Healthcare and smart city services will lead 5G IoT adoption

Juniper Research predicts that by 2026, there will be 116 million 5G IoT connections worldwide, up from just 17 million in 2023. The firm predicts that the healthcare sector and smart city services will drive this 1,100% growth over the next three years, accounting for more than 60% of 5G IoT devices by 2026. The ultra-low latency and high bandwidth of 5G IoT technology will be key factors driving this surge in new connections.

The biggest opportunity of 5G IoT

The report predicts that 5G networks will experience significant growth in smart city services due to their cost-effectiveness in deployment and their ability to carry large amounts of data.

By 2026, there will be more than 60 million 5G smart city connections worldwide, and the report urges city planners to take advantage of 5G connections as high-bandwidth gateways.

It found that monitoring of transport networks, including road and rail networks, would be a key service requiring the high-bandwidth cellular connections that support 5G.

DX in the healthcare industry drives 5G adoption

As the global COVID-19 pandemic exposes inefficiencies in healthcare delivery, healthcare providers’ investments in 5G-based services will be driven by the need to modernize services. The report identifies services such as telemedicine, connected ambulance and emergency services, and real-time remote monitoring as key services that will be immediately improved through the integration of 5G services.

Study co-author Olivia Williams commented: “5G will enable more efficient and dynamic healthcare services that are not feasible with 4G or Wi-Fi. However, healthcare providers must first implement 5G in areas where the return on investment is high, most notably connected emergency services.”

5G: Where the money is

Juniper Research's paper "5G: Where is the Money?" argues that 5G is gradually becoming the network of choice due to its performance and reliability. However, for network operators and communications service providers (CSPs) to take advantage of this potential, innovative business models and flexible, automated infrastructure are needed to effectively monetize it.

The demand for 5G services is key to future growth in 5G adoption as it enables monetization. For example, South Korea has already built a 5G network with speeds 3 to 5 times faster than 4G due to strong consumer demand. Demand for 5G services is expected to be very high in areas such as VR (virtual reality), AR (augmented reality) and ultra-high-definition video.