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China will invest $ 120 billion in the development of 5G in the country in the next five years
China will invest about 800 billion yuan ($ 120 billion) in the development of 5G networks in the country in the next five years, according to a new report by analysts from IDC. To assess the scale of injections, suffice it to say that this amount is comparable to half of the budget of the entire Russian Federation in 2021. China’s 5G development should boost the post-coronavirus economy and set the stage for a new industrial revolution.
At the Siemens workstation robotics booth at the China trade show. Image source: Xinhua
More than 60% of China’s 1,000 largest enterprises are expected to have 5G and edge computing applications by the end of 2022. “This will drive increased investment in 5G infrastructure and IoT solutions,” says the report, “2021 China ICT Market Predictions,” issued by the International Data Corporation. In addition to huge investments in 5G, even more impressive investments in the Internet of Things are expected – over 6 trillion yuan over the next four years ($ 906 billion).
According to the latest forecast from IDC, in 2021 the scale of the Chinese ICT market will reach $ 711.1 billion, which is 9.3% more than in 2021, and will return to relatively high growth rates after the epidemic. Total spending on digital transformation in 2021-2024 will reach $ 1.5 trillion at an average annual growth rate of 17%. Since these data fall within or even taken from the plans for the 14th five-year plan, the tasks of which are now being approved, the probability of their implementation is assessed as high.
The IDC report also predicts that by 2024, 45% of repetitive tasks will be automated or improved through the use of “digital workers” implemented by the forces of AI, robotics and robotic process automation. High-speed 5G communications will play a key role in this. However, in such processes, all elements of the system are key. It is only necessary to monitor the balance of investments in all aspects of the future.