On the back of growth from the automotive and smart cities sectors, revenues for 5G internet of things (IoT) connections is forecast to grow substantially in the next five years, according to a new study from Juniper Research.
Revenues will reach $8 billion by 2025, rising from $525 million this year with growth expanding to more than 1,400% during this period. This is based on 5G IoT connections that are new connections and will not cannibalize existing operator connectivity revenue from current IoT technologies.
The research forecasts that tools such as network slicing and multi-access edge computing solutions will attract spending IoT service users to 5G networks. Additionally, value-added services would be critical in the automotive and smart cities sector and Juniper forecasts these sectors will account for 70% of all 5G IoT connections by 2025 with higher than anticipated levels of device support for 5G radios accelerating the uptake of 5G connectivity.
“Management tools for the newly-enabled services are key for users managing large scale deployments,” said Andrew Knighton, researcher at Juniper. “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.”