A new piece of research from Nokia has examined the potential for 5G-enabled industries over the next decade, and found that those businesses that embrace 5G could add a potential $8 trillion to global GDP by 2030.
The report – titled the ‘5G Business Readiness Report’ – contains analysis from Nokia Bell Labs, enterprise survey findings from Sapio, and opinion from 5G experts around the globe, including Nokia executives, customers and partners.
The report claims that, despite the current uncertainty following the Covid-19 outbreak, a global boom in 5G investment is set to result in 71% of companies investing in 5G over the next 5 years, with ‘5G mature’ companies growing faster and benefiting from a net increase in productivity of more than 10%.
“As organizations across the world move faster towards deployment of 5G enabled technologies, those who wish to be the first to leverage its potential cannot afford to lose more time,” said Gabriela Styf Sjöman, chief strategy officer at Nokia. “To capture the tremendous opportunities of 5G, organizations must start or intensify their planning now and accelerate business model innovation to remain competitive in a rapidly digitalizing global economy. Beyond investment in the technology itself, this will require digitalizing operations, processes and ways of working to capture the full potential of 5G.”
Model looks at eight economies
Nokia’s 5G Business Readiness Model reveals that across eight economies – Australia, Germany, Finland, Japan, Saudi Arabia, South Korea, the UK and the US - 50% of companies are at the midway level of 5G readiness, compared to just 7% that are classed as 5G mature. And while 13% of organizations in Saudi Arabia and 12% in the United States rated as 5G mature, fewer than one in 20 were classed as such in Germany (3%), Finland (2%) and the UK (4%).
“5G adoption is categorically shown to fuel business success,” explained Sjöman. “Organizations that have integrated 5G stand to benefit from advantages that go way beyond faster, more efficient and reliable network services. The cities, hospitals and factories of the future depend on 5G and the unparalleled ability it offers to move, process and store vast volumes of data. Moreover, the biggest challenges we face as a society – from climate change to the pandemic – can be better tackled through at-scale use of the data and technologies that 5G will unleash.”
The report also highlights a clear correlation between 5G deployment and performance, with companies at an advanced level of 5G adoption seeing a net increase in productivity of more than 10%, with 49% of these mature companies in the expansion phase, and 37% in the implementation phase.
And despite the economic uncertainty, and the considerable challenges faced by business in the Covid era, Nokia’s research suggests that 72% of large companies will invest in 5G over the next 5 years.
You can view the full interactive report here: https://www.nokia.com/networks/5g/readiness-report/ (opens in new tab)