IDC survey: Only 9% of enterprises plan to use 5G for IoT deployment

5G promises to be ten times faster than existing LTE networks and could enable IoT systems to share data faster than ever before. However, a new IDC survey shows that IoT stakeholders are skeptical about 5G's real-world potential. Organizations are also concerned about managing IoT-related spending and whether there are enough development tools and APIs to accommodate these initiatives.

According to the report “Simplifying Connectivity Management for Success in Cellular IoT,” authored by Stacy Crook, research director for IoT at IDC, as many as 75% of IoT devices with cellular connectivity today are not mobile.

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5G, touted as the next generation of cellular technology, is the latest in a series of wireless communication systems used since the 1980s and the driving force behind this expansion. 5G is completely data-centric and developed for a highly integrated society, offering higher speeds and more reliable connections.

Sensors and other devices connect to the internet via cellular IoT, which leverages the same cellular services as smartphones. Ericsson said the total number of cellular IoT connections will grow at a compound annual growth rate of 23%, from 1.6 billion in 2020 to 5.4 billion in 2026.

It takes a lot of effort to roll out and scale cellular-connected devices globally, and some manufacturers don’t fully understand how to traverse the cellular networks because multiple network providers operate under different IT systems around the world.

For any device, it must have seamless integration. According to Crook, 79% of organizations intend to use 4G for cellular IoT installations, and only 9% plan to use 5G. Here are some of the opinions expressed by respondents on 5G services:

• Limiting network access to one level
• When the device is running, the network quality will be affected
• Insufficient fault diagnosis capabilities
• No failover alternative during network outages
• Select the radio technology you want to connect to

Survey Insights

There is no doubt that the advent of IoT devices has pushed us into uncharted territory. On the other hand, using a single software platform, a single control panel, and a single set of integrated tools will reduce technical and business challenges, enabling seamless connectivity, which is critical to product success.

However, according to information collected by IDC, the main obstacles to the growth of the IoT industry are:

• Insufficient knowledge of equipment installation and use in the United States and around the world
• Time to Order and Sell Sims and Modules
• Unable to try out The Sims during the entire evaluation period

Another issue with mobile IoT projects is cost, with 65% of businesses having to pay for data overspending and waste. Managing numerous mobile operators, and the complexity of the associated bills, is a significant issue.

When determining total cost of ownership, Crook advises organizations dealing with IoT cellular devices to consider scalability, ensure global visibility and control, and factor in logistics operations related to data charges, connectivity, time to market and installation testing activities.

Here are the three most important use cases the research found across all verticals:

• Buildings: Smart lighting, HVAC and elevator connectivity
• Alarm systems, physical access, and remote monitoring are all examples of security
• Climate monitoring, temperature control, and soil monitoring are all examples of environmental monitoring.

Enterprises manage a large number of IoT devices. The average deployment size is 1,700 people. In large enterprises, this number is 6,300.