On Saturday, we talked about the unstoppable potential that the 5G revolution holds – and what the technology really means (Hint: It’s not just a better functioning Maps app on your smartphone).
We also talked about two of the ways 5G will change the world – mobile communications and automotive applications.
And today, I’m going to share two more ways…
The Internet of Things: More Than 40 Billion Connected Devices
5G will bring to life that old joke: “Is your refrigerator running?… Well, you better stop it before it runs out the door.”
While we certainly won’t be chasing after our appliances once they’ve received the benefit of 5G technology, we will see a rise in “smart” devices.
By 2025, more than 40 billion smart devices will connect to the global network to become the Internet of Things (IoT). 5G networks will make these devices even smarter by enabling them to conduct edge-computing functions at blazing-fast speeds, in combination with artificial intelligence and machine learning processes.
As a result, connected appliances like smart locks, smart thermostats, smart security cameras, and many other products will not only operate more reliably, but they will also “learn” to perform their specific functions more intelligently.
Amazon.com Inc. (AMZN)’s Alexa devices are the ones that usually come to mind first; even the most smart-device-resistant households have some sort of Alexa sitting on their fireplace mantels or kitchen counters.
But beyond being a mini-computer that can look up today’s breaking news, connect to your Spotify account, or call your friends and family with the same device, Alexa now can connect to a vast array of devices within its network to…
- Discover other devices…
- Adjust the thermostat…
- Turn off your living room lights…
- Turn on the TV…
- Lock the front door…
And more.
And Amazon is no longer the sole proprietor of these smart devices.
According to a recent press release, Roku Inc. (ROKU) “… is entering the smart home category, with a variety of smart home cameras, lights and other devices…”
We know Roku as the streaming service – which, of course, thrives on the wide bandwidth of 5G – but now, it sees the immense potential in the smart-device sector.
From Roku’s president of devices, Mustafa Ozgen…
As the #1 selling smart TV OS in the US, the Roku platform is used by tens of millions of households, and now we’re extending our ecosystem to include devices and services to power the modern smart home. Branching further into the smart home category is a natural extension of our business, and we’re proud to partner with Walmart to make the experience simple and affordable.
Networking: Cloud Computing
The tremendous human-, system-, and machine-generated data that the IoT will produce will become a huge contributor to the future data deluge. International Data Corp. (IDC) expects IoT data volumes to jump nearly 30% a year between now and 2025.
As this 5G-enabled data begins coursing through the global network, demand for networking and cloud computing capacity will soar. Cloud data centers will have to grow memory and storage four- to tenfold to handle the load… and cloud data centers will become the core hub of the 5G digital ecosystem.
A new generation of cloud-based apps will sprout from that ecosystem. That’s because 5G will unleash the full potential of mobile cloud services that were not feasible with 4G connectivity.
According to CloudCow.com…
The high capacity and dynamism of 5G opens up new possibilities for developers and businesses to create cloud-based apps. This new opening will give rise to the introduction of new innovative apps across industries such as healthcare, banking, marketing, and academics, to name only a few.
Clearly, the 5G rollout will nurture an era of rapid and diverse technological creativity. This surge of innovation will create trillions of dollars of commerce worldwide.
According to a study by Intel Corp. (INTC), average monthly traffic per 5G subscriber will increase by almost 700% from now until 2028. Over that time frame, Intel predicts that media and entertainment companies alone could reap more than $1 trillion from 5G-enabled wireless revenue opportunities.
Multiply that opportunity by the dozens more that will emerge in other industries, and suddenly you’re staring in the face of a multitrillion-dollar investment opportunity.
Research and consultancy group Omdia predicts global sales activity across multiple industry sectors enabled by 5G will top $13 trillion by 2035, representing 5% of global GDP and generating more than 22 million jobs worldwide along the 5G value chain.
Clearly, the 5G revolution is just getting underway. We cannot even begin to guess today what varieties or volumes of 5G-enabled marvels will become the new normal by 2028. But we can easily guess that the 5G revolution will create many outstanding investment opportunities over the next few years.
Even if we endure another recession, it will not dampen the potential the future holds on our megatrends.
And the market always, always goes on to make new highs after bear markets.
As InvestorPlace CEO Brian Hunt emphasized in a special “bear-market survival” issue of Smart Money…
Since 1928, there have been 26 bear markets in the benchmark S&P 500 stock index. After each and every one of them, stocks went on to reach all-time highs. The track record here is perfect.
We’ve continued to keep this idea in mind in Investment Report – and my recommendations over the past 12 months are currently returning a win of 3.33% on average.
That positive gain might not sound like much, but it certainly tops the 20% loss the S&P 500 has delivered this year!
On Friday, my latest issue of Investment Report will be released – and I plan to recommend some plays that will capitalize on trends that hold the same unstoppable potential as 5G.
Click here to learn how you can be ready for it.
Regards,
Eric
P.S. I also recommend four other 5G stocks right now, which I’ve detailed in a special report for my subscribers titled 5G Plays Every Investor Should Own. You can learn how to gain access to it by clicking here.
On the date of publication, Eric Fry did not have (either directly or indirectly) any positions in the securities mentioned in this article.
