With 5G-supported Augmented Reality, the Future Has Arrived
Globally, the long-awaited advent of 5G is finally beginning to materialize. The 5G network currently has over half a billion subscribers, mainly within the North East Asian area. By 2026, that figure could potentially reach 3.4 billion. The main catalyst would be the continued roll out in North American and Western European markets, along with the growth of the North East Asian market.
The shift from 4G to 5G for cellular communications itself has the potential to make 5G stocks an intriguing investment. We may expect many customers and businesses to upgrade to the most up-to-date mobile devices. Additionally, some of the top 5G companies to invest in continue to pursue innovation as 5G technology becomes more widespread. Ultimately, the most promising opportunities for growth exist within the capabilities that 5G could unveil.
Augmented Reality meets 5G
Augmented reality (AR) combines digital virtual reality with the actual 3-D world. Currently, augmented reality is typically viewed on a mobile device like a smartphone or tablet. It works by displaying a digital image over the object the camera is aimed at, right in front of you. Still, there’s no actual rationale behind limiting augmented realities to screens. Smart glasses, along with additional types of wearables have already been developed. They free users’ hands, allowing them to immerse themselves within augmented photos. While technology develops beyond screens, sensory input like sound and texture will be implemented into everyday life more often, allowing for a more involved experience.
For years, augmented reality was considered a novelty as opposed to a disruptive technological breakthrough. This is partially due to the fact that networks lacked the maturity to host AR applications alone. They lacked the power to provide the low latency and increased bandwidth in order to provide a seamless AR experience. However, circumstances are beginning to change. In the United States, the 5G rollout has seen the Federal Communications Commission (FCC) release the mmWave spectrum and supports the development of Open RAN.
China also seeks to dramatically ramp up its coverage. The Ministry of Industry and Technology’s 2021-23 action plan is geared towards taking 5G user penetration to 40%, and large enterprise penetration to 35%.
Augmented Reality Has Already Arrived
One of the best use cases for augmented reality within the Western hemisphere is the 2016 success of the Pokemon Go mobile app. The app allowed players to capture Pokemon in their communities while looking at their surroundings on their mobile devices.
Actually, Pokemon Go wasn’t even the first game to use AR. Hado was released in 2014. Hado is played on a court, where three-player teams with head-mounted displays and armband sensors duel by launching energy balls at opponents while using shields to ward off attacks. That AR game is now played in 37 nations globally, and has only recently made its arrival to the United States. Viewers can watch live streams of players indulging in the game online, too.
In 2021, IKEA launched a newer edition of Place called IKEA Studio. It allows users to design entire living spades directly from their iPhone. They can make design changes that include changing the wall color to adding digital objects like lamps. Among the pitfalls is that Place and Studio both lack connectivity to the IKEA website. That means users need to leave the app prior to placing their orders, but integration is being constructed as we speak.
Heavy industries are in the process of constructing AR applications for themselves, too. Branding itself as the “Netflix” of extended reality applications, Holo-Light has already come out with a few products that are geared to help designers and engineers.
Engineers can conceptualize and play with 3D CAD data using their AR3S engineering space. This particular engineering space adds a more realistic feel to prototyping and planning thanks to its mixed reality environment. They can also use it to work together on designs projected into real-world settings while out of the office. Their Stylus AR works hand-in-hand with AR3S to let engineers sketch and make annotations that teammates can later access in situ.
Everywhere you look, companies are seeking to save time, along with other valuable resources by reducing travel. AR is here to fill in the gap. It does so by allowing for easy collaboration, even across massive geographical boundaries. For instance, Arvizio has created an extended reality software platform. That platform is capable of supporting collaborative working by allowing attendees to join sessions with smartphones, smart glasses or headsets.
The opportunities don’t end there, either. From academia to the supply chain, augmented reality has the potential to enhance the way people learn, live and communicate.
5G is Both the Present and the Future
As tantalizing as augmented reality is, it’s just one aspect of the transformative technologies that are now possible due to the introduction of 5G. 5G offers a massive uptick in bandwidth, in conjunction with the precision offered by short wave transmission on the mmWave spectrum. This makes automated technologies as a regular part of our daily lives a real possibility.
Leading investor Louis Navallier expressed 5G confidence when he said, “If I had to put every penny of my life savings into one sector right now, 5G would be it.” Even if you aren’t as gung-ho on 5G technology as Navallier, there are likely numerous appealing 5G network stocks worth investing in. A decision to invest in 5G stock could potentially serve as a prime investment opportunity.
When it comes to determining which stocks are the best 5G stocks to buy, there are numerous factors that should be taken into consideration. Those factors may include potential risk, budget, or other current investments you’ve been considering. That’s why people deciding whether or not to invest in 5G stock will benefit from exploring all of their options before buying 5G network stocks.
One way to gain exposure to 5G network stocks is via exchange traded funds or ETFs. ETFs cover a vast array of 5G network stocks that provide diverse and balanced exposure to this landscape-shifting technology.
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The possible applications of 5G technologies are only in the exploration stages, and the possibility of returns is uncertain and may not be realized in the near future.
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The Defiance Next Gen Connectivity ETF is the first ETF to emphasize securities whose products and services are predominantly tied to the development of 5G networking and communication technologies. The fund does this by tracking The BlueStar 5G Communications Index. The Fund attempts to invest all, or substantially all, of its assets in the component securities that make up the Index.
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