5G networks will help many sectors grow, says KTKT’s Economics and Management Research Institute said Monday that the next generation 5G network would generate at least 48 trillion won ($43 billion) worth social and economic value by 2030, accounting for roughly 2 percent of that year’s gross domestic product.
The research institute analyzed business benefits and consumer benefits earned through the deployment of 5G network in 10 major business areas including manufacturing, health care, transportation and finance as well as four key environments: cities, non-city areas, homes and offices.
The 5G network that Korean mobile carriers are planning to commercialize by early next year, is about 20 times faster than the current long term evolution network bringing new opportunities for a range of businesses.
The report said 5G will add notable value to the automobile industry since the high-speed, low-latency network could greatly upgrade a car’s infotainment and telematics system.
The value added to the industry will amount to 3.3 trillion won by 2025 and 7.2 trillion won 2030, the institute predicted.
Media, currently focusing on virtual reality and augmented reality technology that requires seamless internet connections, is also expected to grow once 5G networks are widely deployed.
The report forecast that 5G will add 2.5 trillion won in value to the media industry by 2025 and 3.6 trillion won by 2030.
As for key environments, the report said the new networks will cut social costs in cities, for instance, by reducing crime rates, carbon dioxide emissions and car travel time contributing to roughly 5.4 trillion won worth of social value by 2030.
Mobile carriers are preparing for intensive surveillance systems based on 5G as well as navigation apps that guide cars to faster and more efficient routes.
“The next-generation 5G network will bring about a social and economic disruption like all other general purpose technologies such as electricity, computers and steam locomotives,” said Kim Hee-su, head of the research institute.
BY KIM JEE-HEE [email@example.com]