© designersart dreamstime.com General | November 11, 2019
IHS Markit: 5G economy in the trillions by 2035
The IHS Markit 5G Economy Study, commissioned by Qualcomm Technologies Inc., is forecasting that 5G will generate USD 13.2 trillion in sales enablement by 2035.
According to a Qualcomm press release, “sales enablement” is a measure of global sales activity that 5G will enable across the 16 international standard industrial classification sectors. In a previous study of 5G sales enablement, released in 2017, the 2035 forecast was USD 12.3 trillion. According to IHS, the increase of nearly USD 1 trillion is related to early standard finalization and accelerated rollout of the network. At the 5G Summit in October, Qualcomm announced more than 30 live 5G networks and more than 40 OEMs have launched 5G-enabled devices, making it the fastest ever rollout of a cellular technology generation. The study also made other predictions. Regarding what the 5G global value chain will bring to the economy in terms of jobs, the study forecast that more than 22 million jobs will be supported by 2035, for an increase of 3.4% compared to what is supported at a similar level of output today. Additionally, the study showed an estimated investment of USD 235 billion annually to continue bolstering the 5G technology base. This number represents 80% of the total U.S. federal, state and local government spending on transportation infrastructure in 2017. Finally, the study predicts that the U.S. is will lead in cellular R&D and capital expenditures in the 5G mobile value chain with 27% average annual investment. China will follow closely behind, at 26%. IHS Economics Consulting Director Bob Flanagan said, “Like electricity and the steam engine before it, IHS Markit views 5G as a catalyst that will thrust mobile technology into the exclusive realm of General-Purpose Technology. The profound effects arising from these innovations range widely, from the positive impacts for human and machine productivity to ultimately elevating the living standards for people around the world.” As reported by Evertiq last month, Qualcomm Incorporated initiated the Qualcomm Ventures 5G Ecosystem Fund, a USD 200 million fund focused on companies who are bolstering the 5G ecosystem. In a company press release announcing the move, Qualcomm said the global fund will focus on startups demonstrating new and innovative 5G use cases, driving 5G network transformation and expanding 5G into enterprise markets.