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Visualized: Where 5G Will Change The World

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Visualized: Where 5G Will Change The World

Where 5G Will Change The World

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We’re on the cusp of a 5G revolution.

Whereas 4G brought us the network speeds necessary for online apps and mobile-streaming, 5G represents a monumental leap forward. Beyond the improvements to our existing ecosystem of devices—more speed and better stability—researchers believe that 5G can serve as the underpinning for fully-connected industries and cities.

Change doesn’t happen overnight, and for us to experience 5G’s true potential, we’ll need to be patient. In light of this, today’s infographic from Raconteur visualizes the forecasted impact of 5G to help us identify the countries and industries that will most effectively leverage its power.

5G-Empowered Industries

5G networks are expected to generate $13.2 trillion in global sales activity by 2035. To make this easier to digest, here are the five industries which stand to benefit the most.

RankIndustrySales ($B)Share of Industry Sales (%)
#1Manufacturing$4,6875.4%
#2Information and Communication$1,56910.7%
#3Wholesale and Retail Sales$1,1985.1%
#4Public Services$9856.3%
#5Construction$7314.3%

Let’s focus on manufacturing, an industry which is expected to see a massive $4.6 trillion in 5G-enabled sales.

Efficiency is the name of the game here, and researchers predict that this technology will allow for the world’s first “smart factories”. Such factories would leverage the faster speed and reliability of 5G networks to eliminate cabled connections, improve automated processes, and most importantly, gather more data.

Combined with machine learning algorithms, this data can help companies predict when expensive equipment is about to fail, reducing the likelihood of expensive downtime.

– AT&T Business Editorial

Robots won’t be the only ones to benefit, however. While today’s factories may be lined with machines, humans are still required to be onsite for troubleshooting when issues arise. Some processes may also be too intricate to be effectively automated, thus requiring a human’s touch.

With the lower latencies (shorter delay) boasted by 5G networks, virtual and augmented reality devices can become reliable enough for use in high precision work. This exciting development has the potential to greatly increase a human worker’s productivity, as well as allow them to work in closer harmony with robots.

In fact, such technologies are already being used on factory floors.

Leading The Way

Developing 5G networks and implementing them into the many industries of the global economy is a massive undertaking, and just seven countries are expected to account for 79% of all 5G-related investment.

By 2035, here’s how these countries are expected to rank.

CountryShare of Value Chain R&D
and Capital Expenditure
5G-enabled Output ($B)5G-enabled Employment
(million people)
🇺🇸 United States26.7%$7862.8
🇨🇳 China25.5%$1,13010.9
🇯🇵 Japan12.4%$4062.3
🇩🇪 Germany3.9%$1710.7
🇫🇷 France3.9%$1241.5
🇬🇧 United Kingdom3.8%$1140.5
🇰🇷 South Korea2.9%$1280.7

Incidentally, these seven nations are also some of the world’s most innovative economies.

Let’s take a closer look at the two biggest players in 5G development.

United States

It’s not a surprise to see the U.S. on top in terms of 5G investment, though it seems the country is in a peculiar position. China is right on their heels in terms of investment, and is even forecasted to surpass them in 5G-enabled output and employment.

Chinese tech giant Huawei is likely a factor behind these numbers. The company—which America has no direct rival to—is currently the world’s largest manufacturer of telecommunications equipment.

Developments such as these have formed the general consensus that China is winning the “5G race”, but putting America down for a second place finish may be a mistake. With renowned tech hubs like Silicon Valley, the U.S. still leads the rest of the world in terms of patent activity and high-tech company density.

There will be a tendency to cast these developments as another sign that the United States is losing the race … [but] U.S. companies can dominate the applications and services that run over 5G.

– Adam Segal, Director, Council on Foreign Relations

Part of what makes 5G so special is its potential to be used across a wider variety of applications including autonomous vehicles and manufacturing. Perhaps it’s here where American tech firms can use their innovative capacity and software expertise to carve out an advantage.

China

Being the world’s largest manufacturer means China is well-positioned to leverage the power of 5G networks. With nearly 11 million 5G-enabled jobs and over $1.3 trillion in output by 2035, China’s estimates are magnitudes larger than the other countries on this list.

A reason why China is such a cost-efficient place to make things is its well-established network of suppliers, manufacturers, and distributors. All three of these sectors are likely to implement 5G networks for improved speed and efficiency.

China is no slouch when it comes to innovation, either. In terms of patent activity, it ranks second in the world. Shenzhen, once a small fishing village, has become China’s answer to Silicon Valley, and is home to domestic telecom giants like Huawei and ZTE Corporation.

Yet, China faces serious obstacles as it seeks to supply the rest of the world with 5G equipment. Huawei is the subject of U.S. sanctions over allegations of its dealings with Iran. Further skepticism arises from the company’s dubious ownership structure, reliance on state subsidies, and claims of espionage.

Huawei’s quest for dominance in the global telecommunications industry has involved tactics and practices that are antithetical to fair, healthy competition.

– Foreign Policy (magazine)

Regardless of the damage these controversies may cause, China shows no signs of slowing down. The country already holds bragging rights for the world’s largest 5G consumer network, and even claims to have begun research on 6G, an eventual successor to 5G.

The Waiting Game

It’s important to remember that the vast majority of 5G benefits are still years away.

Thus, this next generation of mobile networks can be thought of as an enabling technology—new innovations and complementary technologies will be needed to realize its full potential.

While today’s infographic paints an intuitive visualization of the 5G roadmap, only time will tell which industries and countries actually see the most benefits.

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Charting the Next Generation of Internet

In this graphic, Visual Capitalist has partnered with MSCI to explore the potential of satellite internet as the next generation of internet innovation.

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Teaser image of a bubble chart showing the large addressable market of satellite internet.

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The following content is sponsored by MSCI

Could Tomorrow’s Internet be Streamed from Space?

In 2023, 2.6 billion people could not access the internet. Today, companies worldwide are looking to innovative technology to ensure more people are online at the speed of today’s technology. 

Could satellite internet provide the solution?  

In collaboration with MSCI, we embarked on a journey to explore whether tomorrow’s internet could be streamed from space. 

Satellite Internet’s Potential Customer Base

Millions of people live in rural communities or mobile homes, and many spend much of their lives at sea or have no fixed abode. So, they cannot access the internet simply because the technology is unavailable. 

Satellite internet gives these communities access to the internet without requiring a fixed location. Consequently, the volume of people who could get online using satellite internet is significant:

AreaPotential Subscribers
Households Without Internet Access600,000,000
RVs 11,000,000
Recreational Boats8,500,000
Ships100,000
Commercial Aircraft25,000

Advances in Satellite Technology

Satellite internet is not a new concept. However, it has only recently been that roadblocks around cost and long turnaround times have been overcome.

NASA’s space shuttle, until it was retired in 2011, was the only reusable means of transporting crew and cargo into orbit. It cost over $1.5 billion and took an average of 252 days to launch and refurbish. 

In stark contrast, SpaceX’s Falcon 9 can now launch objects into orbit and maintain them at a fraction of the time and cost, less than 1% of the space shuttle’s cost.

Average Rocket Turnaround TimeAverage Launch/Refurbishment Cost
Falcon 9*21 days< $1,000,000
Space Shuttle252 days$1,500,000,000 (approximately)

Satellites are now deployed 300 miles in low Earth orbit (LEO) rather than 22,000 miles above Earth in Geostationary Orbit (GEO), previously the typical satellite deployment altitude.

What this means for the consumer is that satellite internet streamed from LEO has a latency of 40 ms, which is an optimal internet connection. Especially when compared to the 700 ms stream latency experienced with satellite internet streamed from GEO. 

What Would it Take to Build a Satellite Internet?

SpaceX, the private company that operates Starlink, currently has 4,500 satellites. However, the company believes it will require 10 times this number to provide comprehensive satellite internet coverage.

Charting the number of active satellites reveals that, despite the increasing number of active satellites, many more must be launched to create a comprehensive satellite internet. 

YearNumber of Active Satellites
20226,905
20214,800
20203,256
20192,272
20182,027
20171,778
20161,462
20151,364
20141,262
20131,187

Next-Generation Internet Innovation

Innovation is at the heart of the internet’s next generation, and the MSCI Next Generation Innovation Index exposes investors to companies that can take advantage of potentially disruptive technologies like satellite internet. 

You can gain exposure to companies advancing access to the internet with four indexes: 

  • MSCI ACWI IMI Next Generation Internet Innovation Index
  • MSCI World IMI Next Generation Internet Innovation 30 Index
  • MSCI China All Shares IMI Next Generation Internet Innovation Index
  • MSCI China A Onshore IMI Next Generation Internet Innovation Index

MSCI thematic indexes are objective, rules-based, and regularly updated to focus on specific emerging trends that could evolve.

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Click here to explore the MSCI thematic indexes

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