STOCKHOLM — The global 5G consumer market could be worth US$31 trillion by 2030, according to Ericsson ConsumerLab’s new report, Harnessing the 5G Consumer Potential, released today.
The report estimates communications service providers (CSPs) could earn up to US$3.7 trillion of that total cumulative 5G-enabled consumer revenue by 2030. As new adjacent digital services opportunities arise, that figure could increase further, says Ericsson.
In addition, CSPs could generate up to US$131 billion by 2030 from digital service revenues alone, by bundling and marketing 5G use cases, says the report, which attributes about 40% of these revenue projections to consumer spending on enhanced video, augmented reality, virtual reality and cloud gaming over 5G networks.
The report also found the impact of the Covid-19 pandemic on personal finances may have affected consumers’ willingness to pay a premium for 5G subscriptions.
“In early 2019, the average consumer was willing to pay a 20% premium for 5G. As 2020 draws to an end, that figure has dropped to 10 percent. However, one in three early adopters globally are still willing to pay a 20 percent premium. Such high levels of early adopter take-up could help drive economic recovery,” reads the press release announcing the report’s availability.
According to the report, CSPs could gain 34% higher 5G average revenue per user (ARPU) by 2030, by proactively driving 5G consumer adoption. This could boost consumer revenues at a compound annual growth rate of 2.7%, compared to flat revenue growth of 0.03% by taking a passive approach over the decade, says the report.
Furthermore, the report highlights the enabling role technologies such as edge computing and network slicing will play in helping service providers to secure 5G-enabled consumer revenue, which could come from core digital services such as cloud gaming and augmented reality applications, or adjacent digital services, such as in-car connectivity and associated safety features.
“This is the first time that Ericsson has presented a revenue forecast for the 5G consumer market, which remains the core business of communications service providers. Through our research, we have highlighted the role of use case development, tariff innovation, quality 5G coverage and ecosystem partnerships to unlock the true potential of this market. It is clear that 5G will drive enormous opportunities for CSPs in consumer business over the decade. As this journey is already underway, those CSPs that quickly and proactively evolve their consumer propositions are likely to be bigger winners,” says Jasmeet Singh Sethi, head of ConsumerLab, Ericsson Research, in the press release.
To access the Harnessing the 5G Consumer Potential report, please click here.
