Language, print, internal combustion, the assembly line, the Internet… All of these were major revolutions in the history of mankind. And now, the world is on the verge of another revolution that could be just as significant: The 5G Revolution.
While some might dismiss it as just another increase in data transfer speed, as was the case with the move from 3rd Generation to 4th Generation cellular Internet, 5G looks like it will be a true technological breakthrough. Not only will speeds increase exponentially, reducing friction and giving us data transfer speeds that were previously unheard of, the 5G network will also open the door to many of the technologies that will shape our future in years to come.
It is no wonder that the 5G market is estimated to skyrocket to $277 billion by 2025¹.
A true game-changer
What is 5G? A communications network of unprecedented speed and volume, enabling billions of people and machines around the world to transfer data rapidly and seamlessly. The deployment of numerous antennae (which are significantly smaller and require much less energy than contemporary cell towers), coupled with tremendous speeds, will connect our smart devices, homes, cars, cities and much more, creating a never-ending flow of information.
Just how fast will 5G be? The current highest speed for cellular internet, LTE, maxes out at about 300 megabits per second. 5G will reach speeds of up to 10 Gigabits per second – a 20-fold increase². Imagine the numerous applications on which such speeds could have a positive impact.
However, the true reason 5G will change our lives is the way it will pave the way for other technologies. One of the greatest revolutions that is expected in the near future is driverless cars (which is covered by the Driverless Smart Portfolio). Seamless and fast car-to-car communication is essential for autonomous cars to function, and therefore, 5G will serve as the perfect catalyst for them hitting the road. And that’s just one example. The entire IoT (Internet of Things) industry could be upgraded, alongside cloud computing, drone technology (in which you can invest through DroneTech), smart cities and almost any tech-heavy industry.
The future will be much more connected and we will eventually reach a state in which every appliance we use, every garment we wear, any car we ride and basically, any external item we use in our daily lives, could be connected and “smart”.
Building the future
The construction, deployment, operation and future benefit of 5G will span multiple sectors, each maintaining and/or using a different aspect of the network. For instance, the construction and deployment of infrastructure are being orchestrated by mobile and infrastructure companies, such as Nokia and Ericsson, while telecom companies, such as Verizon and Deutsche Telekom will supply organisations and private individuals with access to the network.
Naturally, the impact of 5G will reach much further than just companies involved with communications. New processors and semiconductors will be needed to transfer the massive amounts of data, which is where companies such as Intel, Juniper, Broadcom and Cisco will contribute to the market. Lastly, real estate companies will serve as key members in positioning the antennae, as they will be needed in abundance and these companies hold many strategic locations — which is where real estate giants such as American Tower and Equinix come into play.
Investing in 5G
As stated before, the potential for 5G is endless and the financial opportunities vast. The market is expected to spike over the next few years, and as 5G becomes more widespread, and more technologies depend upon it, it is likely to grow larger. To give investors exposure to this booming market, eToro has created the 5GRevolution Smart Portfolio, which comprises stocks from companies around the world which will play a key role in this revolution and stand to become prominent players. If you wish to gain exposure to this market, you should consider investing in 5GRevolution.
Your capital is at risk. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Smart Portfolios is a portfolio management product. Smart Portfolios should not be considered as exchange traded funds, nor as hedge funds.
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