By the end of 2023, the digital economy will account for more than half of global GDP. Furthermore, according to investors, Southeast Asia will experience the fastest growth in the digital economy over the next 10 years. It is estimated that, by 2030, mobile connections in the world will be equal to 9.8 billion, of which 5.3 of the 5G type, making it the most widespread connectivity technology.
The intergenerational evolution of connectivity technology will increase the economic benefits by approximately 15%.
Huawei, with EI Studiosa division of Economist Impact, and GSMA Intelligencepublished a report entitled ‘Driving Development: The Impact of ICT Investments on the Digital Economy’. The research analyzes the new trends of the global digital economy in the post-pandemic era and evaluates, both from a quantitative and qualitative point of view, the relationship between ICT investments and the development of the digital economy at a global level.
The objective of the report is to provide valuable information on the ways in which the ICT industry can promote the development of the digital economy worldwide.
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In detail, the research was conducted last December on a sample of 500 people worldwide, including 400 company executives, 50 decision makers and 50 institutional investors. EI Studios also invited the executives of the most important international strategic consultancy firms, world-class operators and sector companies to participate in ad hoc interviews, through which it obtained a wealth of fundamental insights.
Investments in ICT infrastructure will drive the fourth industrial revolution
The report found how ICT infrastructure and the digitization of industry are set to drive the Fourth Industrial Revolution, similar to how steam power and mechanization drove the First Industrial Revolution three centuries ago.
The contribution of the digital economy to global GDP has grown steadily in recent years. In line with this trend, third-party data indicate that by 2023, the digital economy will account for more than half of global GDP. Moreover, according to investors, Southeast Asia will record the fastest growth of the digital economy over the next 10 years, followed by North America and Western Europe.
5G remains a key global trend and its intergenerational evolution will increase economic benefits by 15%
According to research conducted by GSMA Intelligence, 5G mobile technology is now clearly a global trend. In fact, it is estimated that, by 2030, mobile connections in the world will be equal to 9.8 billion, of which 5.3 of the 5G type, making it the most widespread connection technology. In parallel, the percentage of 2G, 3G and 4G mobile connections will decrease, while 5G will become a mainstream technology. According to a GSMAIntelligence survey of global operators in 2022, 91% said 5G connectivity services (e.g. mobile and fixed wireless access) were their top priority.
The company’s research also found that in the past, over long periods of time, a 10 percent increase in mobile adoption increased GDP by an average of 1 percent. However, as network technologies move to more advanced generations (for example, from 2G to 3G and from 3G to 4G), the economic benefits have increased by about 15%. This is a clear indicator of how the intergenerational evolution of networks from 4G to 5G, and even 5.5G, will be a major contributor to global GDP growth.
Furthermore, 5G technology can give a greater boost to the digital economy. The focus is therefore on the adoption and implementation of cutting-edge technologies, such as the diffusion of AI, machine learning, cloud and edge computing. However, the key requirement behind all these advances is the availability of high-speed and reliable 5G network connectivity, or even the most advanced 5.5G network. Ultimately, without sustained investment in networks, the benefits of technological developments will be limited.
Connectivity, computing and green ICT will promote the digital economy of the future
According to the report, ICT investments traditionally focus on connectivity and computing. However, it clearly emerges that green ICT has transformed into a third key area. Therefore, efforts in these three areas will continuously stimulate the digital economy and facilitate sustainable development.
Philip Song, Chief Marketing Officer di Huawei Carrier Business Grouphe has declared: “The prosperity of 5G globally is driving the digital economy, which is why the research ‘Driving Development: The Impact of ICT Investments on the Digital Economy’ has been published at an ideal time. The key data and conclusions of the report demonstrate concretely the contribution of ICT infrastructure to the digital economy, while reflecting the expectations of global operators to leverage the success of 5G to make a major leap towards 5.5G“. Song added: “Huawei invites global operators and industrial partners to work together and be inspired by the company’s ‘GUIDE’ initiative to lead the world towards a better future.”
For more information on the research ‘Driving Development: The Impact of ICT Investments on the Digital Economy’, the following link is available: https://impact.economist.com/projects/driving-the-digital-economy/whitepaper-driving-development/.