5G is the next-generation mobile network technology that will make a more connected world possible. Check out this blog to learn more!
How the development of 5G technologies influences international trade
5G is the next-generation mobile network technology that will make a more connected world possible. 5G's high speed, low latency, and ability to handle high traffic will make technologies like edge computing, internet of things (IoT), augmented reality (AR), driverless cars, and so much more a reality. The global impact of 5G on goods and services is estimated by economists to reach $12 trillion by 2035.
5G network market
5G needs new network equipment, which would be the cellular towers that deliver the signal. This will result in a boost in sales for manufacturers across the world like Alcatel-Lucent, Ericsson, Nokia, and Huawei. Only the manufacturer's with the 5G technology will be able to garner new sales, Huawei is currently leading the market. The small global cell 5G network market is expected to grow at a CAGR of 32% between 2019 and 2026.
5G devices, machinery, IoT, and software
New products and potential new industries will form around 5G technology. The most notable and early products to market will be from smartphone manufacturers.
5G makes the IoT a feasible industry for home, office, and industry. Not only will there be home appliances and wearable technology, but there will also be factories that are now fully autonomous. Devices and machinery will not only need to be made, but the software will also need to be created to run them. Having so many things connected by the internet and relying on software will additionally create a need for antivirus software as well. It is estimated that the 5G applications and services market will be approximately $133 billion in 2020 and is expected to grow at a CAR of 25.8% to $664 billion by 2027.
5G compliance and regulation
The leaps in technology have created a regulatory nightmare for lawmakers who are struggling to keep up. This is especially true for data and how it is used to generate revenue. Where does an American company, which uses UK user's data to sell to a German company, pay their taxes? The UK is currently mulling a temporary tech tax (till the world comes up with an agreement), but the American government has warned that if enacted, it will retaliate.
Another quandary is about data security. This is what has caused a potential rift between the American government and China. America has banned Huawei in the US because it believes the Chinese government will steal or snoop on users.
5G will have a net positive effect on international trade, and it's economy. It will not only spur growth in the IT industry, but it will also lead to innovations and industries. Although the technology is moving faster than regulators, it still provides more opportunities than threats.
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