Fairfield Market Research 5G IoT Market Size, Share, Trends, Analysis, Forecasts, 2029

5G IoT Market

Global Industry Analysis (2018 - 2021) - Growth Trends and Market Forecast (2022 - 2029)

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Industry: Information & Communications Technology

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The next generation of telecommunications is being developed to accommodate the growing number of devices. The demand for 5G has already been raised among industry giants because it can provide solutions for IoT device connectivity.

5G will make a difference for a lot of organizations because it offers a step up from current technology used for IoT device connectivity. extra speed and capacity provided by 5G will be of great help for many cellular IoT applications such as video surveillance and smart grids. But although it promises better speed, 5G would only carry the network capacity required for a limited number of devices. Internet of Thing is an umbrella term for devices with sensors that exchange data over a wireless network without human intervention.

The demand for 5G network would start rolling out soon. There are at least 400 million cellular IoT connections that are due to be added over the next three years only in India. Considering that many cellular IoT connects are currently served over 3G and 4G networks, 5G will be key to supporting anticipated large-scale IoT services that are data intensive. In addition, by the end of 2021, the number of smartphones is expected to increase from 2 billion in 2015 to about 2.8 billion globally. In the same time frame, tablet shipments are projected to rise from 260 million units in 2015 to 350 million units in 2021. With this trend, 5G will become a major platform for next-generation consumer electronics devices.

IoT Devices are Expected to Generate around $2.7 Trillion by the End of 2021

IoT devices are expected to generate around $2.7 trillion by the end of 2021. It makes sense for organizations to make their strategies now on how they can best utilize the opportunities offered by this growing number of connected things to take advantage of increased business opportunities and revenue growth. The use cases associated with efficient 5G IoT networks are also expected to help new players in the market, including developers of smart cities and manufacturers of industrial equipment.

5G will offer better connectivity for more devices which means there are great demands for it. People are already aware of its role in supporting things like augmented reality. Besides this, 5G might also allow us to use sophisticated sensors that make use of sound waves or light instead of radio waves to gather data on our surroundings without internet connection. This would be helpful for smart homes making everyday life easier by allowing things like water heaters and lights to communicate wirelessly with your smartphone. As 5G makes it possible for more industries to adopt advanced technologies while continuing to meet user needs, it will become a big market for cellular IoT devices.

5G IoT to Challenge Current Network Infrastructure

With 5G promising increased speeds and better connectivity for cellular IoT devices, it is expected that it will challenge current network infrastructures that are not equipped to handle the sheer volume of IoT traffic. It has been observed in recent years that demand for IoT devices has already led to crowded networks in many countries around the world. And just like any new technology, there are still challenges to overcome before 5G can become a common feature on mobile phones and cellular-connected IoT devices. For example, its use of frequencies above 6 GHz will require extensive site surveys before installation due to possible issues with building penetration or high levels of radiofrequency interference from other equipment. In addition, while decreased signal latency may be helpful for certain applications, there is also a risk that this could create an overly responsive network slave to the demands of a small number of users.

Privacy of IoT Devices to Remain a Key Challenge

Initial trials of 5G technology have already begun, and it will be widely available within the next five years. The main IoT players are expected to play a significant role during this time as they look to capitalize on increased demand for IoT devices. But with high-profile security issues still dominating the media headlines, what types of changes can we expect in terms of smart device security? And how will users be able to stay safe while using their new 5G-enabled cellular IoT devices? Perhaps unsurprisingly, there has been no shortage of cyberattacks targeting connected homes over recent months, with manufacturers continuing to bear the brunt of consumer complaints about privacy breaches.

5G Standalone Architecture to be the Second Largest Revenue Generating Segment By 2027

5G NR (New Radio) Standalone technology was launched as a part of 3GPP release-15 standard and enables operators to utilize a pre-existing network infrastructure for deploying 5G technologies over LTE bands. In this method, core network elements such as eNodeB, MME & SGW remain unchanged from their existing role in 4G networks. The advantage for mobile operators who deploy 5G NR Standalone network would be faster time-to-market as well as low transition investments. However, it requires additional investments on cloud RAN & femtocell base stations which impairs its economic feasibility. In addition, the complex network architecture might increase network operation & management challenges. Though, this segment is expected to witness a high growth rate from 2019 onwards on account of large investments by telecom service providers in initial 5G NR deployments over existing LTE network infrastructure.

Asia Pacific to Dominate the Global 5G IoT Market

Asia Pacific will emerge as a hub for 5G Internet of Things (IoT) devices, accounting for almost half the global total by 2027. Asia Pacific will account for 45% of 5G IoT device shipments, compared to 29% in North America and 26% in Western Europe. Ranked on revenue generation, however, Western Europe is likely to lead on 40%, followed by Asia Pacific at 34%.  "Mobile operators are accelerating their plans for realizing revenues from roll-out of IoT networks. The new services which are expected to derive include smart metering, autonomous vehicles, and smart cities.

Despite several high-profile trials by leading mobile operators such as China Mobile, SK Telecom, and Korea Telecom, 5G IoT services are unlikely to take off before 2021. 5G networks will offer greater opportunities for wearables and ambient computing devices in the region. While the first generation of wearables has been focused on health and fitness activities, future generations may be used for a wider range of purposes such as assisted living. 

Complete Set of Standards will Ensure Better Opportunities for Developers Developing New Solutions in 5G Or IoT Space

Despite the 5G-based IoT being touted as the next big thing in the telecom sector, lack of standardization for Internet Protocol version 6 (IPv6) is likely to remain a key challenge. As per our findings, lack of complete standardization will be one of the main challenges for telcos looking to move their IoT solutions beyond just pilots. However, complete standardization is still better than having partial standardization because that would cause interoperability problems among various stakeholders. For prominent growth, it must have standards that are built by people who are involved with deployments.

Lack of complete standardization would be a challenge because complete standardization would mean that there is enough IPv4 address space to do so. For IoT applications to work as it should, the network must have complete standardization and universal interoperability. This could also increase opportunities for vendors to develop new technologies in 5G or IoT. This might lead to more companies investing in smart cities, which could enable them to save costs by implementing the use of IoT technology, electricity, and other utilities. There are a number of players trying out pilot projects on 5G-based IoT solutions where they plan to tap into opportunity areas such as agriculture, healthcare and retail. If telcos take up this issue seriously then interoperability problems could be reduced significantly thus enabling them to tap into the broader job market.

The lack of standardization for IPv6 is likely to be a big challenge, because it would lead to interoperability problems across stakeholders. If IoT devices don't interact appropriately with other technologies at present, then complete standardization could bring about a significant change in the future. To enable this communication between devices and networks, there needs to be communication standards that are established by groups who have been involved in deployments. However, despite the challenges that exist today from an IoT perspective, we feel that a complete set of standards will ensure better opportunities for developers developing new solutions in 5G or IoT space which might lead to more investments in smart cities enabling them to save costs on things such as electricity and other utilities.

Key Elements Included In The Study: Global 5G IoT Market

  • 5G IoT Market by Product/Technology/Grade, Application/End-user, and Region
  • Executive Summary (Opportunity Analysis and Key Trends)
  • Historical Market Size and Estimates, Value, 2018 - 2021
  • Market Value at Regional and Country Level, 2022 - 2029
  • Market Dynamics and Economic Overview
  • Market Size in Value, Growth Rates, and Forecast Figures, 2022 - 2029
  • Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
  • Regional and Product/Grade/Application/End-user Price Trends Analysis
  • Value Chain and Five Force’s Analysis
  • Regional/Sub-region/Country Market Size and Trend Analysis
  • Company Market Share Analysis and Key Player Profiles

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