5G IoT Market Analysis | 2022-2028

Market Insights

The Global 5G IoT Market is expected to grow from USD 3.25 billion in 2021 to USD 116.98 billion by 2028 at a CAGR of 66.8% during the forecast period.

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How will 5G enhance IoT?

5G is the fifth and latest generation of mobile networks. It enables multi-gigabit speed, low latency, and greater device connectivity than 4G LTE networks. 5G is engineered to connect virtually everyone and everything including machines, objects, and devices. 5G offers latency of below 50 milliseconds or less, which is useful for applications that require real-time feedback. The technology enables a sharp increase in the amount of data transmission because of more available bandwidth and modern antenna technology.

5G networks and services will open new opportunities in the coming years due to the increasing dependency of people on mobile and IoT-enabled services. The technology is expected to impact numerous applications, both home and business cases as it is available to the users.

Market Dynamics

IoT devices are connected with the help of a broad range of wireless technologies, and these technologies offer numerous advantages and use cases.

The growing adoption of 5G, LPWAN, wireless sensor networks, Long Range Wide Area Network (LoRaWAN), and Internet Protocol version 6 (IPv6) is expected to boost the demand for IoT devices, which would increase the need for wireless technologies in the upcoming 2-3 years.

With the growing data exchange rate among large numbers of connected things, the requirement to deliver higher capacity, increased data rate, and faster connectivity has also increased.

Thus, 5G wireless networks are seen as a critical driver for IoT as they support low-latency use cases at the network edge, thereby allowing Communication Service Providers (CSPs) and businesses to connect smartphones and IoT devices, data centers, and cloud platforms.

The evolution of Long-Term Evolution (LTE) to faster 5G networks is expected to gain momentum to support these requirements of evolving IoT applications known as massive machine-type communication and mission-critical applications.

Restraint: Lack of IoT protocol standardization

As a wide range of devices needs to be connected, the need to synchronize with these devices has grown in the 5G IoT market. Different devices run over different platforms, use different hardware, and are manufactured by different vendors. This incompatibility among hardware, sensors, and even remote servers’ interfaces causes the interoperability issue in the IoT space.

IoT involves each and every aspect of human life, and the challenge lies in fusing these standards so that M2M communication becomes flexible and user-friendly. Several associations and businesses are working in the direction of resolving this problem.

The existing interoperability standards, such as Ethernet for Control Automation Technology (EtherCAT), MTConnect, MCS-DCS Interface Standardization (MDIS), Distributed Control System (DCS), Master Control System (MCS), and Interface Standardization, offer data interchange across heterogeneous domains and industry verticals.

Companies are presently using custom Application Programming Interfaces (APIs) for every IoT project. A common protocol and communication standard is needed to allow communication among IoT-enabled devices to exchange data or form a smart network.

Segments Analysis

Among network types, the 5G Standalone architecture segment to witness a higher CAGR over the forecast period.

For 5G networks, 5G NR SA is a completely new radio network, which mainly comprises 5G core networks, and 5G Radio Access Network (RAN). 5G NR SA solutions are considered to be better than 5G NR NSA solutions. The 5G NR SA solutions have new capabilities, such as ultra-low latency, network slicing, Control and User Plane Separation (CUPS), virtualization, and multi-Gbps support.

The 5G NR SA segment is presently at a nascent stage, however, it is expected to grow significantly over the forecast period. In June 2018, 3GPP approved 5G NR SA specifications, which have supported the faster delivery of 5G network services over a standalone architecture. The standalone architecture offers numerous benefits, such as greater flexibility, high performance, and less complexity.

Among end users, the manufacturing segment is expected to have the largest share of the market over the forecast period.

Based on end users, the manufacturing segment of the 5G IoT market is expected to hold the largest market size over the forecast period. With Industry 4.0 underway, the introduction of 5G has boosted the advancement of Intelligent factories of the future with its wireless flexibility, high capacity, and low-latency performance features.

Manufacturers are incorporating digitalization to curb costs and improve ROI, and 5G IoT ensures new process efficiencies and cutting-edge technological developments, thereby growing profitability and shop floor productivity. Industry 4.0 is expected to be driven by cyber-physical systems and IoT, which would need the support of 5G networks. This would allow connected, efficient, and flexible factories of the future.

Inside factories, 5G would enable manufacturing procedures, such as AGVs in factories (autonomous transportation), more efficient manufacturing lines (with machine vision and HD videos for managing processes), and machine functioning with a latency of less than 5ms using URLLC. Manufacturing companies are increasingly adopting IoT solutions to connect different functions of the value chain for combining their business operations.

The 5G smart factory of the future aims to build a fully connected experience, therefore helping manufacturing companies realize key advantages such as operational efficiencies, performance enhancements, and increased safety.

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Asia Pacific to dominate the market over the forecast period

In the 5G IoT market, Asia Pacific held the largest market share in 2021. The region is transforming drastically in terms of the adoption of new technologies across different sectors. The infrastructural developments in the Asia Pacific region, especially in China, Japan, South Korea, Singapore, Australia, and India, and the growing deployment of 5G networks indicate huge opportunities for the deployment of 5G IoT services.

Because of a huge mobile subscriber base, businesses in this region are becoming more competitive and aiming to offer better customer service. The region is expected to lead 5G, edge computing, and blockchain markets, because of its size, and the technological lead taken by countries, such as China, Japan, Singapore, South Korea, and Australia.

Key Players

The major players operating in the global 5G IoT market are:

• China Mobile (China)
• AT&T (US)
• Vodafone (UK)
• Verizon (US)
• T-Mobile (US)
• Orange S.A (France)
• Telefonica (Spain)
• SK Telecom (South Korea)
• Deutsche Telekom (Germany)
• Ericsson (Sweden)
• Huawei (China)
• Nokia (Finland)
• Samsung (South Korea)
• Cisco (US)
• Sierra Wireless (Canada)
• NEC (Japan)
• Thales (France)
• Telit (UK)
• Quectel (China)
• SIMCom (China)
• GosuncnWelink (China)
• Neoway (China)
• u-blox (Switzerland)
• Fibocom (China)
• Sequans (France)

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Recent Developments

• In November 2022, Nokia and TPG Telecom demonstrated a record new 2 Gbps 5G uplink speed in Australia. The companies stated that fast uplink speed is crucial for numerous industrial and IoT applications running over 5G.
• In October 2022, AT&T announced the launching of dozens of 5G edge zones across the US to deliver next-generation network services and enable startups to innovate on the new and faster cellular network.
• In October 2022, Vodafone designed a Software-Defined Wide Area Network (SD-WAN) for McDonald’s 640 Italian restaurants using two types of network technology: 4G/5G and fiber.
• In September 2022, AT&T announced its collaboration with Ford in bringing 5G connectivity to the 2023 Ford Super Duty. Ford Super Duty owners will be able to get a free trial of the AT&T Connected Car data plan and enjoy various entertainment experiences.