A new study by Juniper Research predicts that total operator-billed revenue from 5G IoT connections will reach $8 billion by 2024, up from $525 million in 2020, growing at a compound average growth rate of 1,400 percent over the next five years. Juniper believes automotive and smart cities verticals will be the key growth drivers for 5G adoption over the next 5 years.
On the other hand, it has to be noted that some forecasts of IoT revenue for mobile and other wireless WAN suppliers has 5G representing quite a minority of revenues, perhaps on the order of only about $500 million by about 2025, with total mobile operator IoT revenues perhaps in the $4 billion to $5 billion range.
Importantly, Juniper suggests that basic device connectivity, though important, might not drive most of the revenue. Instead, services such as network slicing and edge computing solution, will be essential to attract the highest spending IoT service users to use their 5G networks.
The research forecasts that valued-added services will become crucial in the automotive and smart cities sectors. It also forecasts that these sectors would account for 70 percent of all 5G IoT connections by 2025.
IoT connections using 5G might represent about five percent of all 5G connections, but are likely to represent a strategically-important source of revenue, as 5G use cases and new revenue streams might turn on enterprise customers, not consumer users of 5G.
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