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5G commercial will bring opportunities for vertical segmentation industry

According to the “5G Industry Economic Contribution” issued by China’s Xintong Institute, it is estimated that the total economic output directly driven by China’s 5G commercial enterprises will reach 10.6 trillion yuan from 2020 to 2025, and the directly created economic added value will reach 3.3 trillion yuan. The industry believes that 5G commercial will bring development opportunities for multiple vertical segments.

5G network construction process is accelerating

Inno Angel Fund partner Zhou Quan told the China Securities Journal that the 5G project is very hot in the investment community. He recently saw some startup projects related to 5G applications.
Ping An Securities pointed out that operators will increase investment. In 2019, the investment scale of global 5G mobile communication base stations is expected to reach 2 billion US dollars, and the domestic market is expected to reach 900 million US dollars. By 2022, the global investment scale of 5G mobile communication base stations is expected to reach 15 billion US dollars, and the domestic market is expected to reach 5 billion US dollars.

Zhang Yunyong, dean of China Unicom Research Institute, said that 5G networks will be piloted in 25 provinces and cities nationwide, and 5G commercialization will bring development opportunities for many vertical industries. In the second half of this year, 5G mobile phones are expected to be mass-produced.

Xiang Ligang, chairman of the Zhongguancun Information Consumption Alliance, told the China Securities Journal that this year's 5G pre-commercial, 5G network construction process will accelerate next year. 5G commercial will bring development opportunities to the telecom operation industry, and at the same time benefit the electronic equipment industry enterprises such as system equipment vendors, mobile terminals and chips.

Zhang Chunfei, director of the Supervision and Research Department of China Institute of Information and Economics, pointed out that from the perspective of indirect contribution, 5G and cloud computing, big data, artificial intelligence and other technologies will be deeply integrated, which will support the production and design of traditional industries, manufacturing, management services, etc. The comprehensive and profound reform of the process will help the traditional industry optimize its structure, improve quality and efficiency. It is estimated that between 2020 and 2025, the total economic output of China's 5G commercial indirect pull will be about 24.8 trillion yuan, and the indirect economic growth value will reach 8.4 trillion yuan.

Listed company disclosure progress

From the current situation, many companies have disclosed the relevant progress of 5G services.

In terms of new product expansion, Xinwei Communications said that it will continue to enrich its new product line around the RF main industry, including RF front-end devices and modules including filters, 5G millimeter-wave LCP RF transmission lines, and various types of 5G base station antenna vibrators. The supply of customers to the company has brought new business increments to the company, providing a solid product guarantee for the future 5G era of the Internet of Everything.

Sunlord Electronics said that in 2018, the prototype samples of dielectric filters, couplers and other products for 5G communication equipment were completed, and some products obtained the certification codes of key large customers. At the same time, it has accumulated relevant design, materials, processes and measurement techniques, laying a solid foundation for the next commercial production.

Shuobeide's 5G antenna business has made a certain breakthrough. Shuo Dede said that the company's 5G business is still in its inFANcy, with less shipments; in addition to the 5G antenna has been shipped in volume, the millimeter wave chip module and the 5G RF module are still in the stage of film or sample testing, can the product There is still considerable uncertainty in the success of research and development and the acquisition of market orders.

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