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Many analysts are claiming 5G will be the next big industrial revolution. The purpose of this article is to educate our audience about the important role 5G will have on a global scale, the changes it will bring to our day-to-day lives, the Internet of Things (IoT), and how best to capitalize on this paradigm shift.
*This Article is written by Euphoric Investment authors Jalen Williams, Marco Kruger, and Chloe Wade
The advent of mobile telecommunication and first generation technology was introduced in the early 80’s with the “Zack Morris” style cellular phone as it’s icon. These types of phones can be characterized as big and blockish with spotty reception. Much has changed in the evolution of cellular communication, mobility, its usage, and the extraordinary capacity these handheld “smart” devices have. In 2019, 66.5% of the world owns a handheld mobile device. Many of us rely on our smartphones to not only make phone calls but to pay our bills, receive news, trade stocks, business and educational purposes, share photos/videos with friends, and many other purposes in our daily lives. Every decade, a new generation of speed and network capability has been introduced, allowing us to rapidly connect while integrating more devices to create a broader network. We are at the cusp of 5G technology which many believe to be the catalyst that will interconnect nearly every thing. With the enhancement of network speeds and the amount of data it can maintain, 5G will drive significant changes in the efficiencies within many industries such as: manufacturing and lower cost output, healthcare industry improvements allowing for newer concepts like remote surgical procedures, Intelligent Cities and smart grid technology, and future tech with applied virtual and augmented reality (VR/AR) integration within our day-to-day living. 5G could even lead to concepts like cranial inserts for telepathic communication (already devised by Elon Musk) and many other creative solutions our world has not yet conceptualized.
(Source: Euphoric Investment)
(Source: IoT Analytics)
While countries around the globe continue to establish 5G technology, analysts continue to estimate the economic potential over the next few years. The widespread adoption of 5G will enable Internet of Things (IoT) technology to become more innovative, efficient, and reliable. In 2018, the IoT market was approximately $150 billion. As shown in the graphic above, this market is expected to grow to over $1.5 trillion by 2025, with a CAGR of 39%. This growth can be attributed to different segments within the IoT market. The industrial IoT space will grow as smart factories become more prevalent, while the IoT of healthcare will flourish due to remote monitoring, mobile platforms, and analytics.
The diagram below segments the economic growth potential by industry by 2025.
Source: (Grand View Research, Euphoric Investment)
While there is a difference of opinion among analysts, the consensus forecast of IoT is to be a trillion dollar industry over the next few years. For this to happen, 5G will need to come to fruition as the growth in IoT stems from 5G network capability.
The diagram below portrays how the 5G network would work.
(Source: Euphoric Investment)
5G technology will be a paradigm shift in the way we live our lives. Many analysts believe it to start our 4th industrial revolution. While it may seem premature to consider which companies to invest in in preparation for 5G, it may be closer than you think. We expect these companies to show lasting growth over the next decade due to 5G.