Research: Top 5 sectors for 5G investment
February 15, 2022
Research commissioned by technology solution provider World Wide Technology (WWT) has uncovered the top 5 sectors for 5G investment. Cloud computing was identified as the top category for investment by 72 per cent of VCs and investors, closely followed by Smart mobility at 70 per cent. 56 per cent meanwhile selected media and entertainment, with 44 per cent naming gaming and 42 per cent AR/VR. Other sectors of note amongst investors were Supply Chain (33 per cent) and Healthcare (24 per cent).
As with 5G itself, transformative applications rely on cloud computing to exist in the first place – making this sector most attractive from an investor perspective.
“Cloud computing…will reduce the need for storage hardware, creating thin clients, which outsources the burden of storing and even computing intensive tasks to companies providing cloud computing services. 5G will be the facilitator for fast access to the cloud service providers.” – Quote from an investor asked, ‘What sector is most likely to be disrupted as a result of 5G technology?
Investors are excited for 5G
The research also revealed that investors are excited about 5G technology and the returns it will bring. There is a great deal of enthusiasm for 5G amongst respondents with 92 per cent invested, or planning to invest, in companies dependent on 5G technology.
According to WWT estimates, this excitement adds up to a substantial overall 5G investment figure. The funds its 100 respondents represent will spend $59 billion on 5G this year, and they expect their investment to grow to $94 billion within five years.
The research revealed that they are also confident this investment will pay off, with 76 per cent predicting an above average return on their 5G investments over the next 6-10 years.
Operator returns
The respondents were also bullish about service provider’s prospects in the 5G era. When asked, ‘Can you name any 5G-enabled companies that are expected to make it big in the next 12 months?’ 41 per cent of investors replied by naming an operator. This was second only to suppliers of components and hardware (47 per cent).
“Now is the time to invest in the foundational technologies of 5G,” declared Victor Holmin, Director of Discovery and Innovation at World Wide Technology. “Our research has clearly shown that there is clear excitement in 5G among investors – and that these five sectors in particular are ripe for growth. Each of these sectors will require high-speed, secure infrastructure with significant processing capability at the edge of the network in order to thrive.”
“Service providers need to make the investment in foundational technologies, such as Edge, and look to build a platform that will enable them to deploy services which can build the promise of 5G into a reality,” he advised.