• New research from Nokia has found that 5G-enabled industries have the potential to add $8 trillion to global GDP by 2030, as COVID-19 accelerates medium and long-term digital investment and value creation
• The 5G Business Readiness Report finds that 5G mature companies are growing faster and are the only group to have experienced a net increase in productivity (+10%) following COVID-19
• Despite the economic challenges of COVID-19, a global boom in 5G investment will see 71% of companies invest in 5G over the next 5 years
• Significant geographic variations exist among the more advanced 5G nations, with Saudi Arabia and the United States leading adoption

5G mature companies are also growing considerably faster than their peers: 49% of companies in the expansion phase and 37% in the implementation phase – representing the two most advanced stages of 5G maturity – achieved rapid growth last year, compared with 20% in the planning, 11% in discovery and 5% in passive phases.

These findings show that the companies who are most 5G mature, and therefore likely also the most advanced in their overall digital transformation, are showing the highest impact in business performance.

Despite the economic challenges of COVID-19, a global boom in 5G investment will see 72% of large companies invest in 5G over the next 5 years.

The report forecasts a rapid uptick in investment over the next three years as enterprises seek to expedite digitalization. A third of companies across all regions fear being outpaced by the competition should they not invest in 5G within the next 3 years.

Nokia’s 5G Business Readiness Model reveals that across 8 economies –  Australia, Germany, Finland, Japan, Saudi Arabia, South Korea, the UK and the US – 50% of companies are at the midway level on 5G readiness, between initial planning, trials and deployment, compared to just 7% that are classed as 5G mature.

But significant geographic variations exist; while 13% of organizations in Saudi Arabia and 12% in the United States rated as 5G mature, fewer than one in 20 were classed as such in Germany (3%), Finland (2%) and the UK (4%).

On average, whilst the importance of 5G adoption is well understood, a significant investment gap remains. 86% of decision makers said they have some kind of strategy for 5G, and over a third fear being outpaced by the competition should they not invest in 5G in the next 3 years.

However, only 15% are currently investing in its implementation, and over a quarter (29%) of businesses are not planning any 5G investment in the next 5 years.

Barriers to adoption

The research identified five principal barriers to 5G adoption for:

1. Ecosystem availability: Limited availability of key infrastructure outside urban centers was cited by 28% of decision-makers.
2. Education and understanding: 17% said a key barrier is that decision-makers within their business do not understand 5G, while 14% said they don’t know enough about it themselves.
3. Awareness: Over a fifth of technology buyers (22%) said that 5G implementation is not a current priority for their business.
4. Cost and complexity: 15% said they were not confident their company would be able to implement the necessary technologies.
5. Security: Over a third (34%) said that they are concerned about the security of 5G.