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Asia-Pacific's 5G Digital Factory Revenue Primed for a Post-COVID-19 Recovery Worth US$60 Billion in 2030

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ABI Research

17 Sep, 2020, 12:30 GMT

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SINGAPORE, Sept. 17, 2020 /PRNewswire/ -- COVID-19 initially slowed mobile phone sales in the Asia Pacific and disrupted supply chains and demand for certain 5G-related end verticals. However, it also caused an increase in broadband traffic and 5G use cases such as South Korea using 5G to livestream its 2020 elections and China deploying 5G-powered smart city robots. Moving forward, ABI Research believes that the pandemic will alert enterprises to the importance of disruption-proofing their businesses using 5G and forecasts an APAC 5G digital factory market worth over US$60 billion by 2030.

"5G is here to stay in APAC, with operators in the region showing their commitment through increased Capital Expenditure (CapEx) for 5G rollouts. For example, China Mobile, China Telecom, and China Unicom are investing a total of US$ 173.3 billion on their 5G network by 2025," says Kanguri Ling, Research Analyst at ABI Research. "5G will bring many use cases into play for APAC, which is extremely beneficial to the economy and technological progression. In the prosumer space, 5G can enable real-time control for remote production of live broadcasts. For enterprises and end verticals, 5G will enable smart cities through 5G-based autonomous form factors and 5G-powered autonomous driving just to name a few. 5G will also propel an increasingly wireless factory and create new value-based business models for operators in APAC, reducing their profit-reliance on Average Revenue Per User (ARPU)."

Despite the COVID-19 outbreak, operators such as NTT Docomo did not have a delay in commercially launching 5G in March, and KT has seen an increase in ARPU with 5G subscribers reaching over 2 million in 2Q-2020. Telstra has also upgraded to a 5G Stand Alone (SA) core in May with Ericsson. ABI Research expects that by 2024, APAC will see 5G power 43% of the online video market and 51% of the mobile phone cloud gaming market.

"We will definitely see new trends emerging for the 5G landscape in APAC because of COVID-19. said Jake Saunders, Vice President at ABI Research. In the short term we can expect to see consumer demand for 5G-enabled devices to slow down, as global demand and supply chains are disrupted and shrink. However, this will produce a counter effect in which 5G productions are diversified to protect against such supply-side shocks. We can also expect to see the acceleration in a 5G-led digital lifestyle, as development for 5G use cases such as remote healthcare, autonomous form factors and wireless factories becomes much more salient in light of protecting enterprises against future disruptions," Saunders concludes.

These findings are from ABI Research's The 5G APAC Market Post-COVID Application Analysis report. This report is part of the company's 5G & Mobile Network Infrastructure research service, which includes research, data, and Executive Foresights. Based on extensive primary interviews, Application Analysis reports present in-depth analysis of key market trends and factors for a specific application, which could focus on an individual market or geography.

About ABI Research
ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors. 

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。 

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact Info: 

Global                                                             
Deborah Petrara         
Tel: +1.516.624.2558
pr@abiresearch.com
 

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