- Valued-added services will become crucial in the automotive and smart cities sectors
- Tools like network slicing and multi-access edge computing solutions will be required to attract the highest spending IoT service users to use their 5G networks
The total operator-billed revenue from 5G IoT connections will reach $8 billion by 2024 from $525 million in 2020 as per a study by Juniper Research. This is a growth of over 1400 per cent over the next five years. The report also said that the automotive and smart city sectors will be the key growth drivers for 5G adoption over the next five years.
The research titled “5G Networks in IoT: Sector Analysis and Impact Assessment 2020-2025″, anticipated that revenue from these 5G connections will be a highly sought-after new revenue stream for operators. It added that ” 5G IoT connections will be considered as new connections that will not cannibalise existing operator connectivity revenue from current IoT technologies.”
Valued-added services will become crucial
Research author Andrew Knighton said, “Management tools for the newly-enabled services are key for users managing large scale deployments. We believe that only five per cent 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”.
The research asked operators to develop comprehensive value-added services to enable IoT service users to manage their 5G connections. It also forecasted that tools like network slicing and multi-access edge computing solutions will be essential to attract the highest spending IoT service users to use their 5G networks.
As per the report, valued-added services will become crucial in the automotive and smart cities sectors. These sectors will become provide for 70 per cent of all 5G IoT connections by 2025. The research claimed that the initial high pricing of 5G connectivity in the IoT sector will dissuade everyone except high-value IoT users.
