ABI Research has released a fresh forecast for the global fifth-generation (5G) cellular market. The introduction of related services is accelerating despite the pandemic and global shortages of electronic components.
The number of 5G users worldwide will reach 2.6 billion in five years
At the end of 2020, it is estimated that there were approximately 264 million 5G subscribers worldwide. The key region for 5G adoption is now China, which accounts for more than two-thirds of all connections. Then we have the United States, Japan and South Korea.
With the continued expansion of 5G infrastructure and the emergence of more and more affordable 5G smartphones, the subscriber base of these networks is projected to almost double this year. By the end of 2021, the total number of 5G users, according to ABI Research forecasts, will reach 507 million people.
In the coming years, the industry will continue to grow rapidly. In 2026, analysts say, 2.6 billion subscribers around the world will coonnect to 5G networks. At the same time, the total revenue of cellular operators will reach $ 942 billion.
The development of 5G will rise due to new services such as 4K video streaming, cloud gaming, virtual and AR platforms.
Ericsson’s profit surpassed market expectations thanks to demand for 5G equipment
The Swedish telecommunications company Ericsson reported its third-quarter profit; the volume of which turnes out to be higher than market expectations. This was facilitated by the high level of demand for equipment for communication networks of the fifth-generation (5G); which is observed in most countries of the world. Due to this, the vendor was able to compensate for the loss of market share in the mainland of China.
During the reporting period, Ericsson’s quarterly adjusted profit rose to SEK 8.8 billion ($ 1.02 billion); up from the SEK 8.6 billion the company received in the third quarter of last year. At the same time, analysts predictes that the vendor’s profit for the three-month period would be $ 7.85 billion.
The source notes that Ericsson and its rival Finnish Nokia have benefited from the ban on the use of 5G equipment from the Chinese company Huawei; which was available in some countries. However, as a result of the retaliatory measures of the Chinese authorities, Ericsson lost contracts in the Middle Kingdom, which led to a significant decrease in profits in the region.
It is noteworthy that about 10% of Ericsson’s income comes from the Chinese market. The loss of contracts for the supply of 5G equipment in the region led to the fact that sales in the mainland of the country decreased by 3.6 billion kroons during the quarter. The total revenue of the Swedish vendor decreased by 2% and amounted to 56.3 billion kroons; which is less than analysts’ expectations, who had predicted revenue at 58.14 billion kroons.