commsday summit 2017: ericsson's dr magnus ewerbring
TRANSCRIPT
businessOpportunities
Dr. Magnus Ewerbring – CTO Asia Pacific, Ericsson
5g
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 2
5G is coming soon. really
550 million 5G
subscriptions
in 2022
Subscriptions by technology (billion)
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 3
5G operator
addressable
Digitalization revenues
5G enabled
digitalization
revenues
Digitalization
revenues
for ICT players1 2 3
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 4
5GEmpowering people,
transforming industries,
advancing society
5G FOR Industries
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 5
Scania platooning
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 6
5G for mining
Smart Rock Bolts
Smart Ventilation
Remotely Controlled VehiclesWheel Loaders, Scalers, Fire Robots,
Trucks, etc.
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 7
The world's first cellular IoT-based factory was developed
jointly by China Mobile, Ericsson and Intel, its elements
include a connected screwdriver and other tools
World’s first cellular IoT based factory
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 8
A growing shift in the revenue pools
Source: Ericsson and Arthur D. Little (2017)
1.5%
2016
1.7361.497
2026
USDbn
CAGR
16´-26´
2026
13.3%3.281
2016
Current operator service revenues Digitalization revenues for ICT players
0.939
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 9
5G enabled digitalization revenues for ICT players 2026
Source: Ericsson and Arthur D. Little
13%
8%6%
10%
20%
13%
1,233BUSD
Energy & Utilities
Manufacturing
Public safetyHealthcare
Public transport
Automotive
Financial services
10%
Media & Entertainment
19%
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 10
Operator and industry roles
Operator
Applications & Services
Systems & Platforms
Connectivity & Communication
Networkdeveloper
Users, Content & Devices
Serviceproducer
Serviceplatform
developer
Servicecreator
Serviceenabler
Other
40% 40% 20%
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 11
Connectivity and
Infrastructure
Provisioning
Service
Enablement
Application &
service
provisioning
operators share of the 5g value created
Source: Ericsson segmentation model, Arthur D. Little smart market model
Note: The total addressable market for operator role Service creator is the total operator addressable market
Operator addressable market
for role Network developer
Operator addressable market
for role Service enabler
Operator addressable market
for role Service creator
Su
m o
f ad
dre
ssable
5G
reve
nu
e p
er o
pe
rato
r
role
193 $bn
507 $bn
582 $bn
193 $bn
193 $bn 315 $bn
193 $bn 315 $bn 74 $bn
Total 5G enabled revenue per
smart value chain step
Total 5G enabled revenue
(2026) 1,233 $bn
217 $bn 606 $bn 410 $bn
89% 52% 18%Operator addressable share
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 12
582
113
101
78
76
74
62
48
30
Current and 5G-enabled industry
digitalization addressable revenuesSplit per Industry by 2026 (5G)
opportunity for operators
0
500
1,000
1,500
2,000
2,500+34%
202620242020 20222016 2018
New
ad
dre
ssab
le 5
G
en
ab
led r
eve
nu
es
Curr
en
t o
pe
rato
r se
rvic
e r
eve
nu
es
Potential to add 34% growth
in revenues in 2026
Financial
services
Autom
otive
HealthcarePublic
safety
Energy
&
Utilities
Public
transport
Manu-
facturingTotal Media &
ent.
USDbn
>582BUSDOPERATOR ADDRESSABLE
5G DIGITALIZATION
REVENUES
IN 2026
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 13
Opportunity in Australia
Source: Ericsson and Arthur D. Little; Major strategic choices ahead of TelCos: Reconfiguring for value, Arthur D. Little; IDC; Gartner
Note: 1) Excludes revenues from equipment's
5G
ad
dre
ssa
ble
o
pe
rato
r re
ve
nu
es
Financial
services
0.7
Healthcare
1.6
1.6
Media &
enter-
tainment
Public
safety
2.5
1.4
Manu-
facturing
Auto-
motive
1.0
2.2
Energy &
utilities
Public
transport
1.7
Total
12.7
USDbn
0
5
10
15
20
25
30
35
40
45
2016
+45%
20262024202220202018
>
Cu
rre
nt o
pe
rato
r se
rvic
e r
eve
nu
es
1
12.7BUSDOPERATOR ADDRESSABLE
5G DIGITALIZATION
REVENUES IN 2026 IN
AUSTRALIA
Current and 5G-enabled industry
digitalization addressable revenuesSplit per Industry by 2026 (5G)
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 14
There will be 550 million 5G connections by 2022.
Significant potential for Industrial IoT and an early
mover advantage.
Global outlook 2026:
582 BUSD operator addressable
5G digitalization revenues
Potential to add 34% growth in revenues by 2026
Australian outlook 2026
12.7 BUSD operator addressable
5G digitalization revenues
Potential to add 45% growth in revenues by 2026
Energy, Manufacturing and Public Safety are key
sectors in capturing the 5G opportunity
Summary
CommsDay Sydney - Business Opportunities in 5G | Commercial in confidence | © Ericsson AB 2017 | Page 15