The combination of high-bandwidth, low-latency 5G networks and mass deployments of interconnected IoT devices is expected to enable transformative technologies across industrial, consumer, and enterprise sectors. Analysts forecast trillions of dollars in value creation over the next 10-15 years from innovative 5G IoT use cases and services.
Let’s examine reports published by various experts regarding the combination of IoT and 5G:
- According to Ericsson’s report, the adoption of IoT is set to accelerate 5G growth. 5G networks are projected to connect over 4 billion IoT devices by 2030, with the report estimating a $700 billion market opportunity from 5G IoT in the next decade.
- McKinsey’s report predicts that 5G will drive up to $12.3 trillion in global economic value by 2035, with IoT being a key component of 5G use cases. The report suggests that $1.2 trillion of value will come from IoT use cases enabled by 5G.
- IHS Markit estimates that 5G and IoT will work together to enable $13.2 trillion in global economic value by 2035, with a forecast of $3.7 trillion coming from IoT applications with 5G connectivity.
- A Qualcomm study predicts that 5G will transform IoT use cases, including smart factories, autonomous robots, and connected healthcare, driving over $13.2 trillion in global sales activity by 2035.
These reports highlight that 5G will serve as a vital catalyst over the next 10-15 years on a global scale, unlocking substantial new economic value from Internet of Things applications.
The reasons why IoT and 5G represent a significant opportunity are:
- 5G networks, with higher bandwidth and lower latency, will enable new IoT use cases with real-time responsiveness and the ability to handle large data flows, such as autonomous vehicles, remote surgery, and industrial automation.
- The collaboration between 5G and IoT will lead to a substantial increase in the use of connected devices, generating vast amounts of data for analysis, driving insights, and efficiency through AI and machine learning algorithms.
- 5G’s ability to handle higher device density per area enables dense IoT sensor networks, facilitating the collection of more granular data.
- IoT device mobility is enhanced by 5G, ensuring that sensors on fast-moving objects like trains can remain connected.
- 5G reduces the power consumption of IoT devices through improved spectral efficiency, a crucial factor for many IoT use cases.
- The ultra-reliable, low-latency connections of 5G open the door for mission-critical IoT applications in sectors such as healthcare and transportation.
- 5G network slicing allows operators to provide customized networks optimized for different IoT applications based on their specific needs, generating significant revenue opportunities.
- 5G’s support for massive machine-type communications enables the handling of up to 1 million devices per square kilometer, providing massive scalability for IoT networks.
- 5G standards support LPWAN technology for connecting low-bandwidth IoT devices over long ranges, ensuring long battery life, and expanding options for existing LPWAN technologies like NB-IoT.
- 5G-enabled positioning services offer more accurate device positioning and tracking down to centimeter-level accuracy, opening up applications in logistics, industrial automation, and robotics.
- Edge computing processes data at the edge, reducing latency and backhaul traffic, which is essential for many IoT applications.
- End-to-end virtual network customization caters to various IoT use cases, improving performance and isolation through network slicing customized for bandwidth, latency, security needs, and more.
- Local 5G networks are enabled for industrial environments and enterprise settings, providing tailored solutions rather than relying solely on public carrier networks.
- Global 5G standards promote interoperability, economies of scale for devices, and cross-border applications.
These factors collectively demonstrate the significant potential and opportunities presented by the combination of IoT and 5G.