5G Consumer Market Explodes... "Growing to $31 Trillion by 2030"

Ericsson ConsumerLab Report Released on the 17th

[Asia Economy Reporter Cha Min-young] A market analysis report has projected that the global 5G consumer market size will reach $31 trillion by 2030. When converted to the current Korean won value, this amounts to 34,348 trillion won. The report also noted that depending on the attitudes and technology investments of current telecom operators, the annual growth rate could differ by as much as 90 times.

40% of Revenue from Video, AR, VR, and Cloud Gaming

Ericsson LG's Consumer Lab released the 'Unlocking 5G Consumer Potential Report' on the 17th, focusing on these findings.

By around 2030, approximately 40% of 5G-related revenue is expected to come from enhanced video, augmented reality (AR), virtual reality (VR), and cloud gaming expenditures enabled by 5G networks. AR services are projected to account for more than 50% of immersive media consumption spending and are expected to gradually expand into other areas such as gaming, shopping, education, and remote collaboration.

The impact of the COVID-19 pandemic on 5G personal consumption last year was negative. While early 2019 saw about 20% of general consumers expecting a 5G premium, this dropped to 10% by the end of last year. However, globally, about one in three early adopters still expect a 20% 5G premium.

Telecom Operators’ Current Direction is Crucial

The report particularly highlighted that telecom operators have a revenue opportunity totaling $3.7 trillion, with an additional $113.9 billion potentially added through new adjacent digital services.

It also predicted significant differences in profitability depending on the proactiveness of telecom operators. The report estimated that operators leading the adoption of 5G, including 5G consumer services, could increase the average revenue per user (ARPU) from 5G by about 34% by 2030. For proactive operators, the compound annual growth rate (CAGR) could reach 2.7%, which is about 90 times higher than the 0.03% growth rate of passive operators.

The role of technologies such as edge computing and network slicing in telecom operations was also emphasized. These are essential in delivering core digital services like cloud gaming and AR applications, as well as adjacent digital services such as in-vehicle connectivity and related safety features.

The report concluded, "Success in the consumer market can lead to network expansion supporting industrial and enterprise (B2B) use cases, making success in the consumer market a critical factor for the ultimate success of 5G."

This content was produced with the assistance of AI translation services.