Global 5G IoT Market Anticipated to Generate a Revenue of $12,556.5 Million, Growing at a CAGR of 28.1% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
The global 5G IoT market is estimated to be valued at $12,556.5 million by 2028, surging from $1,450.5 million in 2020, at a noteworthy CAGR of 28.1%.
Covid-19 Impact on 5G IoT Market
In 2019, a novel coronavirus emerged having a huge social, economic, and political impact on businesses and industries all over the world. In 2020, the novel COVID-19 outbreak slowed the global 5G IoT market growth slightly owing to suspension of deployment of 5G spectrum across the world. However, with the COVID-19 epidemic, about two million patients were infected by April 2020, and in order to prevent the virus from spreading to medical personnel, remote treatments were required which were necessitated by utility of IoT technologies. Also, several government and enterprise initiatives with help of IoT solutions tried to mitigate the spread of virus. For instance, at the peak of Covid-19, Stasis, a Bengaluru start-up company, launched a cutting-edge patient monitoring technology that aids in handling the increasing demand for wards by arranging isolation wards. Moreover, 5G IoT could play a key role in the future by allowing doctors to perform remote surgeries and treatments without having to be physically there with the patient.
Global 5G IoT Market Insights
By 2030, the utility of Internet of Things (IoT) devices is expected to surpass 25 billion devices ranging from connected temperature sensors to self-driving cars. 5th Generation or 5G with its highly flexible architecture built to adapt to practically any use case in the IoT environment will aid the growth of 5G IoT industry. Beyond mobile telephony, mobile broadband and huge machine-to-machine communication, 5G systems will expand mobile communication services into new application domains. Moreover, the ever-growing consumer demand for high internet speed and proliferation IoT devices in industry setting form automotive to agriculture and pharmaceutical industry is expected to make operational processes efficient, enhance productivity, and improve customer service.
Standardization of IoT protocol is the key issue that is likely to impede the market growth in the short term. To enable communication among IoT-enabled devices to share data or establish an intelligent network, a common protocol and communication standard are necessary. Several organisations and associations are working to resolve this problem. For every IoT project, companies are now using proprietary Application Programming Interfaces (APIs) and solutions.
The growing application of augmented and virtual reality (AR/VR) technology will pave way for the production of fully replicated digital environments as well as the overlay of digital tools in ordinary settings. AR/VR is gaining acceptance in a variety of early use cases, including consumer gaming, industrial manufacturing, and medical services. 5G IoT solutions with its lower latency and faster speeds is expected to be a potential facilitator in growth of these technologies.
Global 5G IoT Market, Segmentation
The global 5G IoT market is segmented based on technology, end-use, and region.
The technology segment is further divided into enhanced mobile broadband (eMBB), ultra-reliable low-latency communication (URLLC), and massive machine-type communication (mMTC). The mMTC sub-segment of the global 5G IoT market value is projected to surpass $3,057.0 million by 2028. Technological advancements, rising demand for smart homes, smart cities, smart manufacturing, and smart factories, among other things, are all contributing to the segment’s market growth. Moreover, Qualcomm Technology, a semiconductor company and JLC Infrastructure, an asset management firm, partnered with IGNITE cities, U.S. based consulting firm, in June 2020, to develop and deliver a suite of smart and connected technology solutions to meet the needs of customers in a variety of industries, including industrial, commercial, municipal, and residential, as well as serve as an accelerator for smart city projects.
Based on end-use, the 5G IoT market has been sub-segmented into manufacturing, transport & logistics, healthcare, construction, automotive, and others of which the healthcare is projected to generate a revenue of $1,934.4 million by 2028, with the fastest compound annual growth rate of 29.3% during the forecast period. The widespread deployment of smart monitoring systems and IoT in the healthcare sector is driving the industry's growth. The growing necessity for reliable communication systems and patient safety measures enhances the implementation of IoT in this industry, resulting in increased demand for 5G IoT solutions.
The 5G IoT market growth for the North America region is projected to be substantial over the forecast period. This market generated a revenue of $487.8 million in 2020 and is further projected to reach up to $4,079.6 million by 2028. The majority of mobile operators in the United States, such as AT&T, Verizon, and T-Mobile, have rolled out 5G technology in the majority of regions, and companies in the region are also working on broad deployment of NarrowBand Internet of Things (NB-IoT) networks. The NB-IoT network was launched in the United States by AT&T in April 2019. This network is projected to provide a slew of IoT connections, and it's a significant step toward huge IoT and 5G deployment.
Top 10 Major Key Players in the Global 5G IoT Market are -
- Sierra Wireless
- Fibocom Wireless
- Huawei Technologies Co Ltd.
- Sunsea AIoT
- Quectel Wireless
- Thales Group
- Rolling Wireless
The 5G IoT market is a consolidated industry, with only a few major firms.
In June 2020, Vodafone, a telecom company and Ford, automotive manufacturer, developed the potential application of 5G in manufacturing. By executing Electrified Powertrain in Ford's plant in Colorado, Vodafone would be able to deploy a 5G mobile private network. This is likely to benefit Ford from Vodafone's 5G network to speed up the production of electric vehicles.
Along with company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global 5G IoT Market:
- Bargaining Power of Suppliers: There are currently a significant number of suppliers selling 5G IoT module core components in the case of 5G IoTs. Furthermore, as smart and connected physical components become more common, traditional primary component suppliers' bargaining leverage will dwindle with time.
Thus, the bargaining power of the suppliers is low.
- Bargaining Power of Buyers: IoT goods will make it more difficult for buyers to bargain. This is because the focus of competition will be on product differentiation rather than price. Understanding the value of 5G IoT products to customers will enable businesses to segment customers, personalize products, establish prices, and deliver value-added services. Furthermore, getting prior records and product consumption will increase the cost of transferring to new suppliers.
Thus, the bargaining power of the buyers is low.
- Threat of New Entrants: In the 5G IoT arena, newcomers will confront a plethora of new challenges including the high fixed costs of extremely sophisticated product design, embedded technology, and numerous layers of new IT infrastructure. Broadening product definitions and efforts of existing players to improve products and services may also result in more entry barriers. These considerations will severely limit the entry of new entrants.
Thus, the threat of the new entrants is low
- Threat of Substitutes: 5G IoT products will encounter less competition from conventional products due to their customization, superior performance, and consumer value. Moreover, the risk for product substitution will be decreased while raising the industry profitability and growth. However, enhancement in product capabilities of traditional products may pose substitution concerns in the industry.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: The competition among players for 5G IoT goods will reduce as new possibilities for product enhancement and value-based services emerge. It will enable businesses to create products that are more specifically customized to specific market niches. It also allows the organization to build more customized products for specific customers, as well as improve product differentiation and pricing models.
Therefore, competitive rivalry in the market is low.