5G-enabled industries have the potential to add $8 trillion to global GDP by 2030, claims a new report from Nokia and Nokia Bell Labs
The 5G Business Readiness Report highlights the potential of 5G to drive sustainable economic growth, boosted in part by the Covid-19 pandemic’s acceleration of digitisation, particularly among the least digitally advanced industries.
The report draws a clear correlation between 5G deployment and business performance, with companies at an advanced level of 5G adoption being the only group to experience a net increase in productivity (+10%) since Covid-19, and the only group able to maintain or increase customer engagement during the pandemic.
5G mature companies are also growing considerably faster than their peers, with 49% of firms in the expansion phase and 37% in the implementation phase – the two most advanced stages of 5G maturity – achieving rapid growth last year, compared to 20% in the planning phase, 11% in the discovery phase and 5% in the passive phase.
Nokia is anticipating a big increase in 5G investment as enterprises advance their digitisation programmes, with 71% of large companies planning to invest in 5G over the next 5 years.
While the report highlights the benefits of investment in 5G, it also reveals low levels of 5G maturity across the eight economies analysed – Australia, Germany, Finland, Japan, Saudi Arabia, South Korea, the UK and the US.
Just 7% of companies (4% in the UK) are categorised as 5G mature, with 50% at the midway point between planning and deployment on the 5G readiness scale i.e. still conducting trials/pilots or early stage deployments such as 5G mobile phones or limited 5G connectivity for fleet services or rural locations.