5G IoT revenue to reach $8bn by 2025

Boom fuelled by value-added platform services, according to report

Trade

Image: Stockfresh

Total operator-billed revenue from 5G IoT connections will reach $8 billion by 2024, rising from $525 million in 2020, according to a new Juniper Research report: 5G Networks in IoT: Sector Analysis & Impact Assessment 2020-2025.

The report claimed that over the next five years, the automotive and smart cities sectors will be major drivers for 5G adoption. To operators, these 5G connections are valuable new revenue streams. It said that 5G IoT connections will not cannibalise existing operator connectivity revenue from current IoT technologies.

5G value-added services key for operators

The report urged operators to develop comprehensive value-added services to enable IoT service users to manage their 5G connections. It flagged tools such as network slicing and multi-access edge computing solutions as “essential to attract the highest spending IoT service users to use their 5G networks.”

It expects that by 2025, the automotive and smart cities sectors will account for 70% of all 5G IoT connections higher than anticipated levels of device support for 5G radios accelerating the uptake of 5G connectivity. Still, it claimed that the initial high pricing of 5G connectivity in the IoT sector would isolate all but high value IoT users.

“Management tools for the newly-enabled services are key for users managing large scale deployments,” said research author Andrew Knighton. “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.”

TechCentral Reporters

Read More: 5G Internet of Things Juniper Research networking value added