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Global 5G IoT Market reached US$ 2.1 billion in 2022 and is expected to reach US$ 284.9 billion by 2030, growing with a CAGR of 69.4% during the forecast period 2023-2030.
Real-time data transfer and applications like augmented reality and virtual reality are now possible for the Internet of Things because of 5G networks which offer much higher data speeds than their predecessors. Ultra-low latency offered by 5G networks is essential for applications needing quick response times. In IoT, this is essential for mission-critical applications such as autonomous vehicles, remote surgery and industrial automation.
For instance, on 20 June 2023, Mavenir deployed its cloud-based remote packet gateway for Deutsche Telekom IoT GmbH IoT in North America, with the initial focus on delivering IoT connectivity to car manufacturers and this deployment aims to provide connectivity services internationally to multinational companies, supporting IoT deployment applications across the continent.
North America has a rollout of 5G networks across regions which provides the necessary infrastructure for IoT devices to connect at high speeds with low latency. Regulatory bodies in North America have been supportive of 5G development and initiatives are in place to facilitate the growth of IoT applications, particularly in smart cities and critical infrastructure. The development of smart cities is a significant driver of 5G IoT in North America, with applications ranging from smart traffic management to energy-efficient buildings and public safety.
As more people move to urban areas, the demand for smart city solutions to improve living standards, sustainability and efficiency grows, driving the adoption of 5G IoT. Smart city solutions powered by 5G IoT can contribute to environmental sustainability by optimizing resource usage, reducing energy consumption and improving waste management. Enterprises and industries are increasingly deploying private 5G networks to meet their specific IoT needs within smart city environments.
For instance, on 3 January 2023, Asus, through its AI and IoT division called Asus IoT, partnered with German media company Media Broadcast to deploy smart city solutions across various locations in Germany. The collaboration will focus on the deployment of private 5G campus networks to support IoT applications related to parking, traffic management, security and street lighting and this partnership aims to advance AIoT technology and enhance the development of smart city solutions in Germany.
The IoT market continues to grow as more industries adopt IoT solutions for improved efficiency, automation and monitoring. 5G networks provide the connectivity needed to support a vast number of IoT devices. The concept of Industry 4.0, characterized by smart factories and connected industrial processes, relies on 5G IoT for seamless communication between machines, sensors and control systems.
For instance, on 31 May 2023, Quectel Wireless Solutions, a global IoT solutions provider, is showcasing its latest innovations in IoT technology at MWC Las Vegas 2023. The company is committed to driving innovation and connectivity in the IoT landscape and aims to empower businesses. Quectel's pioneering 5G module lineup, including the newly introduced RedCap (NR-Light) module.
As these modules offer exceptional wireless performance, low-latency 5G communication and improvements in size, energy efficiency and cost-effectiveness. The FGH100M Wi-Fi HaLow module, designed for diverse IoT applications, operates on IEEE 802.11ah (Wi-Fi HaLow) in the Sub-1 GHz range.
Governments globally are adopting 5G IoT technologies as a part of their digital transformation initiatives and the technologies enable governments to modernize their infrastructure, improve public services and enhance overall efficiency. Governments are supporting the adoption of 5G IoT in industries such as manufacturing, logistics and energy and which can lead to increased industrial productivity and competitiveness.
For instance, on 31 July 2023, The UK government launched a £40 million fund for local governments to support the development and use of IoT solutions based on 5G technology. The fund's mission is to support local governments in their efforts to advance economic growth and improve public services across a range of sectors, including manufacturing, transportation, agriculture and healthcare. Local and regional governments can apply for funds by exhibiting ways 5G and IoT connection will help their communities. The funds will be used to establish "5G Innovation Regions."
5G networks, especially the high-frequency wave bands, have limited coverage compared to 4G. Deploying 5G infrastructure, including small cells, requires significant investment and time. Implementing 5G IoT can be costly, both in terms of network infrastructure and IoT devices. Some companies may find it prohibitive to upgrade existing networks or construct new ones and this restrains the market's expansion.
Many IoT devices are designed to operate with low power consumption for extended periods. 5G IoT devices, especially those connected to mmWave networks, may consume more power, which can affect battery life. Legacy IoT devices designed for 2G, 3G or 4G networks may not be compatible with 5G networks, necessitating costly upgrades or replacements. The vast amount of data generated by IoT devices on 5G networks raises privacy concerns. Collecting, storing and transmitting sensitive data require robust privacy measures.
The global 5G IoT market is segmented based on component, network, type, organization size, end-user and region.
In contrast with earlier generations, 5G networks provide much faster data speeds and lower latency, enabling real-time communication and faster data transfer making them perfect for IoT applications that need immediate replies and rapid data processing. Compared to 4G, 5G networks can accommodate significantly more connected devices per square kilometer. Because IoT devices have short battery lives, 5G technology is made to be more energy-efficient.
For instance, on 31 August 2023, Ericsson AB and Danish digital infrastructure provider TDC NET launched Denmark's first 5G Standalone (5G SA) network, marking a significant leap forward in connectivity for the country and this transition from non-standalone (NSA) 5G to 5G SA is enabled by Ericsson AB's dual-mode 5G Core solution. The 5G SA network will offer lower latency, higher efficiency, better spectrum utilization and more reliable connectivity, unlocking a wide range of possibilities for consumers, enterprises and industries.
The deployment and expansion of 5G networks across Asia-Pacific countries provide the necessary infrastructure for IoT devices to connect reliably and with low latency. Many governments in the region are actively promoting the development and adoption of 5G and IoT technologies through regulatory support, funding and policy incentives. The development of smart cities in region relies heavily on 5G IoT for applications like smart transportation, energy management and public safety.
For instance, on 30 August 2023, Nokia partnered with NTT to deploy private wireless networking solutions to enterprises across Thailand. The partnership aims to create an agile environment for industries such as manufacturing, mining, healthcare and education to explore industrial IoT, machine learning and AI use cases. The deployment will leverage Nokia's Digital Automation Cloud and MX Industrial Edge platform to provide features like digital twins, video analytics, real-time video and IoT streams, pre-integrated industrial devices and a catalog of applications.
The major global players in the market include: AT&T Inc., Verizon Communications Inc., T-Mobile USA, Inc., Vodafone Group Plc orange SA, Telefonica S.A., Deutsche Telekom IoT GmbH, Ericsson AB, Huawei Technologies Co., Ltd. and ZTE Corporation.
The pandemic accelerated the adoption of digital technologies, including 5G IoT, as businesses and organizations sought ways to adapt to remote work, enhance automation and improve operational efficiency. The healthcare sector witnessed increased adoption of remote monitoring and telehealth solutions enabled by 5G IoT and these technologies helped healthcare providers remotely monitor patients and deliver care while minimizing physical contact.
The disruption of global supply chains prompted companies to invest in IoT solutions for better supply chain visibility and resilience, which can be enhanced by 5G connectivity. The growth of e-commerce and demand for contactless services drove the adoption of IoT for inventory management order fulfillment and last-mile delivery, with 5G networks supporting higher data transfer speeds and low latency.
Lockdowns, restrictions and disruptions in the workforce led to delays in the deployment of 5G infrastructure and IoT devices in some regions. The economic challenges posed by the pandemic caused budget constraints for some organizations, impacting their ability to invest in IoT and 5G technologies. Disruptions in the supply chain affected the availability of components and devices required for IoT deployments, potentially slowing down projects.
AI can optimize 5G networks by dynamically adjusting parameters, allocating resources efficiently and predicting network congestion and this ensures a smooth and reliable IoT connection, even in densely populated areas. AI-powered analytics can monitor IoT devices and infrastructure in real time. It can predict equipment failures, schedule maintenance proactively and reduce downtime, which is crucial for mission-critical IoT applications.
AI-driven cybersecurity solutions can detect and respond to IoT-related threats, such as device vulnerabilities and data breaches. Machine learning algorithms can identify anomalous behavior and protect sensitive IoT data. AI leads to the analysis of vast amounts of IoT data generated by sensors and devices. It extracts valuable insights, trends and patterns that help organizations make data-driven decisions and improve operational efficiency.
For instance, on 29 September 2023, Syntiant Corp. and GlobalSense introduced cloud-free, always-on deep learning solutions designed to enhance vehicle safety and security in the automotive industry, these solutions use audio event detection (AED) and predictive maintenance and these solutions aim to provide highly accurate event detection without relying on cloud services, reducing power consumption and cost.
Ukraine is a hub for several electronics manufacturing companies and semiconductor components. The conflict has disrupted supply chains leading to potential shortages of critical components for 5G and IoT devices and this disruption can affect the production and availability of IoT sensors, modules and devices. In regions where there is uncertainty or instability due to the conflict, the deployment of 5G infrastructure and IoT networks may be delayed.
The conflict has raised concerns about the security of IoT devices and networks. With the potential for cyberattacks and espionage, securing 5G IoT deployments has become a more significant priority and this may lead to increased investments in cybersecurity for IoT. The geopolitical tensions resulting from the conflict can affect international cooperation and standards development in the 5G and IoT space. It may lead to countries aligning with different technology providers and standards bodies, potentially fragmenting the global IoT ecosystem.
The global 5G IoT market report would provide approximately 77 tables, 78 figures and 205 Pages.
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