A ubiquitous headline story in 2020, probably next only to COVID-19 if measured by the magnitude of hype (and sometimes disinformation) around it, the fifth generation of wireless is a complex phenomenon presenting a plethora of business opportunities across many industries.
A tremendous emerging economy, China is putting heavy emphasis on technology-driven development. It has grown into the world's largest digital ecosystem, with countless business entities benefiting from its vast market. There are two types of such enterprises. The first group enables connectivity through combining hardware and software on a large scale – we call it the technology layer. These companies provide an immense digital framework for players within numerous industries – the ones using wireless to reach their commercial goals, composing the application layer.
According to this projection, the technology layer will present at least USD 947 billion of 5G-related investment opportunities in China over the next five years. The terminal segment, the most apparent short-term winner of the wireless upgrade, will account for over 60% of the total. Meanwhile, the absolute dominance of smartphones, which shaped the 4G era, will be challenged by various IoT-type devices.
Although the stationary equipment area is highly monopolized, many opportunities throughout the supply chain appear with 5G. For example, the publisher expects the local base station optical module market to add extra USD 8 billion to the total value of the 5G ecosystem in 2020-2025.
The publisher estimates that the nationwide demand for data storage capacities will grow tenfold by 2025, creating over USD 126 billion of value in the data center field.
At the same time, stirred by 5G, the Chinese semiconductor industry, including contract manufacturers and OSAT companies, will add more than USD 231 billion to the value pool.
Due to the well-known hardware limitations and the constant mismatch between theoretical concepts and reality, it is challenging to quantify possible benefits 5G is going to bring to the application layer.
The author distinguishes five industries that will greatly leverage the new wireless capabilities in the following years:
- The consumer technology enterprises stand to gain from enhanced Mobile Broadband (eMBB), the first phase of 5G, per 3GPP.
- Firms operating in the fields of smart environment and industrial automation will benefit from Ultra-Reliable Low Latency Communications (URLLC), the second stage of the 5G rollout.
- Automotive and healthcare companies are poised to win big from massive Machine-Type Communications (mMTC), the last phase.
p. 4 Introduction
p. 5 Executive Summary
p. 6 China’s 5G Business Ecosystem
p. 7 ‘Explain it as if I were 5’
- An overview of the essence of wireless technology that reveals the core features of its fifth generation
p. 14 Instant winners: technology layer
- China’s chipmakers, data storage service providers, equipment developers and mobile devices makers to benefit from 5G
p. 57 Application layer stars
- An investment handbook on the local high-tech enterprises that will get their business bolstered by the ongoing wireless upgrade
p. 72 Related research
p. 73 Publisher's services
- Baosight Software
- China Comservice
- China Tower
- Dr. Peng
- Hua Hong Semiconductor
- Lens Technology
- Maxscend Technologies
- Microgate Technology
- Sinnet Technology
- Sunway Communication
- TCL Electronics
- Tongyu Technology