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
Other Electrical Components & Equipment
894M +70.18%
Technology
Other Computer Hardware
73.3B +152.91%
Consumer Cyclical
Internet & Mail Order Department Stores
2,717B +10.93%
Industrials
Testing & Measuring Equipment
55.44B +65.90%
Technology
Search Engines
4,055B +9.14%
Technology
Other IT Services & Consulting
22.56B +61.55%
Technology
Electronic Component
57.41B +65.14%
Technology
Other Communications & Networking
424B +44.61%
Technology
Other Communications & Networking
238B +51.61%
Technology
Other Semiconductors
57.11B +8.88%
Technology
Other Semiconductors
175B +39.73%
Technology
Other Communications & Networking
47.44B +50.13%
Technology
Semiconductor Testing Equipment & Service
231B +49.54%
Technology
Other Communications & Networking
83.93B +152.73%
Technology
Other Semiconductors
5,273B +17.86%
Technology
Other Semiconductors
822B +140.14%
Technology
Other Semiconductors
199B +179.07%
Technology
Phones & Smart Phones
4,766B +23.04%
Technology
Other Semiconductors
1,722B +5.60%
Technology
Other Semiconductors
16.21B +60.03%
Technology
Display Screens
141B +91.30%
Financials
Investment Management
2.98B +3.65%
Technology
Other IT Services & Consulting
6.29B -23.94%
Technology
Other Communications & Networking
8.94B +11.02%
Technology
Other Semiconductors
189B +7.83%
Technology
Other Communications & Networking
2.2B -32.78%
Technology
Other Communications & Networking
2.61B +60.81%
Real Estate
Other Specialized REITs
68.77B +21.53%
Technology
Other Communications & Networking
60.15B +71.54%
Technology
Other Semiconductors
9.91B +40.49%
Technology
Other Integrated Telecommunications Services
222B -3.43%
Real Estate
Other Specialized REITs
101B +35.93%
Technology
Other Wireless Telecommunications Services
175B +5.45%
Technology
Other Wireless Telecommunications Services
190B -9.81%
Industrials
Other Electrical Components & Equipment
230B +10.66%
Technology
Other Communications & Networking
33.05B +8.90%
Real Estate
Other Specialized REITs
80.6B +1.32%
Technology
Other Integrated Telecommunications Services
208B +24.52%
Technology
Other Integrated Telecommunications Services
21.68B -0.52%
Technology
Other IT Services & Consulting
15.4B +25.35%
Technology
Other Semiconductors
527B +180.04%
Technology
Integrated Circuits
12.64B +43.12%
Technology
Wireless Telecom
19.58B -2.36%
Technology
Other Integrated Telecommunications Services
16.09B -31.62%
Real Estate
Other Specialized REITs
19.25B -4.22%
Technology
Other IT Services & Consulting
123M -9.96%
Real Estate
Other Specialized REITs
31.43B -14.98%
Technology
Electronic Component
3.33B +13.56%
Technology
Other Communications & Networking
41.81M -17.47%
Technology
Other Semiconductors
787M +34.64%
Technology
Other Communications & Networking
350M -29.69%
- - 2.24B -
Technology
Other Integrated Telecommunications Services
379M -35.76%
Technology
Telecommunications Network Infrastructure
31.04M -41.11%
Technology
Other Communications & Networking
43.74M -71.36%
Technology
Enterprise Software
16.63M -26.11%
- - 585 -
Technology
Other Semiconductors
2.87M -27.73%
Technology
Other Semiconductors
1.03B +629.42%

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