Industry Digitalization Could Be a $700 Billion Market by 2030

A new Ericsson report estimates that the addressable industry digitalization market for service providers could grow to about USD 700 billion by the end of the next decade. It identifies new revenue opportunities for service providers and offers a guide for navigating the changing 5G landscape.

5G for business: a 2030 market compass report has analyzed and conducted an in-depth look at the changes per industries since the 2018 report. The findings quantify the value of the potential addressable market for service providers based on more than 200 use cases across 10 different industries, and a set of 5G-enabled business-to-business (B2B) use case clusters. To support service providers, report recommendations cover an analysis of each industry, to outline existing drivers and barriers and provide guidance for how to succeed in new markets.

The report finds that by 2030, up to USD 700 billion of 5G-enabled B2B value can be addressed by service providers, which corresponds to 47 percent of the total 5G-enabled market expected to be served by ICT players. To capture share in this market, the report concludes that service providers must extend their reach beyond connectivity and consider what other roles within the B2B value chain to take, and what use case clusters to address. The report also says that service providers should act now.

All industries studied represent major value pools. Among use case clusters cutting across these industries, enhanced video services represent the largest value pool, with up to 17 percent or USD 118 billion of the total value by 2030. The report highlights that while addressable market size is one key parameter, it must be balanced with other aspects. To help navigate the rapidly changing environment, the report outlines the drivers and barriers characteristic to each industry.

Revenues for currently available services are expected to remain stagnant through to 2030, whereas B2B digitalization opportunities will grow at a much quicker pace. If realized, 5G-enabled B2B opportunities addressable for service providers can account for up to 35 percent on top of revenues for currently available services by 2030. To be successful in capturing this potential service providers must act in the next 5 to 7 years, while roles and market shares are still being established.