As of August 1st, 2019, the majority of IHS Markit’s Technology portfolio (excluding Energy and Power Technology, Automotive Technology, and Teardowns & Cost Benchmarking) has been acquired by Informa Tech, joining Informa’s other TMT research brands including Ovum, Tractica and Heavy Reading. Find out more here.

The 5G Promise


5G will revolutionize your business, but when and how?

Imagine downloading a high-definition movie in a matter of seconds or having your knee surgery performed by a robot operated by specialist who is a thousand miles away. 5G wireless technology will not only increase the speed that data can be transmitted from megabits to gigabits per second, it will also provide greater connectivity, reliability, capacity, and ultra-low latency – the time between a user’s request and an application’s response. In time, 5G will vastly improve current services across markets while opening space to invent new ones. Indeed, businesses around the globe await the rollout of 5G “killer apps” and innovative use cases. We are even seeing the launch of several contests inviting entrepreneurs to incubate new 5G products and services.


5G - the next generation of wireless

5G, or the fifth generation of mobile network technology, is the successor to 4G LTE. Beneath this simple definition, however, lies much confusion and some disagreement about what 5G is and when the world can expect to experience the full range of possibilities it has to offer. This confusion stems from the lack of adherence to a single industry standard for 5G, as well as the uneven nature in which the technology will be rolled out. Yet there is no doubt that 5G will prove transformational for its users.

In the short term, 5G demand will not be driven by consumers whose needs today are largely met now through 4G, but rather by businesses and governments, which stand to benefit from the next-generation of wireless for different reasons. For carriers, 5G is a chance to tap into new spectrum to deploy services with ultra-low latency, decreased cost per bit, and increased network capacity. Equipment vendors, in tandem, expect to benefit from sales of newly launched 5G smartphones and wireless routers.

For their part, governments increasingly see 5G technology as critical to economic growth and national security, and they are working with industry to claim 5G leadership. Early movers include the US, South Korea, China, Japan, UK, Australia, and Germany. The first commercial launches are taking place in the US and South Korea in early 2019. Meanwhile, Chinese authorities recently granted its three major carriers the 5G spectrums for network testing. A pre-commercial 5G launch is expected to happen in China during the second half of 2019, followed by massive rollouts in 2020.

IHS Markit projects that following initial sales of 37 million first-generation 5G smartphones this year, worldwide shipments will surge to nearly 525 million devices in 2023. This rollout will be the fastest ever for a new wireless generation, generating six times more unit shipments than the previous record-holder LTE, over a similar timeframe.

Early 5G investment will focus on Fixed Wireless Access (FWA) and mobile broadband use cases, enabling “video everywhere,” smart homes, seamless video gaming, and augmented and virtual reality. Subsequent phases will see the growth of 5G use cases for businesses and governments, including massive IoT or machine-type communications (MTC) that enable smart buildings, smart agriculture, and smart cities. Deployment of mission-critical applications—including robots, drones, industry automation, digital health, and autonomous vehicles—will also come later. Part of the excitement surrounding 5G is its potential to satisfy all of these divergent needs under a single network architecture.

The 5G user experience will vary depending on operator spectrum. For services transmitted below 6 GHz, the user will enjoy better coverage but only a slightly noticeable improvement in performance. For services transmitted above 6 GHz, coverage will not be as good, but the user experience will be transformative. Above 6 GHz, channels can be wider than 100 MHz, delivering higher throughputs with very low latency for the user. Applications, such as real-time gaming, video downloads, and high-definition image uploads, will run much more quickly — with the caveat the user doesn't move location.

Despite industry and government support, the path to 5G faces multiple headwinds. These go beyond defining a single industry standard and include:

  • Managing cyber threats
  • Conveying specific 5G use cases and their readiness to consumers
  • Evaluating the impact of policy and vendor influence on 5G development
  • Allocating spectrum among operators
  • Realizing ROI on 4GLTE before investing in new build outs for 5G
  • Laying the massive amounts of required fiber-optic cable and installing numerous cellular base stations
  • Advancing the NR (new radio) interface and accommodating MIMO (Multiple Input, Multiple Output) antennae requirements

In addition, many businesses have yet to define models for 5G adoption. Consumers, in turn, will need to be convinced the upgrade to 5G merits the cost.

Whether you are looking for information on operator 5G strategies or 5G subscriber and device forecasts, we are prepared to help. We are tracking the fast-changing 5G landscape and invite you to bookmark this page so you can check back regularly for our latest information and insight.


 

The IHS Markit difference

  • We were the first research firm to cover the nascent 5G market extensively
  • Our senior research team comes from key domains across 5G and is supported by more than 300 industry analysts in technology sectors spanning IT, telecom, media, industrial, automotive, electronics, solar and more — bringing you the most accurate and complete picture of the 5G landscape available anywhere

How we can help:

  • Measure the development and impact of 5G across industries
  • Assist with your 5G investment decisions
  • Provide support for your 5G adoption model
  • Help you prepare for the impact of the 5G rollout on your business
  • Increase your understanding of the competitive landscape
  • Help you embed value considerations early on in your 5G product designs
  • Identify opportunities and size markets tied to 5G use cases
    

 


 

Get answers to your questions about the fast-developing 5G market

WHITEPAPER
The promise and potential of 5G: Evolution of revolution

To optimize adoption, consumers, businesses, and governments need to understand what 5G is, what it means for them, and when its various capabilities will be available.
  ON-DEMAND WEBCAST
The 5G ecosystem – one network, many challenges

Listen to our 5G experts for a 60-minute free webcast on 5G use cases, operator strategies, devices and media.
  PRODUCT
Digital Orbit

Gain an early adopter advantage with quarterly insights into the readiness and impact of transformative technologies.
 

Interested in learning more?


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5G best choice architecture

Compare the two 5G network architecture options (standalone or non-stan operators will have to choose between in the early life of 5G. 
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At the edge of next-gen revenue creation: 5G, MEC, and IoT virtualized service delivery

Explore applications, infrastructure, best practices, and the newest technologies.
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The connectivity landscape on the path to full 5G

While 5G will be entering a crowded market, its development will pivot around varied and changing requirements.
  REPORT
The top trends in 2019: powered by transformative technologies

Learn more about the primary trends that are making a major impact in both commercial and consumer markets.
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