HomeTelecom5G fixed wireless access could grow to $53 bn by 2030
By Economy Middle East
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November 9, 2022 1:11 pm

5G fixed wireless access could grow to $53 bn by 2030

The metaverse market for MENA telcos could reach $13 tn by 2030
5G
Metaverse presents a multi-billion dollar opportunity for region's telcos

Ericsson estimates the opportunity presented by 5G fixed wireless access is worth $5 billion in 2022, growing to $21 billion in 2025 and $53 billion by 2030.

The Metaverse represents a major new market for telcos in the MENA region with early estimates of the overall size of the Metaverse opportunity to be around $13 trillion by 2030, according to a new report. 

Arthur D. Little (ADL) has published “The Metaverse: What’s In It For Telcos?” exploring how telcos can capture value by leveraging the metaverse.

According to the study, three related forces drive the imperative for telcos to be proactive in their Metaverse strategies and tactics. First, the demand is likely to be too large to ignore. Second, the risk of failure or non-participation could be existential: hyper scalers such as Amazon Web Services (AWS) and Microsoft Azure will be close on the heels of those telco players that fail to guarantee the infrastructure the Metaverse necessitates. Third, consumer behavior, particularly from Gen Z, shows that demand for Metaverse products is already well into the mainstream. For example, according to a recent study by Obsess, 75% of Gen Z virtual shoppers have already purchased a digital product within a video game. To connect with this generation of consumers, telcos must invest in Metaverse offerings and capabilities.

Read more: 5G is already paving the way to the metaverse in UAE

Given these three factors, telcos should explore how they can benefit from the Metaverse’s rise, both with infrastructure and through direct participation, the report observed.

By engaging effectively with this new market, benefits for telcos include growth from increased revenues and retention and new efficiency gains along multiple axes, including carbon usage and workforce outsourcing.

Thomas Kuruvilla, Managing Partner, Arthur D. Little, Middle East, said: “Going forward, the percentage increase in adoption of digital services/Metaverse will be higher with the lower income population ADL estimates the total market will grow at a 33% CAGR from 2022–2025 (excluding infrastructure and enabling technologies).”