The global 5G IoT market is expected to see rapid growth

According to a report released by Research Dive, the global 5G IoT market is expected to generate revenue of US$12,556.6 million and grow at a CAGR of 28.1% during the forecast period of 2021-2028.

5G IoT Market Dynamics

Drivers: The increasing usage of IoT devices, especially in the manufacturing industry, along with the growing deployment of 5G communications and the growing popularity of machine-to-machine (M2M) communications are some of the driving factors for the growth of the global 5G IoT market during the forecast period. In addition, increasing industrial automation and the continuous development of connected technologies are some more factors that will boost the market growth by 2028.

Opportunities: The growing demand for private 5G networks by industries and governments and the adoption of 5G IoT concepts in several applications such as connected factories, autonomous vehicles, smart retail, rural broadband, and connected healthcare are some of the factors that offer abundant growth opportunities to the global 5G IoT market during the year of analysis.

Restraints: The high cost of 5G deployment and lack of standardization of IoT protocols are the major factors hindering the market growth.

Impact of Covid-19 on the 5G IoT Market

The outbreak of the covid-19 disaster has had a moderate impact on the global 5G IoT market. This is mainly due to the reduced demand for telecommunication services and semiconductors under the pressure of the pandemic and the delayed rollout of 5G networks. In addition, governments around the world have postponed spectrum auctions and communication service providers (CSPs) have also stopped experiments in preparing 5G infrastructure.

However, remote working and high demand for improved connectivity during the pandemic along with expanded data consumption packages are some of the factors that have helped the market to recover its growth rate and focus on IoT, AR, VR, and other related technologies.

5G IoT Market Segmentation

The report segments the 5G IoT market into several segments based on technology, end-use, and regional analysis:

Technology: The massive machine-type communications (mMTC) sub-sector will dominate

Massive Machine Type Communication as an IoT sub-segment is expected to hold a dominant market share and gain revenue of USD 3,057 million during the forecast year owing to the increase in wireless communication of machines, thereby creating a network of interconnected Machine Type Devices (MTDs). Furthermore, key advantages of mMTC such as high-speed and constant connectivity, reliability, and improved access to real-time information are other factors driving the growth rate of this segment by 2028.

End-use: Manufacturing segment will benefit the most

As manufacturers are increasingly turning to digitalization and automation to improve ROI and reduce costs for manufacturing applications. In addition, the new operational efficiencies and shop floor productivity offered by 5G IoT technology are expected to further drive the growth of this segment.

Region: Asia Pacific has the fastest market growth

The 5G IoT market in Asia Pacific is expected to witness better growth opportunities and achieve revenue of USD 3,665.2 million during the analysis period, primarily due to the increasing deployment of 5G networks in countries such as Singapore, China, India, South Korea, Japan, etc. and the large mobile user base in the region. Furthermore, the increasing implementation of technologies such as edge computing, blockchain, and 5G core technologies are also expected to drive the market by 2028.