Here are some predictions for 5G, the latest technology trend to revolutionize our world, and how it will affect the 2020 electronics industry.
The global development of 5G saw major breakthroughs in 2019: the first 5G phones emerged, the number of cities with 5G networks increased, and the markets for 5G chipsets and modems expanded.
This year promises to push 5G into the mainstream. Predictions for 5G tell us additional cities will be able to support 5G networks, more hospitals will become 5G efficient, and even more 5G smartphones will be launched – all fueling increased demand for electronic components and raising the stakes for the electronics industry.
5 predictions for 5G in the 2020 electronics industry
1. Over 200 million 5G smartphones to ship in 2020
While 2019 saw 5G deployment, 2020 is projected to be the year when 5G starts to take off. Last year, Samsung and Huawei combined shipped nearly 14 million 5G smartphones. As high as that number may seem, it is expected to grow to 200 million in 2020, according to Qualcomm President Cristiano Amon, speaking at Qualcomm’s third-annual Snapdragon Tech Summit in Hawaii. The impact will be felt by the electronics industry.
2. Key 5G players in 2020
Who will take the lead on the development of 5G technology? Among the top contenders are (not surprisingly) Qualcomm, Intel and Samsung as well as Huawei, Nokia, and Broadcom.
3. Passive components will see strong demand
The U.S.-China trade war last year prompted passive component suppliers and clients to strategically keep passive inventories low and, as a result, they are now running dangerously low on components, according to DigiTimes. As they rebuild their passive component inventory, they expect 5G-driven demand to generate a more positive 2020 outlook.
4. 5G infrastructure revenue will increase
With the first 5G smartphones in the hands of consumers, we’re on track to becoming a 5G world – and spending on 5G infrastructure will grow accordingly. According to Garner, worldwide 5G wireless network infrastructure revenue is forecast to reach US $4.2 billion in 2020, an 89% increase over 2019’s $2.2 billion. Gartner also expects investments in 5G network infrastructure will account for 12% of the total wireless infrastructure revenue of communications service providers in 2020.
5. Apple will launch 5G iPhones
When will Apple reveal its first 5G device? Speculations run rampant but so far expectations have fallen short. Apple’s chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), is reportedly on track to start production of Apple’s A-14 Bionic processor, which is expected to be 5G-compatible and manufactured using a new 5-nanometer technology.
2020 will be a big year for 5G. The above 5 predictions for 5G will have a significant impact on the electronics industry, ultimately driving demand for 5G infrastructure and supporting electronic components.
- 5G Chipset Market Poised for Growth
- Passive Components Market to Blossom in the Wake of 5G
- How Will 5G Impact Demand for Electronic Components?