5G IoT Market Report 2025

The 5G IoT market size has grown exponentially in recent years. It will grow from $12.13 billion in 2024 to $20.03 billion in 2025 at a compound annual growth rate (CAGR) of 65.2%. The growth in the historic period can be attributed to mobile network evolution, rise of smart devices, surge in data generation, governmental support and initiatives, global economic conditions.

The 5G IoT market size is expected to see exponential growth in the next few years. It will grow to $161.75 billion in 2029 at a compound annual growth rate (CAGR) of 68.6%. The growth in the forecast period can be attributed to increased IoT adoption, smart manufacturing, global connectivity demand, digital transformation initiatives, 5G network infrastructure investments. Major trends in the forecast period include integrating artificial intelligence, customized virtual networks, 5G-enabled smart cities, integrating blockchain technology, ecosystem collaboration.

The anticipated surge in mobile network data traffic is expected to be a significant driver for the growth of the 5G IoT market in the coming years. 5G IoT plays a crucial role in supporting the handling of large volumes of mobile network data traffic and accommodating a substantial number of users, including IoT devices. The expansion of 5G IoT is facilitated by the increased demand for fast, reliable, low-latency, and secure connections in the face of rising mobile network data traffic. Notably, a report from Ericsson, a telecommunications company based in Sweden, revealed a 40% global increase in data traffic on mobile networks between Q1 2021 and Q1 2022. Additionally, there was a 10% quarter-over-quarter growth in mobile network data traffic between Q4 2021 and Q1 2022. Consequently, the upsurge in mobile network data traffic serves as a significant catalyst for the growth of the 5G IoT market.

The swift adoption of Industry 4 is anticipated to drive the growth of the 5G IoT market in the coming years. Often referred to as the Fourth Industrial Revolution, Industry 4 encompasses the integration of digital technology, data interchange, and automation within manufacturing and industrial processes. This framework utilizes 5G IoT for real-time communication, data sharing, and seamless connectivity, facilitating increased automation and efficiency through data-driven insights. For example, according to the Central Indiana Corporate Partnership, a US-based non-profit organization, interest in adopting Industry 4 technology has surged, with 58% of companies in 2022 having successfully implemented or piloted an Industry 4 technology, compared to 43% in 2021. Thus, the rapid adoption of Industry 4 is fueling the growth of the 5G IoT market.

Technological advancements stand out as a prominent trend gaining traction in the 5G IoT market. Leading companies in this market are actively engaged in the development of cutting-edge technologies and software to maintain their competitive positions. As an illustration, in February 2022, Radisys Corporation, a US-based company specializing in open telecom solutions, introduced the Connect RAN 5G IoT software stack. This software stack offers a comprehensive suite of 5G Radio Access Network (RAN) technology. Noteworthy features of Radisys' Connect RAN 5G IoT software include support for a diverse range of IoT use cases, capabilities for metering and asset tracking, ultra-low latency to meet the demands of time-sensitive industrial deployments, support for video surveillance, and adaptability to wearable deployments. Furthermore, the Connect RAN 5G IoT software by Radisys is designed to facilitate a rapid time-to-market for new use cases while requiring less initial capital expenditure (CAPEX) investment. This exemplifies the commitment of major market players to push the boundaries of technological innovation in the 5G IoT space.

Prominent companies in the 5G IoT market are strategically focusing on innovative products, such as Radio Access Network (RAN) software, to better address the evolving needs of their existing consumer base. RAN software encompasses the software components responsible for overseeing and managing radio communications that link mobile devices (e.g., smartphones) with the cellular network. As an example, in June 2023, Telefonaktiebolaget LM Ericsson, a telecommunications company based in Sweden and known for its 5G IoT services, introduced Ericsson Reduced Capability (RedCap). RedCap by Ericsson is designed to establish an ecosystem for new types of devices capable of connecting to 5G networks. The expansion of the New Radio (NR) device ecosystem, featuring additional capabilities, is expected to drive the proliferation of diverse 5G use cases. RedCap enables connectivity for wearables that only have LTE capabilities, promoting more efficient methods to minimize device energy consumption. Specifically designed for low-complexity devices such as augmented reality (AR) smartwatches, video surveillance devices, industrial sensors, and smart energy systems, Ericsson RedCap employs energy-saving techniques surpassing those of traditional LTE low categories. This innovative approach has already generated interest within the wearable Original Equipment Manufacturer (OEM) sector.

In February 2022, International Business Machines Corporation (IBM), a leading US-based technology corporation specializing in offering 5G cloud computing services, completed the acquisition of Sentaca for an undisclosed sum. This acquisition serves to broaden IBM's hybrid cloud consulting capabilities, offering essential expertise tailored to assist communications service providers (CSPs) and media conglomerates in adapting, innovating, and undergoing transformative changes across diverse cloud platforms. Sentaca, also based in the US, is a company specializing in providing telco consulting services, solutions, and expertise in the realm of 5G Internet of Things (IoT).

Major companies operating in the 5G IoT market include Samsung Electronics Co. Ltd., China Mobile Ltd., Verizon Communications Inc., Deutsche Telekom AG, AT&T Inc., Huawei Technologies Co. Ltd., T-Mobile International AG, China Telecom Corporation Limited, LG Electronics Inc., Intel Technology Corporation, Cisco Systems Inc., NTT Docomo Inc., China Unicom Limited, Vodafone Group plc, Orange S.A., Telefonica S.A, Qualcomm Technologies Inc., Fujitsu Ltd., BT Group plc, Ericsson AB, Nokia Corporation, NEC Corporation, Telstra Corporation Limited, Thales Group, KT Corporation, TIM S.p.A., ZTE Corporation, SK Telecom Co. Ltd., Swisscom AG, Singtel Optus Pty Limited.

North America was the largest region in the 5G IoT market in 2024. The regions covered in the 5g iot market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the 5g iot market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

5G IoT denotes a service that communicates seamlessly across all frequency bands, encompassing both local area networks and wide area networks (WAN), while maintaining optimal trade-offs in terms of speed, latency, and cost. The purpose of 5G IoT is to provide faster, more stable, and secure connectivity, driving advancements in various applications such as self-driving cars, smart grids for renewable energy, and AI-enabled robots deployed in factory settings.

The key components in 5G IoT include solutions, hardware, software, platforms, and services. Hardware encompasses tangible, physical elements of a computer system, including IoT modules, IoT gateways, modem cards, and 5G SIMs. The major network types are 5G standalone (SA) and 5G non-standalone (NSA). Enterprises adopting 5G IoT solutions come in various sizes, ranging from large enterprises to small and medium enterprises. Major end-users benefiting from 5G IoT applications span across industries such as manufacturing, healthcare, energy and utilities, automotive and transportation, supply chain and logistics, government and public safety, agriculture, and others.

The 5G IoT market research report is one of a series of new reports that provides 5G IoT market statistics, including 5G IoT industry, 5G IoT market size, regional shares, competitors with 5G IoT market share, detailed 5G IoT market segments, market trends, and opportunities, and any further data you may need to thrive in the 5G IoT industry. This 5G IoT market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The 5G IoT market includes revenues earned by entities by providing enterprise and high-speed industrial networking services, mobile computing, video broadcasting, fixed wireless access (FWA). The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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