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

Technology
Other Semiconductors
154B +16.45%
Technology
Other Semiconductors
78.03B +5.40%
Technology
Search Engines
3,610B -4.63%
Technology
Semiconductor Testing Equipment & Service
176B +10.66%
Technology
Phones & Smart Phones
3,780B -5.30%
Technology
Other Semiconductors
4,320B -4.65%
Technology
Other Communications & Networking
39.87B +51.51%
Technology
Other Communications & Networking
167B +1.42%
Technology
Other Communications & Networking
41.6B +25.78%
Technology
Other Semiconductors
1,565B -4.51%
Technology
Other Semiconductors
314B -10.15%
Consumer Cyclical
Internet & Mail Order Department Stores
2,289B -7.63%
Technology
Other Communications & Networking
311B +2.09%
Technology
Electronic Component
46.03B +27.71%
Technology
Display Screens
106B +40.81%
Financials
Investment Management
2.82B +0.39%
Technology
Other IT Services & Consulting
16.18B +12.13%
Technology
Other Semiconductors
7.2B -8.13%
Technology
Advanced Electronic Equipment
46.72B +34.08%
Technology
Other Communications & Networking
37.32B +13.69%
Technology
Other Integrated Telecommunications Services
222B -3.37%
Technology
Other Semiconductors
50.98B -7.06%
Technology
Wireless Telecom
21.75B +5.58%
Technology
Other Communications & Networking
9.17B +12.15%
Technology
Other IT Services & Consulting
7.5B -13.41%
Technology
Other Semiconductors
11.69B +16.19%
Technology
Other Communications & Networking
43.57B +20.32%
Technology
Other IT Services & Consulting
14.47B +14.49%
Industrials
Other Electrical Components & Equipment
674M +30.90%
Technology
Other Wireless Telecommunications Services
200B +15.30%
Technology
Other Integrated Telecommunications Services
216B +25.51%
Technology
Satellite Service Operators
2.9B +12.18%
Technology
Other Communications & Networking
3.31B -4.65%
Technology
Integrated Circuits
8.24B -13.56%
Technology
Other Computer Hardware
28.08B -12.03%
Technology
Other Semiconductors
145B -20.67%
Real Estate
Other Specialized REITs
92.08B +22.32%
Industrials
Other Electrical Components & Equipment
202B -6.00%
Technology
Other Wireless Telecommunications Services
244B +9.13%
Technology
Other Communications & Networking
50.55M -14.67%
Technology
Other Integrated Telecommunications Services
29.41B +11.25%
Real Estate
Other Specialized REITs
60.54B +13.88%
Technology
Other Integrated Telecommunications Services
24.28B +8.31%
Real Estate
Other Specialized REITs
87.9B +7.42%
Technology
Other Communications & Networking
1.84B +12.82%
Technology
Other Semiconductors
217B +17.67%
Technology
Electronic Component
5.09B +68.58%
Technology
Telecommunications Network Infrastructure
25.44M -35.81%
Real Estate
Other Specialized REITs
20.8B +1.63%
Real Estate
Other Specialized REITs
39.43B +1.76%
Technology
Other Communications & Networking
378M -25.35%
Technology
Other Integrated Telecommunications Services
701M -9.70%
Technology
Other Semiconductors
531M -11.11%
Technology
Other IT Services & Consulting
123M -14.79%
Technology
Other Communications & Networking
149M -5.29%
Technology
Enterprise Software
17.5M -16.67%
Technology
Other Semiconductors
3.22M -22.88%
- - 585 -
Technology
Other Semiconductors
122M -13.34%

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  1. Stock Market
  2. Investment Themes
  3. The rise of 5G technology