Different Countries are Scrambling to Develop the 5G Industry, and North America, Europe and Asia will Become the Most Important Markets

5th generation mobile networks or 5th generation wireless systems, 5th-Generation, referred to as 5G or 5G technology, is the latest generation of cellular mobile communication technology, is also the extension of 4G (LTE-A, WiMax), 3G (UMTS, LTE) and 2G (GSM) system. The performance goals of 5G are high data rates, reduced latency, energy savings, cost reduction, increased system capacity and large-scale device connections.

A Small Cell is a low-power wireless access node or base station that can operate in licensed and unlicensed spectrum, covering a range from 10 meters to 1 to 2 kilometers. Small Cell has the advantages of flexibility and rapid deployment, and can solve the network coverage problems of hotspot absorption, blind spots, and weak coverage scenarios, and realize the ubiquity of the network.

A macro cell is located in a cellular mobile phone network, providing radio coverage cell sites (towers, antennas or masts) supplied by high power. Generally, the coverage provided by a macro cell is larger than that of a micro cell. The antenna used in the macro cell is installed on the mast, roof and other existing structures on the ground, the height of which can clearly see the surrounding buildings and terrain. The power output of a macro cell base station is usually several tens of watts.

The fast speed, high efficiency, and low latency of 5G enable it to help many industries achieve digital and intelligent transformation. For example, under the 5G network, telemedicine, remote robotic surgery, autonomous driving technology, etc. are becoming possible. In general, the development of 5G will mainly benefit the development of the following industries: Smart Automotive, Healthcare, Smart Transportation & Logistics, Consumer Electronics, Industry Automation, Building & Home Automation and others.


Countries scramble for 5G industry leadership

The concept of 5G has been proposed for many years, but it has only begun to develop rapidly in recent years. According to reports, as of September 2020, 700,000 5G base stations have been built worldwide. Among them, China has built more than 480,000 5G base stations. This country is currently the country with the fastest construction of 5G base stations, while other countries have been hindered by the outbreak of epidemics. According to Chinese media reports, China plans to build more than 600,000 5G base stations by the end of 2020. The application of 5G network must rely on base stations, so the rapid construction of base stations is conducive to the application of 5G in various fields, thereby promoting the development of the industry.

5G is a national strategic industry. Therefore, various countries hope to develop 5G first. The number one country that develops 5G can not only promote the growth of the country\'s total 5G direct and indirect economic output, but also share the dividends of the development of 5G industries in other countries. On April 3, 2019, the U.S. Department of Defense released "5G Ecosystem: Risks and Opportunities for the U.S. Department of Defense", predicting that China’s reliance on the first Sub-6GHz 5G network will promote smartphone and telecommunications equipment vendors, as well as semiconductor and the market for system suppliers has grown substantially, which in turn drives the growth of Internet companies\' services, and China will likely reproduce the glory of the United States in the 4G field. Therefore, the United States has become increasingly anxious and urgency about competing for 5G leadership. In fact, all countries around the world have the same understanding of this. As early as 2019, operators in the United States and South Korea were vying to open the world\'s first 5G wireless service. On April 3, 2019, SK Telecom, KT and LG U+, the three major operators in South Korea, announced the official commercialization of 5G and opened 5G mobile network services. An hour later, US operator Verizon also officially announced the launch of 5G wireless network services in some areas. China has become the fifth country in the world to open 5G services after South Korea, the United States, Switzerland, and the United Kingdom.

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North America, Europe and Asia will become the most important markets

With the advent of the next generation of mobile internet, security threats in areas such as telecommunications infrastructure will expand. 5G will bring new risks, especially in supply chain and network security. The trade friction between China and the United States is currently in the process of running-in, and there are large uncertainties in the relevant results. The intensification of trade friction will affect the construction of key manufacturers such as Huawei and ZTE Corporation in overseas base stations; it also affects the import and export of upstream raw materials, having a greater impact on the manufacturing and sales of 5G network related products and related mature technology exchanges, slow down the construction process, and affect the overall development of the industry.

The construction of 5G requires a lot of investment. The coverage of 5G is not large, especially where there are obstacles such as trees or buildings. This means that the demand for base stations is far greater than that of 4G and 3G. In addition, 5G promotion costs and related infrastructure improvements and increased maintenance costs are also a big problem. If this cost is borne by customers, it means that 5G-related expenses will rise. This is likely to limit the promotion of this technology in the many fields, after all, most people have a limited budget.

The development of the 5G industry is in a stage of rapid development. In theory, 5G, as a benchmark for the new era, has opportunities in all countries around the world; however, at present, North America, Europe and the Asia-Pacific region have the greatest potential. North America and Europe are the gathering places of developed countries, the technology and consumption power ranks in the forefront of the country, and people\'s acceptance of new technologies is also high. In Asia, South Korea and China have actively invested in the construction of the 5G industry. Considering that Asia is densely populated and the number of middle class is increasing, the potential of this region is great. 5G technology in South America, the Middle East, and Africa is relatively backward, and it is difficult to provide big opportunities. Therefore, during the forecast period, the three regions of North America, Europe and Asia will become the most important markets.

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