Cloud computing will experience a major shift with 5G. The fifth-generation (5G), which was discussed at the Mobile World Congress in February, was a major topic of discussion. Already, the first 5G smartphone commercials are scheduled to be released in the first half of this year. Ericsson Mobility's recent report predicted that there would be nearly 20% more 5G subscribers by 2023. Many industries will reap the benefits of 5G's capabilities.
The next generation of wireless technology could affect a wide range of industries, from healthcare to financial services to retail. The technology enables faster data transfer speeds -- up to 10x faster than the speeds achievable with older standards -- lower latency, and greater network capacity. As a result, 5G creates a tremendous opportunity for numerous industries, but also sets the stage for large-scale disruption. Download the free report to understand what 5G is, the industries it's disrupting, and the drivers paving the way for its implementation. As of June 2021, commercial 5G services have already been deployed across more than 1,500 cities in 60 countries worldwide, according to Viavi Solutions. The number of IoT devices -- which will rely on 5G to transmit vast amounts of data in real time -- is projected to grow from 12B in 2020 to 30B in 2025, per IoT Analytics, more than 4 devices for every person on Earth. Executives across industries are already jostling to take advantage of 5G tech -- and avoid being disrupted by it. Earnings call mentions of 5G have soared in recent years. From enabling remote robotic surgery and autonomous cars to improving crop management, 5G is poised to transform many of the world's biggest industries. The impact of 5G on manufacturing could be huge. It's estimated that improved connectivity through 5G will create $13T in global economic value across industries by 2035, according to IHS Markit. A third of that total is projected to come from the manufacturing sector alone. This would enable manufacturers to build "smart factories" that rely on automation, augmented reality, and IoT. And with 5G powering large amounts of IoT devices and sensors around the factory, artificial intelligence can be integrated more deeply with operations. On fast-paced assembly lines, even microseconds of latency can cause costly disruptions for the manufacturer.
The current whirlwind of disruptions buffeting the automotive world have created a massive value-chain disconnect. When viewed through the lens of tomorrow's product requirements, one thing becomes clear: you can't easily get there from here. McKinsey has identified four major disruptions facing the industry today (Exhibit 1). Collectively known as "ACES"--for autonomous vehicles, connected cars, electrification, and shared mobility--these trends will ultimately drive a change in the way the automotive industry develops cars (see sidebar "ACES: The four trends shaping tomorrow's cars" for more detail). We believe tomorrow's cars will be autonomous, connected, electrified, and shared (ACES). They will be fully autonomous, with no driver.
As well as being much faster than previous'G's, it is also set to open up lots of new use cases for mobile data – and that, hopefully, means new business opportunities. These include the potential to launch brand new products and services which weren't possible before, moving into new markets and increasing productivity. Some countries such as South Korea, China, Japan and the US are looking to launch 5G networks later this year (2018) or early next. In the UK, rollout isn't set to begin until 2020, according to the government's 5G strategy, though some network operators may start rolling it out in late 2019. But while it might be a way off it's worth knowing what 5G may be able to offer your business, so you can start preparing.
With the recent advances in technology, it's hard to know where to put your attention. For example, 5G hasn't taken off as fast as people would have hoped, but the possibility of combining it with artificial intelligence (AI) may lead to considerable innovations in the next few years. A decade from now, the combination of AI and 5G networks will have revolutionized how business gets done in our everyday lives. They'll receive this requested information almost instantaneously due to the vast bandwidth provided by 5G. This high-speed data connection will open up new opportunities.