The global 5G IoT market is projected to grow at a considerable CAGR of 38.8% during the forecast period (2021-2027). 5G is predicted to be the most powerful enabler in the field of the IoT due to its speed, vast capacity, and ultra-low latency. The 5G network is capable of supporting a large number of static and mobile IoT devices with varying speeds, bandwidth, and quality of service needs. The key aspect that drives the faster adoption of 5G IoT technologies includes the unprecedented speed, large bandwidth, massive scalability, and high reliability of the 5G network suit applications, such as consumer VR/AR, AI, and autonomous vehicles, with high data density and rapid response requirements.

The major factor that contributes to the market growth is the rising development of wireless technologies. For instance, increased use of low-power wide-area network (LPWAN), Long Range Wide Area Network (LoRaWAN), 5G, wireless sensor networks, and Internet Protocol version 6 (IPv6) is predicted to fuel demand for IoT devices, increasing the demand for wireless technologies in the coming years. 5G wireless networks are a crucial driver for IoT due to they allow Communication Service Providers (CSPs) and companies to connect mobile and IoT devices, data centers, and public or private cloud platforms. However, the lack of standardization in IoT protocols is expected to limit the demand for the service as well as the growth of the market. The increasing demand for the private 5G network across enterprises, industries, and governments that utilizes the 5G technology as their communication medium is to create ample opportunities for the market during the forecast period.

Impact of COVID-19 Pandemic on Global 5G IoT Market

During the COVID-19 pandemic, almost every sector of society, individuals, and businesses have been affected, whereas the telecom sector is playing a critical role in supporting governments' digital infrastructure across the globe. Every individual and government, including federal, state, central, and provincial governments, has been in continual contact with one another in society to supply and receive real-time information on COVID-19. Healthcare, telecommunications, media and entertainment, utilities, and government institutions are currently working around the clock to stabilize the situation and provide essential services to everyone. Thus, the demand and adoption of 5G IoT network have been increased. Manufacturing, textiles, transportation and logistics, travel, and consumer products have all been shut down as a result of country-level lockdowns around the globe. In terms of GDP reduction, this would have a significant impact on the global economy. SMEs have long been the backbone of the economy, and they are the hardest hit by the pandemic. The market will witness “V” shape recovery in near future owing to the restart of key industries in major economies. 

Segmental Outlook

The global 5G IoT market is segmented on the basis of components, networks, and the end-user. Based on the components, the market is segmented as hardware, platform, connectivity, and services. Based on the network, the market is segmented into 5G standalone, and 5G non-standalone. Among these, the 5G standalone segment is expected to at the highest CAGR during the forecast period. This is due to its new built-in capabilities, and ultra-low latency. Apart from it, based on the end-user industry, the market is classified into BFSI, manufacturing, healthcare, energy and utilities, automotive and transportation, government and defense, residential, and others. Further, the others end-user is classified into education, agriculture, and smart building.

Global 5G IoT Market Share by End-User, 2020 (%)

Manufacturing Segment to Hold a Lucrative Share in the Global 5G IoT market

Amongst the end-user industry segment of the global 5G IoT market, the manufacturing segment is projected to grow at a substantial rate over the forecast period. The segmental growth of the market is accredited to the high demand for 5G IoT in the manufacturing industry. Manufacturers are adopting digitalization to reduce costs and improve ROI, while 5G IoT ensures new process efficiencies and cutting-edge technological developments, resulting in increased profitability and shop floor productivity. Cyber-physical systems and the IoT are projected to fuel Industry 4.0, which would support the use of 5G networks. This would enable efficiently, connected, and flexible factories of the future. Manufacturing companies are rapidly using IoT solutions to connect multiple value chain processes and integrate their business processes. The future 5G smart factory promises to provide a fully connected experience, allowing manufacturers to realize substantial benefits such as improved performance, operating economies, and better safety.

Regional Outlook

The global 5G IoT market is segmented into North America (the US and Canada), Europe (Germany, Spain, Italy, France, the UK, and the Rest of Europe), Asia-Pacific (India, China, Japan South Korea, and the Rest of Asia-Pacific), and the Rest of the World (the Middle East and Africa, and Latin America). The North American region is expected to dominate the market, followed by Europe and Asia-Pacific. This is due to several prominent IoT device and module manufacturers, software platform suppliers, and 5G network providers are based in North America. On the other side, as technology advances, incumbents in numerous industries, such as manufacturing and energy and utilities, are investing actively in cutting-edge technologies which propel the growth of the market during the forecast period. China, India, South Korea, Australia, Japan, and the Rest of the Asia-Pacific are the major economies primarily contributing to the growth of the 5G IoT market in the Asia-Pacific region. 

Global 5G IoT Market Growth, by Region 2021-2027

Asia-Pacific is projected to highest Contributor to the growth of the Global 5G IoT market

Asia-Pacific is anticipated to the fastest-growing region in the global 5G IoT market. In the region, China, South Korea, Japan, Singapore, and India are showing rapid progress. This is due to the launch of 5G networks by numerous South Korean and Chinese telecom operators, as well as the growing demand for high-speed networks in manufacturing industries. Apart from it, the rising deployment of 4G and 5G networks create opportunities for the implementation of 5G IoT services. Furthermore, the region has become a magnet for large-scale investments and company expansion potential. China's ZTE Corp., South Korea's Samsung, and China's Huawei are all aggressively investing in the impending 5G technology. Apart from it, government support such as the Indian government's "Make in India" program has built a technology center of excellence for enterprises and start-ups. In addition, the government's ambition to build 100 smart cities across the country will grow the regional market.

Market Players Outlook

The prominent players functioning in the global 5G IoT market include AT&T, Inc., Ericsson Inc., Affirmed Networks, Qualcomm Inc., Orange S.A., SAP SE, Verizon Enterprise Solutions, Inc., China Mobile Ltd., Huwaei Technologies Co. Ltd., ZTE Corp., and Vodaphone Group PLC, among others. These key manufacturers are adopting various strategies such as new product launches and approvals, mergers and acquisitions, partnerships and collaborations, and many others in order to thrive in a competitive environment. For instance, in June 2020, Vodafone Group Plc and Ford collaborated to explore the potential of 5G in manufacturing. By implementing Electrified Powertrain in Ford's Manufacturing Engineering (E: PriME) plant on Dunton Camp, Vodafone has been able to deploy a 5G mobile private network. Ford got benefits from Vodafone's 5G network to speed up the production of electric vehicles.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global 5G IoT market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.