The 5G boom has started
The 5G global rollout has begun and 5G enabled phones are also rolling out now and will continue in 2019 and beyond.
The 5G opportunity is enormous
By 2021, the number of 5G connections is forecast to reach a figure of between 20 million and 100 million. Some estimates put the figure at 200 million.
Allied Market Research states the global 5G infrastructure market is estimated to reach $58 billion by 2025, up from $371 million in 2017, representing a compound annual growth rate (CAGR) of 96%. Spending on 5G mobile infrastructure for 2021 is forecast to be at around US$ 2.3 billion.
Global 5G smartphone shipments to grow from 2 million units in 2019 to an impressive 1.5 billion in 2025
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South Korea, USA and China are leading the 5G race
In the race for bragging rights and to use the name “world’s first”, Korea has trumped both the US and China with the first fairly substantial deployments in April 2019. Of course the US has disputed the Korean claims of getting their launch up and running a few hours earlier. In April Verizon said they launched the world’s first 5G phone plan. They plan to launch the Samsung Galaxy S10 5G on May 16 in the USA.
All arguing aside, 5G has arrived, as three South Korean carriers, SK Telecom, KT and LG Uplus have claimed 86,000 base stations, with 85% coverage in six major cities are now in operation, with tested speeds between 193 to 430 Mbit/s down. In the US, Verizon is arguably the leader with AT&T and T-Mobile close behind.
A worker installing 5G transmitter (smaller but more frequently placed)
5G and the Internet of Things (including autonomous vehicles and smart cities)
You may be asking where is this heading. The 5G umbrella of super fast internet will support the mass uptake of electric and soon autonomous vehicles (robotaxis, and delivery vehicles). The true smart city will have arrived. Wireless device users in smart 5G cities will be able to connect to a grid through an onboard or mobile device giving up to date news reports, traffic report, automatic rerouting, the weather and accident reports, and maybe order a pizza as they drive home. Furthermore in the future millions upon millions of devices will communicate with each other as described by the “Internet of Things” (IoTs). Mobile app developers will also benefit coming up with the next idea that can be used under 5G technology. 5G could also boost the multi player gaming industry, by bring the latest app driven game away from the home and mobile around the the smart city.
The initial investment opportunity is with the infrastructure stocks. The next wave which is starting now is with the 5G modem suppliers, then the smartphone sellers, the wireless network providers, and of course the internet content providers (especially the streaming companies).
Seven 5G stocks that will be big players in the 5G boom starting in 2019
- Nokia and Ericsson – The 5G infrastructure providers should do well early as the telcos spend big on 5G transmitters and other infrastructure.
- Qualcomm and Skyworks Solutions – The 5G modem and network connection developers (including IoTs) will see a huge pick up in demand for their products.
- Apple and Samsung Electronics – The 5G enabled smartphone and PC makers such as Apple and Samsung should benefit from a 5G upgrade super cycle. Apple and Samsung will also benefit by providing online services to their huge customer bases.
- Netflix and other popular streaming companies (Amazon , Disney, and many others such as Momo and YY Inc.) will be big winners. The online entertainment (especially video streaming) companies such as Netflix should get a significant boost as consumers continue to switch out of fixed location/cable/TV to the new mobile 5G enabled entertainment world.
One smallcap stock we follow at InvestorIntel also stands to benefit. Siyata Mobile Inc. (TSXV: SIM | OTCQX: SYATF) is ahead of the game in offering specialist hands free devices in the fleet management industry. Siyata Mobile is already developing a 5G dedicated “in-vehicle” smartphone for commercial fleets and vehicles. Their devices use push to talk connectivity apps on their devices allowing for greater concentration on the road.
The global 5G trend is likely to be the hottest tech trend in 2019 and 2020. Companies like Qualcomm are already seeing gains of over 30% in the past few months. The 5G story is just beginning with so many investment opportunities out there and many more to come. Don’t miss this one.
Matthew Bohlsen holds a Graduate Diploma in Applied Finance and Investment (similar to CFA), and a Graduate Diploma in Financial Planning. He has 30 years ... <Read more about Matthew Bohlsen>