ShortCut: Consumer Trends 2021 | Page 2

Desire for 5G

With the expansion of 5G networks as well as the launch of 5G-enabled smartphone and service offerings , the technology can finally be experienced by consumers . Higher data rates will enable consumers to make even greater use of video streaming and online games , among others .

As consequence of the pandemic , many employees must work from home with numerous devices connected to broadband . As an alternative to a fiber-optic connection , 5G fixed wireless access can become a serious alternative to cope with increasing data demand . The improved performance will furthermore promote the use of smart home and IoT products .

Moreover , 5G will be a catalyzor for new use cases , many of those based on artificial intelligence and augmented reality . Telcos should not only focus on rapidly rolling out their 5G networks , but also monitor market and consumer requirements , to offer their own 5G services . So far , there are no convincing 5G use cases for B2C .

Increased usage of smart home devices

Developments in communications technology are also impacting consumers ’ demand on the internet of things . Devices are being connected to the internet and creating added value for consumers , not only by communicating with each other , but also acting autonomously with the help of AI ( e . g ., Amazon Alexa ). Since consumers spend more time at home , demand for smart home devices has also increased as a result of the pandemic . Overall , the smart home market is forecast to grow by 17.6 % per year until 2025 . Telcos should leverage these trends by firmly establishing themselves in the smart home space as part of the IoT value chain , e . g ., through joint ventures with technology providers .

FOR FIXED DATA USAGE in Germany [ in bn GB ]

27.5 32.5

+ 29 % 44.0 56.0

FOR MOBILE USAGE in Germany [ in bn GB ]

+ 56 %

Rise of data consumption

72.0

0.9 1.4 2.3 3.4 5.2

96.5

2016 2017 2018 2019 2020 2021

8.4

2016 2017 2018 2019 2020 2021

Source : Dialog Consult / VATM , goetzpartners

The trends outlined and other factors are accelerating data traffic and contributing to a further rise in data consumption . While fixed data usage increased by 29 % in 2020 , mobile traffic grew by 53 %. High data traffic peaks of up to 30 % were observed primarily during lockdown periods , as consumers needed to continue their professional and personal activities from home . In addition , demand for OTT services ( e . g ., video streaming ) drives rising data usage , as consumers use this to stay in touch with relatives or to watch movies and series during lockdown . Overall , data usage is expected to increase steadily .

To avoid network instabilities due to rising data consumption , telcos must adjust their capacities to enable disruption-free data usage for their consumers .

While telecommunication companies have so far only moderately advanced digital transformation , the pandemic has led to a rapid increase in demand for connectivity and digital services .

Consequently , telcos should monitor consumer needs for new technologies and adapt them at an early stage . This enables them to differentiate their services from an interchangeable commodity and thus compete against pure connectivity service providers .

THE AUTHORS

2019 Source : Statista

2020 2021 2022 2023 2024 2025

JENS GIMBORN Manager , goetzpartners

© goetzpartners , 2021