Impacts in Every Sector
Ericsson surveyed business leaders about which sectors are anticipated to receive the largest benefit from 5G technology. While the possibilities are endless, a few industries are especially relevant to China-based or international companies.
Manufacturing is the sector expected to immediately benefit the most from 5G technology.
5G presents a huge opportunity for companies that manufacture their products in China. In such a competitive environment, most manufacturing companies are operating under slimmer and slimmer margins as factory technology becomes more complicated and costlier to maintain. 5G will allow businesses to continue to incorporate new machines at a lower cost.
It is anticipated that 5G will allow companies to streamline operations, cut costs, and increase efficiency. For example, businesses remotely operating factories in mainland China would be able to monitor the factory floor or perform virtual reality inspections from thousands of miles away in real time. Additional 5G manufacturing solutions may include:
- Remote quality inspection and diagnostics
- Large scale deployment of sensor data for maintenance
- End to end inventory management and tracking
- Smart factories
73% of companies surveyed by Ericsson cite first mover advantage as a critical motivator in 5G adoption. Companies that are prepared for 5G have the chance to hit the ground running. Even a few months may mean huge competitive advantages.
Therefore, although these changes may still be a few years in the making, manufacturing companies should be to prepare their workforce and experiment with new technologies take advantage the economic gains.
Another sector predicted to be a beneficiary of the rollout of 5G technology is the finance.
Businesses in the financial sector can incorporate a greater number of customer-facing services. For example, using wearables for mobile payments, or virtual customer service. 5G’s extraordinarily low latency is also expected to revolutionize the stock market with virtually instantaneous trading.
It is predicted that financial sector can benefit from 5G technologies in a variety of ways:
- Mobile payments are already the norm, especially in China. 5G networks would further the use of mobile and wearable financial management
- Enhancement of security measures: upgrading the use of passcodes to multilayered biometrics, reducing the risk from the widespread use of mobile banking
- Data-driven and user-centric insurance based on real time sensor data
- Instant transactions, trading, and tracking
Financial sector business concerns are mainly centered around corporate and customer information security. 5G networks can support more rigorous security measures without interfering with user experience.
As a result, businesses in the financial sector would most likely benefit from a more secure network and greater bandwidth. Although the trend in the financial sector has already been towards digitization, the adoption of the 5G network will likely accelerate this shift.
Therefore, businesses should embrace these changes. They should begin by moving data and computing onto the cloud and start to thinking about how to incorporate 5G capabilities into products or operations.
China is one of the world’s largest consumer markets. 5G presents a new opportunity to retail companies operating in China by providing a new way to reach customers.
With online shopping and delivery services flourishing, the new wave of 5G network improvements is anticipated to transform the online shopping experience. In fact, Ericsson reported that companies most look forward to embracing virtual reality and augmented reality shopping experiences.
On the internal side, fully autonomous warehouses can optimize inventory management, and analyze buying patterns to anticipate needs. This can be combined with the 5G’s network to support autonomous vehicles, and increase the efficiency of delivery routes. Companies should prepare to delve into a quickly transforming retail landscape.