5G was one of the most exciting things we could have envisioned as we entered 2020, but the world is not what it used to be. The New Coronavirus Pneumonia Outbreak ("New Coronavirus Outbreak") has dealt a terrible blow to humanity. Many people have had to face bereavement or illness. In addition to this, the epidemic has led to a severe downturn in the global economy. The undisputed fact is that the urgency for businesses to implement digitization has never been greater, and 5G and edge-green computing will hopefully play a key role in the global economic recovery.
Across industries, our customers have told us about the need to accelerate digital transformation. Prior to the New Crown epidemic, digital technologies were strong and the potential was clear. Now, the need for digital transformation is even more urgent, and can be the difference between life and death. Connectivity plays a critical role in the evolution of digital technologies. This has been demonstrated by the connectivity of both fixed and wireless networks over the past decade. The business case for 5G has been strong in the past, and it is even stronger now.
Enterprise value
Deploying 5G technologies helps enterprises address business challenges, reshape the value chain, strengthen revenue models, and optimize business operations across industries.
At Mobile World Congress 2019, KPMG International published "Unlocking the potential of 5G for enterprise customers"
("Unlocking the benefits of 5G for enterprise customers ") and related research. The message is clear:
- The business case for 5G in B2B is far stronger than in B2C, with $4.3 trillion in value-added potential identified
- Consumers will not pay enough for 5G to cover the cost of rolling out a new network (as was the case with 3G and 4G), and telcos should focus on B2B
- The benefits of 5G for enterprise customers will not be realized in the B2B market, but in the B2C market.
- 5G will gradually be deployed globally in the 2120s: private networks first, followed by cities, then nationwide coverage
- Industry segmentation shows that the most geographically concentrated industries will be the first to benefit from 5G (e.g., manufacturing)
From Mobile World Congress, we learned that to be a leader, companies need to be aware of five things:
"We're going to need to be able to do this. Pay attention to the following five points:
? Look beyond 4G to the new capabilities that 5G can bring
? Understand the DNA of the 5G enterprise and its ability to drive new business models
? Recognize that the timing of 5G deployments will be different, and so will the value created
? The enterprise needs to be insight-driven and agile in product creation
? Collaboration is the only way to unlock the value drivers
The significance of 5G edge computing
Edge computing is critical to unlocking the financial benefits of 5G, and the deeper integration of 5G and edge computing can create significant incremental economic value for ecosystem participants.
It is said that the urgency to accelerate digital transformation is even greater now, and the power generated by the combination of 5G and edge cloud computing will play a key role in the economic recovery.
Communication anytime, anywhere
There is no doubt about the potential of 5G to unleash the power of digital technologies across multiple industries, making factories, warehouses, workplaces, hospitals, and homes more efficient, transportation easier, and cities smarter.
5G has the ability to support billions of connected devices transmitting massive amounts of data. Areas and activities such as autonomous driving, manufacturing, transportation, healthcare, and more will rely on instantaneous data transmission. At the same time, the rise of edge computing brings processing power closer to the user, improving speed benefits and reducing latency for the applications we will need to rely on.
On current wireless networks, most data is moved to a central data center for processing, slowing down processing. While most of the apps we use today are not really affected, with the advent of emerging technologies such as autonomous driving, any delays in the AI in use by users could cause serious problems. Organizations must consider this with a future perspective to find economic benefits.
Combining 5G and edge computing technologies can dramatically improve bandwidth and latency, making the promise of achievable "communication anywhere, anytime" a reality, according to Gartner. Gartner research shows that by 2025, the percentage of enterprise-generated data processed outside of "traditional" centralized data centers or cloud storage will jump to 75% from 10% in 2018. This is an exciting prediction that demonstrates the low-latency benefits of edge computing, while the lightning speeds of 5G will enable the most powerful technological synergies ever seen between 5G and edge computing.
5G Edge Cloud Computing Ecosystem
For the combination of 5G and edge computing, telcos need to once again look beyond mere connectivity to find new ways to deliver value.
The 5G edge computing ecosystem is built on four pillars: connectivity, hardware, software, and services. Many participants are involved in the development and delivery of products and services.
They will work together, but also compete with each other to grow revenue share.
Opportunities for 5G Edge Computing
A wide range of industries are likely to benefit from 5G and edge computing. For some industries, the combination of 5G and edge computing has led to the most inspiring new services, which we'll highlight here.
It's not just about who generates the most revenue, but also capturing the whims of the members of the ecosystem to understand the art of the possible.
Characteristics of 5G edge computing: an industry perspective
An analysis by KPMG and IDC estimates that in 2023, the combined market value of connectivity, software, hardware, and services across five key industries will exceed $500 billion. These five industries are expected to see significant growth in the coming years, thanks in part to the greatly enhanced connectivity that will result from the combination of 5G and edge computing.
Core Expansion
By 2023, with the broader adoption of 5G and edge computing, these five target industries will generate more than $500 billion in annual revenues across the entire ecosystem of connectivity, hardware, software, and services.
Highly autonomous factories have become a global trend. In these factories, sensors analyze data from every corner, and artificial intelligence constantly adjusts production to meet demand. Through predictive maintenance, 24/7 asset monitoring, reduced downtime, and increased safety, factories can realize real gains in productivity. End products are evaluated throughout the production process to ensure the highest quality, minimize the cost of errors, and guarantee end-customer satisfaction.
The result is higher-quality products in less time and at lower cost, with less waste, reduced maintenance, material, and energy costs, and a more sustainable, lower-emission environment.
Impact of the New Crown Pandemic
Most factories may be forced to shut down in a pandemic, but the benefits to production of combining 5G and edge computing are so great that they may be the key to accelerating factory recovery. By accelerating digital transformation, manufacturers can reduce costs and improve speed and product quality.
The cost of 5G upgrades will not be affordable for all organizations, but the hard reality is that those that are able to upgrade successfully are more likely to compete when the market recovers.
5G+Edge Computing
It is expected to create an incremental market of 51% in the manufacturing sector, growing from $136 billion to $206 billion by 2023.
The healthcare industry is probably the biggest beneficiary of data and AI enhancements compared to other industries. Whether in the hospital or the community, sensors collect and analyze a patient's health data for continuous monitoring, and transmit that data to a physician or caregiver. Devices include glucose meters, blood pressure cuffs, heart rate monitors, oximeters, and other wearable devices. The hospital of the future will also be able to track the location and operational metrics of high-value medical devices.
These technological advances can improve care, quality of life, and reduce costs. As a result, hospitals and clinics will be able to extract more value from expensive assets and reduce downtime.
Impact of the New Crown Pandemic
The healthcare industry did a tremendous job during the pandemic. Increasing the digitization of healthcare through virtual and remote care will undoubtedly bring more benefits to both patients and service providers.
We believe that the combination of 5G and edge computing will help track infected people and provide real-time insights to reduce the spread of the virus and protect healthcare workers.
5G+Edge Computing
It is expected to create a 66% increase in the market for healthcare, growing from $27 billion to $45 billion by 2023.
The industry is buzzing about the potential of smart cities. Data collected by sensors can inform transit operators and passengers about real-time performance and issues, and keep riders up-to-date on schedules and delays. On the street, traffic management is made easier with real-time notifications of hotspot locations, road repairs and accidents, which in turn provide more useful information to travelers and their navigation systems. Parking is also made easier with the help of real-time automatic recognition of available spaces.
As a result, travelers can enjoy a much-improved travel experience, with fewer delays, faster journeys, and safer public **** transportation.
Impact of the New Crown Epidemic
With embargoes around the globe, the demand for home delivery services has risen dramatically. Such demand will remain in the future as customer behavior may or may not change forever. the combination of 5G and edge computing will undoubtedly help in enabling touchless and ultimately autonomous delivery of food and other products. For cities, advanced connectivity is the only way to realize these changes and meet the needs of businesses and citizens.
5G + Edge Computing
It is expected to create a 100% incremental market in smart transportation, growing from $12 billion to $24 billion by 2023.
At the beginning of 2020, the biggest topic at the Davos Forum will be how to deal with the serious problems that are destroying the environment. Cities and villages are threatened by extreme weather and pollution, and governments must protect their citizens from potential terrorist and chemical attacks. Effective surveillance helps to detect signs of threat and respond quickly. Environmental and healthcare agencies, as well as local governments, need to access and analyze complex data from a variety of sources in order to make informed decisions, such as diverting traffic, restricting access to certain areas, or responding to hazardous substances.
In the future, countries will rely more on surveillance and detection to keep citizens, organizations, and supply chains safe and to reduce disruption to people's daily lives.
Impact of the Neoguana outbreak
The Neoguana outbreak has reduced global environmental contamination. Effective post-outbreak monitoring will help ensure that pollution does not return to pre-outbreak levels. As we know, effective monitoring requires massive amounts of data from a large number of sensors.
5G + Edge Computing
This is expected to create an incremental market of 78% in government environmental monitoring, growing from $2.8 billion to $5 billion by 2023.
Cloud gaming has become a massive global phenomenon. It is catching on all over the world at an alarming rate. The rise of augmented reality and virtual reality provides an extremely vivid and immersive gaming experience, but requires top-notch connectivity to function optimally. Players need ultra-fast connectivity and very low latency to stream advanced images and content to multiple players at the same time, and the combination of 5G and edge computing is truly bringing players into a new reality that is exciting for players in the ecosystem.
While most gamers are still using gaming consoles today, it wasn't that long ago that we also had DVD players sitting under our TVs at home. But with the advent of the 5G era, we no longer need these devices. The same will likely happen in the gaming industry, and it may happen faster than we think. 5G and edge computing will combine to enable the transition to cloud gaming.
Impact of the New Crown Epidemic
During the lockdowns across the region, there was a growing demand for games. While these demands may fall back once the blockades are lifted, most players will continue to have fun playing online with friends in the aftermath of the outbreak. With the adoption of 5G networks, gamers will be able to access the latest features and gaming experiences through technologies such as augmented reality/virtual reality.
5G+Edge Computing
It is expected to create an incremental market of 30% in the gaming space, growing from $180 billion to $236 billion by 2023.
"Catch-up players"
Capturing more value
It has been said that 5G edge computing will build a platform that will lead to the next industrial revolution. The next industrial revolution. KPMG also said that digital leaders can be referred to as "catch-up players".
"Catch-up players" are companies with big visions and disruptive business models that always seem to be able to navigate the digital economy and achieve amazing revenue, customer growth, and market share goals.
The Impact of the New Coronavirus Outbreak
The depth and timing of the impact of a downturn due to a new coronavirus pneumonia will depend on a number of complex variables, some of which are within the control of the organization and some of which are not.
In the aftermath of the 2008 financial crisis, most companies reacted conservatively, waiting for the crisis to subside, while others invested aggressively and committed to the digital transformation that has made them the leading technology companies of today. When the crisis subsided, the tech giants were ready to deliver superior digital experiences to their customers and achieve sustained, spectacular growth.
How to Become a Catch-Up Player
- Insights into the Future
The total value of the 5G edge computing ecosystem in the industries mentioned above is expected to exceed $500 billion by 2023. billion dollars.
- Building New Partnerships
It is important to build strong partnerships, especially between organizations in these industries and cloud providers. Organizations should nurture and develop strong relationships.
- Large-scale investments
5G edge computing is not cheap to deploy, but the benefits are significant. With digital transformation on the horizon, the cost to enterprises of failing to keep up can be even higher.
- Finding a niche to create the future
We've only explored five industries; there are many more to discuss. To stay ahead of the curve, companies need to find a unique niche, which means exploring and taking risks.
- Act Now
The new crown epidemic and the subsequent economic impact will put pressure on long-term strategy. But strong, effective leadership will help you embrace the risks and opportunities along the way. Take immediate action in this increasingly digitized environment.
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