Nokia report says 5G could add $8 trillion to global GDP by 2030

James has a passion for how technologies influence business and has several Mobile World Congress events under his belt. James has interviewed a variety of leading figures in his career, from former Mafia boss Michael Franzese, to Steve Wozniak, and Jean Michel Jarre. James can be found tweeting at @James_T_Bourne.

The economic impact of 5G technologies continues to be assessed and calculated – and in its latest analysis, Nokia puts it at adding $8 trillion to global GDP by 2030.

In its 5G Business Readiness Report, which surveyed more than 1,600 technology decision makers in eight markets, Nokia outlines various stages of 5G maturity. Similar to the various reports on cloud computing maturity, organisations further down this road are growing faster and, more interestingly, are the only ones to experience a net increase in productivity (+10%) in spite of the Covid-19 pandemic.

In total, the figures are relatively promising. Almost half (49%) of companies analysed were in the ‘expansion’ phase of 5G development, where an organisation has successfully implemented 5G, measured its impact, and looking to increase its output. The next phase, ‘implementation’, where the business is either using now or will do so in the next six months, is at 37%.

On the other end of the scale, 20% are in the planning phase, 11% at the discovery stage, while only 5% of companies were deemed as ‘passive’, where the business had not explored 5G implementation in any formal sense.

86% of those polled said they had a strategy in place for 5G, with more than a third fearing being outpaced by competitors should they not invest in the coming three years. Yet while many companies talk the talk, they do not walk the walk; only 15% were currently investing. More than a quarter (29%) admitted they did not have plans for any 5G investment in the next five years.

There are various barriers to investment and adoption, the report noted. Alongsdide lack of awareness, cost and complexity and security – cited by more than one third (34%) of respondents – the most stark was a lack of available ecosytem. 28% of decision makers said limited availability of key infrastructure outside urban centres hampered them.

Gabriela Styf Sjoman, chief strategy officer, said 5G adoption was ‘categorically shown’ to fuel business success. “Organisations that have integrated 5G stand to benefit from advantages that go way beyond faster, more efficient and reliable network services,” said Sjoman.

“The cities, hospitals and factories of the future depend on 5G and the unparalleled ability is offers to move, process and store vast volumes of data,” Sjoman added. “Moreover, the biggest challenges we face as a society – from climate change to the pandemic – can be better tackled through at-scale use of the data and technologies that 5G will unleash.”

The report makes for interesting reading when compared with other recent research. Nokia, alongside Omdia, put a specific figure for the Latin American economy at $3.3tn by 2035 in August, while a report from 5G Americas noted the Covid-19 pandemic had still led to ‘healthy’ growth rates.
In total, Nokia put together three catalysts for change to facilitate wider adoption of 5G:

  • Government inevestment in infrastructure or subsidies to drive down costs: Enterprises will not adopt 5G unless the supply from network operators is presented and priced appropriately
  • Improving understanding: Companies and consumers need more information about the technology and how it can solve real world problems, from enterprise use cases, to telehealth, to green technology
  • Move to overhaul operations: As companies better understand 5G, they need to explore how it can be used to streamline and make their mobile workforce more effective

You can read the full report here (no email required).

Read more: Nokia reaches the 100 commercial 5G agreements milestone

Photo by Chronis Yan on Unsplash

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