The US will be a “pioneer market” for 5G wireless technology (opens in new tab) due to its early start in commercialising 5G according to the international mobile network trade organisation GSMA which forecasts that there will be solid projected growth through 2025.
The organisation's new report, “The 5G Era in the US (opens in new tab)” predicts that country will have 100m 5G connections by 2023 and that number will reach 190m by 2025.
GSMA cites the high number of early adopters as one of the key reasons the US will see such strong 5G adoption. Of the total smartphone users in the US, 58 per cent are early adopters that will likely purchase a 5G compatible device once they are made available. Europe comes in second with 46 per cent of its smartphone users being early adopters.
AR and VR (opens in new tab) are predicted to help drive 5G demand as these technologies would benefit from the higher speeds and low latency of the new network.
Enterprise customers will contribute the most to 5G revenues in the US while consumers, government organisations and online apps will make up a smaller portion of sales. GSMA also predicts that 4G connections will remain viable through 2025 at which point 5G connections will finally overtake 4G. From 2019 on, legacy 2G, 3G and 4G services will all see significant declines as consumers opt to use 5G devices instead.
Although GSMA does not offer a great deal of details on the pricing of 5G devices, the organisation notes that the first smartphones with 5G will cost more than the most advanced 4G devices as they will include enhanced features such as 4K or 8K displays or perhaps even additional AR/VR cameras to make them more appealing to consumers.
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