UAE telco operators leveraging 5G-IoT can tap the business benefits of up to $3.3 billion in revenues by 2026, according to a new Ericsson report.
Rafiah Ibrahim, head of Ericsson Middle East and Africa, said, “Digital transformation is taking place in almost every industry, disrupting and creating new business models. 5G is an enabler of this transformation.”
In ‘The guide to capturing the 5G industry digitalisation business potential – a sequel to the ‘5G Business Potential’ report, Ericsson lists 10 industries that will drive growth in addressable revenues from digitalisation. These include agriculture, manufacturing, energy and utilities, public safety, healthcare, public transport, media and entertainment, automotive, financial services and retail. Globally, this growth will equate to an anticipated $619 billion revenue opportunity by 2026.
To capture new market opportunities, operators must be highly competitive within industry digitalisation. The report unveiled that the shift from connectivity provider, to service enabler and now service creator is a stark one.
By 2026, estimated potential revenue increase is predicted to range from $1.1 billion for a network developer to $3.3 billion should an operator in the UAE adapt its business model to become a service enabler and creator.
“In the Middle East and Africa region, we have already implemented an expanded platform to deliver more efficient network performance and improved network capabilities. This is enabling service providers to capture opportunities from digitisation of industries and from emerging use cases while addressing the explosive traffic growth expected in the 5G evolution.”
In the UAE, the industry growth potential is being driven by the digitalisdation of the manufacturing sector contributing to 18 percent of the potential revenues by 2026. This is followed by 16 percent in energy and utilities, and 12.5 percent in public safety by end of the same period.
UAE operators will see the most revenue potential from real-time automation, which offer a potential of $530 million by 2026. In fact, real-time automation will experience rapid adoption, at 133 percent in the next 6 years (CAGR 130 percent, 2020 to 2024). Thereafter, Ericsson’s report forecasts slower but steady growth at 21 percent by 2026 (CAGR 19 percent, 2024 to 2026). Other revenue potential will come from enhanced video services at $510 million and monitoring and tracking at $380 million.
Legacy business models and operational structures will have to evolve to survive in a 5G-IoT world. Detailed real-life operator IoT initiatives, describing monetisation structure and business models, show how they can be evolved to 5G and harness maximum industry digitalisation opportunities.