Connectivity consists of faster, better and more efficient data transfer between terminals. The race for wireless connections, which began in 1979 with the first 1G technology implemented in Tokyo by the Nippon Telegraph and Telephone (NTT), led the world to 5G and 6G four decades later.
McKinsey 2022 Technology Trends Outlook reveals advanced connectivity, which includes 5G, 6G, low earth orbit satellites and other technologies, is driving growth and productivity across industries with an investment of $ 166 billion in 2021. Unlike other new technologies such as artificial intelligence (AI) or mobility, the technology has a high adoption rate.
In a report shared by Market Research and Future at TechRepublic, the organization explains that the COVID-19 pandemic has been a significant catalyst for the implementation of 5G globally.
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With the power to transform industries faster, with greater capacity and less latency, 5G technology will impact transportation, banking systems, traffic control, remote healthcare, agriculture, digitized logistics and more. , according to Market Research Future.
New technologies such as artificial intelligence, machine learning, Industrial Internet of Things (IIoT), new smart cars, and augmented and virtual reality applications in the metaverse also require faster download times and more real-time data communications. 5G and 6G should boost these new trends.
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Market Research and Future explains that the deployment of 5G is not without its challenges. The standardization of the spectrum and the complexity of installing the 5G network are the most important. MIT Technical Review adds that 6G will also face challenges and will require interdisciplinary innovation, new chips, new devices and software.
The technological challenges of 5G and 6G
The next generation of cellular technologies offering higher spectrum efficiency and high bandwidth has been debated. As McKinsey explains, many still wonder if 5G can completely replace the 4G LTE network and what percentage of networks 5G will have.
The World Association of Mobile Providers in May 2022 had identified 493 operators in 150 countries investing in 5G technology and another 200 companies with technology that could potentially be used for 5G. New 5G smartphone ads increased by 164% at the end of 2020, and cataloged 5G devices increased by 60%.
While new consumer products have quickly adapted to 5G capabilities, industrial and commercial devices have not.
“Switching from 4G LTE to private 5G may not be affordable for all gamers; it would depend on an actor’s technological aspirations and expected use cases, “McKinsey said.
Market Research Future explains that $ 61.4 billion drives this highly competitive market, which is expected to grow to $ 689.6 billion by 2027. But suppliers of infrastructure equipment, devices and software have held back growth.
MIT explains that 6G shares similar challenges with 5G but also presents new challenges. 6G engineers must work on the infrastructure, devices and software to build next-generation communications systems. 6G connectivity cannot be achieved simply by augmenting or updating today’s technology.
MIT adds that 6G uses more sophisticated active antenna systems, which integrate more using other radio access technologies such as WLAN (wireless local area network), Bluetooth, UWB (ultra-broadband) and satellite. Bringing all this technology into a smartphone requires reinventing components such as chips and radio transceiver technology.
“This will require very creative electrical and computer engineering, as well as disruptive industrial engineering and energy management,” MIT explained.
The new 6G chips are essential to cope with the increased computing power. Low latency – the ability to process a very high volume of data messages with minimal delay – is already a challenge for 5G and will be even more so with 6G technology.
Low latency is essential for interactive data, real-time data and applications, virtual environments or digital twins. These are all requirements for AI, Metaverse and Industry. 6G latency will be reduced by using nearby devices, creating a signal over a three-dimensional network.
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To solve these problems, new semiconductor materials, smart surfaces, artificial intelligence and technological developments of the digital twin are used to test concepts, develop prototypes, manage and improve the network.
McKinsey points out that 5G has shown that only a few telecom companies have been able to monetize 5G enough to achieve a good return on investment (ROI). Therefore, capital expenditures and maintenance costs will also be closely monitored. In addition, large capital investments are required to build new technologies and networks, which is another business challenge.
Driving connectivity: industrial outage
At the plant in Dresden, Germany, Volkswagen has replaced wired connections between cars and now updates finished cars with over-the-air updates and connects unmanned vehicles with edge cloud servers. Michelin is using new connectivity technologies for real-time inventory management, and Bosch has equipped its first factory with 5G, enabling automation, connecting hundreds of terminals and synchronizing robotics with human workers. These are just a few examples provided by McKinsey of how advanced connectivity is disrupting industries.
Connectivity is expected to increase the annual rate of data creation by up to 25%, connect 51.9 billion devices by 2025, and impact global GDP (gross domestic product) by more than $ 2 trillion. Additionally, 5G and 6G are expected to help bridge the digital divide by enabling hundreds of millions of people to be connected for the first time.
In the automotive and assembly industries, 5G and 6G are used to improve maintenance and navigation, prevent collisions and pilot the first fleets of autonomous vehicles. Healthcare devices and sensors connected to low-latency networks will improve the treatment and monitoring of patients with real-time data, which will have a significant impact on the treatment of patients with chronic diseases who need constant monitoring.
The aerospace and defense industry uses 5G to increase capacity and performance, while retail has improved inventory management, supply chain coordination and payment process, and created metaverse experiences all the way to technology. . The construction and construction industry is 3D printing structures and using twins and high-speed digital applications, and the mining and natural resources sector is moving towards intelligent exploration and exploitation with practice digitization and automation. of operations.
Leaders from nearly every industry are planning to engage in new connectivity technologies. McKinsey says they should see advanced connectivity as a key factor in breakthrough capabilities. From digital transformations to improving efficiency through automation and enabling technologies that rely on high-quality connectivity, such as cloud computing and the IoT, connectivity will continue to determine how the world works and lives.