Eoin Treacy's view

Structural layers are the foundations of new technologies so 5G which is being rolled out everywhere this year is a major event. In the just the same way that 4G delivered instant connectivity, social media, app-based banking, travel, gaming etc, 5G will build on top of that layer to deliver edge computing. That means data centre access to massive computing power at the touch of a finger.

This will provide individuals with the same tools as companies to parse data. Tailored services catered to the personal experience of an individual’s reality are the promise. Digital concierges, automated driving along with digitally enhanced urban infrastructure are what some of the potential services the next iteration of the cloud and quick connection speeds should be able to provide.

Transportation disruption is the most urgent of the potential future trends currently being priced into markets. Tesla’s acceleration is a reflection of that but the biggest picture is of a sector in an extreme state of flux where the trend is towards lower total cost of ownership. It’s very easy to be myopic when considering the ramifications of this trend. It’s not just a car company story. This is about components, software, sensors, servicing, fuelling, charging, credit facilities, insurance and regulation. All of these sectors are going to be affected.

I met up with a VP from LG’s in-car entertainment team last weekend. They have spent a great deal of time studying Google and they aim to differentiate by partnering with the manufacturers but the bigger picture is they already assume Google and Tesla are going to take the lion’s share of the automotive sector.

In a secular bull market, the roll out of new structural supports for innovation means the pace at which new services are delivered accelerated and particularly because they are reliant on software and supported by a subscription business model. As long monetary policy remains accommodative this trend can persist.