By 2023, the digital economy will account for more than half of global GDP. Investors believe that Southeast Asia will experience the fastest digital economy growth in the next 10 years. Globally, there will be 9.8 billion cellular connections in 2030, of which 5.3 billion will be 5G, making it mainstream. Cross-generational advances in connectivity technology increase economic benefits by about 15%.
[Barcelona, Spain, February 25, 2023] Huawei, together with EI Studios, a division of Economist Impact, and GSMA Intelligence released a report titled Driving Development: The Impact of ICT Investments on the Digital Economy. The report addresses the new trends in the global digital economy in the post-pandemic era and quantitatively and qualitatively assesses the relationship between ICT investments and the development of the global digital economy. The report aims to provide valuable insights on how the ICT industry can boost the development of the global digital economy.
Driving development: The impact of ICT investments on the digital economy
In December 2022, a survey was conducted among 500 people worldwide, of whom 400 were corporate executives, 50 decision makers and 50 institutional investors. EI Studios also invited executives from leading international strategic consulting firms, world-renowned operators and industry organizations to take part in in-depth interviews, through which it obtained a large amount of important information.
Investments in ICT infrastructure will drive the Fourth Industrial Revolution
The report found that ICT infrastructure and the digitization of industry that enables it will drive the Fourth Industrial Revolution much like 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. Third-party data shows that the digital economy will account for more than half of global GDP by 2023. Investors believe that Southeast Asia will experience the fastest digital economy growth in the next 10 years, followed by North America and Western Europe.
5G is a major global trend and intergenerational development increases economic benefit by 15%
According to research by GSMA Intelligence, 5G cellular technology is now clearly a global trend. Globally, it is predicted that by 2030 there will be 9.8 billion cellular connections, of which 5.3 billion will be 5G. Meanwhile, the share of 2G, 3G and 4G cellular connections will decrease and 5G will become mainstream. According to a GSMA Intelligence survey of global operators in 2022, 91% of operators surveyed said 5G connectivity services (e.g. mobile and fixed wireless access) are now their top priority.
The company’s research also found that over a long period of time, on average, a 10 percent increase in mobile device adoption increased GDP by 1 percent. Economic benefits increased by around 15% when connections were upgraded from one cellular network technology to a more advanced one (e.g. 2G to 3G and 3G to 4G). This is a clear indicator of how the intergenerational evolution of networks from 4G to 5G and even to 5.5G will make a significant contribution to GDP growth.
In addition, 5G technology can boost the digital economy. There is an intense focus on the introduction and implementation of technologies such as B. the increased use of AI, machine learning and cloud and edge computing. However, the basic requirement for all these advances is the availability of fast, reliable 5G network connectivity and even the more advanced 5.5G. Ultimately, without sustained investment in grids, gains from technological developments will be limited.
Connectivity, computers and green ICT will revitalize the digital economy
According to the report, ICT investments have traditionally focused on connectivity and computing. In this respect, however, green ICT has developed into a third priority. A combination of efforts in these three key areas will continuously boost the digital economy and facilitate sustainable development.
Philip Song, Chief Marketing Officer of Huawei Carrier BG, said, “The global 5G prosperity is driving the digital economy, and the report “Driving Development: The Impact of ICT Investments on the Digital Economy” is timely. The key data and the conclusions in the report demonstrate the contribution of ICT infrastructure to the digital economy, while reflecting the expectations of global operators to build on the success of 5G to make the leap to 5.5G.” Song also said : “Huawei calls on operators and industry partners around the world to work together and leverage the GUIDE business plan to lead the world to a brighter future.”
For more information on the report, visit: https://impact.economist.com/projects/driving-the-digital-economy/whitepaper-driving-development/
MWC Barcelona 2023 will take place from February 27th to March 2nd in Barcelona, Spain. Huawei will present its products and solutions at booth 1H50 in Hall 1 of Fira Gran Via. and our vision to lay the foundation for 5.5G with the GUIDE Business Blueprint and build on the success of 5G for even greater prosperity. For more information, visit: https://carrier.huawei.com/en/events/mwc2023
