5G IoT revenue forecasted to reach $8 billion by 2025

Smart city by Tumisu from Pixabay (Image credit: Tumisu from Pixabay)

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.

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.

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Rachael Sharpe

Rachael is a British journalist with 17 years experience in the publishing industry. Since launching www.digitalcameraworld.com, she’s been freelancing, and working for some of the world’s best-loved websites and magazines including T3.com and TechRadar.com and has also had a book, iPad for Photographers, published. A regular contributor at 5Gradar, Rachael is following the 5G market closely. Find out more at www.rachaelsharpe.com