RESEARCH REPORT

In brief

In brief

  • This report outlines the profound impact of 5G on the economy.
  • Our economic modeling analysis shows 5G will drive sales growth in the next five years, create jobs and add to the European GDP.
  • We examine the technological state of five key industries with applicable 5G use cases, growth opportunities and recommend acceleration levers.
  • 5G is a force of economic growth and resiliency, unlocking the potential of Artificial intelligence (AI), edge computing and Internet of things (IoT).


The impact of 5G on the European economy

5G is the world’s next technological breakthrough and hugely significant upon the European economy. In this report, we examine the economic benefit driven by 5G.

Our economic modeling analysis shows the impact of 5G on the European economy from 2021-2025 in several ways:

€2.0T

The impact of 5G on the European economy in additional gross output (sales) growth.

€1.0T

5G will directly add to the European GDP, larger than the annual GDP of 91% of the world’s economies.

20M

New jobs created by 5G through Europe, equal to 10% of the total number of European jobs in 2019.

2.0X

Multiplier effects amplified in every industry. Total jobs created in the Information and Communications Technologies (ICT) sector.

GDP & Job Growth in Europe

5G labor effect

5G will generate significant employment throughout the economy, creating as many as 10% more jobs that were available throughout the entire 2019 economy. A mix of part- and full-time jobs, in many sectors these jobs represent high-quality employment at prevailing wages, and industries.

5G industry transformation

5G can offer rich bi-directional communications, 1000 times more connections for sensors and devices, and ultra-reliable sub-millisecond response.

These capabilities enabled by 5G drive a variety of use cases, paving the way for the economy to realize the cross-industry benefits of magnified connectivity. These innovations impact trillions of dollars.

5G shapes key industry use cases and drives significant outcomes for companies and people, alike.

Manufacturing

5G-enabled factories experience about 20-30% overall productivity gains including 50% in assembly time, 20% in asset life and 90% in defect detection.

Agriculture

Improved connectivity and digitization can yield up to 25% increased productivity, 20% decreased costs, and 15% increased crop yields.

Healthcare

5G allows more remote post-acute care, home-based models, with savings greater than 30% and driving better patient outcomes.

Automotive

Connected vehicle technologies reduce the severity of non-impaired accidents by 80%, save $3.6 billion in collision costs and reduce traffic by 25%.

Utilities

Two-way communication energy grids using smart sensors and meters can save households billions of dollars, and drive down 12% of energy use.

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5G will lead to the creation of industries not yet imagined. There are tangible and realizable acceleration opportunities to speed up the deployment process and maximize the benefits.

5G acceleration opportunities

The benefits of 5G are immense, but require critical mass of network deployment, R&D and production of new devices across industries, along with significant investment from every major sector in the European economy. There are prominent opportunities to accelerate this benefit, securing Europe’s role as a 5G leader:

Intellectual property (IP), technology & ecosystem

Create a 5G national strategy for innovation, industrial and ecosystem support with IP legal protection.

Resilient wireless technology supply chain

Develop policy to foster innovation and design within semiconductor, wireless device, and network equipment industries.

Build out the radio access network (RAN)

Open RAN, enables interoperability and standardization of RAN functions to make integration across the RAN ecosystem easier and to drive down costs.

End user return on investment

Establish subsidies and tax incentives to encourage pilot projects.

Mid-band spectrum availability

Prioritize and accelerate the release and allocation of critical mid-band spectrum, especially bands that are planned for global harmonization.

Regulatory restrictions

Foster collaboration in the private sector and government to promote enhanced security and economic benefits and accelerated timelines for 5G success.

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About the Authors

Jefferson Wang

Managing Director – Technology, 5G Strategy & Go-to-Market, Global


Hillol Roy

Managing Director – Technology, 5G Product & Offering, Global


Syed Alam

Managing Director – Semiconductor Industry Lead, Global


Tejas Rao

Managing Director –​ Technology, 5G Ecosystem & Partnership, Global


Samir Ahshrup​

Senior Manager – Strategy & Consulting, Technology Strategy & Advisory


William McCluskey

Manager – Strategy & Consulting, Communications & Media

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