Europe 5G IoT Market Overview
As per MRFR analysis, the Europe 5G IoT Market Size was estimated at 1.5 (USD Billion) in 2023.The Europe 5G IoT Market Industry is expected to grow from 1.6(USD Billion) in 2024 to 3.4 (USD Billion) by 2035. The Europe 5G IoT Market CAGR (growth rate) is expected to be around 7.06% during the forecast period (2025 - 2035).
Key Europe 5G IoT Market Trends Highlighted
Significant trends in the Europe 5G IoT market are currently being observed, primarily due to the growing demand for real-time data processing and improved connectivity. Governments in a variety of European countries are investing in 5G infrastructure to enable the automation of industries, the development of smart cities, and the installation of connected vehicles.
As part of the European Union's Digital Compass 2030 vision, which aims to establish Europe as a global leader in digital innovations, this investment is a component of broader digital transformation initiatives.
5G technology is anticipated to facilitate the deployment of an increasing number of IoT devices, thereby facilitating the enhancement of operational efficiency and communication in sectors such as healthcare, manufacturing, and agriculture. Key opportunities in Europe involve the utilization of 5G to enable new applications in critical sectors.
The implementation of smart infrastructure and connected energy systems, for example, offers a promising opportunity to enhance sustainability and efficiency.
In addition, the processing of data generated by IoT devices is being altered by advancements in edge computing, which is further improving performance. Businesses can now respond to consumer demands more promptly as a result of the proliferation of dynamic networks, which has raised their competitiveness.
There has been a notable trend in recent years toward collaboration between telecommunications providers and other industries to promote innovative solutions that are powered by 5G IoT. Expertise in artificial intelligence, data analytics, and connectivity is being combined to form partnerships.
These partnerships facilitate the creation of customized applications that can effectively resolve the unique challenges encountered by various sectors, thereby enhancing the economy as a whole. The growth and integration of 5G technologies across Europe are being promoted by the evolving regulatory landscape, which is also evolving to support these initiatives.
Europe 5G IoT Market Drivers
Increased Adoption of Smart Cities in Europe
The growth of the Europe 5G Internet of Things (IoT) Market is significantly driven by the increasing focus on developing smart cities across the continent. Governments and municipalities are investing heavily in infrastructure that integrates advanced technologies such as Internet of Things (IoT) devices and systems powered by 5G connectivity.
According to the European Commission, funding for digital transformation projects in urban areas amounts to approximately 100 billion Euros.This investment aims to improve public transport, waste management, energy efficiency, and overall quality of life in cities. For instance, cities like Barcelona and Amsterdam have been at the forefront of implementing these initiatives, showcasing the role of 5G in enhancing urban operational efficiency.
The emphasis on sustainable urban development and infrastructural upgrades is expected to propel the Europe 5G IoT Market Industry as more cities look to leverage 5G technology to drive their smart city agendas.
Rising Demand for Industrial Automation
The growing need for industrial automation within Europe is a major driver for the growth of the Europe 5G IoT Market Industry. As industries increasingly adopt automation technologies to enhance productivity and efficiency, 5G technology emerges as a crucial enabler of real-time data transmission and analytics.
The European Union has set aggressive targets for digitizing industrial processes, aiming to boost its manufacturing sector's global competitiveness.
Member states like Germany have reported over 50% of manufacturers are planning to invest in automation technologies this decade. This surge in demand for automated solutions fosters a robust market for 5G IoT applications in areas such as manufacturing, warehousing, and supply chain management.
Growing Health Care Digitization Initiatives
The Europe 5G IoT Market is experiencing growth due to the rising trend of digitization in the healthcare sector. With 5G technology, healthcare providers can leverage remote monitoring, telemedicine, and real-time data transfer, improving patient outcomes and operational efficiencies.
According to a report by the European Commission, by 2025, approximately 30% of all health services in Europe are expected to be delivered digitally, highlighting a shift towards telehealth and virtual care options.
Organizations such as the European Health Union are pushing for greater investment in digital technologies to enhance healthcare delivery, which will positively impact the Europe 5G IoT Market as healthcare providers adopt IoT devices powered by 5G for smarter patient management and data utilization.
Europe 5G IoT Market Segment Insights
5G IoT Market Service Insights
The Service segment of the Europe 5G IoT Market showcases a significant thrust towards addressing a wide range of connectivity requirements, reflecting the region's commitment to enhancing digital infrastructure. Enhanced Mobile Broadband stands out as a critical component of this segment, enabling faster data speeds and improved user experiences, which are paramount in the context of an increasingly mobile-first society.
This sub-segment not only caters to consumer demand for high-definition streaming and online gaming but also fortifies business operations reliant on real-time data transfer.
In addition, Ultra-Reliable Low Latency Communications plays a pivotal role in applications requiring instantaneous feedback, making it essential for healthcare solutions, autonomous vehicles, and industrial automation. The importance of this sub-segment is underscored by the region’s push for smart city initiatives and the budding development of advanced manufacturing processes.
Meanwhile, Massive Machine Type Communications is crucial for scaling Internet of Things (IoT) deployments by connecting a vast number of devices seamlessly. It supports initiatives in sectors such as agriculture and smart metering, contributing to efficient resource management and operational savings.
The adaptive nature of these services aligns well with Europe’s digital policies and the overall market growth driven by the demand for innovative solutions that improve connectivity and operational efficiencies across diverse industries. The increasing integration of these services fosters an environment conducive to technological advancements, creating numerous opportunities for stakeholders in the Europe 5G IoT Market.
5G IoT Market Technology Insights
The Technology segment within the Europe 5G IoT Market encompasses crucial aspects like 5G New Radio Standalone Architecture and 5G New Radio Non-Standalone Architecture, both of which are pivotal for the development and deployment of advanced IoT solutions.
By enabling faster data transmission and reduced latency, the 5G New Radio Standalone Architecture is increasingly recognized for its capability to handle increased device connectivity and support real-time applications such as autonomous vehicles and remote surgeries. In contrast, 5G New Radio Non-Standalone Architecture facilitates a smoother transition from 4G to 5G, leveraging existing infrastructure while enhancing performance.
This architecture is significant for industries that need immediate improvements without waiting for a complete 5G rollout. The ongoing investment in network infrastructure and the continuous advancement in technology are supported by regulatory initiatives aimed at digitization across European nations.
As such, industries like manufacturing, transportation, and healthcare are likely to leverage these technological advancements, creating numerous opportunities in the European market. As this segment evolves, it will be critical to determine how effectively the continent adapts to and benefits from the next generation of connectivity.
5G IoT Market Type Insights
The Europe 5G IoT Market is experiencing a significant evolution, particularly within the Type segment, which includes Short-Range IoT Devices and Wide-Range IoT Devices. Short-Range IoT Devices typically enable communication over limited distances, making them vital for applications like smart homes, industrial automation, and smart wearables.
Their efficient power consumption and low latency align well with the growing demand for real-time data and automation in various sectors. On the other hand, Wide-Range IoT Devices facilitate connectivity over extensive distances, proving essential in sectors such as agriculture, transportation, and smart cities, where remote monitoring and control are crucial.As businesses in Europe increasingly prioritize sustainability and efficiency, the adoption of both device types is expected to rise.
The European government's support for digital transformation further enhances these segments' importance, driving extensive collaboration across industries. The combination of technological advancements and regulatory backing positions the Europe 5G IoT Market favorably for growth, as both Short-Range and Wide-Range IoT Devices play pivotal roles in transforming how industries operate and deliver services efficiently.
5G IoT Market Vertical Insights
The Europe 5G IoT Market is characterized by its diverse Vertical segmentation, which plays a crucial role in transforming various industries. Consumer Electronics is experiencing notable advancements due to enhanced connectivity, enabling smart home devices and wearables to operate efficiently. The Automotive industry is benefiting from real-time data transmission, enhancing vehicle safety and enabling autonomous driving features.
In the Railway sector, the integration of 5G technology is streamlining operations and improving safety measures through real-time monitoring.
Mining activities utilize 5G for remote equipment management, ensuring safer and more efficient operations. Utilities are harnessing 5G to modernize their infrastructure, enabling smarter grids and better resource management. In Healthcare, the potential of 5G is revolutionizing remote patient monitoring and telemedicine services.
Agriculture is greatly impacted through precision farming facilitated by IoT sensors connected via 5G networks, allowing for optimized crop management.
Lastly, Manufacturing stands to gain from enhanced automation and real-time analytics, leading to increased operational efficiency.Overall, these segments are poised for significant growth as they leverage the advantages of 5G connectivity to improve processes and meet evolving consumer demands.
5G IoT Market Regional Insights
The Europe 5G IoT Market is experiencing significant growth across various regions, each contributing uniquely to the overall landscape. Germany stands out as a key player, investing heavily in smart manufacturing and connected vehicles, which positions it at the forefront of the 5G IoT revolution. The UK is also advancing rapidly, particularly in the fields of healthcare and smart cities, driven by government initiatives aimed at enhancing urban development through technology.
France emphasizes sustainability in its 5G IoT applications, reflecting a growing trend towards environmentally-friendly solutions in industries.
Russia shows promise with its vast geographical area, enabling diverse 5G IoT applications, especially in agriculture and natural resource management. Italy is making strides in the fashion and automotive sectors through the adoption of IoT technologies, while Spain is leveraging 5G connectivity to enhance tourism and public safety sectors.
The rest of Europe also plays an important role, with various nations focusing on digital transformation that aligns with the European Union’s digital agenda. Overall, these regions are embracing 5G IoT to improve connectivity, efficiency, and innovation, highlighting the diversity and potential within the Europe 5G IoT Market.
Europe 5G IoT Market Key Players and Competitive Insights
The Europe 5G IoT Market is becoming increasingly competitive as various companies strive to capitalize on the rapid growth and deployment of 5G technology across the continent. This market is characterized by significant investments in infrastructure, advancements in technology, and the expansion of IoT applications across multiple sectors, including urban development, healthcare, automotive, manufacturing, and agriculture.
Companies in this space are vying for market share by developing innovative solutions, establishing strategic partnerships, and focusing on addressing the unique demands of European regulatory frameworks, compliance standards, and consumer expectations. As the demand for faster connectivity and advanced data processing capabilities continues to rise, the landscape becomes more complex and requires a deeper understanding of competitive dynamics.
In the context of the Europe 5G IoT Market, Qualcomm stands out as a leading player, leveraging its technological prowess to deliver high-performance solutions that enhance connectivity and improve efficiency. The company is noted for its research and development investments, allowing it to remain at the forefront of 5G technologies.
Qualcomm has established a robust market presence in Europe through strategic collaborations with various telecommunications providers and device manufacturers. Its strengths lie in its ability to offer a comprehensive suite of products, including chipsets that support advanced applications in the IoT realm, ensuring interoperability across diverse devices and networks.
Qualcomm's technological innovations not only elevate the performance of IoT devices but also pave the way for new applications that can transform industries in Europe, creating a strong competitive edge in a rapidly evolving market.SAP has also established itself as a prominent player within the Europe 5G IoT Market, recognized for its enterprise solutions that harness the power of IoT and 5G technologies to drive digital transformation.
The company's strengths lie in its extensive experience in business process management and its robust portfolio of software solutions tailored for various industries. SAP focuses on integrating IoT data into existing enterprise resource planning systems, enabling organizations to make informed decisions based on real-time insights.
The company has an established market presence in Europe, where its solutions are employed by numerous sectors to enhance operational efficiency and customer engagement. Additionally, SAP has engaged in several strategic mergers and acquisitions to strengthen its offerings in the 5G and IoT landscape, further enhancing its competitive positioning. Key products and services offered by SAP in the European market include smart asset management, supply chain optimization, and predictive analytics, driving the adoption of 5G technology in various enterprises across the region.
Key Companies in the Europe 5G IoT Market Include
- Qualcomm
- SAP
- Orange
- Intel
- Vodafone
- Nokia
- Huawei
- Siemens
- Deutsche Telekom
- Cisco Systems
- Ericsson
- BT Group
- IBM
- Amazon Web Services
Europe 5G IoT Market Industry Developments
Recent developments in the Europe 5G IoT Market have shown a progressive transformation as major players like Qualcomm, Vodafone, and Ericsson actively expand their influence. In September 2023, Nokia announced its collaboration with Deutsche Telekom to enhance 5G networks across Germany, focusing on smart city applications.
Additionally, SAP has been working closely with Siemens to drive solutions in manufacturing, showcasing the importance of IoT integration. Market growth has been spurred by increasing investments in 5G infrastructure, spurred by government support across the European Union, which aims to achieve significant 5G coverage by 2030. Notably, in July 2023, BT Group completed the acquisition of a smaller IoT company to strengthen its position in the growing market.
Furthermore, the European Commission has earmarked billions to bolster digital infrastructure, which will tremendously impact companies like Intel and Huawei. As these developments unfold, the market valuation for companies in the Europe 5G IoT sector shows an upward trend, indicating sustained interest and increasing adoption of IoT-related technologies among businesses and consumers alike.
Europe 5G IoT Market Segmentation Insights
5G IoT Market Service Outlook
- Enhanced Mobile Broadband
- Ultra-Reliable Low Latency Communications
- Massive Machine Type Communications
5G IoT Market Technology Outlook
- 5G New Radio Standalone Architecture
- 5G New Radio Non-Standalone Architecture
5G IoT Market Type Outlook
- Short-Range IoT Devices
- Wide-Range IoT Devices
5G IoT Market Vertical Outlook
- Consumer Electronics
- Automotive
- Railway
- Mining
- Utilities
- Healthcare
- Agriculture
- Manufacturing
5G IoT Market Regional Outlook
- Germany
- UK
- France
- Russia
- Italy
- Spain
- Rest of Europe
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| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2023 |
1.5(USD Billion) |
| MARKET SIZE 2024 |
1.6(USD Billion) |
| MARKET SIZE 2035 |
3.4(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
7.06% (2025 - 2035) |
| REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR |
2024 |
| MARKET FORECAST PERIOD |
2025 - 2035 |
| HISTORICAL DATA |
2019 - 2024 |
| MARKET FORECAST UNITS |
USD Billion |
| KEY COMPANIES PROFILED |
Qualcomm, SAP, Orange, Intel, Vodafone, Nokia, Huawei, Siemens, Deutsche Telekom, Cisco Systems, Ericsson, BT Group, IBM, Amazon Web Services |
| SEGMENTS COVERED |
Service, Technology, Type, Vertical, Regional |
| KEY MARKET OPPORTUNITIES |
Smart city infrastructure development, Industrial automation enhancements, Connected healthcare solutions, Enhanced agricultural efficiency, Real-time asset tracking systems |
| KEY MARKET DYNAMICS |
increased connectivity demand, low latency requirements, growth in smart devices, expansion of use cases, governmental support initiatives |
| COUNTRIES COVERED |
Germany, UK, France, Russia, Italy, Spain, Rest of Europe |
Frequently Asked Questions (FAQ) :
The Europe 5G IoT Market is projected to be valued at 1.6 billion USD in 2024.
The expected CAGR for the Europe 5G IoT Market is 7.06% from 2025 to 2035.
By 2035, Germany is expected to have the largest market share, valued at 0.9 billion USD.
The UK is expected to be valued at 0.75 billion USD in the Europe 5G IoT Market by 2035.
Enhanced Mobile Broadband is valued the highest at 0.64 billion USD in 2024.
The expected market value for Ultra-Reliable Low Latency Communications is 1.02 billion USD by 2035.
Major players include Qualcomm, SAP, Orange, Intel, Vodafone, and Nokia among others.
The market size for Massive Machine Type Communications is expected to increase from 0.48 billion USD in 2024 to 1.0 billion USD in 2035.
The market faces challenges such as regulatory hurdles and the need for substantial infrastructure investment.
Key applications driving demand include smart cities, industrial automation, and healthcare innovations.
