In keeping with Generac CEO, the introduction of 5G is rising the demand for backup energy technology
Aaron Jagdfeld, CEO of Generac, told CNBC on Monday that the emergency generator company expects to benefit from the adoption of 5G wireless technology.
“We believe this is an area that will grow tremendously over the next five years,” he said in an interview with Jim Cramer about Mad Money.
For Generac, the opportunity lies particularly in the telecommunications sector. The company is already a leading provider of backup generation for large wireless carriers, said Jagdfeld.
The introduction of 5G technology or the fifth generation cellular network promises faster network speeds and connecting more activities to the Internet of Things. The way people learn, drive and take care of their health is expected to be influenced by new technologies.
Because the networks are becoming even more critical for society, the demand for electricity security will only increase, according to Jagdfeld.
“None of this works without a continuous source of power, and telecommunications companies really need to improve their game on reliability, and that’s where we come in,” he said.
Generac’s shares fell more than 2% on Monday, trading at $ 293.95. The stock is up nearly 30% since the start of the year.