The global 5G IoT market is expected to reach $89.42bn by 2030, registering a CAGR of 50.2% from 2023 to 2030, according to Grand View Research.

The growth can be ascribed to improved dependability, decreased latency, expanded capacity and network speeds of 5G IoT. It may also automate corporate operations and enable end-to-end communications.

Manufacturers are aggressively adopting technologies such as IoT, artificial intelligence (AI), machine learning (ML), cloud computing and analytics into their manufacturing facilities and operations as part of this revolution. This has increased the demand for 5G technology with low latency and greater speeds for the successful use of wearables, autonomous robotics and virtual reality (VR) headsets.

The hardware segment dominated the market in 2022 owing to the growing demand for 5G connectivity for industrial IoT applications and the aggressive investments by module or component manufacturers in the research and development of 5G-enabled devices.

The massive IoT grew in 2022 as it facilitates connectivity between a large number of low-power IoT devices that require lower data rates and long battery life.

The 5G standalone segment is projected to grow at the highest CAGR over the forecast period owing to several benefits over 5G non-standalone (NSA) networks, including better network performance, lower latency and improved security.

The smart cities segment is expected to grow significantly over the forecast period owing to the increasing deployment of connected sensors and devices, including smart lighting, traffic sensors and waste management systems in smart cities.

Asia Pacific dominated the regional market in 2022. The spread of 5G mobile connections throughout the region is anticipated to contribute significantly to driving the growth.

Private 5G networks are expected to play a significant role in the growth of the 5G IoT industry. These networks provide dedicated high-speed connectivity, offering greater reliability, security and control compared with public networks. In particular, private 5G networks will be critical for industries such as manufacturing, logistics and healthcare, where high-bandwidth, low-latency connectivity is essential for real-time applications and services. Moreover, private 5G networks can enable automation and robotics, allowing for more efficient and cost-effective operations.

The increasing proliferation of 5G networks that are being deployed by telecommunication companies across the globe is a significant factor driving market growth. As 5G networks become more widely available, businesses and consumers will increasingly adopt 5G-enabled IoT devices, leading to further investment in this market.

Additionally, the integration of AI and ML with 5G IoT devices is expected to fuel investment, as these technologies can enable predictive analytics and automated decision-making, further enhancing the capabilities of IoT systems.

The Covid-19 pandemic positively impacted the market. The pandemic highlighted the importance of connectivity and the need for robust and reliable networks. As countries emerge from the pandemic and the rollout of 5G infrastructure resumes, demand for IoT devices is expected to increase. Additionally, the development of new 5G-enabled applications, such as remote healthcare and autonomous vehicles, could further drive market growth.