THE mobile communication industry will be starting the transition to 5G networks in 2016, claims TrendForce.
In 2015, many telecom operators around the world worked to expand their 4G networks. While they will continue to upgrade their networks to LTE and grow the 4G user based in 2016, rising mobile network demand is expected to drive the global mobile communication sector towards the adoption of 5G networks.
The requirements of the 5G network are still being drafted and a standard for the next-generation wireless technology is scheduled to appear in 2020. However, there is already a fierce competition among major network equipment providers to play the leading role in defining 5G. Aggressive contenders such as Ericsson, Nokia Networks and Huawei each have their own 5G strategies and are starting to invest in related infrastructure.
5G networks will yield new opportunities for telecoms and the wider mobile communications industry, claims TrendForce senior manager for mobile communication and end device research Kelly Hsieh.
“The improvements in the next generation of wireless networks will be related to the integration of different platforms as well as innovations in both interface and hardware,” she said. “Realisation of unified services and content experiences will be a main selling point for mobile communication solutions next year.”
In 2015, around 610 million units of LTE devices will be shipped, representing a 59.3% annual increase compared to 2014. Annual shipments of these devices are also expected to reach almost 900 million in 2016.
With faster network speeds thanks to 4G, LTE and 5G networks, virtual reality and augmented reality technologies will gain additional momentum, penetrating a wide range of applications. To get the full experience of VR gaming and entertainment, consumers will be encouraged to buy higher-end mobile devices. Hence, the maturation of VR-based applications will be crucial to the advancement of the mobile communication industry next year.
Additionally, growth in AR applications will accelerate, particularly in manufacturing and professional training purposes.
Other technologies like near field communication (NFC) and beacon systems will be critical in driving “Retail 4.0”, where consumers increasingly rely on mobile devices for shopping and new shopping experiences.
5G will support many applications: UHD video, improved cloud-based services and intelligent transportation systems to name a few. Since the next-generation standard emphasizes speed and connectivity to support real-time operations, future communication technologies will be suitable for complex tasks that need to be expedited, such as traffic operations and surgeries.
Another trend, the Internet of Vehicles (IoV) will emerge as the next crucial market following smart homes. As the wireless communication module market maintains a strong growth momentum, the share of IoV application in the total wireless communication module shipments is projected to expand rapidly, from less than 5% in 2015 to 30% in 2017.
2016 will see major car makers concentrating on developing vehicle-to-vehicle (V2V) communication technologies so that they can quickly bring autonomous driving systems into the market.