5G accelerates economic growth
February 22, 2021
RESEARCH REPORT
In brief
In brief
- This report outlines the profound impact of 5G on the economy.
- Our economic modeling analysis shows that, over the next 5 years, 5G will significantly drive sales growth, add to the U.S. GDP, and create & transform jobs*.
- We examine the technological state of five key industries with applicable 5G use cases, growth opportunities and recommend acceleration.
- 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 United States economy
5G is the world’s next technological breakthrough and hugely significant upon the American economy. In this report, we examine the economic benefit driven by 5G.
Our economic modeling analysis shows the impact of 5G on the US economy from 2021-2025 in several ways:
- 5G has the potential to create or transform up to 16 million jobs* across all sectors of the economy, which includes full-time, part-time and temporary jobs*.
- U.S. economy will drive up to $2.7 trillion in additional gross output (sales) growth.
- 5G will add up to $1.5 trillion to the U.S. GDP, larger than the annual GDP of 94% of world economies.
- Multiplier effects will be felt in every industry. For example, every job* created by 5G within the Information and Communications Technologies (ICT) sector will create an estimated 1.8 additional jobs* for a total of up to 2.8 total jobs* throughout the economy.
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GDP
Jobs
$0-10B
$11-20B
$21-25B
$26-45B
$46-200B
$200B-Up
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About the study
5G labor effect
5G will generate significant employment throughout the economy, creating as many as 16M jobs*. This represents a mix of temporary, part-time and full-time jobs* across all industries.
5G industry transformation
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 dollars.
5G shapes key industry use cases and drives significant outcomes for companies and individuals, alike.
Manufacturing
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.
Retail
5G creates in-store rich video streaming experiences, up to 50% increase in sales growth combined with human-focused processes and XR visualizations.
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 have the potential to reduce the severity of non-impaired accidents by up to 80%, potentially saving $3.6 billion in collision costs and possibly reducing traffic by 25%.
Utilities
Transmission line monitoring using smart sensors and drones reduce wildfire risk, potentially saving billions of dollars.
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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 U.S. economy. There are prominent opportunities to accelerate this benefit, securing America’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 policies to foster innovation and design within 5G value chain: semiconductor, wireless device, and network equipment, deployment & design.
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 & tax incentives to encourage pilot projects demonstrating the benefits & possibilities of the technology.
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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*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.
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