The third edition of EY's global survey, the Reimagining Industry Futures Study, reveals that businesses around the world are turning to 5G technology to better manage their business processes. direct business pressures brought about by the COVID-19 pandemic. 49% of respondents prioritize process optimization as a key application of 5G technology. While 28% who prefer advanced 5G use cases with virtual or augmented reality.

A number of external factors influence businesses in this direction. 85% of respondents report that the impact of the global health crisis has sparked their interest in 5G. In the corresponding study last year this figure was at 52%. 80% estimate that disruptions in supply chains are boosting the adoption of 5G technologies. 71% cite the emphasis on environmental, social and governance (ESG) issues as a main motivating factor. However, in order to achieve these ambitious goals, there is still a long way to go:

• 37% are concerned that the current use cases offered by 5G and IoT providers do not meet their own business resilience and continuity needs
• 47% do not believe that sustainability targets are covered by today's use cases of technology

Europe leads 5G investments, but trust globally is diminishing

In terms of intentions for future spending, 5G is leading the other emerging technologies the study is investigating. 56% of the participating companies plan to invest within the next three years. The intention for current and future spending on 5G, currently, is higher in Europe. Unlike last year (76%, up five percentage points), when it lagged behind other geographies. However, the findings warn that investment should not be taken for granted, with intentions falling by eight percentage points year-on-year – to 70% – in the Asia-Pacific region and the Middle East.

These findings are indicative of a more defensive approach towards 5G, but also, more generally, of declining business confidence. Only 24% of surveyed executives say they are very confident that they can successfully implement 5G. This is down 1% from last year. This is exacerbated by the lack of understanding of 5G's relationship with other emerging technologies by businesses. This is even cited as the biggest internal challenge to perceptions around 5G.

Growing appeal of private networks as telecoms providers try to address the reliability gap

The study also finds that businesses are becoming increasingly receptive to 5G solutions delivered through revolutionary business models.

77% of respondents are interested in using private networks to support the implementation of 5G and IoT technologies, while 71% are interested in buying products that support this technology through an intermediary rather than directly from a telecommunications company.

At the same time, telecoms companies face a significant credibility gap in their image as experts in digital transformation, with only 19% of businesses perceiving them as such. In contrast, 30% trust network equipment suppliers as experts in digital transformation – up from 19% last year.

Collaboration through ecosystems continues to be key on the business development agenda

69% of respondents say they are already working with other organizations as part of a business ecosystem. However, the findings show that businesses are bolder in their approach to partnerships. 36% are looking for new synergies with companies in other industries (up from 24% last year). 73% prioritize suppliers who can offer ecosystem-wide collaboration as part of their new technology capabilities.