5G IoT is revolutionizing industries and changing the way we live. With faster speeds and improved connectivity, 5G is revolutionizing new technologies and applications that were previously impossible.
According to a new report on the 5G IoT market, experts project the market for 5G IoT to be worth over $17.7 billion and to grow at a CAGR of over 45% in the next seven years. The increasing adoption of IoT devices, the growing demand for high-speed and low-latency communication, and the ever-increasing use of 5G in various industries are the major factors driving the market’s growth.
Additionally, the increasing investments in 5G infrastructure and focus on smart cities and smart homes may contribute to the market’s growth.
Market Segmentation Analysis
Industry experts say that 5G IoT contains diverse segments based on various factors such as components, applications, and end-use. According to the report, the market has two component-based categories.
They include solutions and connectivity. The solutions segment includes software, services, and platforms, while the connectivity segment includes hardware and infrastructure. The software segment had more revenue in 2022, accounting for the lion’s share of the 5G IoT market.
In addition, according to the report, the adoption of IoT devices and the growing demand for fast and effective communication is the prime driver of growth in this category. The other major driving factors for the software segment are the metaverse and the increasing use of wearables.
According to the report, the 5G IoT market can also be segmented based on device range. The device range segments are short-range and long-range. The short-range category has the lion’s share in this category due to the increased demand for short-range connectivity.
This connectivity drives the increasing adoption of IoT devices in various industries, such as manufacturing, healthcare, and transportation.
Additionally, the increasing use of 5G in smart cities and smart homes will likely contribute to the growth of this segment. The short-range category includes devices such as Wi-Fi, Zigbee, and Bluetooth, which users deploy for local connectivity.
The report also segments the 5G IoT market based on architecture. The architecture segments are 5G NR standalone and 5G NR non-standalone. According to the report, the analysts predict that the 5G NR non-standalone segment to have the largest market share in 2023.
This growth is due to the rising demand for reliable and low-cost communication. The 5G NR non-standalone segment uses an existing 4G LTE network as a control plane and adds a 5G carrier to provide faster speeds and improved connectivity.
Analysts expect this segment to be the most widely adopted in the short term, as industries can implement quickly and at a lower cost than the 5G NR standalone segment.
The user segments in 5G IoT are B2B (business-to-business) and B2C (business-to-consumer). According to the report, they expect the B2B segment to have the lion’s share by 2030. This prediction is due to the rising demand for businesses to predict efficiently using AI and machine learning.
Businesses are increasingly using IoT devices and 5G technology to improve their operations, reduce costs, and increase their competitiveness. The B2B segment includes industries such as manufacturing, healthcare, transportation, and others. These industries will be the prime driver of 5G IoT adoption at a faster rate than the B2C segment.