IHS Markit: 5G Economic Report in the Post-COVID-19 Era

IHS Markit has released a new report, “The 5G Economy in a Post-COVID-19 Era.” The early 2020s are still a busy time for 5G. As early versions of 5G emerge, experts are embracing how 5G will change or substantially impact every aspect of human activity.

IHS Markit expects that the continued and deepening deployment of 5G will fundamentally support and enable the urgent needs for connectivity, flexibility and resilience in the post-pandemic world. This will encourage continued investment in 5G technology in the form of capital expenditure (CAPEX) and research and development (R&D), which will build communications infrastructure to transform the way industries deliver value at local and global levels.

As China emerges from its early battle with COVID-19, various mobile network operators (MNOs) have announced accelerated 5G deployments and supply chains have been strengthened. Smartphone manufacturers are starting to release a range of 5G phones at various price points to appeal to consumers with different affordability.

Unlike previous generations of cellular technology, industrial requirements are being incorporated into 5G standards, in part because many industrial companies are involved in standardization. These use cases will drive value in terms of cost savings and efficiencies, new revenue streams, more “intelligent” products and better customer experience. Many businesses are leveraging 5G and are currently conducting trials and proofs of concept to prove whether 5G is technically suitable for their use cases and return on investment.

Investment in 5G technology has not fallen off during the post-COVID-19 recession, even as many other investment activities have fallen sharply. In fact, new forecasts from IHS Markit show a net increase of 10.8% in global 5G investment and R&D between 2020 and 2035 compared to the 2019 forecast. Clearly, the need for greater connectivity in the COVID-19 era is driving growth in 5G investment.

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