Report sees industry digitalisation market hit $700 billion by 2030
A report – 5G for business: a 2030 market compass, has estimated that the addressable industry digitalisation market for service providers could grow to about $700 billion by the end of the next decade.
The report, authored by Ericsson, identified new revenue opportunities for service providers and offers a guide for navigating the changing 5G landscape. The report is a follow-up to previous Ericsson reports in 2017 and 2018 – then called: The 5G Business Potential.
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 prioritize areas for future growth.
To realize 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.
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.
To support service providers, report recommendations covered an analysis of each industry, to outline existing drivers and barriers and provide guidance for how to succeed in new markets.
Senior Vice President and Head of Business Area Digital Services, Ericsson, Jan Karlsson, 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”
The report found that by 2030, up to $700 billion of 5G-enabled business-to-business (B2ßB) value can be addressed by service providers, which corresponds to 47 per cent of the total 5G-enabled market expected to be served by ICT players.
To capture share in this market, the report concludes that service providers must extend their reach beyond connectivity and consider what other roles within the B2B value chain to take, and what use case clusters to address. The report also said that service providers should act now.
All industries studied represent major value pools. Among use case clusters cutting across these industries, enhanced video services represent the largest value pool, with up to 17 per cent or $118 billion of the total value by 2030.
The report highlighted 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.
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