The much-anticipated 5G era is in progress and it is expected to take no more than two to three years for the new network to acquire the billion-user mark. Compared to four years for 4G and 12 years for 3G, it is a very progressive pace that is never seen before. As it is, America and China have taken the lead in 5G implementation. Even Singapore is expected to have nationwide 5G coverage by 2025.
The rapid implementation points to the optimism behind the 5G technology and how it is going to push the boundary for both consumers and enterprise users. With 5G promising download speed that is 10 to 50 times faster than previous generations of cellular networks, market experts are hopeful that it is going to revolutionise the wireless future in profound ways.
Reimagining the Future with 5G
1. Mainstream Adoption of 5G
According to the June 2022 Ericsson Mobility Report, there will be one billion 5G connections by the end of 2022, 3.6 billion by 2025, and 4.4 billion by 2027. Even though a survey conducted by Deloitte earlier this year has found that 73 per cent are not proactively seeking to upgrade their network, the increasing number of 5G devices that are being rolled out to the market is indicative of the eventual rise in 5G usage.
2. 5G Implementation Is in Progress
493 operators in 150 countries and territories have invested in 5G. Of those, 214 operators had launched one or more 5G services and 205 operators in 80 territories had launched 5G mobile services. These stats are tangible testaments of the rapid 5G implementation across the globe.
Progressing in tandem is the rate of 5G adoption, which is expected to accelerate with the Internet of Things (IoT) connections in Northeast Asia, particularly in Japan, South Korea, and China. In a report by J.P. Morgan Research, Japan and South Korea are expected to see 150 million IoT connections by 2025, while China may see 2.5 billion connections.
3. The Future of 5G Lies in Enterprise
5G's fast network speed and low latency presents tremendous potential for businesses. T-Mobile has highlighted that sectors such as healthcare, manufacturing and warehouse management, field operations, as well as agriculture are most likely to experience massive transformation with the new technology. The energy sector that uses connectivity applications for solar technology and communities (such as business parks and campuses) that require private fixed wireless networks are also user groups that will reap the most benefits.
Global enterprise opportunity enabled by 5G is expected to exceed US$700 billion, with North America being the primary driver for over US$180 billion worth of commercial possibilities by 2030.
4. 5G's Short and Long-Term Gains
The benefits that come with 5G technology can be broadly defined in two groups:
- Short-term gains over the next two years when consumers will witness significantly faster downloading speeds, better video quality, and the increased ability to troubleshoot via apps in smart devices (IoT).
- Long-term gains that are most likely to happen three to five years down the road, are more accessible when 'smart city' concepts start to drive the need for 5G adoption. It is also at this phase that 5G will impact the connected vehicle sector and industrial/enterprise transformation more rapidly.
6. Demand from the Telecommunications Sector
Market players in the telecommunications sector believe that 5G will create new revenue streams through new business opportunities and new services. Because of the nagging gripe about 4G due to its latency issues and heightened expectations that 5G can do better, telecommunications companies can leverage the new networks to revitalise their value propositions and charges.
It is hard to predict how many new services will be borne out of 5G development, but at the very least, the arrival of this new technology will finally take artificial intelligence and virtual reality to the next level. This naturally means more innovative outlets for the digital-hungry generation and more business opportunities for those in the telecommunications sector.
Challenges That Impede 5G Progression
While it is not immediately clear what the future of 5G will even look like, market experts agree that the new network technology will transform that digital landscape and revitalise the marketplace with new and improved services. However, it is not a clear road ahead.
First, there is the concern of costs. Adding 5G network infrastructure components means more hardware and supporting software are necessary. On top of these are the costs to buy spectrum licences, configure, test, and manage networks. Then there are deployment obstacles that include the need for fibre backhaul connections. Without fibre, it is impossible to access the network, and it can take a long time to lay fibre across cities. Next, there is a need to create new use cases for 5G, which will not be easy. The 4G network standard focused on providing fast mobile internet access, but this time, the requirements are different as more and more devices become connected.
Efficient and Cost Effective 5G Implementation with PCI
There is no doubt that 5G is here to stay and the best way to tap on this new technology for business advancement is to pair up with a reliable electronics manufacturing services provider that can add value to your 5G devices.
PCI is highly equipped to help you design and manufacture sub-6 GHz and integrate their respective antennas into your 5G related products. With our knowledge and expertise in 5G RF design, troubleshooting, performance measurement, optimisation, and certification, we are well positioned to help our customers get to market quickly and ensure that their products meet the highest standards for quality and performance.
For businesses seeking the services of an EMS provider, you can either email or call us to discuss a project, and we will outline what we can do for you, how much it will cost, and the timeline in which we will have it completed. Our dedicated customer service team will provide a comprehensive proposal customised to your requirements.
5G technology is set to revolutionise the way we live and work, with faster download speeds and more reliable connections. However, the rollout of 5G is not without its challenges. One of the key challenges is ensuring that your infrastructure can cope with the demand. PCI's EMS services can help with this by providing a scalable and flexible solution that can adapt to the changing needs of 5G. Our experience in delivering world-class electronics manufacturing solutions means we are well placed to support 5G-enabled projects, and our team of experts can provide valuable advice and support throughout the process.