The 5G revolution is well underway. Countries around the world are racing to deploy next-generation wireless networks that promise faster speeds, lower latency, and greater data capacity than ever before. As a result, the market for 5G technologies will encounter extraordinary growth in the coming years, as demand for high-speed mobile internet increases and new applications for 5G technology emerge.
According to a recent report by BCC Research, the global market for 5G technology should reach $228.6 billion by 2026, growing at a compound annual growth rate (CAGR) of 64.9% during the forecast period of 2021 to 2026. This eye-watering expansion is being driven by a number of factors. These range from the increasing demand for high-speed mobile internet, the proliferation of connected devices, and the development of new applications for 5G technology in areas such as the IoT, autonomous vehicles, smart cities, and industrial automation. But for the technology to be successfully implemented, some questions of security must be ironed out.
5G technology will have countless applications, but a significant area it will serve is the ever-expanding Internet of Things. Emerging applications and business models, combined with lowering device costs, have resulted in a sharp increase in the number of connected devices in recent years. The number of IoT devices with cellular connections is expected to grow from 1.9 billion in 2021 to 5.5 billion by 2027, according to the Ericsson Mobility Report.
So far, 3G and 4G has been a spanner in the works of the IoT revolution. 3G and 4G are admittedly limited in the number of connections they can support, the amount of data they can transmit, and most importantly, the speed they can offer. 5G promises to overcome these hurdles and help bolster the continued expansion of the IoT.
Not only does 5G boast superfast bandwidth, but it also has ultra-low latency in data communications and can support machine-type communications (MMTC). Unsurprisingly, manufacturers are drawn to the numerous gains – including shorter machine downtime, predictive maintenance, higher product quality, and more informed decision-making – that are part and parcel of IoT technology.
Industry 4.0 and smart cities are other projects made possible by 5G. By 2050, there will be around thirty smart cities across the world, with half of these based in North America and Europe. To support these projects, global investments would need to reach $1.8 trillion between 2010-2030 collectively. Unsurprisingly, these projects are creating ample opportunities for 5G technology.
When it comes to manufacturing, wireless technologies have previously played a limited role due to sound, vibration, and heat. 5G is expected to eliminate these issues, opening up a range of new possibilities for manufacturers and other end-users.