5G Rollout Unleashes a Stealth Industry Surge: Your Way In
- Nine out of 10 people have this smartphone affliction. Are you one of them?
- The $5 billion global wireless charging market is expected to grow to more than $33.5 billion by 2024.
- The best buy for this surge is currently beating the Dow, S&P 500 and Nasdaq.
Attention, all smartphone users: Do you suffer from LBA?
We’ve all been there. That feeling when you look down at your phone — your window to everything happening in the world — and see the red low battery alert.
This is called Low Battery Anxiety.
According to an LG survey of more than 2,000 smartphone users, “about 9 out of 10 people have low battery anxiety and face severe anxiety when witnessing their battery drop to 20% or lower.”
Well, thanks to a growing technology, there will soon be a cure for LBA:
- No more asking to borrow a friend’s phone charger.
- No more ordering food from a restaurant just to use their power outlet to charge your phone.
- No more using airplane mode to preserve your smartphone’s battery power.
This growing technology is the wireless charging market. And it’s going to be huge…
Get Ready for the Wireless Charging Boom!
According to BIS Research, the $5 billion global wireless charging market is expected to grow to over $33.5 billion by 2024, a whopping 42% compound annual growth rate.
In addition to LBA, there are several factors fueling the wireless charging market’s growth.
The most notable: increased shipments of smart handheld devices, especially smartphones, all thanks to the new 5G rollout and the America 2.0 revolution.
The latest forecasts from global market analysis firm Canalys show 1.9 billion 5G-enabled smartphones will ship by 2023.
Thanks to this ramp-up in smartphone shipments, demand for wireless charging will soon be on a tear.
But that’s not all.
Apple may potentially cut the cords on select iPhones starting in 2021.
According to a recent CNBC prediction article, the Lightning connector on the most expensive iPhones may be eliminated, making the phones completely wireless.
Wireless charging offers users an easy, cable-free option to charge their wireless devices.
No more having to plug and unplug your devices from power outlets when charging.
There are wireless charging pads that can charge multiple devices at once. There are even ones in cars that allow us to charge while on the go.
Smartphone makers such as Apple and Samsung that manufacture these phones will create a wireless charging standard in the industry. It will lead to massive growth and create plenty of opportunities for investors to ride the boom.
This standard is known as Qi (pronounced “chee”).
Qi “is the world’s de facto wireless charging standard,” per the Wireless Power Consortium (WPC).
WPC is a multinational technology consortium of 650-plus member companies committed to growing the wireless charging market.
WPC’s members include Apple, Aptiv, Belkin, Bosch, Canon, Dell, Google, Haier, Huawei, Lenovo, LG, Panasonic, Philips, Samsung, Sony, TDK and Verizon.
Wireless charging isn’t just for smartphones.
A variety of new applications, such as laptops, drones, robots and connected cars, are all embracing wireless charging technology.
Menno Treffers, WPC chairman, framed it this way:
As consumers have become more familiar with using Qi wireless charging, with more and more of the smartphone manufacturers adopting the standard, there is a clear desire for more access to the technology throughout the consumer’s daily journey.
Consumers are enjoying their wireless charging experience and want to get it in more places, from restaurants and coffee shops to hotels and public transportation, giving them convenient access to power to alleviate battery anxiety no matter where they are.
Outrun the S&P 500 With This Wireless Tech Play
One of the best overall ways to invest in this industry’s growth is through the Technology Select Sector SPDR Fund (NYSE: XLK).
This exchange-traded fund includes technology companies that focus on peripherals, electronic equipment, instruments and components, and wireless telecommunication services.
Over the past year, XLK’s total return performance is 49.2%, beating the Dow Jones Industrial Average, S&P 500 Index and Nasdaq Composite Index:
With this coming surge in wireless charging technology, soon we’ll be able to say goodbye to LBA and hello to Qi charging!
Until next time,
Director of Investment Research, Banyan Hill Publishing
I’ve been investing for more than 25 years. I started my career on Wall Street in 1991 as an assistant portfolio manager at Bankers Trust. I quickly advanced to prominent positions at Deutsche Bank and ING, managing multimillion-dollar accounts. In 2006, the owners of a $6 billion firm named Kinetics Asset Management recruited me to manage their hedge fund.