For example, The report ranks the companies that responded to the survey according to their 5G maturity level, which in turn was based on responses to questions about each company’s attitudes towards 5G and the progress made by it. company in adopting technology.
Companies that are mature for 5G are growing “considerably faster” compared to their peers, the authors noted. According to the report, 49% of organizations in the 5G expansion phase and 37% in the implementation phase said their organization had grown rapidly in the last year. In comparison, only 20% of companies in the 5G planning stage, 11% of companies in the discovery stage, and 5% classified as âpassiveâ saw rapid growth in the past year.