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.