The World After Smartphones: 5G’s Real Test Begins in 2026

By 2026, 5G monetisation faces its defining test across the globe. As standalone networks enable wearables, smart glasses, drones, and autonomous vehicles, operators must move beyond smartphone data plans. Network slicing and device-specific services will determine whether 5G becomes a generational asset or a trillion-dollar missed opportunity

2026 will decide something far bigger: whether 5G can finally be monetised beyond smartphones. As 5G Standalone (SA) networks mature, a new device ecosystem is emerging: untethered wearables, smart glasses, autonomous vehicles, drones, and always-connected machines. The infrastructure is ready. The devices are arriving. The question now is brutally simple: can operators turn this device explosion into revenue or will 5G become the most expensive missed opportunity in telecom history?

What makes 2026 different for 5G?

If 2025 was about scale, 2026 is about use cases, underlines the recent Ericsson Mobility Report. With 5G Standalone architecture in place, networks are no longer just faster pipes for smartphones. They are becoming programmable platforms capable of supporting radically different devices—each with unique performance, latency, and reliability needs.

How is 5G Standalone reshaping wearables?

5G SA enables fully untethered wearables—devices that no longer depend on smartphones. Over 20 operators already support RedCap-based 5G smartwatches that function independently. Upcoming devices—from cellular Apple Watches to AI-enabled smart rings—use ultra-low latency (under 1 millisecond) to deliver real-time health tracking, navigation, and cloud-based intelligence without draining batteries or requiring local processing.

Why are smart glasses seen as the next big frontier?

Smart glasses combine 5G’s high speed with cloud computing, allowing devices to stay lightweight while offloading processing to the network. The wearable AR market is projected to reach $88.4 billion by 2026, with applications across healthcare, logistics, manufacturing, and retail. With 5G coverage expected to reach 75% of the global population by 2026, smart glasses are no longer a niche experiment—they’re becoming commercially viable at scale.

How does 5G enable autonomous vehicles?

Autonomous vehicles depend on ultra-reliable, low-latency communication—a requirement only 5G SA can meet. Network slicing allows operators to create dedicated virtual networks with guaranteed performance, ensuring split-second decision-making even during congestion. From navigation and obstacle avoidance to vehicle-to-everything communication, milliseconds matter—and reliability is non-negotiable.

What role do drones play in the 5G ecosystem?

The drone connectivity market is projected to grow from $8.15 billion in 2022 to $47.38 billion by 2029. With network slicing, drones can operate on protected network layers for deliveries, surveillance, live broadcasting, and infrastructure inspection. Critically, demonstrations show drone command-and-control slices remain functional even when other parts of the network are overloaded—making them viable for defense and public safety applications.

Why is network slicing central to monetisation?

Network slicing lets operators allocate customised network performance to specific devices or applications. There are already 65 commercial slicing offerings globally, spanning consumer use cases (gaming, premium video) and enterprise needs (public safety, robotics, defence). For mission-critical applications—surgical robots, emergency drones, autonomous taxis—this reliability is what customers will pay for.

How much data will these devices consume?

Global mobile data traffic reached 188 exabytes per month in 2025, growing 20% year-on-year. 5G’s share is expected to rise from 43% in 2025 to 83% by 2031. Always-connected devices—wearables, vehicles, drones, and IoT sensors—will push data consumption exponentially, potentially creating over 3 billion 5G IoT connections by 2030.

What role does Fixed Wireless Access (FWA) play?

FWA has emerged as one of 5G’s biggest commercial successes. By end-2025, 27% of global mobile data traffic came from FWA, with projections rising to 36% by 2031. With 350 million FWA connections expected by 2031, operators are using speed-based plans to connect homes, smart devices, and IoT sensors where fiber remains uneconomical.

Can operators monetise beyond data buckets?

That is the central challenge. Nearly 99% of operators still rely on data-bucket pricing, but differentiation is shifting toward guaranteed performance. Case studies show in-app connectivity boosts during live events can outperform traditional upselling by 20 times. Each device category—wearables, vehicles, drones—demands tailored service tiers, opening new revenue streams.

What are the sustainability risks?

Energy consumption is rising fast. Global ICT electricity use reached 1,100 TWh in 2024, driven by data centres and AI workloads. As billions of devices connect continuously, energy demand will surge. Without faster adoption of renewables, AI-driven device ecosystems risk becoming an environmental bottleneck—even as they unlock economic value.

What separates 5G leaders from laggards in 2026?

Leaders treat 5G as a platform, not just faster mobile internet. They invest in standalone architecture, device-specific slicing, and differentiated services.

Laggards remain trapped in commoditised pricing. With two-thirds of global subscriptions expected to be 5G by 2031, the window to build device-led revenue models is rapidly closing, reckons Ericsson Mobility Report.

So, what will decide whether 5G succeeds?

The real return on trillions invested in 5G will not come from smartphones. It will come from connected devices—smartwatches, glasses, drones, robots, and vehicles. The networks are ready. The devices are coming. What remains uncertain is whether operators can build business models bold enough to match the technology.

(yMedia is the content partner for this story, which is based on Ericsson Mobility Report)