China is expected to become the world’s largest 5G market by 2025, accounting for around 430 million 5G connections, representing a third of the global total.
Industry verticals where 5G are expected to play a key role include: automotive, drones and manufacturing. The report calls for China to promote the development of legislation for areas such as car-hacking and data privacy to support China’s connected car market.
The report notes that China Mobile, China Telecom and China Unicom are all currently trialing 5G autonomous driving and working on solutions such as cellular vehicle-to-everything (C-V2X) for remote driving and autonomous vehicles.
To accelerate the development of the drone market, the report calls for common standards for connectivity management. The drone market is expected to be worth around $13 billion by 2025.
Finally, the report calls for common standards for interconnection between Industry 4.0 platforms and devices (more below) to avoid market fragmentation, drive economies of scale and increase speed to market.
“China’s leadership in 5G is backed by a proactive government intent on delivering rapid structural change and achieving global leadership – but without industry-wide collaboration, the right incentives or appropriate policies in place, the market will not fulfil its potential,” commented Mats Granryd, Director General, GSMA. “Mobile operators should be encouraged to deliver what they do best in providing secure, reliable and intelligent connectivity to businesses and enterprises across the country.”
“Wide collaboration and a right policy environment are essential for 5G to unleash its potential in various verticals, and the three sectors addressed in the report are only a beginning,” said Craig Ehrlich, Chairman of GTI. “The Chinese government and all three operators have been propelling 5G trials and cross-industrial innovation, and the valuable experience gained from the process should serve as a worthwhile reference for the other markets around the globe.”
velopment of legislation for areas such as car-hacking and data privacy. New policies should be pro-innovation and pro-investment to encourage future developments in the sector. All three operators are currently trialling 5G autonomous driving and working on solutions such as Cellular Vehicle-to-Everything (C-V2X) for remote driving, vehicle platooning and autonomous vehicles.
Accelerated Growth of Drones Market:
The report also calls for common standards for connectivity management in the drones market to help accelerate investment and the deployment of new infrastructure and service models. The drones market, estimated to be worth RMB80 billion ($13 billion) by 2025, is developing rapidly in China in applications such as parcel delivery and tracking, site surveying, mapping and remote security patrols, among others. Improvements in mapping, real-time video distribution and analytics platforms are also helping to establish the technology in industrial verticals.
China Entering Age of Industry 4.0:
Backed by government support, China is transforming its manufacturing industry through embracing the use of artificial intelligence, the Internet of Things (IoT), machine learning and analytics. The government’s aim is to increase productivity and drive new revenue opportunities. The report calls for common standards for interconnection between platforms and devices to avoid market fragmentation, drive economies of scale and increase speed to market. GSMA Intelligence estimates that there will be 13.8 billion global Industrial IoT (IIoT) connections by 2025 with China accounting for 65%.
Separately, GSMA today reported that more than 60,000 unique visitors from 112 countries and territories attended the 2018 GSMA Mobile World Congress Shanghai, from 27-29 June in Shanghai. The three-day event attracted executives from the largest and most influential organisations across the mobile ecosystem, as well from companies in a range of vertical industry sectors. In addition to this business-to-business audience, nearly 8,800 consumers from the greater Shanghai metropolitan area attended the Migu Health and Fitness Festival, which was held in the Mobile World Congress Shanghai halls at the Shanghai New International Exhibition Centre (SNIEC).
“We are extremely pleased with the results for the 2018 Mobile World Congress Shanghai, particularly the very strong growth in our business-to-business segment,” said John Hoffman, CEO, GSMA Ltd. “Attendees were able to truly “Discover a Better Future”, from the thought leadership conference to the exhibition and everywhere in between. With more than two-thirds of the world’s population as subscribers, mobile is revolutionising industries and improving our everyday lives, creating exciting new opportunities while providing lifelines of hope and reducing inequality. Mobile truly is connecting everyone and everything to a better future.”
Covering seven halls at the SNIEC, the 2018 Mobile World Congress Shanghai hosted 550 exhibitors, nearly half of which come from outside of China. The conference programme attracted nearly 4,000 attendees, with more than 55 per cent of delegates holding senior-level positions, including nearly 320 CEOs. Nearly 830 international media and industry analysts attended Mobile World Congress Shanghai to report on the many industry developments highlighted at the show.
About the GSMA:
The GSMA represents the interests of mobile operators worldwide, uniting nearly 800 operators with more than 300 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and internet companies, as well as organisations in adjacent industry sectors. The GSMA also produces industry-leading events such as Mobile World Congress, Mobile World Congress Shanghai, Mobile World Congress Americas and the Mobile 360 Series of conferences.
About the GTI:
GTI (Global TD-LTE Initiative), founded in 2011, has been dedicated to constructing a robust ecosystem of TD-LTE and promoting the convergence of LTE TDD and FDD. As 4G evolves to 5G, GTI 2.0 was officially launched at the GTI Summit 2016 Barcelona, aiming not only to further promote the evolution of TD-LTE and its global deployment, but also to foster a cross-industry innovative and a synergistic 5G ecosystem.
For more information, please visit the GTI website at http://gtigroup.org/
The first set of 5G end points, including data terminals, smartphones, tablets, and other products are expected to be released in China during the second half of 2019. That will lead to the commercialization of 5G technology in China, according to an official with the Ministry of Industry and Information Technology (MIIT), Xinhua news agency reported.
Wen Ku, director of the telecom development department at the Ministry of Industry and Information Technology, made the remarks as part of a timetable for 5G at the First Digital China Summit, which opened Sunday in Fuzhou, capital of Fujian province. “China started 5G research experiments in 2016, and entered the third stage of system verification this year,” Wen Ku said at the ongoing first Digital China Summit in Fuzhou, capital of east China’s Fujian Province. Wen noted that device manufacturers such as Huawei and Ericsson had participated in development of 5G products to help create a complete 5G industrial chain.
China has launched 5G cooperation mechanisms with Japan, South Korea, the European Union and the United States, with international companies joining the research and development, he noted.
Given the significantly greater speed — up to 10 gigabits per second — that 5G offers, the next-generation ultra-fast networks will see ways of life change more than in the 4G era, in virtually everything from how we “interact” with our cars to how we use the products in our homes.
In 2013, a working group focusing on 5G is established by the Ministry of Industry and Information Technology, the National Development and Reform Commission and the Ministry of Science and Technology.
At the beginning of 2016, China started its research on 5G technology. The country has finished two rounds of tests on 5G and is conducting a third round now. Initial 5G applications in China are set for 2019.
According to Beijing Youth Daily, China’s three major telecom operators including China Mobile, China Unicom and China Telecom have been approved to set up 5G networks in big cities.
- China Unicom will pilot 5G-technology in 16 cities including Beijing, Tianjin, Qingdao, Guiyang and Zhengzhou. China Unicom said it has started free chip upgrading for 2G users and cut 2G frequencies for the 5G network.
- China Mobile will launch offline testing in five cities in eastern and southern China, with each city installed with more than 100 5G stations as well as 5G application demonstrations in 12 cities.
- China Telecom has confirmed it will pilot 5G-technology in Xiong’an, Shanghai, Suzhou, Shenzhen, Chengdu and Lanzhou, and plans to expand the network to six more cities.
CCS Insight believes that manufacturers are increasingly looking to 5G technology to reignite growth in mature markets. Koytcheva comments, “The arrival of 5G handsets offers a glimmer of hope for embattled smartphone makers. They’re betting that this new, faster technology will give consumers a reason to upgrade their phones.”
However, Koytcheva cautions that phone-makers will have to be patient as they wait for this next wave of upgrade activity. “Although we expect the first 5G smartphones will hit the market in 2019, really significant demand won’t start until 2021, eventually having a positive impact in 2022, when we expect over 600 million 5G phones will be sold, accounting for 31 percent of the global market.”
CCS Insight also notes that while advanced markets are focused on the transition to 5G, consumers in emerging markets are taking up smartphones more slowly than previously expected. Koytcheva comments, “The rising cost of components for entry-level smartphones and the arrival of affordable feature phones that support 4G networks mean that many people who otherwise might have bought their first smartphone are sticking with a feature phone for now.”
The chart below provides a summary of CCS Insight’s mobile phone forecast.
Total shipments of mobile phones, 2013-2022
Source: CCS Insight Market Forecast: Mobile Phones Worldwide, 2018-2022