Investment Themes

The rise of 5G technology

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Investment Themes

The 5G craze is primarily based on the need for a versatile network standard capable of meeting the needs of enhanced mobile broadband connectivity, massive IoT and mission-critical communications. The growth in the number of mobile users, the increase in mobile data traffic and the emergence of new data-hungry technologies have driven demand for higher transmission speeds and improved accessibility. Enhanced cellular networks are also needed to support emerging technologies such as autonomous driving and industrial automation, which require more reliable networks.

Rapid growth in mobile data traffic (30% CAGR to 2026) is driven by increased consumption of data-intensive content. This creates an imperative need for cellular networks offering superior data rates, efficiency and capacity. This is why improved capacity is a key differentiator between 5G and 4G LTE. While LTE can deliver hundreds of Mbps, 5G is expected to offer Gbps speeds thanks to increased spectral capacity and the use of millimeter waves. 5G is also attractive for fixed wireless access (FWA) networks, which can complement or replace fiber-to-the-home connections.

5G is not only faster than 4G, it also offers more secure connectivity thanks to 256-bit encryption, enhancing the security of corporate data compared to 4G with 128-bit encryption. It's also more secure than unsecured public Wi-Fi networks, which can expose businesses to cyberattacks such as ransomware and hacking.

5G enables increased bandwidth, reducing delays when employees transfer or download files. Bandwidth, as distinct from speed, measures the amount of information that can be sent or received simultaneously, and is particularly useful for professions dealing with large volumes of data, such as architects or engineers using CAD, data modeling or 3D visualization files.

The benefits of improved network technology are not limited to the telecoms sector. Enhanced connectivity is also needed for emerging technologies requiring higher transmission speeds, reduced latency and reliable connections to support data-intensive transmissions and mission-critical applications, such as autonomous driving, massive connections with the Internet of Things (IoT), industrial automation (Industry 4.0) and virtual and augmented reality (AR/VR).

The first commercial deployments of 5G networks took place at the end of 2018. Deploying new mobile communications networks requires significant investment, and 5G is already transforming many industries today, offering substantial growth opportunities for leading technology companies.

This thematic list features most of the listed companies - from start-ups to well-established multinationals - that are benefiting from the global adoption of 5G.

Our selection

Industrials
Testing & Measuring Equipment
59.93B +79.63%
Consumer Cyclical
Internet & Mail Order Department Stores
2,555B +5.84%
Technology
Other Semiconductors
19.16B +106.18%
Technology
Other Communications & Networking
462B +55.28%
Technology
Search Engines
4,430B +17.54%
Technology
Other Communications & Networking
61.82B +82.38%
Technology
Other Semiconductors
202B +58.50%
Technology
Other Semiconductors
4,957B +12.66%
Technology
Phones & Smart Phones
4,347B +9.50%
Technology
Other Communications & Networking
67.68B +127.45%
Technology
Other Semiconductors
836B +149.90%
Technology
Other Semiconductors
1,869B +17.95%
Technology
Other Communications & Networking
208B +28.92%
Technology
Other Semiconductors
253B +287.32%
Technology
Semiconductor Testing Equipment & Service
312B +113.85%
Technology
Other Semiconductors
75.29B +45.71%
Technology
Other IT Services & Consulting
21.71B +48.27%
Technology
Display Screens
151B +119.68%
Technology
Electronic Component
74.12B +110.96%
Technology
Other IT Services & Consulting
5.83B -35.55%
Technology
Other Communications & Networking
7.39B -7.06%
Financials
Investment Management
2.87B +2.67%
Technology
Other Computer Hardware
63.83B +98.50%
Technology
Other Communications & Networking
78.28B +111.50%
Industrials
Other Electrical Components & Equipment
966M +78.43%
Technology
Other Semiconductors
8.33B +15.13%
Real Estate
Other Specialized REITs
107B +43.80%
Technology
Other Communications & Networking
2.39B -28.51%
Technology
Other Integrated Telecommunications Services
227B -1.96%
Technology
Other Communications & Networking
38.8B +21.36%
Technology
Other Semiconductors
224B +32.96%
Technology
Other Integrated Telecommunications Services
191B +11.85%
Technology
Other Wireless Telecommunications Services
156B -10.33%
Technology
Wireless Telecom
20.26B +2.14%
Real Estate
Other Specialized REITs
65.74B +22.11%
Technology
Other Communications & Networking
2.54B +59.02%
Technology
Other Integrated Telecommunications Services
21.88B +0.64%
Industrials
Other Electrical Components & Equipment
244B +15.74%
Technology
Other Wireless Telecommunications Services
196B -10.59%
Technology
Other IT Services & Consulting
18.59B +43.94%
Technology
Integrated Circuits
10.44B +12.90%
Real Estate
Other Specialized REITs
84.37B +0.67%
Technology
Other Semiconductors
609B +263.17%
Real Estate
Other Specialized REITs
20.32B -2.51%
Technology
Other Integrated Telecommunications Services
16.23B -37.37%
Technology
Electronic Component
4.82B +63.60%
Real Estate
Other Specialized REITs
37.43B -6.72%
Technology
Other Semiconductors
3.2B +2,211.03%
Technology
Other Communications & Networking
66.11M +16.27%
Technology
Other IT Services & Consulting
160M +6.69%
Technology
Other Semiconductors
1.25B +124.26%
Technology
Other Communications & Networking
451M -11.98%
- - 3.61B -
Technology
Other Integrated Telecommunications Services
596M -28.18%
Technology
Other Communications & Networking
76.58M -55.39%
Technology
Telecommunications Network Infrastructure
18.96M -52.89%
Technology
Other Semiconductors
3.16M -22.73%
Technology
Enterprise Software
19.92M -13.89%
- - 585 -

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