Ericsson Estimates 5G Consumer Market Could be Worth $31 Trillion by 2030

By Dominic Chopping

STOCKHOLM--Ericsson AB said Tuesday that the 5G consumer market could be worth $31 trillion globally by 2030, in a report from the company's consumer-research unit Ericsson ConsumerLab.

The report estimates that communications service providers could earn $3.7 trillion of that total, a figure that could increase as new adjacent digital services opportunities arise.

The report also estimates that communications service providers could generate up to $131 billion by 2030 from digital service revenues, by proactively bundling and marketing 5G use cases. About 40% of these revenue projections are attributed to consumer spending on enhanced video, augmented reality, virtual reality and cloud gaming over 5G networks, it said.

Ericsson projects that augmented reality is likely to drive more than half of all consumer spending on immersive media by 2030, starting with gaming and extending to other areas like shopping, education and remote collaboration.

The report said the Covid-19 pandemic's impact on personal finances and financial priorities may have affected consumers' willingness to pay a premium for 5G subscriptions.

However, one-in-three early adopters globally are still willing to pay a 20% premium for 5G and that could help drive economic recovery, according to the report.

Write to Dominic Chopping at [e-mail]

(END) Dow Jones Newswires

November 17, 2020 05:15 ET (10:15 GMT)

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