9 Ways that 5G Can Transform the World as We Know it

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

5G, or the fifth-generation wireless standard, is a buzzword in the public arena at the moment, but not everyone has grasped just how revolutionary its effects could be when combined with other innovations like the Internet of Things (IoT), machine learning (ML), edge computing, and artificial intelligence (AI).

5G is far more than simply a faster, more wide-reaching version of 4G. With 1,000 times the capacity and 100 times the speed of today's mobile networks, it can deliver connectivity that is more reliable, swift, and lower in latency than anything we've experienced so far. When people refer to 5G as the fourth industrial revolution, it could even be an understatement. 5G use cases could drive the post-COVID economic recovery, especially since the pandemic itself accelerated digital transformation and 5G adoption.

Analysts at PWC estimate that 5G applications could deliver a total uplift of $1.3 trillion to the American economy between 2021 and 2030, spread across a number of industries and use cases.

How might 5G enable future tech like ML, AI, virtual reality (VR), augmented reality (AR), IoT, and automation and robotics to transform the way we live?

1. Industry will become more efficient and sustainable

5G networks provide super-fast, low-latency connections that enable the machine to machine (M2M) communications which form the foundation of smart "lights off" manufacturing plants that leverage robotic process automation (RPA). Unlike human operators, robots don't make mistakes, reducing the risk of manual errors and adding an estimated $4 billion to the productivity of industry by 2030.

Smart IoT sensors embedded across factories monitor every change in processes, performance, and efficiency, and use 5G networks to send continual, real time updates to ML-based predictive analytics systems. The more efficient factory operations are, the lower the waste in energy and raw materials.

2. Agriculture and farming will become more productive

The latest wave of agricultural tech solutions combine sensors, IoT devices, edge computing, and ML analytic engines to monitor soil conditions, infestations, plant strength, weather conditions, livestock health and location, animals who are about to give birth, and more on a constant basis, and then automatically adapt plant and animal care measures accordingly. However, farmers can't access these solutions without 5G networks.

Even in the highly connected USA, only around 25% of farms use any connected equipment or digital data, and those who do are mostly using slow, expensive 2G or 3G networks that can only support a limited number of devices. McKinsey analysts calculated that a connected agriculture industry will add $500 billion of value to global GDP by 2030, or a rise of 7%-9%, while also easing the pressure and stress felt by farmers. 5G will connect farmers with the data and equipment they need to improve food production for us all.

3. Healthcare will be revitalized

Healthcare is one of the leading sectors ripe for transformation through 5G applications. The COVID-19 pandemic revealed the value of low-latency, high-definition video telehealth consultations for patients unable to reach their doctor in person, which 5G connections will support. The upcoming shortage of doctors in the US, especially in rural areas, means that reliable, accurate telehealth could literally become a matter of life and death.

Edge computing and fast 5G networks permit health professionals to monitor patient conditions constantly through wearable sensors and embedded devices, creating accurate and timely health alerts that can prevent medical crises and ensure emergency medical care arrives before it's needed. When it's no longer necessary to remain in hospital for round-the-clock monitoring, it eases the pressure on hospital beds. 5G also supports unmanned autonomous vehicles like ambulance drones, which can transport vital emergency equipment like defibrillators up to 4x faster than manned transportation.

4. Smart transportation will improve road usage

Driverless vehicles rely on 5G for accurate, up-to-the-millisecond mapping that ensures they obey speed limits, respond to obstacles, and stay on the road/rails. Driverless vehicles like heavy trucks can travel at night when road use is lower, thereby reducing pressure on road systems during peak hours and decreasing the risk of collisions on busy streets. 5G driverless trucks and delivery drones can vastly improve delivery times for retail, with Ericsson predicting that drone deliveries would be a key use case from 2024.

5. Retail will be revolutionized

5G is predicted to transform the way we shop in a number of ways. VR and AR applications allow consumers to try on clothing from home, test out makeup, and see what furniture looks like in different positions in your room, all without leaving the house. A report by Ericsson predicted that AR and VR product visualizations would be a key trend for retail between 2022 and 2024.

Retailers can use 5G connected IoT sensors and ML analytics to support real time inventory monitoring, automate purchase orders, and ensure that products don't get overlooked in a busy store or warehouse. Robotic fulfillment in warehouses reduces errors and speeds up order fulfillment, while a connected supply chain allows retailers to track every step of shipments and deliveries, reducing "lost" orders and avoiding consumer disappointment.

Finally, improved data analytics helps retailers refine marketing and sales strategies. Better analytics means more accurate forecasts for consumer demands, upcoming trends, and market fluctuations, enabling improved business decision-making and strategic planning.

6. Financial services

With low latency computing, financial institutions like banks, car loan dealers, insurance companies, and more can use ML models to assess risk in nanoseconds. By advancing "know your customer" (KYC) analysis, 5G enables financial services providers to make faster and more accurate decisions about loan applications and insurance policies.

5G anti-fraud solutions like facial recognition, thumbprint identification, and behavioral analysis help financial institutions block fraudulent transactions while offering smoother interactions for genuine customers. PWC estimates that reducing losses from fraud alone will add approximately $30 billion net to global GDP.

7. Consumer experiences

PWC identifies media, entertainment, and consumer experiences as another high-value area for 5G, estimating that it could add $254 billion to global GDP by 2030. Cloud gaming opens up access to high-resolution, fast-moving RGP games to players who can't afford the massive computing power they need. Multi-player gaming (MPG) relies on 5G for players to see the results of other players' moves in real time.

5G-enabled AR and VR are opening the possibilities for immersive, 3D games, movies, and entertainment, with new developments like home holographic streaming for live music events. TikTok recently revealed a new ad platform that supports immersive AR ads.

8. Smart cities

5G opens up new possibilities for municipalities to run smart cities that are energy-efficient, safe, and deliver the services that residents need. For example, live traffic updates enable smart traffic lights to adjust their sequencing in real time to let emergency vehicles through unimpeded, reduce holdups during rush hour, and prevent gridlock after a minor traffic incident. This can produce a 40% drop in traffic stops, 21% drop in emissions, and a 26% faster commute.

9. Smart utilities and energy supply

Smart IoT sensors for utilities track demand and supply, so companies don't get taken by surprise by peaks and troughs of usage and can instead prepare ahead of time, to ensure more stable and reliable energy provision. Research found that 5G networks themselves are around 90% more energy efficient than 4G networks, thereby extending connectivity while cutting energy consumption.

Embedding 5G-connected IoT sensors into power lines, water pipes, sewers, and gas pipelines allows utility companies to track their location throughout the city and detect leaks, blockages and cracks far earlier. It's estimated that such sensors could reduce water loss by up to 25%, while tracking and charging for solid waste disposal can reduce solid waste by 10-25% per capita by 2030.

5G is changing the world

It's clear that 5G has immense potential to revolutionize the way we live our lives in a number of ways, adding to the appeal of a 5G stock or 5G ETF . Investors who want to be part of the cutting edge of technological developments but don’t know which specific 5G stocks to buy, can gain access to a range of 5G companies by investing in a 5G ETF stock, such as Defiance’s FIVG ETF. It mitigates some of the risk of trying to discern the best 5G stocks to buy, and spreads the investor’s exposure over companies across the 5G space.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

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