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New analysis of 5G - the next generation of mobile connectivity - estimates the impact of new and existing applications.
Over half the global economic impact (US$530bn) will be driven by the transformation of health and social care within the next ten years; a quarter by smart utilities driving savings in energy, water and waste management.
Large manufacturing-based economies are likely to gain the most, including the United States (USA), China and Japan, but gains are projected globally as 5G integrates as a critical part of societal infrastructure.
Transparency is critical to building trust with consumers and regulators 5G's application.
LONDON, Feb. 8, 2021 /PRNewswire/ -- Productivity and efficiency gains enabled by 5G's application will drive business, skills and service change worth US$1.3 trillion to global GDP by 2030.
In Powering Your Tomorrow, PwC quantifies for the first time, the economic impact of new and existing uses of 5G in utilities, health and social care, consumer, media, and financial services across eight economies with advanced rollout: Australia, China, Germany, India, Japan, South Korea, USA and the United Kingdom (UK).
More than a faster version of mobile connectivity on 4G, 5G's speed, reliability, reduced energy usage and massive connectivity will be transformative for businesses and wider society, enabling ubiquitous access to super fast broadband. Used in combination with investments in artificial intelligence (AI) and the internet of things (IoT), 5G can be used as a platform to enable business and society to realise the full benefits of emerging technology advances.
Economic gains are projected across all economies assessed in the study, as 5G offers the potential to rethink business models, skills, products and services, with the gains accelerating beginning in 2025 as 5G-enabled applications become more widespread
Based on the study, the USA (US$484bn), China (US$220bn) and Japan (US$76bn) will experience the largest uplift as a result of 5G technology applications, due to the size of their economies and strong modern industrial production sectors.
At a regional level Europe, Middle East & Africa (EMEA) is expected to benefit the most from manufacturing applications of 5G, due to the size of the manufacturing sectors. It demonstrates the potential for regional competitive advantage through approaches to the adoption and regulation of the technology.
Wilson Chow, Global Technology, Media and Telecommunications Industry Leader, PwC China, comments:
"These numbers quantify impact, but perhaps more important, our study reflects the value of 5G - new levels of connectivity and collaboration mean companies will be able to see, do and achieve more. It will open up new opportunities for growth and change as organisations rethink and reconfigure the way they operate in the post-pandemic world.
"With the pandemic accelerating digitalisation across all sectors, 5G will act as a further catalyst. It will emerge in this decade as a fundamental piece of our societal infrastructure and as a platform for driving the competitiveness of national economies, new business models, skills and industries."
Achieving better, faster outcomes in health and social care
Over half the global economic impact (US$530bn) will be driven by the transformation of health and social care experience for patients, providers and medical staff within the next ten years.
While the acceleration of telemedicine during the COVID-19 pandemic provided a glimpse of the future of healthcare, remote care is just one area in which 5G can enable both better health outcomes and cost savings.
5G's applications include remote monitoring and consultations, real time in-hospital data sharing, improved doctor-patient communications and automation in hospitals to reduce health care costs.
Regional & Sector impacts
At a sector level, impacts vary for individual economies. The USA and Australia are projected to gain the most from financial services applications: India from smart utilities; China and Germany in manufacturing. Other industries analysed in the study show the significant potential of new and existing applications over the next decade, driving changes in skills, jobs, consumer products and regulation:
Wilson Chow comments:
"5G is more than mobile connectivity. It puts a new lens on advancing productivity and rethinking entire business models for the future. Given the scale of potential and its impacts, every organisation will need a plan for 5G's implementation within five years across technology and business strategies to maximise opportunities and prepare for how they integrate their technology and business strategies, and engage with customers, supply chain and regulators."
Policy & Trust
The study highlights that the reach of 5G's technology potential will require businesses and government to consider new approaches to regulatory and consumer engagement - focusing on how the technology is used.
Wilson Chow comments:
"With any technology, policy engagement, transparency and public trust are critical factors. Whether it's considering the use of self driving vehicles or telemedicine, how data is managed, infrastructure deployed, or how different sectors collaborate, business and government need to shit from focusing on regulating a technology, to promoting transparency in 5G's application, building and sustaining public trust in its use and potential."
Download the report here
About the report
PwC drew on expert insight and using economic modeling, to examine the impact of 5G's use across five industries. The projections in this study represent the net economic impact of 5G technology, taking into account displacement effects such as some economic activities becoming obsolete and focusing on economic value added across value chains and throughout the economy, rather than only the revenues of 5G telecoms businesses. Further details on the methodology can be found here.
About PwC
At PwC, our purpose is to build trust in society and solve important problems. We're a network of firms in 157 countries with over 276,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com.
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