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 Integrated Telecommunications Services
786M +1.21%
Industrials
Other Electrical Components & Equipment
649M +22.44%
Technology
Advanced Electronic Equipment
40.05B +14.92%
Technology
Other Semiconductors
338B -3.19%
Real Estate
Other Specialized REITs
39.36B +1.70%
Technology
Other Semiconductors
7.83B -0.08%
Real Estate
Other Specialized REITs
93.95B +24.80%
Technology
Other Communications & Networking
40.18B +52.67%
Technology
Other IT Services & Consulting
15.48B +7.31%
Technology
Search Engines
3,700B -2.33%
Technology
Other Wireless Telecommunications Services
242B +8.11%
Technology
Other Computer Hardware
30.15B -5.54%
Technology
Other Integrated Telecommunications Services
30.28B +14.53%
Real Estate
Other Specialized REITs
21.39B +3.79%
Technology
Other IT Services & Consulting
123M -17.64%
Technology
Other Communications & Networking
178B +8.06%
Technology
Other Communications & Networking
369M -27.43%
Technology
Telecommunications Network Infrastructure
27.77M -31.92%
Technology
Enterprise Software
19.93M -7.78%
Technology
Electronic Component
6.48B +114.96%
Technology
Semiconductor Testing Equipment & Service
192B +20.50%
Technology
Other Semiconductors
1,542B -6.05%
Technology
Other Semiconductors
3.57M -16.82%
Financials
Investment Management
2.81B +0.46%
Technology
Other Communications & Networking
39.02B +5.31%
Industrials
Other Electrical Components & Equipment
231B +4.98%
Technology
Other Semiconductors
4,442B -1.98%
Technology
Other Communications & Networking
46.02M -24.53%
Technology
Other Semiconductors
106M -27.01%
Technology
Satellite Service Operators
3.25B +21.00%
Technology
Other Wireless Telecommunications Services
201B +15.50%
Technology
Other Integrated Telecommunications Services
207B +20.33%
Technology
Phones & Smart Phones
3,755B -5.91%
Technology
Other Communications & Networking
304B -0.23%
Technology
Other Semiconductors
150B -17.74%
Technology
Other Semiconductors
68.54B -7.50%
Technology
Other IT Services & Consulting
16.08B +28.09%
Technology
Other Communications & Networking
174M +10.78%
Technology
Other Communications & Networking
1.82B +11.48%
Technology
Other Communications & Networking
9.63B +17.79%
Technology
Electronic Component
40.73B +17.70%
Technology
Other Semiconductors
13.35B +32.69%
Technology
Integrated Circuits
9.34B -2.07%
Real Estate
Other Specialized REITs
62.18B +16.97%
Technology
Display Screens
115B +52.42%
Technology
Other Semiconductors
234B +26.80%
- - 585 -
Technology
Other Semiconductors
612M +5.34%
Technology
Other Integrated Telecommunications Services
23.97B +6.93%
Technology
Wireless Telecom
21.02B +2.05%
Technology
Other Integrated Telecommunications Services
220B -4.28%
Technology
Other Communications & Networking
3.53B +0.74%
Technology
Other Semiconductors
61.52B +12.61%
Technology
Other Communications & Networking
36.71B +8.63%
Real Estate
Other Specialized REITs
89.93B +9.42%
Technology
Other Semiconductors
165B +24.30%
Consumer Cyclical
Internet & Mail Order Department Stores
2,134B -13.88%
Technology
Other IT Services & Consulting
7.47B -14.01%
Technology
Other Communications & Networking
42.81B +29.95%

News of the components

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Sector allocation

Ratings chart - Surperformance

Ratings ESG MSCI

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