White Paper

The Impact of 5G:

Creating New Value across
Industries and Society

In collaboration with PwC

January 2020
World Economic Forum
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Contents

Foreword 4

Executive summary 5

Introduction 6

Background of 5G 7

Functional drivers of 5G 7

5G Ecosystem Cycle 8

Economic and social value 9

5G sectors and use cases 11

5G use case analysis 11

5G potential for economic and social value across industry sectors 16

Overview of actions required by stakeholders 19

Conclusion 20

Contributors 21

References 22

Endnotes 23

The Impact of 5G: Creating New Value across Industries and Society 3
Foreword

The Fourth Industrial Revolution offers an opportunity for diverse sectors to enhance their
competitiveness and contribution to regional economies, while supporting the United Nations
Sustainable Development Goals. This industrial revolution is powered by both established and
emerging technologies, including the internet of things, artificial intelligence, advanced data analytics,
robotic process automation, robotics, cloud computing, virtual and augmented reality, 3D printing and
drones. One key enabler that allows these technologies to realize their full potential is connectivity.

Industrial revolutions have been characterized by the transformation of physical infrastructure

networks. Electricity powered the Second and Third Industrial Revolutions, as networks achieved
economies of scale by connecting large plants over high-voltage transmission grids to local distribution
Hazem Galal networks reaching many users. The Fourth Industrial Revolution’s full potential will be fully realized
Global Leader, through the wide-scale deployment of 5G communication networks.
Cities and Local
Government 5G will be critical because it will enable unprecedented levels of connectivity, upgrading 4G networks
Network, PwC, with five key functional drivers: superfast broadband, ultra-reliable low latency communication,
United Arab massive machine-type communications, high reliability/availability and efficient energy usage. Together,
Emirates these defining features will transform many sectors, such as manufacturing, transportation, public
services and health.

To ensure the widespread deployment of 5G networks, key stakeholders must address important
questions. Government regulators and city managers must decide whether and when to invest in 5G
infrastructure; mobile and telecommunications operators must evaluate suitable business models;
and citizens must find ways to realize the full benefits this technology can bring while ensuring the
preservation of the community’s rights.

The transition to 5G networks can only be achieved when all stakeholders – citizens, the private
sector and government – collaborate to effectively address these questions. The insights and
recommendations in this White Paper aim to pave the way towards accelerating a sustainable and
Derek O’Halloran
inclusive transition to 5G networks globally, creating significant economic and social value.
Head of Digital
Economy and New
Value Creation
Platform, World
Economic Forum

4 The Impact of 5G: Creating New Value across Industries and Society
Executive summary

The positive impact of the Fourth Industrial Revolution

Functional drivers
and its related emerging technologies will be fully realized
Five key functional drivers of 5G support certain
through the wide-scale deployment of 5G communication
technological applications. They are: 1) enhanced mobile
networks in combination with other connectivity solutions. broadband; 2) ultra-reliable low latency communication;
The key functional drivers of 5G will unlock a broad range of 3) security; 4) massive machine-type communications;
opportunities, including the optimization of service delivery, and 5) power efficiency. Most (93%) of the use cases
decision-making and end-user experience. analysed would be enhanced by ultra-reliable low
latency communication and 78% by enhanced mobile
Significant economic and social value can be generated by broadband. Massive machine-type communications and
enabling use cases activated by 5G. An IHS Markit study1 security are also important, with each driver contributing
estimates that $13.2 trillion in global economic value will be to 45% of the use cases analysed. It is important to
made possible by 2035, generating 22.3 million jobs in the 5G note that 5G could be the ideal technology for certain
global value chain alone. solutions, but others might be sufficiently served with
WiFi, 4G or even earlier generations of networks.
To better understand it, the 5G ecosystem was mapped
out to identify its components, its stakeholders and
5G maturity
interdependencies, and the actions needed to accelerate
5G deployment will occur in phases with certain
5G deployment and fully realize the potential. A set of
functional drivers improving over time. However, not all
challenges was identified for each component (spectrum,
the use cases identified require these functional drivers
infrastructure, devices, services, impact and security). To at full maturity. The key drivers in their current state
ensure that all the actions to accelerate 5G deployment are and in the short term that have the highest potential to
coordinated and the interdependencies are understood, disrupt are low latency communication and enhanced
strong collaboration between stakeholders is needed. One mobile broadband.
key area for collaboration that requires multistakeholder input
is a strengthening of the business case for 5G through the
quantification of the potential social value that can be created. Significant economic and social value can be gained from
Many of the current use cases are technically enabled by the the widespread deployment of 5G networks. Technological
functional drivers of 5G and activated through multistakeholder applications, enabled by a set of key functional features, will
cooperation and collaboration. both facilitate industrial advances, improving their bottom
line, and enhance city and citizen experiences. To accelerate
An analysis of 40 use cases was conducted as part of the the adoption of 5G, new collaboration models among
development of this White Paper, which identified key industrial stakeholders are needed, along with clear methodologies
advances and social impact areas in addition to the main to estimate the social value creation, which will enhance the
functional drivers of 5G and the required maturity levels of business case of 5G.
these features. The results of this analysis, complemented by
insights from stakeholder interviews and several cross-industry For additional information on the use cases, their industrial
workshops, generated the following key findings: advances and social value creation potential, as well as
their enabling functional drivers, see the accompanying use
case repository http://www3.weforum.org/docs/WEF_The_
Industrial advances Impact_of_5G.pdf.
5G will contribute to industrial advances in three significant
ways: by 1) enabling faster and effective inspections
through predictive intelligence; 2) improving workplace and
worker safety; and 3) enhancing operational effectiveness.
5G also has the potential to impact industry by managing
the carbon footprint and bridging the digital divide, which
together apply to 63% of the use cases identified.

Social impact
5G can deliver social value across 11 key areas that
correspond to 11 of the United Nations’ 17 Sustainable
Development Goals (SDGs). This value derives mainly from
contributing to good health and well-being, enhancing
infrastructure, promoting sustainable industrialization and
fostering innovation. Other key areas in which social value
is created through 5G include contributing to responsible
consumption, enabling sustainable cities and communities,
and promoting decent work and economic growth.
The Impact of 5G: Creating New Value across Industries and Society 5
Introduction

Fast, intelligent internet connectivity enabled by 5G While several countries have initiated roadmaps for the
technology is expected to create approximately $3.6 5G rollout, others are falling behind due to a diverse set
trillion in economic output and 22.3 million jobs by 2035 of challenges that will require an unprecedented level of
in the global 5G value chain alone.2 This will translate collaboration between business, the public sector and
into global economic value across industries of $13.2 broader stakeholders in society. These have repercussions
trillion, with manufacturing representing over a third of that across several areas of the ecosystem, including in
output; information and communications, wholesale and creating new business models, fostering innovation, defining
retail, public services and construction will account for investment models for digital infrastructure, preparing
another third combined.3 To make that happen, however, for cybersecurity scenarios and, more broadly, ensuring
trillions will first have to be invested to introduce global sustainability and positive societal impact.
5G networks. 5G presents an opportunity for companies
to be first movers, but greater cooperation is needed to To understand these systemic challenges, the World
accelerate deployment. Economic Forum has initiated a 5G-Next Generation
Networks Programme to help enterprises across industries
transform while shaping an inclusive and sustainable
transition to the next generation of networks. This
Over the past decade, as 5G was first imagined, programme is part of the Digital Economy and New Value
then developed, and then launched, those of us Creation Platform, whose objective is to develop new
in the tech and telecommunications industries economic and business models that are digitally driven,
creating sustainable value for an inclusive economy.
became increasingly excited by its potential. We
knew from an early stage that 5G would make The objective of this White Paper is to shed light on ways
digitalization more accessible, allowing small to realize the large estimated economic output potential by
businesses, public services and even individual taking a bottom-up approach through a use-case-driven
households to reap the benefits of smart analysis. The analysis of 40 sample use cases in various
industries establishes linkages between commercial and
products and services. But what we didn’t know societal impact, and explores how the functional drivers
was exactly what those products and services of 5G could enhance the output of these use cases as 5G
would look like. Now we know. This paper, which networks evolve. Additionally, this paper summarizes key
we have actively contributed to, shows that 5G’s challenges based on insights from several stakeholders,
speed, reliability and scale are already unlocking and presents a set of stakeholder actions to accelerate 5G
deployment in order to realize its full potential.
huge social and economic gains. This is the
future – and Nokia is delighted to play its part.

Rajeev Suri, President and Chief Executive Officer, Nokia

6 The Impact of 5G: Creating New Value across Industries and Society
Background of 5G

By definition, 5G refers to fifth-generation cellular network technology, which has been evolving since 1980. 5G is expected to
significantly enhance the mobile network, enabling more connections and interactions. This connectivity enhancement across
networks will unlock significant potential for various industries to improve their bottom line.

Functional drivers of 5G

The transition to 5G involves a new, end-to-end network architecture and presents several defining features that make it
unique. The five key functional drivers4 of 5G and possible use cases can be summarized as follows:

Functional driver Description Added value Use cases

Enhanced mobile Faster connections, Allows for an Fixed wireless access service, enhanced in-building
broadband (eMBB) higher throughput and extension in cellular broadband service, real-time augmented reality service,
greater capacity (up to coverage into diverse real-time virtual and mixed reality service, crowded or
10 Gbps) structures (large dense area service, enhanced digital signage, high-
venues) and the ability definition cloud gaming, public protection and disaster
to handle a larger response services, massive content streaming services,
number of devices remote surgery and examination
using high amounts
of data
Ultra-reliable Reduced time for Enables time-sensitive
low latency data from device to connections wirelessly
communication be uploaded and
(uRLLC) reach its target (1 ms Autonomous vehicles, drones and robotic applications,
compared to 50 ms health monitoring systems/telehealth, smart grid and
for 4G) metering, intelligent transportation, factory automation,
Security Robust security Creates an ultra- remote operation, self-driving cars, mission-critical services
properties, leading reliable connection to (security and safety), high-definition real-time gaming
to high reliability and support applications
availability where failure is not an
option
Massive machine- Increased spectral Allows for a
type communications efficiency plus small large number of
(mMTC) cell deployment connections to
support data-intensive Asset tracking and predictive maintenance, smart
applications cities/buildings/agriculture, internet of energy/utility
management, industrial automation, smart logistics
Power efficiency Efficient power Leads to lower costs
(advanced telematics), smart grid and metering, smart
requirements for and enables massive
consumer wearables, environmental management,
massive multiple- internet of things
intelligent surveillance and video analytics, smart retail
input, multiple-output
(MIMO), small cell
implementation

Source: ITU, 2018.5

The Impact of 5G: Creating New Value across Industries and Society 7
5G Ecosystem Cycle actions to occur in each of these areas to initiate and
maintain momentum. The 5G Ecosystem Cycle aims
The 5G Ecosystem Cycle6 was identified to best use to represent the need for stakeholder collaboration
the new, end-to-end network architecture of 5G and and alignment throughout the ecosystem, including
its corresponding functional drivers. It enables the coordinated decision-making that will have repercussions
sustainable transformation of industry sectors and on the ecosystem’s subsequent components. Figure 1
society. The cycle is based on interdependencies across provides a visualization of the cycle and a description of
all key areas of the ecosystem and the need for certain its key components.

Figure 1: 5G Ecosystem Cycle

SPECTRUM is the oil of the 5G ecosystem, INFRASTRUCTURE comprises the

without which no 5G network infrastructure elements of the 5G network that provide
or devices can operate. The future networks coverage, bandwidth, latency and reliability
will rely on a combination of mainstream for 5G devices such as base stations,
and alternative technologies and will use mobile backhaul, edge clouds and core
both licensed and unlicensed spectrum networks, as well as the end devices on
across different spectrum bands together which the 5G network will be used.
(low = long range, indoor penetration but
low capacity density; high = short range, no Spectrum Inf
indoor penetration, high capacity density). t ra
ac s

tru
p
Im

ctu
The actual and perceived end-to-end

re
IMPACT can be achieved in two dimensions: SECURITY of 5G infrastructure, devices
Security and uses will be a key factor for end users,
– Economic impact: employment (payroll),
economic output, profits, investment enterprises and public institutions when
S er

– Social impact: health, education, deciding to move their activities to 5G.

vi c

es
es

livelihood, air quality, greenhouse gas

vi c
levels, land use and biodiversity, waste De
management, water consumption,
water quality. According to Gartner, the number of
connected DEVICES (sensors, smartphones)
in use will increase to 25 billion by 2021,
from 14.2 billion in 2019, creating stronger
5G represents an opportunity for connectivity providers 5G ecosystem sectorial dependencies on the networks. The
to improve network leadership by being the first devices must be able to support much greater
movers and competitively positioning themselves to performances and need to exist in a variety of
deliver key SERVICES across diverse geographies. form factors to support the new 5G-enabled
However, subscriber-based business models need to use cases and business models.
be transformed to enable digital services that support
the roadmaps of enterprises across sectors. Involving
non-traditional stakeholders across industries would be
required to create partnership-based ecosystems and
achieve the deployment of 5G networks more quickly.

Source: World Economic Forum and PwC project team.

Realizing the economic and social value of 5G calls for an effective approach to 5G deployment. To achieve this goal,
specific existing challenges in the various components of the 5G ecosystem, and the stakeholder(s) responsible for each
challenge, first needed to be identified. The stakeholders identified were grouped into four categories:

Regulators/Policy-makers Enterprises/Organizations/ Service/Technology providers Public-private partnership

Associations organizations
Government regulators/ Enterprises, international Network operators, network Organizations with a focus on
regulatory agencies, such as associations, alliances with a equipment and operational public-private partnerships,
the Federal Communications geographical/thematic/sectorial technology providers, tower such as the 5G Infrastructure
Commission (US), European focus, such as the International companies, software service Public Private Partnership,
Commission (EU), Ministry Telecommunication Union, providers, device/chip World Bank, International
of Industry and Information GSMA, 3GPP, 5G Alliance manufacturers Monetary Fund, OECD, United
Technology (China) for Connected Industries and Nations, United Nations
Automation, 5G Automotive Framework Convention on
Association Climate Change

8 The Impact of 5G: Creating New Value across Industries and Society
The following table summarizes the key challenges across these areas by stakeholder:

Organizations/
Policy-makers

Public-private

organizations
Associations
Enterprises/
Regulators/

Technology

partnership
providers
Component Challenges

Service/
Local permits and planning for spectrum usage
Spectrum • • • Auctions and high fees for spectrum procurement
Fragmentation during allocations of spectrum
Fibre backhaul: capacity, availability, deployment cost and long-
distance reach
Infrastructure • • • • New funding models for fibre deployment/ownership
Small cell deployments: local permits and planning
Availability of devices compatible with local spectrum and allocations,
and in line with harmonized global standards
Devices • •
Lack of clear roadmap for device manufacturers
Guidelines and standards related to data exchange across borders
Use cases arising from integration with new technologies (artificial
intelligence, big data, internet of things)
Services • • • •
Lack of incentives for cross-industry collaborations
Skills upgrade of service provider resources
Limited focus on societal and environmental benefits due to 5G
Impact • Disintegration of benefits provided by 5G vs benefits by other IT
technologies
Security of personal data collection
Security • • • Device vulnerability
Network data transmission vulnerabilities

Economic and social value

To incentivize them to collaborate on addressing the challenges of widespread 5G deployment, stakeholders must be
aware of and aligned on the potential economic and social value of 5G . Intelligent connectivity, enabled by 5G, will be a
catalyst for socio-economic growth in the Fourth Industrial Revolution with an estimated $13.2 trillion of global economic
value reached by 2035 (Figure 2).

Figure 2: Economic and social value

$13.2 trillion
Annual Global Economic
Output by 2035 (IHS Markit)

Other
Manufacturing Info & Comms Wholesale/Retail Public Services $4.7 T
$4.7 T $1.6 T $1.2 T $1.0 T
Source: Based on IHS Markit, The 5G Economy: How 5G will contribute to the global economy, 2019.

The Impact of 5G: Creating New Value across Industries and Society 9
Different industry sources have varying estimates regarding 5G’s overall impact through its use in the future. Hence, it is essential
to develop a mechanism to evaluate the quantified impact of each 5G use case on the economy, society and the environment.7

Figure 3: Cumulative global 5G impact, 2020-2035

Trillions) 2016)
16

14
(US$ Trillions 12 IHS *2019 US$ 13.2t 2035
impact (US$

10

8
Globalimpact

UK FCCG US$ 7.6t 2028

6
5GGlobal

4
Ericsson US$ 3.3t 2026
Thierer US$
2 1.9t 2025
5G

Business wire US$ 1.6t 2025

McKinsey US$ 1.5t 2025
0
2020
2020 2025
2025 2030
2030 2035
2035 2040 2045

Source: Chart extracted from 5G socio-economic impact in Switzerland by tech4i2, February 2019, updated with the figure $13.2
trillion by 2035 from The 5G Economy: How 5G will contribute to the global economy by IHS Markit, November 2019.

Investments in 5G networks will reach $1 trillion worldwide While significant research validates the macroeconomic
by 2025 according to the GSMA, the body that represents potential of future networks, a wide range of socio-
the interests of mobile network operators globally. It also economic benefits that 5G enabled applications could
predicts that the global 5G network investment cycle will be provide and that will increase the demand for 5G networks
longer than 4G, indicating that the coexistence of 4G and are not being fully considered at the use-case level. This
5G will last into the 2030s. White Paper thus complements published findings on the
potential impact of 5G by:
When coupled with technology solutions, such as the
internet of things, artificial intelligence or big data, 5G – Establishing commercial and societal linkages at the use-
holds the potential to deliver large-scale societal value. A case level
study conducted by Tech4i2 indicates that 5G will support – Analysing how macroeconomic value could be realized
137,000 jobs in Switzerland alone and create economic based on the way 5G could improve, enhance or
output of 42.4 billion Swiss francs by 2030.8 According to uniquely enable new use cases
a European Commission Study conducted in 2016,9 the – Identifying the social impact areas to which 5G-enabled
potential economic output of 5G is estimated to be €141 technologies can contribute.
billion with 2.3 million jobs created in the 28 Member States
of the European Union.

10 The Impact of 5G: Creating New Value across Industries and Society
5G sectors and use cases

The economic value that 5G can create can be identified through potential industrial advancement areas and subsequent
major commercial opportunities across industry sectors:

Figure 4: Maturity of use cases enabled across industry sectors by evolving features of 5G

– Reliability:
– Reliability: – Reliability:
– Speed: 1-5 Gbps – Speed: 10 Gbps >10 year battery
99.99% 99.999%
– Latency: <20 ms – Latency: <10 ms – Devices:
– Latency: <5 ms – Latency: <1 ms
up to 1 m/km2

Fixed Wireless Smart Home Smart Factory AR/VR in Autonomous Real-time

Access (Real-time Remote Control) Healthcare Cars Banking

2019 2020 2021 2022 2023 2024 2025

Enhanced Mobile Public Safety Consumer Fleet and Inventory Energy and Widespread IoT
Broadband Comms. AR/VR Management and Tracking Utility (Smart Cities and
(Retail) Agriculture)

Highly Dense Urban Urban/Suburban Selective Rural

Coverage

AR = augmented reality; VR = virtual reality; IoT = internet of things.

Source: PwC Strategy& and World Economic Forum, “5G for the Fourth Industrial Revolution”, 2019.

In this section, specific use cases in which economic and cases across various industries. Forty use cases covering
social value are created are identified across different diverse geographies and technology specialty areas were
industry sectors, as are the specific defining features and collected to extract key learnings pertaining to their potential
the level of 5G maturity required. impact and pathways to realize this potential. Transport and
manufacturing were the most represented industry sectors
5G use case analysis with 15 and 11 use cases, respectively, representing 65%
of the total. A series of multistakeholder workshops and
Approach and methodology interviews were also conducted to gather insights on the
The methodology to identify the specific economic and potential effects across a variety of industry sectors.
social value of 5G included collecting and analysing 5G use

Primary industry sector (10) Secondary industry sector (10) Technology specialty area (11)
Manufacturing Machinery and equipment Internet of things
Transportation Automotive Mixed reality
Public services Logistics Autonomous driving
Health and social work Railways Drones
Agriculture Education Robotics
Energy Info and communications Advanced communication systems
Logistics Semiconductors Artificial intelligence
Media and entertainment Urban infrastructure Cloud
Mining and quarrying Consumer goods Digital twin
Professional services Sports Gamification
Simulation/imaging

The Impact of 5G: Creating New Value across Industries and Society 11
These use cases were then analysed across three key 3. Functional drivers: What 5G functional features enable
dimensions: this use case to exist? What is the timeline to realize its
full potential? These defining features help to recognize
1. Industry advancement: How are they improving and the economic and social value and potential.
advancing their specific industry-related key performance
indicators: cost-cutting, enhanced safety, better Based on the analyses, illustrative impact pathways were
decision-making, etc. identified for each case (Figure 5).
2. Social impact: What are the corresponding Sustainable
Development Goals (SDGs) these use cases contribute
to achieving? This information helps to assess the extent
of and expected social impact areas.

Figure 5: Use case illustrative impact pathways

What are the direct

consequences of
What activities are these activities?
performed with these
inputs to achieve
What inputs
outputs? Impact Measure
(resources) are
needed to enable this Outcome
use case?
Output How can the impact
What is the overall be measured?
direct impact of this
What has changed
Activities outcome?
as a result of these
outputs?
Input
Source: World Economic Forum and PwC project team.

Finally, the level of maturity required for the 5G to realize its full potential was assessed for the current state, short term and
long term. Selected functional drivers were used as a reference of the 5G networks’ maturity level across all use cases for
consistency, regardless of whether the analysed use case would benefit from those functional drivers.

Current state Short term (1-3 years) Long term (3+ years)

Speed: 1-5 Gbps | Latency: <20 ms Reliability: 99.99% | Latency: <5 ms Reliability: 99.999% | Latency: <1 ms

Industrial advances
The three most significant ways 5G will contribute to industrial advances are by: 1) enabling faster and effective inspections
through predictive intelligence; 2) improving workplace and worker safety; and 3) enhancing operational effectiveness.
Additionally, 5G has the potential to impact industry by managing the carbon footprint and bridging the digital divide, which
together apply to 63% of the use cases identified.

1. The manufacturing industry is expected to advance rapidly through faster and effective inspections due to
predictive intelligence enabled by 5G.

Almost two-thirds (63%) of the use cases include an aspect of predictive intelligence, particularly applied to the
manufacturing industry, which will generate significant economic value.

Case study: Bright Machines

Bright Machines manages a cloud-based software for the design, simulation and deployment of the configuration
and instructions used to set up, reconfigure and run any number of physical production lines for assembly, allowing
enhanced operations. This software replaces traditional assembly processes. The key benefits realized through this
software, applied in a North American factory, are:

– Defect rates reduced parts per million (PPM) by 88%.

– Unit production increased 33% per hour.
– Assembly-line staff could be reduced by 50%.

12 The Impact of 5G: Creating New Value across Industries and Society
 2. Workplace and worker safety may be significantly enhanced due to technologies enabled by 5G.

Half of the use cases identified lead to improved worker safety and reduced fatalities, through the use of such technologies
as drones, the internet of things and mixed reality.

Case study: Delair

Delair Aerial Intelligence is a reality modelling platform for physical asset management, addressing business requirements
in various industry sectors. It harnesses the computing power of the cloud to turn aerial and ground imagery data into
key actionable insights for operational and corporate asset management. The value this solution generates includes:

– Maximized staff safety in sensitive (remote and dangerous) areas with real-time video surveillance and automatic
hazard detection
– Savings for the clients due to reduced operating expenses to undertake surveys (eliminating the need to send
workers to high altitudes or hire expensive airplanes for flyovers)
– Productivity enhancement and immediate returns on investment.

3. Enhanced operational effectiveness is another key industrial advancement area that 5G can enable
particularly related to logistics and machinery/equipment.

Almost half (45%) of the use cases identified lead to enhanced operational effectiveness, such as reduced operating costs.

Case study: Nokia in cooperation with Omron

Traditionally, the Nokia factory in Oulu has managed machine and device telecommunications through Ethernet cables
adding significant costs in rewiring work. Using Omron LD Autonomous Intelligent Vehicles, material flow is automated. It
delivers material from storage to the production line, without any human interference. As product cycles become shorter
due to fast-changing consumer demands, manufacturing sites are under increasing pressure to rearrange production
lines at short notice. By taking advantage of 5G's high speed, large capacity, low latency and ability to connect
multiple devices, autonomous mobile robots automatically convey components to the exact spot required based on
communication with production line equipment.

Social impact
5G can deliver social value across 11 key areas in the context of the UN SDGs, mainly through contributing to good health
and well-being, in addition to enhancing infrastructure, promoting sustainable industrialization and fostering innovation.
Other key areas in which social value can be created through 5G include contributing to responsible consumption, enabling
sustainable cities and communities, and promoting decent work and economic growth.

4. 5G has the ability to contribute significantly to societal well-being through reduced potential injuries and fatalities.

Over half (55%) of use cases contribute to key performance indicators related to SDG 3: Good Health and Well-being,
particularly in the transportation (eight use cases) and manufacturing (five use cases) industries.

Case study: Starsky Robotics

Starsky Robotics is developing self-driving trucks with remote driving capabilities. It uses teleoperation to remotely drive
the truck between freight depots and the freeway where a highway-only automated driving system takes over. This has
the following benefits:

– Solving the issue of driver shortages by allowing human drivers to work in office environments while making trucks
autonomous on the highways
– Reducing the number of driver fatalities during long-haul journeys by using well-trained, well-rested teleoperators and
exit-to-exit highway automation.

The Impact of 5G: Creating New Value across Industries and Society 13
 5. 5G is a key enabler to enhance infrastructure, promote sustainable industrialization and foster innovation.

As many as 40% of use cases contribute to SDG 9: Industry, Innovation and Infrastructure. This SDG has a particularly strong
correlation with the transportation and manufacturing industries. As such, given 5G’s strong contribution to the advancement
of those industry sectors, the key performance targets stipulated in SDG 9 can be achieved through various 5G applications.

Case study: Airobotics

Airobotics has developed an unmanned drone solution (total market value by 2025 will reach an estimated $13 billion). It
is an end-to-end, fully automatic solution for collecting aerial data and gaining insights to inform decisions. The industrial
grade platform is available on-site and on-demand, enabling industrial facilities to access premium aerial data in a faster,
safer, more efficient way. The commercial impact this can achieve is:

– Identifying and analysing data for haul road optimization

– Surveying and mapping solutions: collecting and analysing data for better decision-making and enhanced risk
management and planning
– Inspecting chemical plants, refineries and manufacturing sites, reducing budgets for disaster management.

Functional drivers
The five key functional drivers of 5G support certain technological applications. The key drivers identified from the use
case analysis are ultra-reliable low latency communication and enhanced mobile broadband. Massive machine-type
communications and security are also important, each contributing to 45% of the use cases analysed. It is important to
note that 5G could be the ideal technology for certain solutions, but others might be sufficiently served with WiFi, 4G or
even earlier generations.

6. Ultra-reliable low latency communication is the key defining driver of 5G that will realize socio-economic value.

Of the 40 use cases, 96% rely on the functional driver of ultra-reliable low latency communication. This feature reduces the
time for data from a device to be uploaded and reach its target, enabling use cases that rely on fast response times.

Case study: Schneider Electric

Schneider Electric plans to leverage 5G to simplify factory IT operations, improve support to manufacturing and
accelerate factory digitization. At its Le Vaudreuil factory, 5G demonstrations leverage low latency and high throughput,
and secure indoor coverage to validate a range of use cases along various aspects. These include:

– Enhancing the operational efficiency of field maintenance technicians through content delivery and seamless
assistance from remote experts
– Enabling Schneider customers to remotely tour the factory with a telepresence robot
– Enabling Automated Guided Vehicles (AGV) in the factory to send video streams and sensors and receive real-time
instructions to perform tasks not programmed in AGVs.

7. The second-most defining driver of 5G is enhanced mobile broadband, mainly related to artificial
intelligence, mixed reality and drone-based applications.

Almost four-fifths (78%) of the use cases rely on enhanced mobile broadband, which will help enable the cases that require
a large amount of data to be processed. Ten use cases are related to artificial-intelligence-based applications, while drones
and mixed reality account for four use cases each.

Case study: DataProphet

DataProphet provides technology solutions based in artificial intelligence that embed unique adaptations and
advances of deep learning, enabling artificial intelligence to have a significant and practical impact on the factory floor.
DataProphet’s product PRESCRIBE accurately predicts the presence of defects by recognizing patterns that have
previously been associated with one or more known defects, such as subsurface defects, latent defects (particularly
important where warranty claims could be significant), uncaught quality violations and hidden scrap. Predicting engine
block defects and identifying high-yield operating regions have resulted in:

– A 0% external scrap rate, ensuring cost savings and an overall increase in customer satisfaction
– Monthly cost savings of between $120,000 and $140,000 due to weld quality in automotive assembly lines.

14 The Impact of 5G: Creating New Value across Industries and Society
5G maturity
5G deployment will occur in phases with certain functional drivers improving over time. However, not all use cases identified
require these functional drivers at full maturity. The key features in the current state and in the short term that have the
highest potential to disrupt are low latency and enhanced mobile broadband.

8. Enhanced mobile broadband is a key functional driver mainly related to artificial intelligence, mixed reality
and drone-based applications.

In the short term (within 1-3 years), it will be possible to realize the economic value that 5G can bring to the use cases that
depend on connected units for enhanced data analysis and ultimately, decision-making.

Case study: Volocopter

The company specializes in the design of electric multirotor helicopters in the form of ready-to-fly aircraft, designed for
air taxi use. Its key features include remote control, GPS point tracking, possible sense and avoid integration, possible
autonomous subfeature integration, additional battery capacity to extend range and flight time, air traffic management
(including unmanned traffic management) to coordinate autonomous Volocopter fleets. The benefits enabled by 5G that
could be realized are:

– Reduced number of accidents/crashes

– Reduction in fuel consumption
– Increase in logistical capacity, resulting in GDP contribution

9. Driven by enhanced mobile broadband combined with low latency, faster image/video processing is a key
added value from 5G that can be realized in the short term.

One-fourth of the use cases yield faster image/video processing in the short term across many industry sectors.

Case study: Ericsson

In June 2018, Ericsson partnered with AT&T, FOX Sports, Fox Innovation Lab and Intel in a 5G trial at the 118th US
Open at Shinnecock Hills Golf Club on Long Island, New York, to bring ultra-high-definition images of the event to
FOX Sports viewers. Throughout the event, the 5G network demonstrated sustained uplink speeds of over 300 Mbps,
meeting the 60-80 Mbps encoded video transmission requirements. The volumetric video market is expected to grow
from $578.3 million in 2018 to $2,780.0 million by 2023, demonstrating the economic value 5G can create by enabling
faster image/video processing.

10. Low latency is key to enabling opportunities dependent on real-time machine learning, a feature that will
fully mature in the long term.

A latency of <1 ms will only be realized in the long term (in three or more years). Thus, many applications that can truly be
empowered by this feature will have delayed deployment.

Case study: Pymetrics

Pymetrics provides recruitment solutions in the form of gamified assessments and video interviews that collect objective,
behavioural data that is unbiased, unlike résumé data or self-report data. Through a customized and machine learning
algorithm, it maximizes prediction efficiency. Unilever used Pymetrics to recruit 280,000 candidates, which yielded
several benefits:

– 100% increase in hire yield

– 75% reduction in time to hire
– 25% decrease in recruiting costs.

The Impact of 5G: Creating New Value across Industries and Society 15
5G potential for economic and social value across industry
sectors
In addition to the socio-economic value identified in the use cases, specific industry sectors that will be significantly
impacted by 5G were explored, focusing on several key areas:

Quantification of
Mapping of
Identification of high socio-economic Evaluation of cross-
Collection of most Mapping of use case connectivity/industry
impact areas across impact of use industry perspectives
promising use cases requirements and 5G trends of impact
selected vertical cases across and collaboration
by impact area connectivity features areas and use cases
industries sectors (bottom-up opportunities
(top-down approach)
approach)

The UN SDGs have been used as a framework to classify societal impact across several areas.10 The results of this analysis
by industry are summarized in the following table:

SDG
Industry sector Key industry trends Sample use cases Transformation enabled
impacted

– Hypercompetition with no
sustainable competitive
advantages – Advanced predictive
– Increasing volatility from maintenance can lead
business cycles and to enhanced equipment
product life cycles availability and throughput.
– Smart factory floor
– Smart factory advances – Remote maintenance can
– Human-to-robot
due to developments in SDG 7 lead to lower operational
collaboration
the internet of things and SDG 8 costs.
– Predictive maintenance
automation – Digital performance
Manufacturing
– The need to securely
– Digital twins SDG 9 management and digital
– Augmented reality SDG 12
connect systems on a standard operating
– Virtual reality SDG 13
common infrastructure procedures result in
– Digital performance
– Increasing consumer enhanced operational
management
demand for customized efficiency.
and personalized – Factories of the future
products have smart, automated
– Demand for products that manufacturing.
are more complex to build
and deliver
– Autonomous driving and
a connected traveller with
– Digital twin (predictive
telematics
maintenance)
– Car sharing and changing
– High-density
commuter habits
platooning and – Autonomous mobility as a
– Electric mobility with the
automation (C-V2X) SDG 3 reality leads to enhanced
green agenda
– Smart traffic control SDG 7 individual productivity (less
– Digital vehicle ecosystem
Mobility with prioritization time spent on driving).
– Infotainment on the move SDG 9
– Remote vehicle health – Green and sustainable
– Urbanization and SDG 11
monitoring mobility reduces
intermodality
– Massive media car environmental impacts.
– Environmental awareness
infotainment
and public spaces
– Airborne taxis
– Urban lifestyle and
– Vehicle-to-vehicle
growing expectations on
public transport
– Increasing consumer – Remote patient
attention on well-being monitoring – m-Health (mobile health)
– Increasing cost to meet – Internet of medical and the wider introduction
socio-demographic skills/remote surgery SDG 3 of telemedicine result in
changes – Image transfer SDG 4 increased accessibility to
– Increasing demand on – AR/VR-enabled quality healthcare.
Healthcare
quality, patient safety and healthcare
SDG 5 – Preventive healthcare
data storage – Disease management SDG 8 measures (wearables
– Changing consumer – Wearables and SDG 9 and ingestibles) lead to
behaviour, freedom of ingestibles decreased long-term
choice and alternative – Drone-enabled medical healthcare costs.
service providers service delivery

16 The Impact of 5G: Creating New Value across Industries and Society
 – Disruption from fintech – Mobile banking:
(technology used centre of all banking
to support financial transactions
services) due to online – Wearables for
– Shorter settlement cycles
payments, e-wallets, payment
in capital markets lead
etc. – Virtual personalized SDG 4
to enhanced economic
– Challenging customer financial advisory SDG 5
Financial activity.
services
relations with online/ – Internet of moving SDG 8
– Virtual personalized
mobile transactions things SDG 9
services and all-in-one
and customized – Digital deposits, SDG 13
mobile wallets enhance
financial solutions payments and peer-
the customer experience.
– Structural changes: to-peer lending
state involvement, – Mobile as a digital
protectionism and fiscal wallet
measures – Remote teller
– Omni-channel retail – Consumer 3D calls/
strategies holograms
– Personalized retail – Consumer AR/MR
– Try-before-you-buy
experience – Automated checkout
SDG 2 using AR/VR results in
– Growing culture of – Layout optimizations
SDG 3 an enhanced consumer
immediacy – Smart customer
Retail SDG 8 experience.
– Increasing relevance of relationship
SDG 12 – Customized in-store
digital mobile wallets management
SDG 13 advertisements lead to
– Faster e-commerce – In-store personalized
increased sales.
shipping promotions
– Rising subscription – Inventory shrinking
e-commerce prevention
– Electrification and
renewable energy
generation – Smaller plants dependent
– New decentralized – Smart grid on renewable energy
business models – Drone monitoring and smart grids enhance
– Structural shifts with capabilities reliability and availability.
increasingly retiring – Smart energy – Demand-side integration
SDG 7
assets management with suppliers unlocks
SDG 8
Energy – Political and societal – Hazard and commercial opportunities
SDG 9
push for sustainable maintenance sensing for suppliers.
SDG 13
energy systems – Electric vehicles – The digitization of gas
– Production and – Residential smart networks leads to
transmission assets meters faster decision-making,
often located in remote – Smart street lighting minimizing potential
locations losses.
– Need for improved
customer engagement
– Immersive media
– Consumers of content
applications (ultra-
acting as content co-
high-definition, AR, – Content-fuelled
creators
VR) interactions igniting
– Increasingly interactive
– Live in-stadium emotional connections
and immersive forms of
experiences lead to increased
entertainment
– Connected haptic SDG 3 customer expenditure.
Entertainment/ – A new sensory
media
suites SDG 4 – The consumer as content
dimension to
– 3D holographic SDG 5 co-creator results in
entertainment
displays increased consumer
– Expansion of digital
– Gaming (AR and engagement.
content through new
cloud gaming) – Gamification is induced in
platforms and market
– Home entertainment other industries.
players
subscription for car
– Ecosystem complexity
– In-venue media

AR = augmented reality; VR = virtual reality; MR = mixed reality.

The Impact of 5G: Creating New Value across Industries and Society 17
In addition to the direct economic impacts, indirect socio-economic value is also created in four environments:11

Non-urban
Benefits Smart cities Smart homes Smart workplaces
environments
Social benefits – Greater access to – Increased – Enhanced medical – Greater assistance
information and educational support/assisted to ageing and
interconnection opportunities living disabled populations
between citizens through massive – Improved privacy/ – Overall improved
– Ability to reduce online open courses security/safety quality of life
traffic congestion, – Better healthcare – Superior access
identify traffic black through faster, control
spots and reduce remote access to
accidents healthcare services
– Greater access
to information
through improved
connectivity
Environmental – Lower pollution and – Lower pollution and – Reduced waste – Cleaner
benefits CO2 reductions CO2 reductions – Reduced energy environments
– Improved consumption and
natural resource CO2 emissions
management – Better and more
informed electronic
waste

To realize the social value that can potentially be created agendas that prioritize GDP growth, job creation or
through 5G, all stakeholders must incorporate social climate change solutions. An area to explore further is the
value creation in the planning stage. The private sector’s development of a methodology to more accurately quantify
prioritization of social value creation when designing the social value that can be created by 5G, and an in-depth
business models may not only maximize the benefits to study would be useful to map stakeholder collaboration to
society but may potentially strengthen the business case maximize social value creation.
for 5G deployment by, for example, attracting sustainability-
driven investments or better aligning with government

18 The Impact of 5G: Creating New Value across Industries and Society
Overview of actions required by stakeholders

Stakeholders must align and cooperate to fully realize the socio-economic value that 5G can deliver through its defining key
features and to unlock various use cases across multiple industry sectors. Using the 5G Ecosystem Cycle as a framework,
key actions that stakeholders can take to contribute to the successful deployment of 5G are outlined below:

Network operators/
Organizations/
Policy-makers

Public-private

organizations
Service/Tech
Associations
Enterprises/
Regulators/

partnership
providers
Number

Ecosystem
component Action
Design policy and standards for spectrum allocation, harmonization,
1
pricing and sharing • • •
Align technical experts with government telecom regulators to create 5G
2 Spectrum
deployment roadmaps • •
Curate a knowledge-sharing platform to highlight the successful pilots/
3
implementations carried out globally • • • •
Define standards for the deployment of 5G technical features/use case
4
families • •
Align technical experts to design policies and guidelines to promote 5G
5
infrastructure, such as public-private infrastructure sharing • • •
6 Infrastructure Continue to monitor any health impacts of 5G networks • •
7 Explore collaboration models to accelerate 5G deployment • •
8 Define the investment requirements of 5G networks • •
Create a community for device manufacturers and industry players
9
(demand and supply forecasting) • •
Device
10 Define guidelines for device-level security (device types) and upgrades • •
11 Engage cross-industry players to co-create a value generating ecosystem • •
12 Service Design guidelines for industry players to adopt the right business model • • •
Curate a knowledge repository, highlighting cross-industry/cross-
13
operator/cross-country 5G use cases • • •
14 Align ecosystem stakeholders to realize the value potential of 5G • •
Evaluate possible trade-offs and commitments that would align with
15 Impact
public-sector goals • •
Assess the socio-economic impact of 5G-enabled use cases on industry
16
sectors • •
Design guidelines to ensure the right global architecture to deal with
17
potential cybercrime scenarios • • •
Security
18 Develop scenarios, threat predictions and mitigation actions • • •
Given the interdependencies of certain actions that involve several stakeholders, it is imperative that they continuously
engage in dialogue to facilitate and expedite the execution of the relevant actions.
The Impact of 5G: Creating New Value across Industries and Society 19
Conclusion

Several publications analysing the macroeconomic impact of 5G through different methodologies

conclude that the economic value at stake is significant and the job creation potential is large.

This use-case-driven analysis reveals that the way 5G will primarily contribute to industrial advances
is by enabling faster and effective inspections through predictive intelligence, improving workplace
and worker safety, and enhancing operational effectiveness. On a social level, this White Paper calls
attention to use-case-level linkages to social value creation in the context of the UN SDGs.

5G could transform certain industries, bearing in mind that, while some have more clearly defined
use cases that could generate greater impact, 5G deployment will take place in phases. Therefore,
certain use cases will only be enabled as the networks are expanded and the technology components
mature, hence the importance of fostering innovation and collaboration to accelerate 5G deployment
and its benefits. These phases will also mean that 5G will coexist with other networks and connectivity
solutions. 5G could be the ideal technology for certain solutions, but others might be sufficiently
served with WiFi, 4G or even earlier generations. Additionally, 5G has the potential to provide quality
internet access to geographical areas that are currently underserved by the telecommunications
network. This could unlock significant social impact through use cases related to tele-education and
telemedicine.

To ensure that 5G deployment will accelerate and its components and interdependencies are
understood, strong collaboration between stakeholders is needed. Many of the current use cases
are technically supported by the functional drivers of 5G and activated through multistakeholder
cooperation and collaboration. Regulators, industry associations, network operators, service/
technology providers and public-private partnership organizations must engage in continuous
dialogue to address the challenges facing widespread 5G adoption worldwide and to maximize the
opportunities it will bring across sectors. Defining collaboration frameworks and models to initiate and
sustain cooperation more effectively will be increasingly important moving forward.

20 The Impact of 5G: Creating New Value across Industries and Society
Contributors

This White Paper is the result of a collaborative effort coordinated by a project team under the strategic guidance of the
Digital Communications Industry Governors, represented by their Steering Committee, and input from the Global Future
Council on New Network Technologies. The contribution of a multistakeholder working group was fundamental for the
development and validation of the findings presented in this paper and for shaping the broader 5G-Next Generation
Networks Programme. Additionally, expert interviews and workshops involving over 200 senior participants from 12
industries, government and academia provided invaluable insights.

World Economic Forum colleagues across the Platforms of Digital Economy and New Value Creation, Internet of Things,
Robotics and Smart Cities, and Cybersecurity and Digital Trust also contributed to this paper.

We thank all the contributors for their role in the creation of this paper. More details about this community and the activities
of the programme can be found on the World Economic Forum website.

World Economic Forum PwC

Rodrigo Arias Manish Deshmukh

5G-Next Generation Networks Programme Lead, Manager, Government and Public Sector, PwC, India
World Economic Forum LLC (seconded to the World Economic Forum)

Isabelle Mauro Hazem Galal

Head of Digital Communications Industry, Global Leader, Cities and Local Government Network, PwC,
World Economic Forum LLC United Arab Emirates

Derek O’Halloran Mounir Kabbara

Head of Digital Economy and New Value Creation Platform, Manager, Strategy and Operations, Cities and Local
World Economic Forum Governments Advisory, PwC, Dubai, United Arab Emirates

Mark Spelman Rakesh Kaul

Head of Thought Leadership, World Economic Forum Leader, Government and Public Sector, PwC, India

Neel Ratan
Senior Partner and Management Consulting Leader, PwC,
India

With special thanks to Nokia for its advisory role:

Alexander Mathieu
Vice-President, Corporate Strategy and New Business Development

Stefan Hotze
Head, Corporate Strategic Planning

The Impact of 5G: Creating New Value across Industries and Society 21
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22 The Impact of 5G: Creating New Value across Industries and Society
Endnotes

1. IHS Markit, The 5G Economy: How 5G will contribute to the global economy, November 2019, https://www.
qualcomm.com/media/documents/files/ihs-5g-economic-impact-study-2019.pdf.
2. Ibid.
3. Ibid.
4. International Telecommunication Union (ITU), Setting the Scene for 5G: Opportunities & Challenges, 2018, https://
www.itu.int/dms_pub/itu-d/opb/pref/D-PREF-BB.5G_01-2018-PDF-E.pdf
5. ITU, op. cit.
6. World Economic Forum and PwC analysis, August 2019.
7. Tech4i2 Ltd, 5G socio-economic impact in Switzerland, 2019, https://asut.ch/asut/media/id/1465/type/document/
Study_Tech4i2_5G_socio-economic_impact_switzerland_February_2019.pdf.
8. Ibid.
9. European Commission, Identification and quantification of key socio-economic data to support strategic planning
for the introduction of 5G in Europe, 2016, https://connectcentre.ie/wp-content/uploads/2016/10/EC-Study_5G-in-
Europe.pdf.
10. United Nations (UN), “Sustainable Development Goals Knowledge Platform”, 5 November 2019, https://
sustainabledevelopment.un.org/?menu=1300; “Helping governments and stakeholders make the SDGs a reality”, 9
November 2019, https://sustainabledevelopment.un.org.
11. Tech4i2 Ltd, 5G socio-economic impact in Switzerland, op. cit.

The Impact of 5G: Creating New Value across Industries and Society 23
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