New Crown Pneumonia Effect Impacts The Industry, 5G and Broadband Will Become Top Priorities
Biden of the United States is hoping to finalize an
infrastructure construction bill, one of which covers 65 billion US dollars for
the construction of universal broadband networks. PwC stated that during the
COVID-19 blockade, the rise of e-commerce, streaming, video on demand, and
video telephony has made the launch of next-generation infrastructure such as
fiber optic broadband and 5G a necessity under commercialization and
politicization.
PwC pointed out that driven by strong demand for digital
content and advertising, the global entertainment and media (E&M) industry
worth more than US$2 trillion is expected to grow by 6.5% and 6.7% in 2021 and
2022, respectively. This is a new business opportunity that emerged after the
downturn in 2020, which was full of challenges due to the pandemic.
PwC said that covering the early stages of the 5G user
paradigm and the exponential growth of streaming media, coupled with consumers'
acceptance of new forms of experience, are the driving force for the
advancement of digital forces. In the future, as the industry makes adjustments
to changes in future consumption patterns, the dynamic changes in the E&M
ecosystem may continue to expand.
According to the PwC report, network access will account for
34% of E&M spending in 2020, and will grow at a compound annual growth rate
of 4.9%, allowing its market value to grow from US$694 billion in 2020 to
US$880 billion in 2025.
Secondly, mobile network access will continue to drive
market growth and grow at a compound annual growth rate of 6.1%. In the future,
supported by the popularization of 5G, the advancement of mobile phone
technology and the bundling of high-quality content, this market will reach a
scale of US$605 billion by 2025. During the forecast period, there will be
nearly 1 billion new smartphone users and 681 million new mobile network users.
Today, broadband networks have become the lifeblood of
consumers and businesses more than ever. Because during the new crown pneumonia
pandemic, connecting to the Internet has become a non-negotiable and necessary
life experience. In the future, as long as we continue to invest in wired and
wireless infrastructure, we will create more employment opportunities in
technology, manufacturing, engineering and construction.
JP Morgan predicts that 5G smartphone sales growth will
enter a rapid phase in 2021. In 2020, about 225 million 5G smartphones will be
sold globally, and it is estimated that 525 million will be sold in 2021. It
can be increased to 725 million in 2022.
However, JP Morgan believes that the biggest business
opportunity for 5G is still in enterprises. It expects that 5G will bring more
than 700 billion U.S. dollars in business opportunities to global enterprises.
As for North America, companies will continue to invest in 5G in the next ten
years, and there may be more than $180 billion in business opportunities in
2030.
JP Morgan said that fixed wireless networks are also very
important. In the future, they can improve connectivity through private 5G
networks deployed across organizations, regions or campuses. According to
Ericsson's prediction, 2026 will be the year when 5G will replace 4G
infrastructure and equipment and become a global wireless standard.