5G Set to Give Manufacturing Sector $740 Billion Boom
The global manufacturing sector is set for a 5G-inspired boom worth more than $700 billion by 2030, according to new research.
A report published this week by 5G leader Huawei and consulting firm STL Partners outlines how the new generation of connectivity can grow manufacturing GDP by four percent.
5G will both reduce costs and unlock new income streams for the manufacturing industry, making it easier to monitor and analyse production in real-time, using far more data than has ever been possible before.
This will help factories and production lines reduce machine downtime, cut down on wasted resources and minimise defective output. It can also help reduce the skills gap and improve health and safety.
The report also finds the benefits of 5G will not immediately be felt equally around the world, with high income countries that already contribute the most to global GDP benefitting first, given they have the most money to reinvest in to adopting new technologies. However, as we reach 2030, this disparity and imbalance will start to be redressed.
The report challenges the manufacturing industry to build an understanding of 5G and its benefits, input into the development of common standards and regulation and look for ways to collaborate with telecoms operators.
It concludes:
“We have demonstrated that 5G has unique capabilities that can be leveraged by the manufacturing industry to introduce new use cases and ultimately help the sector increase productivity and improve efficiencies, as well as transform business models more fundamentally.
“However, for the manufacturing industry to take advantage of the benefits of 5G, it will need to take an active role to make sure that 5G evolves quickly to include technological advancements that will support new use cases (i.e. those that require ultra-reliable low latency) and be deployed in (remote) areas close to manufacturing hubs.”
Victor Zhang, Senior Vice President at Huawei, said: “In a world where we are seeing economic slowdown, and manufacturing in many regions facing significant challenges, 5G provides great opportunities to transform this important sector.
“But if we are to maximise this chance, we have to act quickly. That means the industry working with government and regulators to push ahead with the rollout of 5G for the benefit of our economy.
“5G represents a $740 billion boom for our manufacturing sector. We stand ready to work with industry to make it happen.”
New 5G mobile technologies are set to create an extra $1.4 trillion in gross domestic product (GDP) for worldwide economies over the next decade, according to the new research.
For the full report, please contact STL Partners on +0207 247 5003 or email: contact@stlpartners.com