According to the latest research from Strategy Analytics, 5G comprised less than 1% of IoT connections in 2020 but will rise to 40% of all the overall connections by 2030, as highlighted in its most recent IoT Market Forecast and Analysis report. The majority of 5G connections will not be significant until 2026, with 4G remaining the dominant technology over the forecast period.
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Figure 1. Cellular IoT Connections Mix (Photo: Business Wire)
2020 witnessed slower than expected growth due to the Covid-19 pandemic, with a slight increase in overall connections. Strategy Analytics expects similar connection growth rates in 2021, with the pandemic highlighting the need for investment in telehealth, especially remote patient monitoring, and diagnostics.
Andrew Brown, Executive Director of Enterprise and IoT Research at Strategy Analytics, said “The adoption of 5G will likely happen in different stages in the largest markets, with eMBB (enhanced Mobile Broadband) reaching mass adoption first, uRLLC (ultra-Reliable and Low Latency Communication) gaining traction soon afterward, and mMTC (massive Machine Type Communication) showing the longest tail. Adoption will be determined not only by application needs, but by the availability of 5G chipsets, the speed and coverage of 5G network deployments, as well as the evolution of regulations. Even as 5G develops, 4G will continue to co-exist, provide extensive coverage at lower cost and remain very important in the IoT”
David Kerr, Senior Vice President of the Global Wireless Practice at Strategy Analytics added, “The tipping point for 5G in IoT occurs when support for mMTC, a price decline in hardware and widespread network coverage, sees NB IoT and Cat M folded into 5G standards and devices. For this reason, we think the pivot to 5G in IoT will be a gradual one, rather than a dramatic shift.”
The full reports: IoT Market Forecast and Analysis, IoT Cellular Connections by Air Interface by Region and IoT Cellular Connections by Air Interface by Vertical are published by Strategy Analytics IoT Strategies (IoT) service, details of which can be found here: https://www.strategyanalytics.com/access-services/enterprise/iot/about-iot
About Strategy Analytics
Strategy Analytics, Inc. is a global leader in supporting companies across their planning lifecycle through a range of customized market research solutions. Our multi-discipline capabilities include: industry research advisory services, customer insights, user experience design and innovation expertise, mobile consumer on-device tracking and business-to-business consulting competencies. With domain expertise in: smart devices, connected cars, intelligent home, service providers, IoT, strategic components and media, Strategy Analytics can develop a solution to meet your specific planning need. For more information, visit us at www.strategyanalytics.com
Source: Strategy Analytics, Inc.
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