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The advent of 5G technology has sparked a revolution in digital transformation, reshaping industries, and redefining the way we connect, communicate, and conduct business.
As the fifth generation of wireless technology, 5G promises lightning-fast speeds, ultra-low latency, and massive connectivity, laying the groundwork for unprecedented advancements across various sectors.
In this article, we delve into the profound impact of 5G on driving digital transformation and explore the exciting possibilities it holds for the future.
When 5G (fifth-generation mobile technology) was launched in 2019, the world was already sitting up in anticipation.
5G distinguishes itself by enabling considerably faster download and upload speeds, thereby widening its spectrum of potential applications.
5G technology pledged quicker data speeds, improved response times, increased device densities, enhanced reliability, and greater availability. It currently stands as the latest standard in cellular networks, designed to supersede previous iterations such as 3G, 4G, and 4G LTE.
Employing radio waves for data transmission akin to its predecessors, 5G distinguishes itself by enabling considerably faster download and upload speeds, thereby widening its spectrum of potential applications.
Each of the generations of mobile technology has brought tectonic shifts to the world. For instance, 4G facilitated the current era of smartphones, app stores, and platforms like YouTube. Now, with the advent of 5G, our professional and personal spheres are poised to undergo a complete transformation, paving the way for applications such as connected vehicles, Augmented Reality (AR), and elevated video and gaming experiences.
5G technology is still in the early stages of its lifecycle, and industry leaders are watching eagerly for its maturation.
Until recently, the adoption of 5G has been propelled by relatively mature markets. However, we are seeing 5G technology now being driven by diverse new markets and audiences.
The 5G market is expected to grow fast. As per estimates from Ericsson’s Mobility Report, by the conclusion of 2023, global subscriptions for 5G smartphones surged past 1.5 billion, and are projected to exceed two billion by the end of the current year. This milestone indicates a faster adoption rate for 5G compared to the trajectory of 4G.
Regarding enterprise investment in 5G, findings from Ernst and Young (EY) indicate that the US is at the forefront, with 35% of organizations currently allocating funds. This trend is further bolstered by increasing levels of both present and anticipated investment within the region: 89% of companies now have ongoing or forthcoming 5G investment initiatives, marking a rise from the preceding year’s 72%.
North-East Asia and the Gulf Cooperation Council countries, too, are expected to have high 5G subscription penetration, according to Ericsson. A key driver of growth in these regions stems from the transition to digital payments across various markets due to the impact of the Covid-19 pandemic, alongside heightened competition and favorable regulatory frameworks.
Furthermore, India and Brazil are also expected to increase their 5G subscriptions. In India, this has been influenced by rollouts of 5G services in numerous cities, including Mumbai, Kolkata, and Delhi.
As businesses increasingly recognize the potential of 5G and the Internet of Things (IoT) in fostering expansion, it becomes imperative for vendors to adapt to evolving use case requirements.
Essential to this strategy is the alignment of solutions with shifting business demands, while also integrating 5G and IoT with complementary technologies like artificial intelligence (AI) and edge computing to fully leverage their combined benefits.
EY reports that 57% of enterprises intend to allocate investments towards 5G within the next one to three years. Some of the most prominent industries set to benefit from 5G investments include healthcare, manufacturing, energy and utilities, agriculture, and transport.
Note that the 5G network is being used in fascinating and sometimes unexpected ways. For instance, in the field of aquaculture, JET Connectivity introduced a floating 5G and live data systems, tailored to enhance worker well-being and reduce carbon emissions.
Here is a closer look at the areas that 5G is expected to impact.
Healthcare
Within the healthcare sector, 5G is already facilitating enhanced efficiencies, deeper data insights, and advancements in patient outcomes. Indeed, the market for 5G in healthcare is expected to grow to $239.2 billion by 2032.
It is empowering healthcare professionals to explore innovative treatments, conduct critical procedures remotely through robotics, and access patient information seamlessly across diverse locations.
For example, the University of Glasgow has developed a 5G-enabled remote specialist featuring a bi-directional robotic arm, enabling patients to remotely access healthcare.
Here are some expectations of how 5G will impact healthcare:
Smart Cities
Smart cities, powered largely by IoT, are on the rise. In the EU alone, the number of IoT active connections is expected to reach 53.63 million by 2025, up from 1.01 million in 2016.
The capacity to interconnect various urban functions – from traffic management to energy utilization to waste disposal – enables the collection of data aimed at enhancing services, improving quality of life, and mitigating environmental impact. Such cities are characterized as “smart.”
However, the only feasible means to adequately support the myriad devices and sensors necessary to realize such advancements is via the adoption of 5G technology.
Already, governments are spearheading enhanced productivity and efficiency gains at reduced expenses through innovations enabled by 5G. Cities are harnessing the combined power of 5G and edge computing for tasks like crowd management and infrastructure surveillance.
Additionally, with 5G stand-alone architecture, transportation systems, spanning from tugboats to trains, can be seamlessly connected. Moreover, cities can integrate real-time asset tracking and deploy autonomous robots for virtual validation and inspection of inventories and supplies.
An example of the push towards smart cities would be Las Vegas, which is constructing a dedicated 5G network to link its municipal government, public schools, tourism, and resident services. Juniper Networks will undertake the construction of this network, aligning with the city’s objective of transforming into a leading smart city model by 2025.
Supply Chains
As the proliferation of 5G connectivity continues, supply chains worldwide stand to gain from its rapid speeds and enhanced reliability.
With the increasing digitization of global trade networks, there is a growing dependence on high-speed data transmission and the capabilities of 5G networks.
The greater the level of digitization and automation within a supply chain, the more opportunities there are to utilize 5G technology, resulting in heightened efficiencies, cost reductions, and improved security measures. Think streamlined logistics operations, optimized fleet management, and smart inventory and warehouse management.
An example of streamlined logistics operations would be the Port of Livorno, one of Italy’s largest seaports and a crucial hub of commercial activity. With an annual influx of around 7,000 ships and 30 million tons of cargo, the port collaborated with Ericsson to devise an integrated 5G-based management solution network.
Anticipate a significant expansion of 5G connectivity in the near future, promising to enhance both employee and customer experiences.
The solution yielded benefits by optimizing vessel mooring times and boosting productivity, resulting in an estimated annual saving of €2.5 million.
Currently, 5G services are being implemented in crucial logistics hubs such as airports, ports, and train stations, vital to supply chain infrastructure. However, the full potential of 5G remains largely untapped.
Anticipate a significant expansion of 5G connectivity in the near future, promising to enhance both employee and customer experiences.
Ongoing pilot programs include the integration of IoT devices, like shelf sensors capable of detecting and automatically reordering out-of-stock items, cashier-less checkout systems, and the utilization of HD cameras and drones to bolster security measures, replacing traditional security guards.
Fixed Wireless Networks
‘Fixed’ wireless connections, which provide internet access through radio waves rather than traditional cable or fiber optics, have the potential to extend affordable internet access to a broader range of people and locations.
In a fixed 5G setup, an antenna affixed to a residence or business establishes a connection with the nearest 5G transmitter. These 5G fixed wireless networks offer comparable speeds, reliability, and connectivity to fiber or cable connections but at a significantly lower cost.
Extending internet connectivity, particularly through wireless means, plays a crucial role in lifting millions out of poverty annually.
A 5G technology capable of delivering similar benefits at a reduced cost to millions holds the promise of revolutionizing access to internet connectivity, particularly in underserved communities that have long lacked such access.
Edge Computing
According to a report by MarketsandMarkets, the global edge computing market size is projected to reach $111.3 billion by 2028, shooting up from $53.6 billion in 2023. This surge can be largely attributed to the integration of 5G networks.
Edge computing, a computational framework heavily reliant on 5G to execute computations nearer to data origins, is poised to empower enterprises with greater data control and faster insights extraction.
Through edge computing, enterprises can establish robust and secure IoT environments comprising numerous devices, free from concerns regarding bandwidth constraints.
In the near future, edge computing has the potential to enable real-time AI analysis of vast data volumes across various applications, ranging from fitness and health apps to remotely operated vehicles like satellites and drones.
Given its potential, the adoption of 5G-enabled edge computing is rapidly becoming the norm for enterprise data processing.
A robust digital infrastructure is increasingly crucial for a nation’s competitiveness. Its significance will only grow in 2024 and beyond. Policymakers are playing a pivotal role in fostering and bolstering these advancements.
Nations with proactive governance, such as Singapore and India, have already formulated ambitious digitalization strategies anchored in 5G and serve as models to emulate.
With exponential technologies at our disposal, we should aspire towards digital reinvention. Silverskills provides comprehensive digital transformation services, including data and analytics, cloud adoption, labs, software engineering, and more.
Together, we have the opportunity to facilitate connectivity across all facets of society, from vehicles to clothing, building materials, and even realms yet to be imagined. Are you prepared to embark on your digital transformation journey? Contact us now for digital transformation solutions.
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