5G IoT Market is Rapidly Growing at a CAGR 70.40% By 2032

Published Date : 09 May 2024

The global 5G IoT market size surpassed USD 6.80 billion in 2023 and is estimated to gain around USD 823.14 billion by 2032, growing at a CAGR of 70.40% from 2023 to 2032. The increasing prevalence of IoT devices and growing infrastructure development activities are expected to drive the growth of the 5G IoT market.

5G IoT Market Size and Growth Rate From 2023 to 2032

Market Overview

The 5G IoT market deals with the Internet of Things, which needs a faster network capacity that can offer connectivity demands. The 5G network is the fifth generation of technology standard for strong broadband cellular connection. It is designed to improve flexibility, diminish latency, and raise the speed of wireless services.

The increasing volume of data traffic generation and increasing demand for low latent connectivity solutions are the factors that will drive the growth of the market. The rising demand for private 5G networks across governments, industries, and enterprises will drive the growth of the market. In addition, increasing mobile network data traffic, rising development in wireless technologies, critical communication service, and unleashing a massive 5G IoT system and device-to-device communication are further anticipated to drive the growth and demand of the market.

Increasing several technological developments in the 5G IoT Market fuels the growth

5G networks are made to maintain a large number of devices, which is suitable for IoT developments where a large number of devices and sensors are needed to communicate with each other. 5G’s lower latency means that Internet of Things devices can cloud more quickly and communicate with each other, which is crucial for time-saving applications, including self-driving cars and industrial automation. 5G’s higher speeds can help quick data transfer costs for IoT devices, which is crucial for applications that need huge amounts of data to be transferred rapidly, including remote monitoring and video surveillance. 5G’s increased reliability makes sure that IoT applications can always stay connected, even in poor network coverage areas.

In addition, 5G also helps single networks to be classified into various slices or virtual networks with their requirements and characteristics. These subnetworks are optimized and self-contained for use cases, including remote surgery, autonomous vehicles, and industrial automation. Moreover, energy efficiency and edge computing are also helping to drive the growth of the 5G IoT market.

However, high infrastructure costs and limited coverage can restrain the growth of the market. Utilizing 5G IoT technology needs sufficient infrastructure investments. The development of 5G base stations and the building of essential network infrastructure can be very costly, especially in less crowded populated areas. In addition, 5G networks have limited range compared to 4G networks, particularly those using higher frequency millimeter networks. This can result in range gaps in remote and rural areas, which may challenge the development of 5G IoT solutions in various regions. Therefore, these factors may restrain the growth of the 5G IoT market.

5G IoT Market Report Scope

Report Coverage Details
Market Revenue in 2023 USD 6.80 Billion
Projected Forecast Revenue by 2032 USD 823.14 Billion
Growth Rate from 2023 to 2032 CAGR of 70.40%
Largest Market Asia Pacific
Base Year 2022
Forecast Period 2023 to 2032
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

5G IoT Market Top Companies

  • SK Telecom
  • Fibocom
  • Nokia
  • Deutsche Telekom
  • Huawei
  • Ericsson
  • Vodafone
  • T-Mobile
  • Verizon Communications Inc.
  • AT&T Inc.
  • China Mobile
  • Jio Fiber
  • Airtel
  • Idea

Recent Development by Fibocom

  • In February 2024, Fibocom launched the successful commercialization and deployment of its 5G RedCap device for 5G IoT networks. This move was in collaboration with renowned consumers, including PLANETN Quanta Computer and Askey, who carry the expected influence in their vertical markets. The companies have directed attentive engineering verification and testing to ensure the integration of the modern generation 5G RedCap into consumer devices.

Recent Development by Vodafone

  • In July 2023, at Indira Gandhi Delhi Technical University for Women, Vodafone Idea Foundation, in collaboration with the Telecom Sector Skill Council, launched the IoT Center of Excellence in Delhi.  This IoT excellence center offered advanced technologies, including security, 5G, machine learning, surveillance, and artificial intelligence.

Regional Insights

Asia Pacific is expected to grow fastest in the forecast period. The rising investments in infrastructure, deployment trend of 5G and 4G networks, increasing adoption of 5G IoT services, increasing government expenditure on 5G technology, increasing connectivity, and reduced prices for powerful controllers and sensors are anticipated to drive the growth of 5G IoT market in the Asia Pacific. India, China, Japan, and South Korea are emerging countries in the Asia Pacific region.

China has the biggest market for 5G IoT technologies and has taken a significant step in the number of 5G connections and 5G base stations. There are millions of 5G IoT networks in China. China has accelerated supercomputing technologies, data centers, the Internet of Things (IoT), and 5G development, with these new engines considered to enhance the future digital growth of China. There are various leading 5G companies in IoT, such as Quetel, which provides a range of advanced technology modules, including 4G and 5G modules, cellular IoT, and IoT modules.

Fibocom company provides 5G smart IoT technology and impacts digital transformation, including smart homes, intelligent robotics, and the Internet of Things. Sunsea Group has the biggest growth in digital transformation, such as AI and 5G IoT terminals, AI edge computing devices, and AI IoT big middle platform.

With a strong technical spirit in the IoT industry, 5G and IoT device companies can create major opportunities in the future of the 5G IoT industry. These are the major factors and market key players that help to enhance the growth of the market.

North America dominated the 5G IoT market in 2023. The rising telecommunication sector, technological innovations in energy, the rising need for faster connectivity, logistics, and strong industrial sectors, as well as the increasing 5G wireless connections, are anticipated to drive the growth of the market in North America. The U.S. and Canada are the emerging countries in the North America region. This region has witnessed higher R&D investment. GE Digital is the world’s best IoT company in the U.S., and Huawei is one of the largest technological companies. Huawei has smart technologies and cutting-edge IoT solutions. With the opening of new doors in industries and the development of IoT capacities in areas such as agriculture, healthcare, and smart cities, Huawei’s enthusiasm for 5G technology has further enhanced its influence in the American digital transformation environment. These are the major factors and market key players responsible for the growth of the 5G IoT market in North America.

Market Potential and Growth Opportunity

Development of smart infrastructure

Infrastructural initiatives, including smart buildings and smart cities, are appreciable models made to deliver a set of infrastructure and cutting-edge services. A smart city can efficiently employ its infrastructure to develop the quality of survival and enhance the efficiency of urban services and operations. There are several factors that make a city a smart city, such as smart citizen services, smart utilities, smart buildings, and smart transportation. Hence, a developed smart city project highly depends on IoT-generated sensors, mobility, and the cloud. Due to the rapid connectivity and huge demand, 5G IoT services can create huge opportunities in the future and are anticipated to drive the growth of the IoT market in the coming years.

5G IoT Market News

  • In January 2024, the provider of unique network access, Casa Systems, launched the NTC-500 IIoT router. This was the first product in the AurusXT Series of 5G devices. This product is supported by a strong network slicing capacity and allows users to offer new services to their enterprise's consumers.
  • In August 2023, the product solutions company Cientra and Homegrown system integrator firm Amantya Technologies launched the world’s first vendor-agnostic 5G Internet of Things (IoT). This innovative solution helped the industry to address exponential demand in different industry segments such as smart mobility, smart cities, water management, agriculture and railways.

Market Segmentation

By Components

  • Solution
    • Hardware
    • Platform
    • Connectivity
  • Services

By Enterprise Size

  • Large Enterprises
  • Small & Medium Enterprises

By Network Type

  • 5G Standalone (SA)
  • 5G Non-standalone (NSA)

By End User

  • Manufacturing
  • Healthcare
  • Energy and Utilities
  • Automotive and Transportation
  • Supply Chain and Logistics
  • Government and Public Safety
  • Agriculture
  • Others

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