RESEARCH REPORT

In brief

In brief

  • This report outlines the profound impact of 5G on the economy.
  • Our economic modeling analysis shows that, over the next 5 years, 5G will significantly drive sales growth, add to the U.S. GDP, and create & transform jobs*.
  • We examine the technological state of five key industries with applicable 5G use cases, growth opportunities and recommend acceleration.
  • 5G is a force of economic growth and resiliency, unlocking the potential of Artificial intelligence (AI), edge computing and Internet of things (IoT).


The impact of 5G on the United States economy

5G is the world’s next technological breakthrough and hugely significant upon the American economy. In this report, we examine the economic benefit driven by 5G.

Our economic modeling analysis shows the impact of 5G on the US economy from 2021-2025 in several ways:

  • 5G has the potential to create or transform up to 16 million jobs* across all sectors of the economy, which includes full-time, part-time and temporary jobs*.
  • U.S. economy will drive up to $2.7 trillion in additional gross output (sales) growth.
  • 5G will add up to $1.5 trillion to the U.S. GDP, larger than the annual GDP of 94% of world economies.
  • Multiplier effects will be felt in every industry. For example, every job* created by 5G within the Information and Communications Technologies (ICT) sector will create an estimated 1.8 additional jobs* for a total of up to 2.8 total jobs* throughout the economy.

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Alabama $14B182K Alaska $4B40K Arizona $25B299K Arkansas $9B112K California $253B2,393K Colorado $29B325K Connecticut $21B205KCT Delaware $5B42KDE Florida $75B1,003K Georgia $46B511K Hawaii $6B76K Idaho $5B74K Illinois $63B638K Indiana $24B283K Iowa $13B162K Kansas $12B129K Kentucky $14B170K Louisiana $17B200K Maine $4B61K Maryland $29B299KMD Massachusetts $45B426KMA Michigan $34B424K Minnesota $27B297K Mississippi $7B96K Missouri $23B260K Montana $3B51K Nebraska $10B110K Nevada $13B166K New Hampshire $6B63K New Jersey $45B435KNJ New Mexico $7B84K New York $136B1,203K North Carolina $39B458K North Dakota $4B40K Ohio $47B557K Oklahoma $14B167K Oregon $18B198K Pennsylvania $61B620K Rhode Island $4B47KRI South Carolina $15B199K South Dakota $4B45K Tennessee $26B307K Texas $131B1,355K Utah $13B156K Vermont $2B31K Virginia $37B403K Washington $48B415K West Virginia $5B54K Wisconsin $24B290K Wyoming $3B32K District of Columbia $9B31KDC
GDP Jobs
$0-10B
$11-20B
$21-25B
$26-45B
$46-200B
$200B-Up

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5G labor effect

5G will generate significant employment throughout the economy, creating as many as 16M jobs*. This represents a mix of temporary, part-time and full-time jobs* across all industries.

5G industry transformation

5G can offer rich bi-directional communications, support potentially one million devices per square kilometer and deliver ultra-reliable millisecond response.

These capabilities enabled by 5G drive a variety of use cases, paving the way for the economy to realize the cross-industry benefits of magnified connectivity. These innovations impact trillions of dollars.

5G shapes key industry use cases and drives significant outcomes for companies and individuals, alike.

Manufacturing

5G-enabled factories experience about 20-30% overall productivity gains including up to 50% in assembly time, up to 20% in asset life and up-to 90% in defect detection.

Retail

5G creates in-store rich video streaming experiences, up to 50% increase in sales growth combined with human-focused processes and XR visualizations.

Healthcare

5G allows more remote post-acute care, home-based models, with savings greater than 30% and driving better patient outcomes.

Automotive

Connected vehicle technologies have the potential to reduce the severity of non-impaired accidents by up to 80%, potentially saving $3.6 billion in collision costs and possibly reducing traffic by 25%.

Utilities

Transmission line monitoring using smart sensors and drones reduce wildfire risk, potentially saving billions of dollars.

5G will lead to the creation of industries not yet imagined. There are tangible and realizable acceleration opportunities to speed up the deployment process and maximize the benefits.

5G acceleration opportunities

The benefits of 5G are immense, but require critical mass of network deployment, R&D and production of new devices across industries, along with significant investment from every major sector in the U.S. economy. There are prominent opportunities to accelerate this benefit, securing America’s role as a 5G leader:

Intellectual property (IP), technology & ecosystem

Create a 5G national strategy for innovation, industrial and ecosystem support with IP legal protection.

Resilient wireless technology supply chain

Develop policies to foster innovation and design within 5G value chain: semiconductor, wireless device, and network equipment, deployment & design.

Build out the radio access network (RAN)

Open RAN, enables interoperability and standardization of RAN functions to make integration across the RAN ecosystem easier and to drive down costs.

End user return on investment

Establish subsidies & tax incentives to encourage pilot projects demonstrating the benefits & possibilities of the technology.

Mid-band spectrum availability

Prioritize and accelerate the release and allocation of critical mid-band spectrum, especially bands that are planned for global harmonization.

Regulatory restrictions

Foster collaboration in the private sector and government to promote enhanced security and economic benefits and accelerated timelines for 5G success.

*Includes full-time, part-time and temporary jobs; Assumes no labor supply constraints, some of these jobs will be replaced by upward pressure on prevailing wages instead.

About the Authors

Jefferson Wang

Senior Managing Director – Cloud First Networks and 5G Lead


Hillol Roy

Managing Director – Cloud First Networks, Technology and Innovation Lead


Tejas Rao

Managing Director – Cloud First Networks, Ecosystem and Partnership Lead


Samir Ahshrup

Senior Manager – Strategy & Consulting, Technology Strategy & Advisory


William McCluskey

Manager – Strategy & Consulting, Communications & Media

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