5G revenue from IoT connections to reach $8 billion by 2025
Operator-billed revenue from 5G IoT connections will reach $8 billion by the end of 2024, up from $525 million in 2020 -- growth of more than 1,400 percent in five years.
A new study from Juniper Research forecasts that 5G IoT connections will be considered as new connections that won't cannibalise existing operator connectivity revenue from current IoT technologies.
This means that these 5G connections will become a highly sought after revenue stream for service providers. The research urges operators to develop comprehensive value-added services to enable IoT service users to manage their 5G connections. Tools, such as network slicing and multi-access edge computing solutions, it forecasts, will be essential to attract the highest spending IoT service users to use their 5G networks.
The automotive and smart city sectors are forecast to account for account for 70 percent of all 5G IoT connections by 2025, with higher than anticipated levels of device support for 5G radios boosting the uptake of 5G connectivity.
Research author Andrew Knighton says, "Management tools for the newly-enabled services are key for users managing large scale deployments. We believe that only five percent 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."