A fresh

5G use cases
perspective on

Photo by Rachael Rinchiuso

Kearney, Chicago
It’s time to bring some depth and The public expectations of what 5G can deliver are
enormous and, according to many, nothing short of a
realism to the debate around use revolution—with latencies as low as one millisecond,
cases—one that often stops at real-life download speeds of up to 1 to 2 Gbps, and up
high-level statements such as to 1 million connected devices per square kilometer—
although notably not all at the same time, which is
“5G is essential for autonomous often forgotten in the general discussion.1
driving and industry 4.0.” In fact,
today’s mobile networks from Publicly, 5G is reaching the “peak of inflated expecta-
tions”. However, our conversations with operators
2G to 4G (LTE-Advanced) can show that many are already in the “trough of disillu-
already support many of these sionment” and finding it hard to justify the massive
use cases. But 5G will add new investment that 5G requires with new revenue
opportunities. It’s time to bring some depth and
dimensions over time—with realism to the debate around use cases—one that
benefits to operators, industry, and often stops with high-level statements such as “5G is
society—if they all pull together. essential for autonomous driving and industry 4.0.”

Today, 10 years after 4G was first introduced in 2008, In fact, today’s mobile networks from 2G to 4G
the world is excited about the launch of 5G, the new (LTE-Advanced) can already support many of these
mobile broadband and communication standard. use cases, but 5G will add new dimensions over
Around the globe, telecom operators, equipment time—with benefits to operators, industry, and
vendors, industry representatives, and government society, if they all pull together.
stakeholders are actively discussing the 5G
opportunity, while new frequencies earmarked
for 5G are auctioned and pre-commercial 5G trials
are conducted.

While Verizon has already connected the first

commercial customer in select US cities using 5G for
fixed-wireless access, the first commercial launches
of 5G as an integral part of the mobile network are
expected for 2019–2020, with the US, South Korea,
and China leading the pack. Who will win the
global race to 5G?

As showcased by, for example, Samsung at the Mobile World Congress 2018
1

A fresh perspective on 5G use cases 1

Why we need 5G
There’s no question that operators will need to
acquire spectrum and roll out 5G across their
footprint. With the massive growth in mobile data
traffic, operators will eventually run out of capacity,
especially in urban areas. They will need to upgrade
their networks using the newly acquired spectrum
and technologies that come with 5G—such as a new
radio standard with higher spectral efficiency, or the
massive MIMO antennas that allow beam forming.
Eventually, the frequencies occupied by older
standards like 3G and 2G will be re-farmed toward 5G
to meet traffic demand, while 4G/LTE-A will remain for
the foreseeable future as the solid data layer with
nationwide coverage. But is there more than
enhanced mobile broadband for operators and the
industry to capitalize on?
Use cases must evolve beyond
pure “capacity” needs
Today, smartphones are unarguably our most
important accessory, and the current mobile network
standard, 4G, has allowed users to get the most out
of these devices. The first 5G smartphones are
expected in early 2019. But there are only so many
pixels and colors that these small screens can display.
Notably, in a recent study, our colleagues found that
10 percent of B2C customers are currently willing to
pay roughly 10 euros a month for the speeds that
5G offers.
However, more and more use cases such as HD video
consumption with foldable displays, augmented
reality, or 3D video calls will develop in the mid-term
and content will be increasingly located in the cloud.
This will drive the need for speed and volume. But if
we apply lessons from 4G, incremental monetization
was short-lived at best. Many industry experts
understand this dilemma and argue that new use
cases will be the driving force behind 5G.
The most widely discussed use cases today center
on autonomous driving (becoming significantly
enabled by real-time information), manufacturing
(shifting into the industry 4.0 age), immersive media
(enabled by augmented and mixed reality), and
fixed-wireless access (expanding broadband to more
homes). However, these are just umbrella topics
where the imagination can run wild; it is essential to
go deeper to really understand where 5G will make a
tangible difference.
It will be crucial for operators to understand the use
cases if they are to direct their investments in 5G
effectively. First, they will need to make the right
trade-offs in rolling out the network in terms of
coverage, capacity, and capabilities given the nature
of capex limitations. Second, they will have to build
up the required competencies and go beyond being
a mere connectivity provider, to be a better partner to
their customers and turn the most promising use
cases into reality.
A fresh perspective on 5G use cases 2
Which use cases really need 5G, The first analysis shows that the use cases with the
highest requirements for 5G are mostly found in B2C
and when? media, especially in augmented/mixed reality and in
Building on our experience of 5G-related projects mobility, where highly automated vehicles will
from the past few years and our deep understanding influence demand in the foreseeable future (see
of the different application areas, we have identified figure). Notably, most of the examples are still five to
and analyzed more than 60 different use cases 10 years out, while some might take even more than
covering mobility, manufacturing, media/entertain- 10 years to emerge.
ment, health, farming, and smart city applications.
We assessed these against the features that 5G
technology provides (ultra-high data throughput,
ultra-low latency, massive connections, high relia-
bility, high mobility) and for overall maturity, given
that many use cases depend on much more than
connectivity. We also took timing into consideration:
certain aspects of 5G will only become applicable at
a later stage due to standardization and the commer-
cial availability of the technology. One example is 5G
network slicing, which is required to enable scenarios
with ultra-low latency or massive connectivity in
addition to the enhanced mobile broadband, which
will become available earlier. According to the GSMA,
5G network slicing will not be available until 2022 at
the earliest.

Figure
5G use case

Business AR/MR
Collaborative Remote control Remote medical
(operatons and
gaming mobile equipment treatment/surgery
maintenance)
Cooperative
5G strictly

media
required1

Airborne
production
taxi 
Consumer 3D calls/
Smart farming
holograms
drones (AI enabled)
Automotive
Fixed Massive media on the go Consumer
wireless (ultra-high definition, new displays) AR/MR
Health
access
Smart Highly automated driving (C-V2X)
(FWA)
Manufacturing farming equipment
5G a strong

On-site live
Farming
enabler1

event experience
Media
Smart cities Consumer IoT

Massive media
technologies

car infotainment
Relative opportunity
Alternative

available

(volume, communication/
equipment spend)
Software updates and feature activation

Use cases to Use cases in prototype Still major R&D

become mainstream or POC stages to be done

1
5G or alternative wireless technology with features similar to 5G
Source: Kearney analysis

A fresh perspective on 5G use cases 3

However, the number of candidates in the immediate Automotive set to get a big boost from 5G
future, where 5G is a strict requirement and the use
The automotive industry, and especially autonomous
cases are mature, is sparse. Aside from fixed-wireless
driving, is the front-runner in global press reports
access, which will be deployable as soon as the right
about the most likely areas that will be boosted by
frequencies are available, on-site solutions for
5G. What we are witnessing today in vehicles is
industrial campuses, public spaces (for example,
partially automated driving (level 2), where the system
stadiums for live event experiences), and mobile
takes over multiple functions for the driver and we are
mixed-reality gaming are the most prominent, adding
on the verge of seeing conditional automation (level
to the many use cases that can already be realized
3) becoming available. Highly automated driving
with 4G today.
(level 4), where the driver no longer needs to
supervise the system permanently, is targeted by the
Of course, such analyses are always to be taken with
industry from 2025 onwards and will eventually
a pinch of salt—they look into the future, which is by
require more sensor data than an individual car can
nature uncertain, and any prediction is likely to be
collect. Some forecasts estimate that by 2030 ~5
proven wrong. In addition, there are differences by
percent of cars will be highly automated and by 2035
geographies and markets driven by many factors and
penetration could reach up to ~15 percent in some
each use case can be further dissected into sub-use
countries. However, the biggest uncertainty in the
cases which can be positioned differently on the grid.
timeline is not technology developments, but the
Despite all its shortcomings, we believe that such an
ability of the legal environment to catch up with what
analysis can serve to fuel the discussion and to take it
the technology can do.
one level deeper than is often done. Let’s shine a
spotlight on a few specific areas:
For higher levels of automated driving, communica-
tion between vehicles (V2V) and between a vehicle
and the infrastructure (V2I) is needed to handle tasks
like collaborative sensing, cooperative driving (for
example, turning left), platooning (the linking of two
or more vehicles in convoy), collisions, and hazard or
queue warning. This communication can take place
either directly or via a carrier infrastructure. While
dedicated short-range communication (DSRC) has
long been earmarked for direct communication,
carrier-based V2X (vehicle-to-everything) seems to
have gained increasing industry support due to its
expected technical superiority in range, latency, and
cost. C-V2X (cellular vehicle-to-everything) can run
direct communication using the dedicated 5.9 GHz
spectrum or the commercially available mobile
network—either LTE or 5G—where available and
useful. In 2019, when car manufacturers begin to
introduce C-V2X into their vehicles, many use cases
will already be possible using the existing infrastruc-
ture, and critical penetration will be reached in the
next few years. 5G will eventually enhance use cases
around cooperative driving, traffic steering, and
high-density platooning because of its low latency
and higher throughput. These use cases are likely to
start in well-defined areas like highways or inner cities.

A fresh perspective on 5G use cases 4

Meanwhile, once passengers have more time at their Another contender to support these applications is
disposal, in-vehicle infotainment will be the biggest industrial WLAN based on the new IEEE 802.11ax
driver of data demand. Vehicle monitoring, and standard. This technology will become available in
software updates, will also become increasingly late 2019 and shares many of the features of 5G,
important as a result. These will require coverage including bandwidth, latency, and improved relia-
and capacity—the former can already be provided by bility. It operates on unlicensed spectrum of 2.4GHz,
4G (to be enhanced with 5G given the right frequen- 5GHz, and potentially 6 GHz and can, therefore, be
cies being available), but for the latter 5G will add deployed by industrial players independently on their
over time. own campus. If 802.11ax enters the consumer
space—whether via WLAN home routers or in the
5G is the key to future American stadium and train stations it was originally designed
for—it will also drive down cost.
competitiveness
Combining public and on-campus networks,
Industry 4.0 is a catalyst for change achieving cost advantages for 5G equipment and
With Industry 4.0, the factory will become increas- sensors through scale, and supporting better high
ingly automated and flexible, requiring substantial mobility and reliability requirements might still give
information flows on the factory floor. Adding 5G the 5G solution an edge—but the jury is out.
coverage to industrial sites and campuses can enable
this transformation, given the technology’s
throughput, latency, reliability, and mobility support.
The most relevant 5G use cases here are the potential
to remotely monitor and control both mobile and
stationary equipment, the tracking of products,
machine-to-machine closed-loop communications,
and the use of augmented/mixed reality to support
industrial design processes, and manufacturing,
maintenance, and repair activities. Of course, 5G’s
ultra-low latency could also trigger the possibility of
moving the central control of production and
assembly processes into the cloud. However, unless a
very flexible factory layout is needed, any machinery
requiring power connections could also be easily
connected by cable. A cable adds much higher
reliability in a rough factory environment where any
breakdown of production can easily cost millions. As
of today, even though wireless technologies are
already available, these constitute only 2–3 percent of
the installed base of industrial networks and
accounted for 6 percent of new industrial network
nodes installed last year. Of all the possible Industry
4.0 use cases where wireless will play a role, the use
of augmented/mixed reality for factory workers, and
sensors on manufactured products and mobile
equipment such as automatically guided vehicles,
appear to be the most promising and most
dependent on 5G.

A fresh perspective on 5G use cases 5

Augmented and Virtual Reality Poised To Be a Key
Driver for 5G
Devices for augmented or mixed reality are likely to
be a key driver for 5G, in a similar role that the iPhone
played in the success of 4G from 2007. Today there
are no “convenient” and “affordable” devices
available that would allow mass market penetration;
however, the large players such as Apple, Microsoft,
Google, Facebook, and Samsung have all made
investments in this space and many specialized
companies are working on solutions.
While virtual reality (VR) is primarily used indoors for
entertainment, business, and commercial purposes,
augmented reality (AR), which provides additional
line-of-sight information, and mixed reality (MR),
which blends this additional information with what
the person sees, will benefit from the mobility of 5G
and the processing power of mobile edge computing,
which puts processing power close to the base
station. To keep wearable devices light and conserve
battery life, the computing power must shift from the
glasses into the smartphone as a temporary hub, then
onto the edge of the network once the 5G radio
interface can sustain low latency. While today AR and
MR devices have real use cases in contained B2B
application areas such as engineering, public safety,
design, retail, logistics, repair and maintenance, field
services, and entertainment, consumer devices with
broader appeal are likely to appear only after the
2020s. For example, Apple is rumored to be
launching a tethered smart glass product in 2020 and
has already laid the groundwork with the AR
Developer Kit it revealed in 2017. It remains to be seen
whether these devices will hit the mainstream
immediately as the next big thing after smartphones,
or whether it will be a slower burn like smart watches,
but the evolution required of the device technology
along with the underlying network and computing
infrastructure will be substantial. Public acceptance
of the devices will be a big unknown, given the
resistance seen with Google Glass, but we expect
these reservations will be overcome eventually. One
of the successors of Pokémon Go is likely to provide
the tipping point.
A fresh perspective on 5G use cases 6
Fixed-wireless access could close the urban-rural
digital gap
Fixed-wireless access (FWA) is a potential solution to
close the urban-rural digital gap, bringing high
bandwidths and a choice of network operators to all
customers. In certain parts of the world, such as the
US, where the respective frequencies are available to
the operators, fixed wireless access is one of the first
5G use cases to be deployed, enabling mobile
operators to take on fixed and cable operators, and
fixed-line players to supplement their network
coverage in a cost-efficient way. The business case
for operators depends on many factors. Because of
the high frequencies used, the solutions require
line-of-sight and the short wavelengths are less able
to penetrate solid objects like walls, windows, and
even trees. This presents a need for mounted
equipment at the customer’s site and more base
stations to be placed closer to the customer, which
need to be acquired and connected to fiber.
Industry and operators have to
work together
Given the massive investment required in 5G and the
multiple options for where to invest first, mobile
operators must engage deeply with their customer
base—in particular, on the industrial side—and jointly
gauge which use cases should be enabled by when.
This involves breaking down the big themes into
concrete use cases, assessing the requirement on the
mobile infrastructure, evaluating the maturity of other
innovations that are required, and defining a joint road
map. It is only by doing this that they can be sure their
investments will pay off—either through connectivity
fees or, if they manage to capture the opportunity,
through a bigger piece of the pie. The same is true for
industrial players as they must recognize that many
capacities are limited (for example, frequencies,
construction, investment funds), and they must place
their bets on what to do first.

Whether this will pay off—given wireless local loop Together, mobile operators and industry can make 5G
technology’s limited success to date—remains to be a success and explore the possibility it offers beyond
seen and will depend largely on local market condi- mere enhanced broadband connectivity.
tions, such as competition, building structures
(density, height, material), and access to tower
permits. For customers struggling to get a good
connection in rural or suburban areas it could be a
solution, and for mobile-only operators, it could be a
way to compete with fixed-line players who don’t
have their act together in a certain area and if the
market is thirsty for competition.

As our analysis shows, different lines of enquiry are

required to assess the potential of 5G use cases,
taking 5G technical capabilities, the availability of
alternative technologies, and the maturity of the
solution itself into account. Statements that claim
certain applications will require 5G are overly
simplistic. And even in this article, we have only
scratched the surface: further investigation is needed
to identify those use cases with true potential and
plot them onto a realistic timeline.

A fresh perspective on 5G use cases 7

Authors

Axel Freyberg Federico Jüttner

Partner, Berlin Principal, Zurich
axel.freyberg@kearney.com federico.juettner@kearney.com

Martin Born
Consultant, Munich
martin.born@kearney.com

A fresh perspective on 5G use cases 8

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