5G accelerates economic growth
December 3, 2020
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 U.S. GDP.
- 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).
5G economic impact
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:
$2.7T
The impact of 5G on the US economy in additional gross output (sales) growth.
$1.5T
5G will directly add to the U.S. GDP, larger than the annual GDP from 94% of the world’s economies.
16M
New jobs created by 5G nationwide, equal to the 10% of the total number of U.S. jobs in 2019.
2.8X
Multiplier effects amplified in every industry. Total jobs created in the Information and Communications Technologies (ICT) sector.
GDP & job growth in the US with 5G
5G labor effect
5G will generate significant employment throughout the economy, creating 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 humans, 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.
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 reduce the severity of non-impaired accidents by 80%, save $3.6 billion in collision costs and reduce 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:
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 drive down cost.
Mid-band spectrum availability
Prioritize and accelerate the release and allocation of critical mid-band spectrum, especially bands that are planned for global harmonization.
End user return on investment
Establish subsidies and tax incentives to encourage pilot projects.
Intellectual property (IP), technology & ecosystem
Create a 5G national strategy for innovation, industrial and ecosystem support with IP legal protection.
Regulatory restrictions
Foster collaboration between the private sector and government to balance public and economic benefits along with accelerated timelines.
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