, APAC
Photo by Markus Spiske from Pexels.

5G, edge computing ecosystem in 5 industries to reach $517b in 2023

This is coming from $316b in revenue in 2019.

The widespread digitalisation will bring the 5G and edge computing ecosystem worth in industrial manufacturing, connected healthcare, intelligent transportation, environmental monitoring, and gaming to $517b by 2023.

In a report, KPMG said combined 5G and edge computing will play a key role in the global economic recovery as its adoption will result in significant economic value for those in the 5G+Edge ecosystem.

“By 2023, with an uptick in the adoption of 5G and edge computing, the five target industries are forecast to drive more than US$500 billion in annual revenue into the entire ecosystem that includes connectivity, hardware, software and services,” KPMG said.

“Connectivity alone is only a modest fraction of this total – approximately 11 percent, or US$55 billion. It’s a sobering prospect for telcos. The dire economic impact of becoming a ‘dumb-pipe’ is real and requires immediate action for those not already positioned to benefit,” it added.

The total revenue from the five industries in 2019 was at $361b.

The industrial manufacturing sector is expected to allocate $206.4b for the ecosystem, 35% of which will be allotted for software, 30% for hardware, 29% for services and only 6% for connectivity.

Connected healthcare will spend $45.3b, 53% will go to services, 21% to hardware, 15% to connectivity, and 11% to software.

KPMG said around $24.3b will be allotted for the ecosystem in the intelligent transportation sector, 38% of which will go to services, 28% to hardware, 25% to software, and 9% to connectivity.

Environmental monitoring is expected to spend $5b for 5G+Edge, with 39% going to hardware, 37% go services, 16% to connectivity, and 9% to software.

The gaming sector will allot $236b, of which 48% will be for software, 20% for hardware, 18% for services, and 14% for connectivity.

 

Role of telcos

Telecommunication companies are the key players in the connectivity pillar of the 5G+Edge ecosystem. KPMG said they have to take crucial steps to capture the maximum revenue from the ecosystem in the five industries.

These companies should “protect the core” by cultivating the ecosystem in the five industries, building multi-service propositions such as fixed and mobile, and investing in 5G capabilities.

KMPG said they should also invest in skills and capabilities, and focus on implementing a “platform enablement opportunity” that will bring multiple players together.

Focusing on embedded connectivity is also another step telcos can take which could be done by seeking mergers and acquisition (M&A) targets to capture hardware/connectivity plays in large industries.

They can also “verticalise capabilities” around the five industries mentioned to render more end-to-end services to them, and consider strategic M&A targets, KPMG said.

Join Asian Telecom community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!