Chip maker says next-generation mobile tech could create up to 22 million jobs.
5G could create as many as 22 million jobs enable the creation of $12.3 trillion (€11.5 trillion) worth of goods and services by 2035.
This is according to a new study evaluating the potential economic impact of 5G that was commissioned by chip maker Qualcomm, and carried out by research firm IHS Markit, WPP-owned PSB, and David Teece, who is director of the Tusher Centre at the Haas School of Business at the University of California.
"These respected researchers confirmed our strong belief that 5G will be a fundamental game changer," said Qualcomm CEO Steve Mollenkopf.
According to the study, 5G’s full economic benefits should be realised by 2035. The next-generation mobile technology is expected to generate up to $3.5 trillion in revenue by then, which is more than the entire output of the global mobile value chain today. It is also expected to boost the world’s GDP to the tune of $3 trillion between 2020 and 2035, which is approximately equal to the size of India’s economy today.
The Qualcomm-commissioned report expects the global economy to grow at 2.9% during the forecast period, with 5G accounting for 0.2% of that growth.
"The study indicates that 5G will catapult mobile into the exclusive realm of general purpose technologies, like electricity and the automobile, that provide the foundation for massive innovation, give rise to new industries and benefit entire economies. This will happen as 5G advances mobile from a set of technologies connecting people to people and information to a unified fabric connecting people to everything," Qualcomm said.
In addition, the researchers expect collective investment in R&D and capex by players that are part of the 5G value chain will average $200 billion per year between 2020 and 2035.
The U.S. and China are expected to dominate in 5G R&D and capex, investing a total of $1.2 trillion and $1.1 trillion respectively over the course of the forecast period.
"We have been hard at work helping create some of the key technologies and applications that will make 5G a reality, pushing the boundaries of LTE, collaborating with industry leaders, and spearheading the critical research behind the next-generation global wireless standard," Mollenkopf said.