KISTA, Sweden, Nov. 17, 2020 /PRNewswire/ --
- 5G could drive up to USD 31
trillion in cumulative consumer revenue in the ICT industry
by 2030
- Communications service providers (CSPs) could earn up to
USD 3.7 trillion in cumulative
5G-enabled consumer revenues by 2030
- Augmented Reality (AR) could drive more than half of all
consumer spending on immersive media by 2030
The 5G consumer market could be worth USD
31 trillion by 2030 globally, according to the new
Harnessing the 5G Consumer Potential report from Ericsson (NASDAQ:
ERIC) ConsumerLab. The report estimates that communications service
providers (CSPs) could earn USD 3.7
trillion of that total - a figure that could increase
further as new adjacent digital services opportunities arise.
The report also estimates that CSPs could generate up to
USD 131 billion by 2030 from digital
service revenues alone, by proactively bundling and marketing 5G
use cases. About 40 percent of these revenue projections are
attributed to consumer spending on enhanced video, augmented
reality (AR), virtual reality (VR) and cloud gaming over 5G
networks. The report projects that AR is likely to drive more than
half of all consumer spending on immersive media by 2030 - starting
with gaming and extending to other areas like shopping, education
and remote collaboration.
Key findings also highlight how the impact of the COVID-19
pandemic on personal finances and financial priorities may have
affected consumers' willingness to pay a premium for 5G
subscriptions. In early 2019, the average consumer was willing to
pay a 20 percent premium for 5G. As 2020 draws to an end, that
figure has dropped to 10 percent. However, one in three early
adopters globally are still willing to pay a 20 percent premium.
Such high levels of early adopter take-up could help drive economic
recovery, according to the report.
The report also projects that by proactively driving 5G consumer
adoption, CSPs could gain 34 percent higher 5G average revenue per
user (ARPU) by 2030. This could boost consumer revenues at a
compound annual growth rate (CAGR) of 2.7 percent compared to flat
revenue growth of 0.03 percent by taking a passive approach across
the decade.
Jasmeet Singh Sethi, Head of
ConsumerLab, Ericsson Research, says: "This is the first time that
Ericsson has presented a revenue forecast for the 5G consumer
market, which remains the core business of communications service
providers. Through our research, we have highlighted the role of
use case development, tariff innovation, quality 5G coverage and
ecosystem partnerships to unlock the true potential of this market.
It is clear that 5G will drive enormous opportunities for CSPs in
consumer business over the decade. As this journey is already
underway, those CSPs that quickly and proactively evolve their
consumer propositions are likely to be bigger winners."
The report also highlights the enabling role technologies such
as edge computing and network slicing will play in helping service
providers to secure 5G-enabled consumer revenue. This could come
from core digital services like cloud gaming and augmented reality
applications, or adjacent digital services, such as in-car
connectivity and associated safety features.
In May 2019, Ericsson ConsumerLab
released a report that measured consumer interest across more than
30 use cases and their willingness to pay for them. The new 5G
Consumer Potential report builds on those insights through business
potential forecasts, both for service providers and the larger ICT
ecosystem.
Download the Harnessing the 5G Consumer Potential report.
Webinar: register and join us for the related November 18 Harnessing the 5G Consumer Potential
webinar.
Related links:
Ericsson ConsumerLab: The Voice of the Consumer
Ericsson: 5G for Consumers
Ericsson Mobility Report: June
2020
Ericsson ConsumerLab: 10 Hot Consumer Trends 2030
Ericsson ConsumerLab: 5G Consumer Potential 2019
Ericsson 5G
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ABOUT ERICSSON:
Ericsson enables communications service providers to capture the
full value of connectivity. The company's portfolio spans Networks,
Digital Services, Managed Services, and Emerging Business. It is
designed to help our customers go digital, increase efficiency and
find new revenue streams. Ericsson's innovation investments have
delivered the benefits of mobility and mobile broadband to billions
of people around the world. Ericsson stock is listed on Nasdaq
Stockholm and on Nasdaq New York. www.ericsson.com
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