A new study from Juniper Research, released today, found that total operator-billed revenue from 5G IoT connections will reach $8 billion by 2024; rising from $525 million in 2020. This is a huge growth of over 1,400% over the next 5 years. Key findings in the report identified the automotive and smart cities sectors as key growth drivers for 5G adoption, over the next 5 years.
#5G #IoT revenue to reach $8bn by 2025, fuelled by valued-added platform services#Automotive and #SmartCities will be key growth drivers for 5G adoption over the next 5 years for this highly sought-after new revenue stream for #OperatorsRead more: https://t.co/ppt284HI14 pic.twitter.com/e5Rl8GaL0QFebruary 18, 2020
The research, 5G Networks in IoT: Sector Analysis & Impact Assessment 2020-2025, anticipated that revenue from these 5G connections is a highly sought-after new revenue stream for operators. Furthermore, it forecasts that 5G IoT connections must be considered as new connections that will not cannibalise existing operator connectivity revenue from current IoT technologies.
Tools, such as network slicing and multi-access edge computing solutions, will be essential for operators, in order to attract the highest spending IoT service users for their 5G networks, says the report. In the research, operators are urged to develop value-added services to enable IoT service users to manage their 5G connections.
5G automotive & smart cities
The research forecasts that valued-added services will become crucial in the automotive and smart cities sectors and that these these sectors would account for 70% of all 5G IoT connections by 2025.
Claiming that the initial high pricing of 5G connectivity in the IoT sector would dissuade all but high value IoT users, the research encourages operators to roll out holistic network management tools that complement the enhanced capabilities of 5G networks for IoT capabilities.
“Management tools for the newly-enabled services are key for users managing large scale deployments. We believe that only 5% of 5G connections will be attributable to the IoT, but as these are newly enabled connections, operators must view them as essential to securing a return on their 5G investment,” said research author, Andrew Knighton.