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
Testing & Measuring Equipment
55.37B +63.53%
Consumer Cyclical
Internet & Mail Order Department Stores
2,560B +3.12%
Technology
Other Semiconductors
18.14B +85.91%
Technology
Search Engines
4,332B +11.98%
Technology
Other Communications & Networking
468B +54.24%
Technology
Other Communications & Networking
61.53B +91.48%
Technology
Other Semiconductors
191B +48.95%
Technology
Other Semiconductors
4,854B +8.92%
Technology
Phones & Smart Phones
4,283B +6.86%
Technology
Other Communications & Networking
66.38B +138.48%
Technology
Other Semiconductors
738B +123.16%
Technology
Other Semiconductors
1,770B +9.88%
Technology
Other Communications & Networking
191B +18.03%
Technology
Other Semiconductors
221B +213.31%
Technology
Semiconductor Testing Equipment & Service
279B +91.35%
Technology
Other Semiconductors
72.1B +36.69%
Technology
Other IT Services & Consulting
22.05B +54.25%
Technology
Display Screens
145B +99.51%
Technology
Electronic Component
69.41B +99.08%
Industrials
Other Electrical Components & Equipment
967M +76.61%
Technology
Other IT Services & Consulting
6.05B -29.64%
Technology
Other Communications & Networking
6.56B -7.69%
Financials
Investment Management
2.86B +2.38%
Technology
Other Communications & Networking
76.08B +114.29%
Technology
Other Semiconductors
8.36B +15.08%
Technology
Other Computer Hardware
60.24B +92.17%
Real Estate
Other Specialized REITs
102B +34.73%
Technology
Other Communications & Networking
2.46B -26.70%
Technology
Other Integrated Telecommunications Services
232B +0.18%
Technology
Other Communications & Networking
39.17B +24.94%
Technology
Other Semiconductors
202B +15.81%
Technology
Other Integrated Telecommunications Services
196B +17.16%
Technology
Other Wireless Telecommunications Services
161B -7.29%
Real Estate
Other Specialized REITs
63.53B +15.63%
Technology
Wireless Telecom
20.92B +4.65%
Technology
Other Communications & Networking
2.43B +51.58%
Technology
Other Integrated Telecommunications Services
23.09B +5.86%
Industrials
Other Electrical Components & Equipment
230B +9.14%
Technology
Other Wireless Telecommunications Services
201B -7.84%
Technology
Other IT Services & Consulting
18.9B +50.58%
Technology
Integrated Circuits
10.57B +14.22%
Real Estate
Other Specialized REITs
89.68B +7.90%
Technology
Other Semiconductors
538B +222.11%
Technology
Other Integrated Telecommunications Services
16.95B -34.44%
Real Estate
Other Specialized REITs
21.99B +5.53%
Technology
Electronic Component
4.42B +54.76%
Real Estate
Other Specialized REITs
40.76B +3.80%
Technology
Other IT Services & Consulting
165M +15.50%
Technology
Other Communications & Networking
59.57M +2.53%
Technology
Other Semiconductors
1.14B +103.02%
Technology
Other Communications & Networking
461M -8.68%
- - 3.83B -
Technology
Other Integrated Telecommunications Services
572M -24.55%
Technology
Other Communications & Networking
128M -17.11%
Technology
Telecommunications Network Infrastructure
15.52M -60.19%
Technology
Other Semiconductors
3.38M -16.67%
Technology
Enterprise Software
19.62M -14.44%
- - 585 -
Technology
Other Semiconductors
2.33B +1,830.67%

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