5G IoT Market

Growing use in smart cities is driving the market growth

Market CAGR for 5G IoT is being driven by the rising use in smart cities. Smart cities and smart buildings are hypothetical models for infrastructure projects that aim to provide cutting-edge services and infrastructure. A smart city effectively uses its ICT infrastructure to enhance livability and increase the effectiveness of urban operations and services.

If the city conforms to the following principles: smart buildings, smart utilities, smart citizen services, and smart transportation, the city may be considered smart.As a result, the technologies that make up the Internet of Things—data connectivity, cloud, mobility, and sensors—are crucial to the execution of smart city initiatives. Future 5G services might see enormous prospects due to a growing need for quick connectivity and communication. Smart cities and smart buildings are hypothetical models for infrastructure projects that aim to provide cutting-edge services and infrastructure.

The need for enormous loT technologies has been driven by the rising popularity of many use cases in several industries that rely on connectivity covering wide distances and the growing necessity to manage multiple connections. Massive lot is already becoming a new center of attention for loT connection technology. 5G Machine-Type Communications (mMTC) is a key technology that will allow the next generation of IoT applications. 5G mMTC is devised to support a massive number of low-power, low-cost devices that transmit small amounts of data on a day to day basis.

Although carriers continue to rely on the current cellular loT standards, such as the Narrowband Internet of Things (NB-IoT), in the early 5G era, it is an alluring possibility for 5G. The widespread deployment of intelligent loT nodes is anticipated to be supported by 5G networks in various situations. Additionally, they would offer a solid foundation for the mass adoption of essential communications services. The Third Generation Partnership Project (3GPP) Release 13/14 Low Power Wide Area Network (LPWAN) technologies, which include NB-IoT, are developing Massive Machine Type Communication (mMTC).

Most 5G mMTC requirements are anticipated to be met by these technologies.

As more and more devices, appliances, systems, and services are connected, the Internet of Things (IoT) and machine-to-machine (M2M) communication networks are revolutionizing many industries. The "Fourth Industrial Revolution," also known as Industry 4.0, is focused on integrating cutting-edge technologies like AI, IoT, edge computing, 5G, and robots to alter the industrial management system and commercial processes. IoT technologies provide intelligent manufacturing equipment, AI-powered automation, and cutting-edge analytics to increase output and quality and decrease downtime when used in the manufacturing industries.

These intelligently linked products contribute to greater product functionality, provide more value for consumers, and give manufacturers the data they need to manage intricate production cycles more effectively. Thus, driving the 5G IoT market revenue.

The development of smart cities is a significant driver for the Global 5G IoT Market Industry. Urban areas are increasingly adopting IoT technologies to enhance efficiency and improve the quality of life for residents. 5G technology facilitates the integration of various smart city applications, such as intelligent transportation systems, waste management, and energy optimization. The ability to connect numerous devices in real-time allows city planners to make data-driven decisions. As cities strive to become more sustainable and technologically advanced, the demand for 5G-enabled IoT solutions is expected to rise, further propelling market growth.

The emergence of Industry 4.0 is transforming manufacturing and production processes, significantly impacting the Global 5G IoT Market Industry. This new industrial revolution emphasizes automation, data exchange, and smart manufacturing, all of which rely heavily on IoT technologies. 5G connectivity enhances the capabilities of Industry 4.0 by enabling real-time data analytics and machine-to-machine communication. As industries adopt these advanced technologies, the market is likely to experience robust growth, with a projected CAGR of 7.06% from 2025 to 2035. This growth reflects the increasing reliance on interconnected systems to optimize operations and improve productivity.

The advent of 5G technology offers enhanced network performance, which is crucial for the Global 5G IoT Market Industry. With significantly higher data speeds and reduced latency compared to previous generations, 5G is poised to support a vast number of connected devices simultaneously. This capability is particularly beneficial for industries such as manufacturing and logistics, where real-time data processing is essential. The potential for 5G to support up to one million devices per square kilometer could revolutionize urban infrastructure and smart city initiatives. As organizations recognize the value of improved connectivity, investment in 5G IoT solutions is likely to surge.

The increasing proliferation of smart devices is a primary driver of the Global 5G IoT Market Industry. As consumers and businesses alike adopt smart technologies, the need for seamless connectivity becomes paramount. In 2024, the market is projected to reach 6.42 USD Billion, reflecting a growing appetite for devices that can leverage 5G capabilities. This trend is particularly evident in sectors such as healthcare, where remote monitoring and telemedicine applications are gaining traction. The integration of 5G technology enables faster data transmission and lower latency, which are essential for the effective functioning of smart devices in various applications.

Government initiatives and investments play a pivotal role in shaping the Global 5G IoT Market Industry. Many countries are actively promoting the deployment of 5G infrastructure as part of their economic development strategies. For instance, various governments are allocating substantial funds to support research and development in 5G technologies. These initiatives not only foster innovation but also create a conducive environment for private sector investment. As a result, the market is expected to grow significantly, with projections indicating a rise to 13.6 USD Billion by 2035. Such governmental backing is likely to accelerate the adoption of 5G IoT solutions across multiple sectors.

By region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The North American 5G IoT market area will dominate this market; the strong industrial, logistics, and transportation sectors; the rising need for quicker connection; and technical breakthroughs in the energy and telecommunications industries are driving market growth in this area.

Further, the major countries studied in the market report are The US, Canada, the UK, Italy, Spain, China, Japan, India, Australia, German, France, South Korea, and Brazil.

Figure 3: 5G IOT MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe has the second-largest market share for 5G IoT. This is mostly attributable to growing disposable income and increased urbanization in these countries. Furthermore, the German 5G IoT market dominated, while the UK 5G IoT market grew fastest in Europe.

From 2023 to 2032, the Asia-Pacific 5G IoT Market is predicted to develop at the quickest CAGR. Continuous infrastructure investment in Asia-Pacific countries accelerates the rollout of 4G and 5G networks. This has resulted in the region's greater adoption of 5G IoT services. Furthermore, China's 5G IoT market had the greatest market share, while India's 5G IoT market was the Asia-Pacific region's fastest expanding.

Leading market companies are making significant R&D investments to diversify their product offerings, which will drive the 5G IoT market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The market for 5G IoT industry is becoming more competitive. Therefore, it needs to offer reasonably priced products to grow and thrive.

Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers employ in the worldwide 5G IoT industry to assist customers and expand the market sector. The market for 5G IoT industry has recently provided some of the most important benefits. Major players in the 5G IoT market, including Nokia, Inseeg Corp and others, are attempting to increase market demand by investing in research and development operations.

Inseego Corp. is a leader in 5G and intelligent IoT device-to-cloud solutions, enabling high-performance mobile apps for big corporate sectors, service providers, and small-medium companies. Our product range includes Enterprise SaaS solutions and IoT & Mobile solutions, which together form the foundation of appealing, intelligent, dependable, and secure IoT services with deep business intelligence. Asset tracking, fleet management, industrial IoT, SD WAN failover management, and mobile broadband services are all powered by Inseego, which has a "zero unscheduled downtime" requirement.

In January 2020, Inseego Corp. continues its market leadership with a complete array of new second-generation 5G devices based on the new Qualcomm Snapdragon X55 5G modem. Inseego will give private briefings at CES to introduce its new 5G range of fixed wireless access,industrial IoT, and mobile broadband product lines.

Nokia develops technology that enables the globe to act in concert. As a B2B technology innovation leader, they are paving the way for a future in which networks and clouds coexist to realize the full potential of digital in every sector. They collaborate with their clients and partners to develop the digital services and applications of the future using networks that perceive, think, and act. In March 2020, Nokia has announced the expansion of its Worldwide IoT Network Grid (WING) managed solution to include 5G and edge capabilities.

The update enables operators to provide 5G IoT services without investing in infrastructure. WING enables operators to gain additional IoT market share without investing in infrastructure.