COVID-19 impacts industries, 5G and broadband will become a top priority

Biden is hoping to finalize an infrastructure bill, one detail of which includes $65 billion for building universal broadband networks. PwC said that during the COVID-19 lockdown, the rise of e-commerce, streaming, on-demand video and video calls made the rollout of next-generation infrastructure such as fiber broadband and 5G a commercial and political necessity.

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PwC pointed out that the global entertainment & media (E&M) industry, worth more than $2 trillion, is expected to grow by 6.5% and 6.7% in 2021 and 2022, respectively, driven by strong demand for digital content and advertising. This is a new business opportunity after the downturn in 2020, which was challenging due to the pandemic.

PwC said that the early stages of 5G user cases and the exponential growth of streaming media, coupled with consumers' acceptance of new forms of experience, are the driving force behind the digital force. In the future, as the industry adjusts to the changing consumption patterns of the future, the dynamic changes within the E&M ecosystem are likely to continue to expand.

According to a PwC report, network access accounted for 34% of E&M spending in 2020 and will grow at a compound annual growth rate of 4.9%, increasing its market value from US$694 billion in 2020 to US$880 billion in 2025.

Secondly, mobile network access will continue to drive market growth, growing at a compound annual growth rate of 6.1%. In the future, supported by the popularity of 5G, advances in mobile phone technology and premium content bundling, this market will reach $605 billion by 2025. During the forecast period, there will be nearly 1 billion new smartphone users and 681 million new mobile network users.

Today, broadband networks are more important than ever to consumers and businesses, as connectivity has become a non-negotiable necessity during the COVID-19 pandemic. Continued investment in wired and wireless infrastructure will create more jobs in technology, manufacturing, engineering, and construction.

JP Morgan predicts that the sales volume of 5G smartphones will enter a rapid growth phase in 2021. About 225 million 5G smartphones will be sold worldwide in 2020, and it is expected that 525 million will be sold in 2021. This number will rise to 725 million in 2022.

However, JP Morgan believes that the biggest business opportunity for 5G still lies in enterprises. It is estimated that 5G will bring more than $700 billion in business opportunities to global enterprises. As for North America, enterprises will continue to invest in 5G in the next decade, and there may be more than $180 billion in business opportunities in 2030.

JP Morgan said that fixed wireless networks are also very important, and in the future they can improve connectivity through private 5G networks deployed across organizations, regions or campuses. According to Ericsson's forecast, 2026 will be the year when 5G replaces 4G infrastructure and equipment and becomes the global wireless standard.