5G accelerates economic growth
February 26, 2021
February 26, 2021
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:
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5G will generate significant employment throughout the economy, creating as many as 10% more jobs*. The represents a mix of temporary, part-time and full-time jobs* across all industries.
5G can offer rich bi-directional communications support potentially one million devices per square kilometer and deliver ultra-reliable 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 euros.
5G shapes key industry use cases and drives significant outcomes for companies and people, alike.
5G-enabled factories experience about 20-30% overall productivity gains including up to 50% in assembly time, up to 20% in asset life and up-to 90% in defect detection.
Improved connectivity and digitization can yield up to 25% increased productivity, 20% decreased costs, and 15% increased crop yields.
5G allows the support of remote ICU beds enabling expanded ICU capability virtually.
Connected vehicle technologies reduce the severity of non-impaired accidents by up-to 70%, potentially saving €450 million in collision costs, while automotive trains will potentially reclaim more than €440 million in lost productivity.
Two-way communication energy grids using smart sensors and meters can save households billions of euros, and drive down 12% of energy use.
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.
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:
Create a 5G national strategy for innovation, industrial and ecosystem support with IP legal protection.
Develop policy to foster innovation and design within semiconductor, wireless device, and network equipment industries.
Open RAN, enables interoperability and standardization of RAN functions to make integration across the RAN ecosystem easier and to drive down costs.
Establish subsidies and tax incentives to encourage pilot projects, demonstrating the benefits & possibilities of the technology.
Prioritize and accelerate the release and allocation of critical mid-band spectrum, especially bands that are planned for global harmonization.
Foster collaboration in the private sector and government to promote enhanced security and economic benefits and accelerated timelines for 5G success.
*Includes full-time, part-time and temporary jobs; Assumes no labor supply constraints, some of these jobs will be replaced by upward pressure on prevailing wages instead; as the US labor market recovers, much of the ~10 million (Jan 2021) unemployed may fill jobs enabled by 5G.
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