5G: The Hidden Economic Boost That’s Still Sidelined
Barclays Corporate Banking just dropped a hot‑new study saying that 5G could add a whopping £15.7 bn to the UK economy each year by 2025—if the rollout actually happens. But the catch? Most business leaders still have no clue what 5G actually means for them.
Three “What‑If” Scenarios
- Optimistic: 5G hits the streets fast, giggle‑worthy uptake by firms and consumers. £15.7 bn revenue jump in 2025.
- Current Pace: Things go as predicted. Rewards amount to roughly £13 bn.
- Pessimistic: Roll‑out stalls, adoption lags; gains shrink to around £8.3 bn.
Why the Optimistic Path Looks Plausible
Mobile giants are already rolling out 5G pilots in London, the Midlands, Edinburgh, and Belfast. The UK government’s Industrial Strategy even tosses in a £1 bn pledge for digital infrastructure. Plus, the bidding for 5G licences opened last year, so the gears are greasing.
Fast‑Track Growth by Region
Under the fastest roll‑out, the spread of revenue isn’t limited to tech buzz‑hubs.
- London: £4.1 bn
- South East: £2.5 bn
- North West: £1.4 bn
- East of England: £1.3 bn
- South West: £1.1 bn
- Scotland: £1.1 bn (just behind the South West)
Industry Leaders Who’ll Reap the Rewards
Five key sectors stand to skyrocket:
- Distribution: £3.6 bn
- Manufacturing: £2 bn
- Professional Services: £1.1 bn
- Business Services: £1 bn
- …and the others that prove 5G isn’t a one‑sector fad.
What’s Currently Happening
The latest Barclays poll shows that 58 % of businesses already thrive on 4G or lightning‑fast fibre. Fast communication powers: trading across sites (59 %), customer chats (49 %), and a tangled web of devices (48 %).
5G amplifies this with 20× faster data and the ability to jam a million devices per square kilometre. Think AI, robotics, IoT at scale and self‑driving machines on the move.
Knowledge Gap Warning
- Only 39 % of business decision‑makers grasp how their company can profit from 5G.
- Merely 15 % are actively planning to harness the tech.
- Top look‑alike sectors: TMT (23 %), logistics (18 %), hospitality & leisure (17 %).
Wednesday, Sean Duffy, Head of TMT at Barclays, mused, “The UK’s 5G roll‑out is a massive growth magnet. Governments and network folks are hustling hard, but businesses still have eyes‑closed on the long‑term payoff. Without clarity, we’re risking a missed opportunity.”
Investing for the Future
Even if some sectors aren’t planning immediate purchases, 40 % of business leaders foresee the revenue rise within five years. They’re betting that the tech is worth the extra spend.
- TMT investors: 35 % eyeing 5G.
- Logistics: 34 %.
- Business services: 28 %.
- Manufacturing: 24 %.
Bottom Line
What’s clear: 5G is a money‑making machine if the UK gets it on track. For the 39 % still in the dark, a serious “wake‑up call” from government, telecoms, and financial partners is overdue—so the whole country can feel the full economic buzz.
