5G is slowly making its way onto the market, and researchers anticipate that it will account for 40 percent of all connections in 2030, according to a new study from Strategy Analytics. A driving force behind the IoT industry’s meteoric rise is Internet availability and ease of use. But in many situations, that connectivity depends on the user connecting those devices to the Internet through other networks.
5G promises to enhance the IoT market by providing direct access to the Internet.
While 5G is often touted as the technology of the day, the numbers paint a very different picture. It’s going to take over the world, but for now, 5G comprises less than 1% of IoT connections, as of 2020. On the other hand, it’s expected to account for 40 percent of all connections by 2030.
“The tipping point for 5G in IoT occurs when support for mMTC (massive Machine Type Communication), a price decline in hardware and widespread network coverage, sees NB (Narrowband) IoT and Cat M (LTE Cat) folded into 5G standards and devices,” said David Kerr, senior vice president of the Global Wireless Practice at Strategy Analytics. “For this reason, we think the pivot to 5G in IoT will be a gradual one, rather than a dramatic shift.”
The IoT Market Forecast and Analysis report also points out that the IoT’s expansion rate was a little slow in 2020. The same slower rate of expansion will likely continue in 2021.
The latest projections show that, at least when it comes to IoT and full smart home solutions, North America’s market is expected to reach a compound annual growth rate (CAGR) of 14.1 percent by 2024, and Europe shows an even more considerable increase of up to 20%.