Nokia: 5G set to add $8trn to global GDP by 2030
The 5G Business Readiness Report shows that 5G adoption among businesses worldwide provide a cross-sector view of the path to full 5G deployment.
Despite the economic challenge of COVID-19, a global boom in 5G investment is expected to see 71% of organisations invest in 5G during the next five years.
The landmark report from Nokia showcases the potential for 5G to drive sustainable economic growth and define the next decade of innovation. The COVID-19 pandemic will scale the value creation potential of 5G in the medium and long-term by increasing digitisation, particularly among the least digitally advanced industries.
The report also shows a clear link between 5G deployment and business performance. Firms that are at an advanced stage of 5G adoption were the only group to post an overall increase in productivity (10%) as a result of COVID-19 and the only group able to maintain or increase customer engagement during the pandemic.
5G mature companies are also scaling more quickly than competitors with 49% of firms in the expansion phase and 37% in the implementation phase which represents the two most advanced stages of 5G maturity. These findings show that the companies that are most 5G mature are showcasing the highest impact of business performance.
As a result of the economic challenges of COVID-19, a global increase in 5G investment will see 72% of large organisations invest in 5G during the next five years. The report forecasts a quick rise in investment over the next three years as enterprises seek to expedite digitalisation. A third of companies across all regions are worried about being outpaced by the competition should they not invest in 5G within the next three years.
Nokia’s report highlights that across eight economies - Australia, Germany, Finland, Japan, Saudi Arabia, South Korea, the UK and the US - around 50% of firms are at the halfway stage of 5G readiness between initial planning, trials and deployment, in comparison to just 7% that are classed as 5G mature.
However, only 15% are currently investing in its implementation and more than a quarter (29%) of businesses aren’t planning on any 5G investment during the next five years.
Gabriela Styf Sjöman, Chief Strategy Officer at Nokia, commented: “As organisations across the world move faster towards deployment of 5G enabled technologies, those who wish to be the first to leverage its potential cannot afford to lose more time.
“To capture the tremendous opportunities of 5G, organisations must start or intensify their planning now and accelerate business model innovation to remain competitive in a rapidly digitalising global economy. Beyond investment in the technology itself, this will require digitalising operations, processes and ways of working to capture the full potential of 5G.”
Timeline: Tesla's Construction of Gigafactories
Tesla's mission to accelerate the world's transition to sustainable energy
Founded in 2003, Tesla was established by a group of engineers with a drive to "prove that people didn’t need to compromise to drive electric – that electric vehicles can be better, quicker and more fun to drive than gasoline cars." Almost 20 years on, Tesla today is not only manufacturing all electric vehicles, but scaleable clean energy generation and storage too.
"Tesla believes the faster the world stops relying on fossil fuels and moves towards a zero-emission future, the better," says Tesla. "Electric cars, batteries, and renewable energy generation and storage already exist independently, but when combined, they become even more powerful – that’s the future we want. "
In order to deliver on its promise of "accelerate the world’s transition to sustainable energy through increasingly affordable electric vehicles and energy products," Tesla's Gigafactory journey began in 2014 to meet its produciton goals of 500,000 cars per year (a figure which would require the entire worlds supply of lithium-ion batteries at the time).
By ramping up its production and bringing it in-house, the cost of Tesla 's battery cells declined "through economies of scale, innovative manufacturing, reduction of waste, and the simple optimisation of locating most manufacturing processes under one roof." With this reduction in battery cost, "Tesla can make products available to more and more people, allowing us to make the biggest possible impact on transitioning the world to sustainable energy."
2014: Giga Nevada and Giga New York begin construction
Born out of necessity to meet its own supply demand for sustainable energy, Tesla began the construction of its first Gigafactory in June 2014, in Reno, Nevada, followed by its Buffalo, New York facility the same year. "By bringing cell production in-house, Tesla manufactures batteries at the volumes required to meet production goals, while creating thousands of jobs," said Tesla.
2016: Reno, Nevada grand opening
Tesla’s construction of Giga Nevada came to an end in 2016, the first of its Gigafactories to complete its construction project. The factory’s grand opening took place in July 2016, and by mid-2018 reached an annual battery production rate of 20 GWh, which made it the highest-volume battery plant in the world that year.
2017: Giga New York begins production
Two years after Tesla’s second Gigafactory began construction, Giga New York was complete, and started its production operations in 2017.
2019: Giga Shanghai construction to production in record time
In 2019, Tesla selected Shanghai as its third Gigafactory location. The company constructed the factory in record time, taking just 168 working days from gaining permits to finishing the plant's construction.
2019: Giga Berlin begins construction
Announced in November 2019, Tesla began the construction of its first European Gigafactory in Berlin. The Gigafactory is still under construction.
2020: Giga Texas begins construction
The following year in August 2020, Tesla began the construction of its Giga Texas factory. The company’s third Gigafactory in the US is still under construction.
2021: Giga Texas and Giga Berlin expected completion of construction
Looking to the future, Tesla expects to complete the construction of its Giga Texas and Giga Berlin factories in May 2021 and July 2021 respectively.