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Ericsson: 2026 China's 5G drive business scale of 158.9 billion US dollars 5G deployment leads the world
In 2030, 5G is expected to reach over 20% of the global population. By 2026, the business value driven by 5G is projected to hit $158.9 billion, according to Ericsson. The company has highlighted that China will be a global leader in 5G deployment, with trial commercial services starting as early as 2019 and full-scale commercial use anticipated by 2020.
As telecom operators prepare for the 5G era, they are already exploring the potential market size and opportunities that 5G could bring. At a media event on December 19th, Zhang Zhiwei, Ericsson’s Chief Market Officer for Northeast Asia, emphasized that by 2026, the 5G-driven business in China alone could reach $158.9 billion (approximately 1,049 billion yuan).
5G represents the fifth generation of mobile communication technology, supporting five key scenarios: massive IoT, enhanced mobile broadband, ultra-reliable low-latency communications, massive machine-type communications, and network slicing.
Ericsson has identified significant commercial potential across various industries in China by 2026, including energy and industry ($30 billion), manufacturing ($28 billion), public safety ($20 billion), healthcare ($19 billion), public transportation ($16 billion), media and entertainment ($14 billion), automotive ($13 billion), financial services ($9 billion), retail ($7 billion), and agriculture ($2 billion). Each sector accounts for a percentage of the total 5G business scale.
To support this growth, Ericsson has partnered with 38 operators, 22 industrial partners, and 45 universities and research institutions. These collaborations are essential to driving innovation and ensuring the successful rollout of 5G technology.
Zhang Zhiwei also noted that China is set to lead in 5G deployment, which may speed up the commercialization process. He mentioned that 5G commercial products would start appearing in the second half of 2018, with trials beginning in 2019 and large-scale commercial use expected in 2020.
During an event at Ericsson’s R&D center in Shanghai, several 5G application scenarios were demonstrated. One example involved Ericsson and China Unicom collaborating on eMTC (Cat-M1) VoLTE functionality for a fire alarm trigger panel. In real-life situations, individuals can activate the panel to alert emergency services and provide voice descriptions of the scene, improving response efficiency.
Drones, a key application of 5G-enabled IoT, require high reliability and low latency. Similarly, driverless vehicles will depend on these capabilities. Ericsson showcased how 5G UAVs can integrate with LTE broadcast technology, allowing users to view real-time footage from drones via their mobile devices. This technology could revolutionize how fans experience live events, offering immersive, high-definition views from multiple angles.
Another demonstration featured a remotely operated excavator. Operators control the machine using gestures on a controller, with the data transmitted through the 5G network to a robotic arm, enabling real-time, precise movements. This technology could enhance safety and efficiency in hazardous environments, such as mining or construction.
Looking ahead, Zhang Zhiwei suggested that 5G could enable fully autonomous driving on enclosed roads, creating new business models for intelligent traffic management. Although large-scale 5G commercialization is still two years away, he emphasized that both technical and business readiness must be prioritized during this period.
According to Ericsson’s “Mobile Market Report,†by the end of 2023, global 5G user numbers are expected to reach 1 billion, with 5G covering more than 20% of the world's population. This marks a significant step forward in the global adoption of 5G technology.