5G Industrial IoT Market Overview
5G Industrial IoT Market Size was valued at USD 427.1 billion in 2022. The 5G industrial IoT market industry is projected to grow from USD 451.32 Billion in 2023 to USD 701.61 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.67% during the forecast period (2024 - 2032). Increased productivity and easier diagnosis of problems in manufacturing and the network's security established from the ground up are the key market drivers enhancing the market growth.
Figure 1: 5G Industrial IoT Market Size, 2023-2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
5G industrial IoT Market Trends
Growing Ultra-high dependability is driving the 5G Industrial IoT market growth
Market CAGR for 5G industrial IoT is being driven by the rising high dependability and low latency. The term "latency" refers to the delay experienced by both parties during data transmission. Transferring massive amounts of data is far more efficient with less lag time. 5G has a latency that is 50,000 times better than 4G. Manufacturing IoT applications will drive demand for 5G services due to the IoT ecosystem's high bandwidth and low latency requirements. Industrial monitoring of plants and machinery necessitates robust, reliable, secure, and quick links for capturing and processing data. Connectivity is crucial in the age of Industry 4.0.
Additionally, substantial resources are needed to leap from 4G to 5G networks. The expensive cost of developing 5G is one of the main limitations of this technology. This cost decrease is crucial for ultra-dense and efficient tiny-cell deployments. For 5G to work, mobile network operators must build 8-10 times as many base stations as they did for 4G. As a result, one of the obstacles to the growth of the 5G industrial IoT is the high cost of establishing the necessary infrastructure.
As consumer demand for high-quality goods rises, the industrial IoT industry has become increasingly sizable and dynamic. Many groups are working with major industrial conglomerates to develop private 5G network technology to back up the industrial IoT. Private 5G networks provide all the requirements for industrial IoT, including dependability, low latency, security, and a full complement of capabilities. There is a significant possibility for the 5G industrial IoT industry's expansion in developing private network technologies for 5G.
For instance, BT and Telefonaktiebolaget, the collaboration between LM and Ericsson, will provide a cloud-native, dual-mode 5G core. For both its standalone and non-standalone 4G and 5G services, Telefonaktiebolaget LM Ericsson will be deploying cloud-native, Mobile Packet core, container-based solutions. BT's Cloud will host these 5G services. By working together, BT will better serve its customers' growing mobile broadband needs while investigating new use cases with its enterprise and industrial partners. Thus, driving Factor the 5G industrial IoT market revenue.
5G Industrial IoT Market Segment Insights
5G Industrial IoT Component Insights
The 5G industrial IoT market segmentation, based on component includes hardware, solution and service [Professional and Managed]. The Hardware industry is the market's most important subsector. The 5G IoT module has emerged as a pivotal component in the growing Hardware subsegment of the 5G Industrial IoT Market. Providers of both components and modules are investing in research and development, with the latter also considering the chipsets for specific applications during assembly. Providers are looking for a number of developments in addition to generating 5G modules, such as adjustments that decrease gadget size and strategies for the reconciliation with other modules.
5G Industrial IoT Organization Size Insights
The 5G industrial IoT market segmentation, based on organization size, includes Large Enterprise and Small & Medium Enterprise. Large enterprise has become more important for multinational corporations to deploy 5G industrial IoT solutions and services to manage their vast array of resources worldwide effectively. Major corporations are more likely to use 5G industrial IoT solutions and services than SMEs.
Figure 2: 5G Industrial IoT Market, by organization size, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
5G Industrial IoT Application Insights
The 5G industrial IoT market segmentation, based on application, includes Predictive Maintenance, Business Process Optimization, Asset Tracking & Management, Logistics & Supply Chain Management, Real-time Workforce Tracking & Management, Automation Control & Management and Emergency, and Incident Management & Business Communication. Production projects can streamline their cycles with the help of real-time workforce tracking and management software by better identifying, communicating with, and approving employees and managing and interacting with their workforce in real-time. Introducing 5G technology might drastically alter how businesses manage their employees.
5G Industrial IoT Regional Insights
By Region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American industrial IoT market will dominate this market, owing to the need for highly connected internet infrastructure, which has pushed the adoption of 5G IoT across several industries. In addition, the growing number of 5G facilities will boost the market growth in this Region.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: INDUSTRIAL IoT MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe’s 5G industrial IoT market accounts for the second-largest market share better networking in the manufacturing sector. Further, the German 5G industrial IoT market held the largest market share, and the UK 5G industrial IoT market was the fastest growing market in the European region.
The Asia-Pacific 5G industrial IoT Market is expected to grow at the fastest CAGR from 2023 to 2032. It is because Industry 4.0 has been adopted to a greater extent in regions with fast economic growth. As a result, numerous manufacturing sectors have started using 5G IoT to meet the rising demand for highly connected internet infrastructure and rising per capita disposable income. Moreover, China’s 5G industrial IoT market held the largest market share, and the Indian 5G industrial IoT market was the fastest growing market in the Asia-Pacific region.
For instance, Asia- Pacific is actively pursuing Wi-Fi 6. Connected automobiles using Wi-Fi 6 and 5G on the IoT will see greater uptake, and cellular IoT products will be adopted in the utilities and transportation sectors.
5G industrial IoT Key Market Players & Competitive Insights
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the 5G industrial IoT market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, 5G industrial IoT industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the 5G industrial IoT industry to benefit clients and increase the market sector. In recent years, the 5G industrial IoT industry has offered some of the most significant technology. Major players in the 5G industrial IoT market, including Qualcomm Technologies Inc. (US), Cisco Systems Inc. (US), AT&T (US), IBM Corporation (US), Microsoft (US), Verizon (US), and T-Mobile USA INC (US), and others, are attempting to increase market demand by investing in research and development operations.
Leading market players are investing heavily in research and development to expand their product lines, which will help the 5G industrial IoT market grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the 5G industrial IoT industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer use in the 5G industrial IoT industry to benefit clients and increase the market sector. The 5G industrial IoT industry has offered some of the most significant technology in recent years. Major players in the 5G industrial IoT market, including Qualcomm Technologies Inc. (US), Cisco Systems Inc. (US), AT&T (US), IBM Corporation (US), Microsoft (US), Verizon (US), and T-Mobile USA INC (US), and others, are attempting to increase market demand by investing in research and development operations.
Qualcomm was founded by Irwin M. Jacobs and six others in 1985. They sold a two-way mobile digital satellite communications system called Omnitracs to finance their early CDMA wireless cell phone development. Qualcomm is a Delaware-based American multinational corporation with headquarters in San Diego. Qualcomm is making it possible for the entire planet to be intelligently interconnected. Every day, you use products and technologies made possible by Qualcomm, from 5G-enabled smartphones that double as professional-grade cameras and gaming devices to smarter vehicles and cities to the technology powering the smart, connected factories that built your most recent purchase. In September 2019, Qualcomm's Snapdragon 5G Modem-RF System was a commercial chipset solution that combines a modem, RF transceiver, and RF front end. The company's solution enables original equipment manufacturers (OEMs) to create state-of-the-art 5G devices rapidly.
IBM is the world's largest provider of hybrid cloud services, artificial intelligence (AI), and business services, enabling clients in more than 175 countries to gain a competitive advantage via the intelligent use of data. Nearly 3,800 public and private organizations in industries as varied as finance, telecommunications, and healthcare rely on IBM's hybrid cloud platform and Red Hat OpenShift to implement digital transformations in a way that is both rapid and safe. Our clients have access to a wide range of options thanks to IBM's ground-breaking advancements in artificial intelligence (AI), quantum computing, industry-specific cloud solutions, and business services. In February 2023, BosonQ Psi (BQP) enrolled in the IBM Quantum Network startup program to develop quantum algorithms for use in engineering simulations on quantum systems through experimentation and development. They are working in tandem with well-respected academics, government labs, and commercial enterprises.
Key Companies in the 5G Industrial IoT market include
5G industrial IoT Industry Developments
January 2022:Ericsson and Vodafone UK worked together to design a business case for 5G SA based on a single RAN that provides high transmission capacity and low inertness and can be transported for the augmented reality use case in a retail setting.
March 2022:Cisco and Tech Mahindra have revealed plans to work together to upgrade the 5G infrastructure with routed optical networking. Tech Mahindra specializes in IP-based, software-driven 5G networks, while Cisco is an industry leader in routed optical fiber.
5G Industrial IoT Market Segmentation
5G Industrial IoT Component Outlook
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Hardware
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Solution
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Service
5G Industrial IoT Organization Size Outlook
5G Industrial IoT Application Outlook
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Predictive Maintenance
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Business Process Optimization
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Asset Tracking & Management
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Logistics & Supply Chain Management
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Real-time Workforce Tracking & Management
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Automation Control & Management And Emergency
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Incident Management & Business Communication
5G Industrial IoT Regional Outlook
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Middle East
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Africa
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Latin America
| Report Attribute/Metric |
Details |
| Market Size 2022 |
USD 427.1 billion |
| Market Size 2023 |
USD 451.32 billion |
| Market Size 2032 |
USD 701.61 billion |
| Compound Annual Growth Rate (CAGR) |
5.67% (2023-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2019- 2021 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Component, Organization Size, Application, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
Qualcomm Technologies Inc. (US), Cisco Systems Inc. (US), AT&T (US), IBM Corporation (US), Microsoft (US), Verizon (US), and T-Mobile USA INC (US). |
| Key Market Opportunities |
Increased interest in establishing a private 5G network in the manufacturing sector |
| Key Market Dynamics |
Increasing need for high speed and dependability |
5G Industrial IoT Market Highlights:
Frequently Asked Questions (FAQ) :
The 5G industrial IoT market size was valued at USD 427.1 Billion in 2022.
The market is projected to grow at a CAGR of 5.67% during the forecast period, 2024-2032.
North America had the largest share of the market.
The key players in the market are Qualcomm Technologies Inc. (US), Cisco Systems Inc. (US), AT&T (US), IBM Corporation (US), Microsoft (US), Verizon (US), and T-Mobile USA INC (US).
The hardware category dominated the market in 2022.
Asset tracking & management had the largest share in the market.
