Understanding Consumer Trends Behind the Rapid Adoption of 5G
An Overview of Trends Driving Growth of 5G
15-Feb-2023
Despite economic challenges like inflation and rising costs of food and energy, many consumers globally are still planning to upgrade to 5G. In fact, 30% of global smartphone users intend to upgrade to a 5G subscription. However, this intention to upgrade may vary across different markets, influenced by market maturity and inflation concerns. High-growth markets are expected to drive majority of the sign-ups.
Despite economic uncertainty, 5G users value reliable connectivity, and most existing 5G users are unwilling to return to 4G. This highlights the significance of 5G connectivity and its importance to consumers. Those considering a reduction in spending will first focus on cutting back on their pay TV, video on demand (VoD), music, and sports streaming subscriptions.
The pace of the 5G network rollout by service providers will play a significant role in driving consumer satisfaction. Service providers need to ensure that they meet consumer expectations in terms of network speed, reliability, and performance to drive adoption and maintain customer loyalty.
The adoption of 5G subscriptions has moved beyond the early adopter phase, and we are now witnessing the emergence of the next wave of users. These users are demanding reliable 5G coverage with no hassle. Service providers have to cater to the expectations of the next wave of mainstream consumers, who have different levels of market maturity and expectations for 5G performance.
The new users demand flawless performance, faster speeds, and better connectivity, and they are less forgiving of any shortcomings in 5G performance. This is a departure from the early adopters, who were more interested in new technology, premium devices, and rich experiences, and were more forgiving of any shortcomings.
Users with 5G subscriptions are showing greater engagement with immersive digital services compared to those with 4G.
The data also reveals that 5G users are spending more time on specific digital services, particularly augmented reality (AR) and enhanced video. This includes high-definition (HD) and 4K multi-view video as well as 360-degree video. These services have seen the biggest increase in time spent by 5G users over the past two years, highlighting the potential for growth in these areas.
Overall, the trend towards increased engagement with immersive digital services among 5G users suggests a growing appetite for innovative and interactive digital experiences. Service providers and content creators can leverage this trend to deliver new and exciting content to consumers and drive further growth in the market.
users more engaged
with immersive digital
services than 4g users
Consumers are not only interested in higher data allowances when it comes to 5G subscriptions, but they are looking for a more personalized and unique experience from service providers.
A significant portion of consumers, around 25%, expressed a desire for the ability to enhance their 5G network performance on-demand through certain apps or during specific occasions.
In addition, consumers highly value the inclusion of innovative and immersive digital experiences within 5G data plans. They view these rich media experiences as an important aspect of their subscription, highlighting the need for service providers to go beyond traditional offerings and deliver more value to their customers.
The advanced capabilities of 5G technology, including its high speeds, reliability, and low latency, allow users to engage in extended reality (XR) and other related activities. Compared to non-5G users, 5G users are more enthusiastic about trying new devices and expect faster progress in XR experiences.
5G users expect that by 2025, two additional hours of video content will be consumed weekly on mobile devices. Of these, 1.5 hours will be consumed through mixed-reality glasses rather than smartphones. This shows a growing preference for immersive experiences made possible by 5G technology.
Even 4G users, who have yet to experience the full benefits of 5G, plan to increase their engagement with the metaverse after upgrading to 5G.
Source: Ericsson ConsumerLab
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