Ericsson Estimates 5G Consumer Market Could be Worth $31 Trillion by 2030
November 17 2020 - 05:30AM
Dow Jones News
By Dominic Chopping
STOCKHOLM--Ericsson AB said Tuesday that the 5G consumer market
could be worth $31 trillion globally by 2030, in a report from the
company's consumer-research unit Ericsson ConsumerLab.
The report estimates that communications service providers could
earn $3.7 trillion of that total, a figure that could increase as
new adjacent digital services opportunities arise.
The report also estimates that communications service providers
could generate up to $131 billion by 2030 from digital service
revenues, by proactively bundling and marketing 5G use cases. About
40% of these revenue projections are attributed to consumer
spending on enhanced video, augmented reality, virtual reality and
cloud gaming over 5G networks, it said.
Ericsson projects that augmented reality is likely to drive more
than half of all consumer spending on immersive media by 2030,
starting with gaming and extending to other areas like shopping,
education and remote collaboration.
The report said the Covid-19 pandemic's impact on personal
finances and financial priorities may have affected consumers'
willingness to pay a premium for 5G subscriptions.
However, one-in-three early adopters globally are still willing
to pay a 20% premium for 5G and that could help drive economic
recovery, according to the report.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
November 17, 2020 05:15 ET (10:15 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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