Our latest 5G business potential report: Leverage the power of use case clusters
Identifying what industry use cases to focus on to begin building a 5G-enabled industry digitalization momentum is key. At the same time, leveraging investments in competence, solutions and market development calls for synergies and abilities to scale heavily over time. How can these two aspects be combined?
In a previous blogpost, Senior Vice President and Head of Business Area Digital Services Jan Karlsson introduced our latest 5G business potential report, 5G for business: a 2030 market compass. There, he highlighted that there are confirmed and significant opportunities for service providers to expand their revenues related to industry digitalization, and that the time to act is now, when market positions are being established. He also wrote that the way to approaching new market is by applying a lens of use case clusters, representing different use case categories – something we will explore more here.
Going from ‘what’ to ‘how’
For this study we have introduced the concept of use case clusters. Why? It’s all about going from what to how. When developing capabilities that support and provide services in certain defined areas, use cases can be clustered together in groups, each of which share a set of common characteristics. Use case clusters entail a more sizable opportunity than individual use cases and enable shared investments and resource allocation across larger revenue pools. They also provide the possibility to prioritize opportunities depending on investment and timing, and they scale across industries and geographies by means of direct reuse or replication of capabilities.
Each cluster serves a set of industries
In total, the report outlines a set of industries served by more than 200 qualified 5G-enabled use cases, divided into nine use case categories or clusters. These are:
- Enhanced video services
- Real-time automation
- Monitoring and tracking
- Connected vehicle
- Autonomous robotics
- Hazard and maintenance sensing
- Smart surveillance
- Remote operations
- Augmented reality
Let me clarify three examples of these use case clusters: ‘Enhanced video services’ is the collection of 30+ B2B/B2C use cases for video telecommunication services that will enable next generation content consumption, building up a total global addressable opportunity for service providers of USD 118 billion in 2030.
‘Real-time automation’ makes up the applications that leverage data from sensors in real time to trigger specific actions autonomously, and ‘Connected vehicle’ is the cluster of use cases that provide moving vehicles with a continuous, nationwide connection.
Each cluster serves a set of industries
Each use case category or cluster serves a set of industries. Looking at a couple of examples, ‘Enhanced video services’, is as expected, dominated by the media and entertainment industry. But in addition, more than half of its value comes from other industries, such as healthcare, manufacturing and public safety industries. For ‘Real-time automation’, the value is largely being built up on the industries of public transportation, manufacturing and healthcare.
An investment timeline for 5G for business use cases
Taking on an IoT and 5G strategy that focuses on any single cluster or set of clusters, will present different challenges. These can be structured into two main dimensions: go-to-market, and deployment. Through these two perspectives, a timeline aspect can be obtained, indicating which use case cluster can be expected to leverage potential opportunities before another.
Navigate to the right coordinates
With an average of more than 20 use cases per use case cluster, the center of mass for the cluster in total may be placed early or late time. The cluster is really a spread of the use cases involved, across the studied timeline.
Identifying what clusters and what use cases within these clusters, are expected to generate the first business momentum is essential. The time to act is now, and at Ericsson, we’re here to support service providers on their mission to win key positions in new markets.
Want to know more?
For the full findings, read the full report: 5G for business: a 2030 market compass.Download report
Register to access the recording of our webinar "Rise to your 5G business potential: Our compass shows you the way". Aimed at service providers and industry analysts, attendees are provided with a full overview of the report and insights on how to make the right investments early to leverage 5G B2B business potential.Join webinar
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