Ericsson 5G: Industry digitalisation worth $700bn by 2030


To realise the full potential of a 5G-empowered world, service providers will look to expand beyond traditional mobile network services for 5G-enabled revenues

The addressable industry digitalisation market in 5G for service providers could grow to about $700 billion by the end of the next decade, according to Ericsson.

A new report from the telecoms provider has identified new revenue opportunities for service providers in the changing 5G landscape.

5G is already opening new opportunities in the highly competitive telecommunications market. As 5G continues to roll out across the globe, service providers are asking for a panoramic view of the market to prioritise areas for future growth.

Where the report notes that by 2030, up to $700 billion of 5G-enabled business-to-business (B2B) value can be addressed by service providers, this corresponds to 47% of the total 5G-enabled market expected to be served by ICT players.

To realise the full potential of a 5G-empowered world, service providers will look to expand beyond traditional mobile network services for 5G-enabled revenues. For example, the evolution of cellular IoT and private networks is one of the keys to establishing momentum for 5G-enabled business revenues.

All industries studied (manufacturing, automotive, energy and utilities, public safety, healthcare, media and entertainment, public transport, financial services, retain and agriculture,) represent major value pools. Among use case clusters cutting across these industries, enhanced video services represent the largest value pool, with up to 17% or $118 billion of the total value by 2030.

The report highlights that while addressable market size is one key parameter, it must be balanced with other aspects. To help navigate the rapidly changing environment, the report outlines the drivers and barriers characteristic to each industry.

The report shows that revenues for currently available services are expected to remain stagnant through to 2030, whereas B2B digitalisation opportunities will grow at a much quicker pace.

If realised, 5G-enabled B2B opportunities addressable for service providers can account for up to 35% on top of revenues for currently available services by 2030. To be successful in capturing this potential service providers must act in the next five to seven years, while roles and marketshares are still being established.

Jan Karlsson, senior vice president and head of business area digital services, Ericsson, said: “With this compass we can better guide our customers in navigating in the 5G landscape beyond mobile broadband. However, the journey to grow the 5G business starts now by building momentum and identifying 5G-enabled B2B opportunities”

Covered use case clusters include enhanced video services, real time automation, connected vehicles and augmented reality plus virtual reality remote operations. Use case examples building up these clusters include immersive live streaming of events, real time operations and monitoring of distributed energy resources, and advanced performance autonomous cars and auto-pilot driving.

The Ericsson 5G for business: a 2030 market compass report has analysed and conducted an in depth look at the changes per industries since the 2018 report. The findings quantify the value of the potential addressable market for service providers based on more than 200 use cases across 10 different industries, and a set of 5G-enabled business-to-business (B2B) use case clusters.


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