5G commercial industry chain welcomes investment boom in the first year

2019-11-12
  • The official launch of 5G packages by the three major operators marks the beginning of the 5G cycle.Although it is still unknown what changes 5G will bring to social life, each round of upgrading and upgrading of mobile communication technology will drive the investment boom of the industrial chain.From the deduction of the cycle, the start of 5G cycle means that this wave of capital expenditure is likely to exceed 4G in intensity and duration.


    5G starts a new development cycle

    5G has just entered the first year of commercial use this year, and the future market has great potential.For the average user, the most intuitive benefit of 5G is the huge increase in download speed, but 5G is much more than just network speed.In the initial stage of 5G commercialization, operators will carry out network construction, which will bring a lot of revenue to equipment manufacturers.In the medium term of 5G commercialization, expenditure from terminal equipment and telecom services will continue to grow.In the later stage of 5G commercialization, revenue of 5g-related information services in Internet enterprises has increased significantly.From chips to terminal equipment, from operators to all kinds of 5G applications, many industries will usher in a period of vigorous development.According to the white paper on the economic and social impact of 5G issued by the China information and communications academy, direct and indirect output driven by 5G will reach 6.3 trillion yuan and 10.6 trillion yuan respectively by 2030.In terms of direct output, according to the official commercial use of 5G in 2020, it is expected to drive the direct output of about 484 billion yuan in that year, which will grow to 3.3 trillion yuan in 2025 and 6.3 trillion yuan in 2030, with an average annual compound growth rate of 29%.In terms of indirect output, 5G will drive 1.2 trillion yuan, 6.3 trillion yuan and 10.6 trillion yuan respectively in 2020, 2025 and 2030, with an annual compound growth rate of 24%.    


    5G will help drive the "digitization" of the economy to a new level

    5G innovative application will promote the development of China's digital economy to a new level.

    First, 5G will build a new network infrastructure, integrate a new generation of information and communication technology, and open up the information artery.The living and production activities of human society will be further transplanted onto the new infrastructure, thus accelerating the new round of scientific and technological revolution and industrial transformation, and promoting the leap of social productivity.

    Second, 5G is interwoven with cloud computing, big data, artificial intelligence and other technologies, and integrated with the real economy in a wider range, at a deeper level and at a higher level.5G high technology, high investment, high return, spillover effect is very significant, every investment of 1 unit, will drive the economic output of 6 units, forming a cordon of digital economy.

    Third, the in-depth integration of 5G with multiple fields will greatly expand the space for scientific and technological innovation, network integration and manufacturing transformation.


    Industrial chain welcomes investment boom

    Although 5G is officially in commercial use, it will take a long time to fully roll it out.

    The first is the construction period, which covers the construction of wireless access network and carrier network. The wireless access network includes the main equipment of acer station and its power supporting facilities, tower, etc. The carrier network includes SDN/NFV, transmission network equipment and IDC/CDN.Second, operation and maintenance period: mainly telecom service outsourcing;Third, application period: covering the construction of the terminal and its components and 5G scenes.

    For the whole industrial chain of 5G, we can simply divide it into three aspects: first, the upstream is mainly the base station upgrade;Second, the mid-stream network construction;Third, the downstream product application and terminal product application scenario.The upper, middle and lower reaches can also include components raw materials, base station antennas, small and micro base stations, communications, network equipment, optical fiber and cable, optical modules, system integration and service providers, operators and applications and other segments of the industrial chain.At present, China's 5G is in the construction phase. With the continuous implementation of construction projects, it will drive the growth of hardware demand such as base stations and terminals, and the industrial chain will usher in an investment boom.Antenna, PCB, rf front-end, electromagnetic shielding and other components and industrial chain related companies will get new growth momentum.After the gradual improvement of 5G network, relevant applications such as Internet of vehicles and AR/VR will be gradually developed and penetrated, which will open up a broader space.

  • Eastech Group Circuit Technology (ShenZhen) CO., LTD(Copyright)