Visualized: Where 5G Will Change The World
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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 networks are expected to generate $13.2 trillion in global sales activity by 2035. To make this easier to digest, here are the five industries which stand to benefit the most.
|Rank||Industry||Sales ($B)||Share of Industry Sales (%)|
|#2||Information and Communication||$1,569||10.7%|
|#3||Wholesale and Retail Sales||$1,198||5.1%|
Let’s focus on manufacturing, an industry which is expected to see a massive $4.6 trillion in 5G-enabled sales.
Efficiency is the name of the game here, and researchers predict that this technology will allow for the world’s first “smart factories”. Such factories would leverage the faster speed and reliability of 5G networks to eliminate cabled connections, improve automated processes, and most importantly, gather more data.
Combined with machine learning algorithms, this data can help companies predict when expensive equipment is about to fail, reducing the likelihood of expensive downtime.
– AT&T Business Editorial
Robots won’t be the only ones to benefit, however. While today’s factories may be lined with machines, humans are still required to be onsite for troubleshooting when issues arise. Some processes may also be too intricate to be effectively automated, thus requiring a human’s touch.
With the lower latencies (shorter delay) boasted by 5G networks, virtual and augmented reality devices can become reliable enough for use in high precision work. This exciting development has the potential to greatly increase a human worker’s productivity, as well as allow them to work in closer harmony with robots.
In fact, such technologies are already being used on factory floors.
Leading The Way
Developing 5G networks and implementing them into the many industries of the global economy is a massive undertaking, and just seven countries are expected to account for 79% of all 5G-related investment.
By 2035, here’s how these countries are expected to rank.
|Country||Share of Value Chain R&D|
and Capital Expenditure
|5G-enabled Output ($B)||5G-enabled Employment
|🇺🇸 United States||26.7%||$786||2.8|
|🇬🇧 United Kingdom||3.8%||$114||0.5|
|🇰🇷 South Korea||2.9%||$128||0.7|
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.
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.
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.
Ranked: America’s Largest Semiconductor Companies
This graphic visualizes the market capitalizations of America’s 15 largest semiconductor companies.
Ranking America’s Largest Semiconductor Companies
As our world moves further into an era of widespread digitization, few industries can be considered as important as semiconductors.
These components are found in almost everything we use on a daily basis, and the ability to produce them domestically has become a topic of national security. For example, in 2022 the Biden administration announced the CHIPS and Science Act, which aims to strengthen America’s position in everything from clean energy to artificial intelligence.
With this in mind, we’ve ranked the top 15 U.S. semiconductor companies by their market capitalizations.
Data and Highlights
The data we used to create this infographic is listed in the table below. Year-to-date (YTD) returns were included for additional context. Both metrics are as of May 30, 2023.
|Rank||Company||Ticker||Market Cap (USD billions)||YTD Return|
|13||Marvell Technology Group||MRVL||$54||76.2%|
At the top is Nvidia, which became America’s newest $1 trillion company on Tuesday, May 30th. Shares pulled back slightly over the day and Nvidia closed at $992 billion. Over the past decade, Nvidia has transformed from a gaming-focused graphics card producer to a global leader in AI and data center chips.
In third and sixth place are two of America’s most well known chipmakers, AMD and Intel. These longtime rivals are moving in opposite trajectories, with AMD shares climbing 770% over the past five years, and Intel shares falling 47%. One reason for this is the data center segment, in which AMD appears to be stealing market share from Intel.
Further down the list we see Applied Materials in seventh, and Lam Research in ninth. Both firms specialize in semiconductor manufacturing equipment and thus play an important role in the industry’s supply chain.
Trade War Impacts
As tensions between the U.S. and China escalate, chipmakers are becoming increasingly entangled in geopolitical conflict.
In October 2022, the Biden administration introduced new export controls aimed at blocking China’s access to semiconductors produced with U.S. equipment. This impacted several companies in our top 15 list, including Lam Research and Applied Materials.
Shortly after the export controls were announced, Lam Research said it expected to lose upwards of $2.5 billion in annual revenues.
We lost some very profitable customers in the China region, and that’s going to persist, obviously.
– Doug Bettinger, CFO, Lam Research
In response, China announced in May 2023 that it would no longer allow America’s largest memory chipmaker, Micron, to sell its products to “critical national infrastructure operators”.
This is not the first time Micron has been involved in a controversy with China. In 2018, the firm alleged that Fujian Jinhua Integrated Circuit, a Chinese state-owned company, had solicited a Micron employee to steal specifications for memory chips. The U.S. Department of Commerce imposed export restrictions on Fujian Jinhua as a result.
Chipmakers on both sides of the Pacific will be closely watching as competition between these two countries heats up.
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