5G market is rapidly expanding and artificial intelligence scenarios are becoming a reality

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In response to the explosive growth of mobile data traffic, massive device connections and emerging application scenarios, the 5G system came into being. In the future, it may make the concepts of Internet of Vehicles, Internet of Things, smart cities, drone networks, etc., which are still in the conceptual stage, become reality.

Many industries will benefit

According to market research institutions, the global 5G equipment market will grow at a rate of 32.06% from 2016 to 2020. By then, device-to-device communication will be popular, and by 2020, 8.5 million small base stations will be deployed worldwide, with the US, Europe, and Asia-Pacific markets growing the fastest.

Compared with 4G technology, 5G peak rate has increased by several 10 times, from 4G 100Mb/s to tens of Gb/s. In other words, more than 10 high-definition movies can be downloaded in 1 second, and the number of user connections can be increased to 1 million users/square kilometer. At the same time, the end-to-end delay will be reduced from more than ten milliseconds in 4G to a few milliseconds in 5G.

In addition, unlike 4G, which is mainly aimed at communication between people, 5G expands to more scenarios and places more emphasis on the consistency of user experience in multiple scenarios and the needs of the Internet of Things.

Bian Tiecheng, an industry analyst at Cinda Securities, said: "Among the three application scenarios proposed by 5G, except for enhanced mobile broadband, which is related to human experience, the other two application scenarios, such as large-scale machine-type communications and ultra-high reliability and low-latency communications, are to meet the needs of the Internet of Things."

"5G was designed with various application scenarios in mind, such as massive connections and ultra-low latency requirements. It is expected to end the current situation of 'each doing its own thing' in IoT technology and provide a unified framework for seamless connectivity for smart city planning," said Bian Tiecheng.

With the transformation and upgrading of China's manufacturing industry, the penetration of the Internet and the Internet of Things into the industrial field has become an irreversible trend. At present, the industrial Internet of Things is still to be developed, and compared with the consumer Internet of Things, the industrial Internet of Things has a wider network coverage and network nodes, and each application scenario will bring huge economic benefits.

According to Accenture analysis, driven by China's current policies and investment trends, the Internet of Things can create a cumulative GDP of US$196 billion in the manufacturing industry alone in the next 15 years. If China takes further measures to enhance the impact of the Internet of Things, the total increased economic benefits are expected to reach US$736 billion.

Yu Haining, an analyst at CICC Securities, said, "The entire industry chain is working hard for 5G, especially the Internet of Vehicles and video, which may be the first to benefit from 5G."

Broad market prospects

From the perspective of the global telecommunications market, operators and telecommunications equipment manufacturers are targeting the 5G market.

The Ministry of Industry and Information Technology recently issued the "Information and Communication Industry Development Plan (2016-2020)", which pointed out that the first step, technical research and development testing, will be completed from 2016 to 2018. The second step of product research and development testing will be carried out from 2018 to 2020. In addition, China Mobile also announced its 5G development plan, which mentioned that by 2020, China Mobile's entire network of 5G base stations will be counted in tens of thousands, realizing large-scale deployment of commercial products.

At the end of last year, Huawei and other Chinese manufacturers pushed for the inclusion of the Polar code channel coding scheme they supported into the 5G standard. Industry insiders said that this is a breakthrough for my country in the field of core communication standards. In the future, not only Huawei, but also supporting manufacturers in the entire communication industry chain, including chips, software, equipment, terminals, testing, and operators, will benefit.

Cheng Cheng, an analyst at Guosen Securities, said, "At present, the three major domestic operators have announced the timetable for 5G commercialization, and equipment manufacturers such as Huawei and ZTE are also actively reserving 5G-related technologies. Recently, ZTE officially released the world's first Massive MIMO solution based on the FDD-LTE standard and completed field verification in Quanzhou."

In addition, from a global perspective, AT&T recently announced that it will deploy 5G network companies in Austin and Indianapolis later this year. When the network is enabled, it will provide mobile phone users with a speed of 400Mbp. With the integration of later technologies, the network in some areas will be increased to 1Gbps, which is equivalent to the speed of "Gigabit LAN".

At the 2017 International Consumer Electronics Show (CES), Intel also ambitiously entered the wireless field and launched 5G baseband chips for various devices such as smartphones, routers, cars, and drones.

At the Mobile World Congress held in late February, 5G is expected to remain the focus of the exhibition. Wang Lin, an analyst at China Merchants Securities, said, "The upgrading of terminal equipment, on the one hand, puts forward higher requirements for the development of 5G technology, and on the other hand, accelerates the implementation and commercialization of 5G technology."

"The upgrade of key technical equipment will also promote the promotion and implementation of 5G standards from the terminal level, and provide broad development space for the later construction of 5G standards." Wang Lin said that with the promotion of official standards, operators and terminal equipment, it is expected that the 5G concept will continue to develop in 2017.