Monday, December 9, 2019
5G Commercialization Forecast to Bring an Upturn to IT Industry Next Year
IT Industry on the Upswing
5G Commercialization Forecast to Bring an Upturn to IT Industry Next Year
  • By Kim Eun-jin
  • November 27, 2019, 09:42
Share articles

The global IT industry is forecast to enter an upswing next year.

The global information technology industry is forecast to enter the upturn phase of a long business cycle next year as investment in communication infrastructure for commercialization of 5G mobile services grows in many countries.

The research center of Shinhan Investment Corp. released a report titled “The Advent of an IT Big Cycle” on Nov. 25. Defining the 2019-2022 period as the initial stage of establishing 5G infrastructure, the report selected business sectors that would benefit from investment in 5G commercialization. They include 5G telecom equipment, IT devices (handsets and wearables), semiconductor and display, cloud computing, streaming (game and content) and artificial intelligence (AI).

The report forecasts a growth in investment in 5G infrastructure and related businesses in the United States, China and other nations around the world.

“The number of global subscribers to 5G services will reach 2.7 billion by 2025,” the report said, adding, “The United States is planning to spend US$270 billion on 5G infrastructure while China will also set aside US$210 billion for investment during the next five to seven years.” Likewise, Japan, European countries, emerging countries as well as Korea are expected to increase investment in building 5G infrastructure.

The evolution of telecommunication infrastructure will boost sales of smartphones and other IT devices. Continued upgrading of IT devices and expanding investment on data centers by Amazon, Google, Microsoft and other key players will boost demand for semiconductors, the report says.