South Korea 5G IoT Market Overview
As per MRFR analysis, the South Korea 5G IoT Market Size was estimated at 269.85 (USD Million) in 2023.The South Korea 5G IoT Market Industry is expected to grow from 288.9(USD Million) in 2024 to 1,299 (USD Million) by 2035. The South Korea 5G IoT Market CAGR (growth rate) is expected to be around 14.644% during the forecast period (2025 - 2035).
Key South Korea 5G IoT Market Trends Highlighted
Significant growth is being propelled by a variety of key market drivers in South Korea's 5G IoT market. A favorable environment for 5G and IoT technologies is being fostered by the government's strong commitment to digital transformation.
This expansion is facilitated by policies that prioritize the development of smart cities, smart factories, and broader IoT applications. Furthermore, the primary objective of major telecommunications companies in South Korea is to enhance user experiences and provide extensive connectivity by expanding their 5G network infrastructure.
This aspiration is consistent with the nation's objective of becoming a global leader in advanced technology, thereby serving as a catalyst for investment and innovation in the industry.
The South Korean 5G IoT market offers a plethora of opportunities for exploration, particularly in the manufacturing, healthcare, and agriculture sectors. In order to enhance productivity and efficiency, the government is advocating for the implementation of IoT solutions in agriculture.
The demand for remote monitoring systems in healthcare is increasing, particularly in the wake of the pandemic, which has the potential to drive the development of IoT-enabled healthcare applications.
The manufacturing sector also benefits from smart factory initiatives that utilize 5G connectivity to improve operational efficiency by enabling real-time data processing and automation.
There has been a recent increase in the number of collaborative endeavors between the public and private sectors to develop integrated IoT solutions. Various government initiatives and funding programs are supporting an increase in startup activities in South Korea that are focused on IoT innovations.
Additionally, there is an increasing prevalence of partnerships between telecommunications companies and manufacturers of IoT devices, which enables the development of customized solutions that improve the user experience.
The future of South Korea's 5G IoT market is expected to be influenced by continuous innovation and expansive connectivity as the country continues to develop its technological ecosystem.
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South Korea 5G IoT Market Drivers
Rapid Deployment of 5G Infrastructure
The South Korea 5G IoT Market Industry is witnessing significant growth due to the accelerated deployment of 5G infrastructure across the nation. According to the Ministry of Science and ICT in South Korea, the country successfully launched its nationwide 5G network in April 2019, making it one of the first countries globally to do so.
By 2023, South Korea had installed over 140,000 5G base stations, paving the way for seamless connectivity and real-time data transmission.This rapid infrastructure expansion enables various sectors like smart cities, healthcare, and automotive to leverage the Internet of Things (IoT) technologies, creating an ecosystem that fosters innovation.
As established telecommunications companies like SK Telecom and KT Corporation invest heavily in the evolution of 5G technology, the connectivity capabilities have improved, propelling the growth of the South Korea 5G IoT Market.
Government Support and Investment
The South Korean government has been actively supporting the development of the 5G IoT ecosystem through substantial investments and favorable policies. In 2022, the South Korean government announced a strategic initiative to invest approximately USD 1.6 billion into 5G technology advancements, which includes promoting Research and Development (R&D) in IoT applications.
This investment is expected to foster collaboration among various industries, leading to enhanced IoT solutions that can be implemented in diverse sectors such as agriculture, transportation, and manufacturing.
This aligns with the government's 'Digital New Deal' initiative, aimed at driving digital transformation across industries and supporting the growth of the South Korea 5G IoT Market.
Growing Adoption of Smart Devices
The increasing adoption of smart devices within South Korea plays a critical role in driving growth within the South Korea 5G IoT Market Industry.
A report from the Korean Communications Commission indicated that the number of connected IoT devices in South Korea reached over 25 million by the end of 2022, and this figure is expected to double by 2025.
The proliferation of smart home devices, wearables, and connected vehicles demonstrates the public's readiness to embrace IoT technologies.
Companies like Samsung and LG are at the forefront of this trend, developing and promoting a wide range of smart devices that capitalize on the advanced connectivity provided by 5G networks, which in turn stimulates demand for IoT applications.
South Korea 5G IoT Market Segment Insights
5G IoT Market Service Insights
The Service segment of the South Korea 5G IoT Market reveals robust growth potential and is a driving force behind the nation’s technological progression. Enhanced Mobile Broadband is particularly significant, enabling faster and more reliable internet speeds for users and fostering innovations in sectors such as entertainment and smart home technologies.
This segment empowers seamless streaming of high-definition content and enhances user experiences, solidifying its dominance in the market. Ultra-Reliable Low Latency Communications plays a crucial role in applications requiring real-time feedback and precise data transmission, such as autonomous vehicles and remote surgeries.
This aspect of the Service segment is vital as it contributes significantly to the safety and reliability of critical systems. Moreover, Massive Machine Type Communications is emerging as a pivotal component, facilitating the connection of a large number of devices within smart cities and industrial automation.
As South Korea advances its 5G infrastructure, there are numerous opportunities for expanding applications across various industries, including logistics, healthcare, and agriculture, driven by the interconnected nature of these communication types.
The growing demand for IoT devices continu\es to amplify the relevance of these services as businesses seek to harness data for operational efficiencies and enhanced decision-making.
As South Korea positions itself as a leader in technological development, the Service segment within the 5G IoT Market is expected to play an instrumental role in shaping the future landscape of connectivity, offering significant contributions to the overall economy and society.
5G IoT Market Technology Insights
The South Korea 5G IoT Market is experiencing notable advancements in the Technology segment, primarily characterized by architectures like 5G New Radio Standalone and Non-Standalone. The emphasis on 5G New Radio Standalone Architecture is significant, as it allows for a network that operates solely on 5G technology, facilitating improved performance, lower latency, and enhanced reliability, which is crucial for industries like autonomous driving and smart cities.
On the other hand, 5G New Radio Non-Standalone Architecture is important for transitioning existing 4G infrastructure to support 5G capabilities, ensuring a smoother rollout and adoption of advanced IoT applications.This dual approach has led to increased interest from service providers and manufacturers, aligning with South Korea's goal of becoming a global leader in 5G technology.
Furthermore, the integration of these architectures is expected to drive innovations in various sectors, including healthcare, agriculture, and manufacturing, opening new avenues for business growth and technological advancements in the region. Overall, the Technology segment reflects South Korea's commitment to harnessing the potential of 5G IoT applications.
5G IoT Market Type Insights
The South Korea 5G IoT Market demonstrates a robust segmentation, particularly highlighting the type categories of Short-Range IoT Devices and Wide-Range IoT Devices. Short-Range IoT Devices have gained prominence due to their essential role in applications such as smart homes and industrial automation, facilitating seamless connectivity across limited distances while ensuring low energy consumption. These devices are vital in enhancing user experiences through real-time data transmission and automation processes.
Conversely, Wide-Range IoT Devices are crucial for broader applications that require extensive coverage, such as smart cities and environmental monitoring, leveraging 5G connectivity to function effectively over vast areas.The growing emphasis on smart infrastructure and the need for enhanced data analytics are key drivers for both device types.
Additionally, South Korea's commitment to advancing its digital economy and technological innovation further bolsters the demand for both Short-Range and Wide-Range IoT Devices. Therefore, understanding the dynamics of these types is essential for stakeholders aiming to leverage opportunities in the expanding South Korea 5G IoT Market.
5G IoT Market Vertical Insights
The South Korea 5G IoT Market primarily focuses on various vertical segments that cater to different applications and advancements within the industry. Consumer Electronics have notably embraced 5G technologies, enhancing connectivity in smart home devices and wearable technologies, which has resulted in an upsurge of user demand and expectation.
The Automotive sector leverages 5G for advanced driver-assistance systems and autonomous driving applications, ensuring safer and more efficient transport. Railway systems are incorporating 5G for real-time monitoring and communication, thereby improving operational efficiency and safety standards.
In Mining, 5G enables automation and improved remote control of machinery, which is crucial for increasing productivity and safety in hazardous environments. Utilities are utilizing 5G for smarter grid management and real-time data collection, enhancing resource management.
The Healthcare sector is experiencing a transformation through 5G, as it allows for remote patient monitoring and telemedicine, thus improving healthcare access and efficiency. Agriculture is seeing advancements in precision farming through IoT devices that utilize 5G for improved crop management and yield monitoring.
Lastly, Manufacturing is adopting 5G to facilitate the evolution of smart factories, optimizing supply chain management and operational processes, essential for maintaining competitive advantage.
This vertical segmentation showcases the diverse opportunities and driving trends in the South Korea 5G IoT Market, highlighting the significant role these segments play in the nation's technological adaptation and progression.
South Korea 5G IoT Market Key Players and Competitive Insights
The South Korea 5G IoT Market is characterized by rapid advancements and intense competition, driven by the country's commitment to becoming a leader in next-generation connectivity and Internet of Things technologies. With the early rollout of 5G services, South Korea has established a robust infrastructure that supports a wide array of IoT applications across various sectors, including healthcare, transportation, and smart cities.
The market landscape is defined by both established telecommunications providers and innovative technology firms that are vying to capture market share by leveraging the unique capabilities of 5G to enhance IoT solutions. The competitive environment has been influenced by government initiatives, high consumer demand, and the necessity for continued digital transformation within industries, creating an ecosystem ripe for investment and collaboration.
LG Uplus is a significant player in the South Korea 5G IoT Market, recognized for its strong commitment to innovation and customer-centric solutions. The company has made substantial investments in enhancing its 5G network infrastructure, which allows for superior connectivity and reliability essential for IoT applications. LG Uplus has cultivated partnerships with various stakeholders, including businesses and local governments, to drive the integration of IoT technologies into diverse sectors.
The company’s strengths lie in its advanced network capabilities that support real-time data transmission, low latency communications, and high device capacity, enabling the development of intelligent systems such as smart homes and connected vehicles. Its robust market presence is further reinforced by its proactive engagement in promoting 5G adoption among enterprises and consumers alike, making it a formidable competitor in the South Korea market.
SK Hynix plays a pivotal role within the South Korea 5G IoT Market, primarily through its development of advanced semiconductors, which are critical for both 5G infrastructure and IoT devices.
Renowned for producing high-performance memory solutions, SK Hynix's products support the accelerated data processing and storage needs of IoT applications. The company's strength lies in its expertise in-memory technologies, enabling seamless integration of internet-connected devices while significantly enhancing data handling capabilities.
Through strategic mergers and acquisitions, SK Hynix has fortified its position in the technology sector, allowing for greater innovation and collaboration within the context of 5G. By focusing its efforts on improving device compatibility and reliability, SK Hynix effectively complements the delivery of 5G services, thus reinforcing its market presence in South Korea's evolving digital landscape.
Key Companies in the South Korea 5G IoT Market Include
- LG Uplus
- SK Hynix
- Samsung Electronics
- SK Telecom
- Posco
- Naver
- LG Electronics
- Hanwha
- KT Corporation
- KT Skylife
- CJ ENM
- Korea Telecom
- Hyundai Motor Company
- Daewoo
South Korea 5G IoT Market Industry Developments
In October 2023, SK Hynix announced a strategic collaboration with Samsung Electronics to enhance semiconductor technology for improved connectivity and data processing in 5G applications.
Meanwhile, KT Corporation has been actively working on expanding its 5G services and recorded a notable growth in service subscriptions this past quarter, reflecting increasing consumer interest in IoT devices. In the realm of mergers and acquisitions, KT Skylife announced in August 2023 its merger with CJ ENM to expand its digital content delivery capabilities through improved 5G technology.
This acquisition is expected to foster innovative content streaming services tailored for IoT users. The South Korean government continues to back the expansion of the 5G sector with investments aimed at bolstering smart city initiatives, while Hyundai Motor Company has integrated 5G technology into its automotive systems, promoting connectivity in its vehicles.
Over the last two years, major players in the market have witnessed growth in their valuations, reflecting a heightened interest in 5G-enabled IoT solutions across various sectors.
South Korea 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
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| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2023 |
269.85(USD Million) |
| MARKET SIZE 2024 |
288.9(USD Million) |
| MARKET SIZE 2035 |
1299.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
14.644% (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 Million |
| KEY COMPANIES PROFILED |
LG Uplus, SK Hynix, Samsung Electronics, SK Telecom, Posco, Naver, LG Electronics, Hanwha, KT Corporation, KT Skylife, CJ ENM, Korea Telecom, Hyundai Motor Company, Daewoo |
| SEGMENTS COVERED |
Service, Technology, Type, Vertical |
| KEY MARKET OPPORTUNITIES |
Smart city infrastructure development, Industrial automation solutions, Healthcare IoT applications, Connected automotive technologies, Smart agriculture systems |
| KEY MARKET DYNAMICS |
Government support and investments, High smartphone penetration, Advanced telecom infrastructure, Growing IoT applications, Increased demand for automation |
| COUNTRIES COVERED |
South Korea |
Frequently Asked Questions (FAQ) :
The South Korea 5G IoT Market is expected to be valued at 288.9 million USD in 2024.
By 2035, the South Korea 5G IoT Market is projected to reach a value of 1299.0 million USD.
The expected CAGR for the South Korea 5G IoT Market from 2025 to 2035 is 14.644%.
The Enhanced Mobile Broadband segment is valued at 103.6 million USD in 2024.
The Ultra-Reliable Low Latency Communications segment is expected to be valued at 350.0 million USD by 2035.
Key players in the market include LG Uplus, SK Hynix, Samsung Electronics, SK Telecom, and others.
The Massive Machine Type Communications segment is expected to be valued at 462.0 million USD by 2035.
There are significant growth opportunities in sectors like enhanced mobile broadband and massive machine-type communications.
All segments, including enhanced mobile broadband, ultra-reliable low latency communications, and massive machine-type communications, are expected to grow significantly during this period.
The market may face challenges related to technology adoption and infrastructure deployment as it scales.
