Amid rapid technological advancements, the UK stands at a juncture. Businesses nationwide increasingly recognise the importance of 5G connectivity in securing the UK’s position as a global tech leader. Our recent State of Connectivity Report, highlights a significant shift in priorities, with 5G connectivity ranking higher than robotics, smart cities, and artificial intelligence (AI) among UK business leaders.
In this article, we’ll take a look at the transformative potential of 5G, as it promises to revolutionise various sectors in the UK, driving significant advancements in revenue growth, sustainability, and skills development, while addressing the challenges that hinder its full adoption.
Unlocking revenue growth
The advent of 5G technology promises a shift in how businesses operate, offering unprecedented opportunities for revenue growth. Our research found business leaders anticipate an average 20% increase in revenue driven by enhanced 5G connectivity. This optimism is rooted in the major capabilities of 5G to support the Internet of Things (IoT) and AI technologies, enabling businesses to harness real-time data and automation like never before. The high-speed, low-latency nature of 5G allows for more efficient operations, reduced downtime, and the creation of new business models that were previously unfeasible.
Industries such as manufacturing, healthcare, and retail stand to benefit immensely. For instance, in manufacturing, 5G can facilitate the deployment of intelligent factories where IoT sensors monitor and optimise production processes, reducing waste and increasing efficiency. Retailers can leverage 5G to enhance the customer experience through augmented reality and more responsive supply chains. 5G enables telemedicine and remote monitoring in healthcare, improving patient care and operational efficiency.
Promoting sustainability through smarter facilities
Sustainability has become a crucial consideration for businesses, not just for regulatory compliance but also for economic benefits. The report indicates that 65% of UK firms acknowledge the potential revenue-enhancing benefits of sustainability initiatives. However, a significant hurdle remains: three-fifths of these firms recognise the need for better facilities, ones that are more innovative and efficient, which require robust connectivity infrastructure to support the increased data these smarter and more sustainable facilities.
By providing reliable and extensive connectivity, 5G supports the deployment of IoT devices that can monitor energy usage, manage building systems more efficiently, and reduce overall carbon footprints. For example, intelligent grids connected by 5G can dynamically adjust energy distribution based on real-time demand, significantly cutting energy waste. IoT sensors can efficiently manage buildings’ heating, ventilation, and air conditioning systems, leading to substantial energy savings.
Challenges in the path to 5G adoption and the skills gap
Despite the vast potential, deploying 5G is not without challenges. Approximately one-third of firms highlight a need for digital skills as a significant barrier to enhancing connectivity. This skills shortage not only hampers the deployment of 5G but also limits businesses’ ability to fully exploit the technological benefit. Moreover, nearly three-fifths of respondents believe poor connectivity deprives students of the skills necessary for success in the modern world.
Another significant challenge is the perception of high costs, with 25% of firms ranking it as a key factor preventing them from adopting the technology. Likewise, 25% cite challenges around securing connectivity across the enterprise as an obstacle on their path to cellular connectivity.
To overcome these challenges, businesses must adopt a strategic approach to 5G deployment. This includes conducting thorough cost-benefit analyses to demonstrate the return on investment and engaging with technology providers who can offer expertise and support. Security concerns can be mitigated by implementing robust cybersecurity measures such as SASE principles and working with trusted partners to ensure secure connectivity.
Government support also plays a crucial role. While the UK government’s Wireless Infrastructure Strategy is a step in the right direction, nearly 68% of firms believe that overall wireless connectivity investment is too low. Increased funding and incentives for 5G projects, particularly in rural and economically disadvantaged areas, can accelerate the deployment of this vital technology.
Fully embracing the benefits of 5G
For businesses, 5G connectivity is a technological advancement and a strategic imperative with the ability to unlock new revenue streams and enhance sustainability. This will help the UK secure its position as a global tech leader, drive economic growth and create a more sustainable and connected future. The time to act is now.
James Bristow is SVP EMEA at Cradlepoint
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