• In September 2024, ZTE Corporation collaborated with the Suzhou Branch of China Telecom to deploy an advanced 5G IoT integrated network solution at The First Affiliated Hospital of Soochow University. This innovation-driven partnership enhances the hospital’s digital infrastructure, supporting smart healthcare operations through high-speed, low-latency connectivity.

• In February 2024, Wipro Limited joined forces with Nokia Corporation to unveil a 5G-powered private wireless network solution tailored for enterprise users. This strategic collaboration supports the rapid scaling of digital transformation initiatives, delivering secure, high-performance connectivity across business environments.

In this report, the 5G IoT Market has been segmented by Component, Enterprise Size, Application, End User, and Geography.

5G IoT Market, Segmentation by Component

The 5G IoT Market has been segmented by Component into Solutions-Hardware, Platform, and Connectivity, and Services.

Solutions-Hardware
The hardware segment of the 5G IoT market plays a crucial role by supporting enhanced connectivity and processing capabilities. This includes sensors, gateways, and network infrastructure essential for 5G deployment. Hardware currently accounts for approximately 40% of the overall market, owing to the rapid expansion of smart cities and industrial automation. With growing demand for real-time data processing, this segment is witnessing steady growth.

Platform
The platform segment provides the backbone for managing and analyzing vast amounts of IoT data over 5G networks. These platforms enable device management, data analytics, and application enablement, making them essential for seamless IoT integration. It holds about 30% of the market share, driven by the rising adoption of edge computing and AI-powered analytics to boost operational efficiency.

Connectivity
Connectivity solutions are central to ensuring uninterrupted communication between IoT devices via 5G networks. This includes SIM cards, modems, and network protocols optimized for low-latency, high-bandwidth communication. Representing roughly 20% of the market, this segment is growing due to increasing demand for autonomous vehicles, smart wearables, and remote monitoring systems.

Services
The services segment includes consulting, deployment, and maintenance services that ensure smooth implementation and functioning of 5G IoT systems. It captures around 10% of the market, primarily fueled by the need for expert support in integrating complex IoT ecosystems. With enterprises focusing on digital transformation, this segment is expected to expand further.

5G IoT Market, Segmentation by Enterprise Size

The 5G IoT Market has been segmented by Enterprise Size into Large Enterprises and Small & Medium Enterprises.

Large Enterprises
Large enterprises are leading adopters of 5G IoT technologies due to their vast infrastructure and higher investment capacity. These organizations leverage 5G-enabled IoT for smart manufacturing, remote operations, and predictive maintenance. This segment dominates with nearly 65% of the total market share, driven by the need for high-speed, low-latency networks to support complex, data-intensive applications.

Small & Medium Enterprises
Small and medium enterprises (SMEs) are increasingly adopting 5G IoT solutions to enhance efficiency, agility, and competitive advantage. Though currently accounting for about 35% of the market, the SME segment is witnessing rapid growth, fueled by the affordability of cloud-based IoT platforms, government support, and the increasing availability of plug-and-play 5G solutions tailored to their scale and needs.

5G IoT Market, Segmentation by Application

The 5G IoT Market has been segmented by Application into Supply Chain Analytics, Risk Analytics, Spend Analytics, Demand Forecasting, Contract Management, and Vendor Management.

Supply Chain Analytics
Supply chain analytics powered by 5G IoT enables real-time tracking, visibility, and performance optimization across the logistics network. It accounts for around 28% of the application market, driven by the increasing demand for end-to-end supply chain visibility, predictive logistics, and inventory optimization. Enhanced connectivity and low latency offered by 5G allow for faster and smarter decision-making in global operations.

Risk Analytics
Risk analytics is gaining momentum as enterprises adopt 5G IoT to identify, evaluate, and mitigate operational and cybersecurity threats. This segment represents approximately 18% of the market, benefiting from the ability to monitor assets and environments in real time. The integration of AI-driven threat detection with 5G IoT networks improves responsiveness and minimizes downtime risks.

Spend Analytics
Spend analytics helps organizations gain insights into procurement patterns and optimize cost structures. With 5G IoT, businesses can automate data collection from a variety of sources, enhancing the accuracy of financial analysis. This segment holds nearly 15% of the market, supported by the push toward data-driven budgeting and strategic sourcing decisions.

Demand Forecasting
Demand forecasting uses 5G IoT to analyze real-time consumer behavior and inventory data, enabling accurate predictions and agile response strategies. Holding about 14% of the market, it benefits from 5G’s ability to process large volumes of sensor and transactional data. Industries like retail and manufacturing are leading in adopting this technology to reduce waste and improve customer satisfaction.

Contract Management
Contract management applications utilize 5G IoT to automate compliance tracking, lifecycle monitoring, and document control. This segment contributes around 13% of the application market and is growing as organizations seek to streamline complex contract workflows. The connectivity enhancements offered by 5G enable secure access and real-time updates across distributed teams.

Vendor Management
Vendor management leverages 5G IoT for improved performance tracking, risk assessment, and collaboration with suppliers. Accounting for approximately 12% of the market, this segment is growing with the increasing reliance on multi-tier vendor ecosystems. 5G enables fast data exchange, fostering better supplier relationships and accountability.

5G IoT Market, Segmentation by End User

The 5G IoT Market has been segmented by End User into Manufacturing, Healthcare, Energy & Utilities, Automotive & Transportation, Supply Chain & Logistics, Government & Public Safety, Agriculture, and Others.

Manufacturing
Manufacturing is a dominant end user of 5G IoT, representing nearly 30% of the market. Factories are using smart sensors, predictive maintenance, and automated robotics powered by 5G to boost productivity and reduce downtime. The low latency and ultra-reliable connectivity make 5G ideal for industrial automation and real-time monitoring.

Healthcare
Healthcare organizations are leveraging 5G IoT for remote diagnostics, patient monitoring, and robotic surgeries. Holding around 16% of the market, the segment is expanding rapidly due to rising demand for telehealth, AI-driven diagnostics, and IoT-enabled medical devices capable of real-time data transmission.

Energy & Utilities
Energy and utility companies use 5G IoT for smart grids, asset monitoring, and predictive energy management. This segment accounts for approximately 14% of the market, driven by the need for operational efficiency and sustainability. 5G enhances real-time data sharing across decentralized assets and improves response to outages.

Automotive & Transportation
The automotive and transportation segment benefits from 5G IoT through connected vehicles, V2X communication, and autonomous driving systems. It contributes about 12% of the market, with growing applications in fleet management, traffic optimization, and safety systems enhanced by real-time analytics.

Supply Chain & Logistics
Supply chain and logistics firms utilize 5G IoT for real-time tracking, inventory automation, and demand forecasting. Making up nearly 10% of the end-user market, this segment is growing due to increased demand for last-mile delivery optimization and transparent logistics networks.

Government & Public Safety
The government and public safety segment, which includes smart city infrastructure, emergency response, and public surveillance, holds about 8% of the market. 5G IoT enables real-time communication and incident detection, making urban areas safer and more responsive.

Agriculture
Agriculture uses 5G IoT for precision farming, automated irrigation, and livestock monitoring. Accounting for around 6%, the segment is expanding as farmers adopt smart sensors and drone technologies for data-driven decision-making and yield improvement.

Others
The others category includes sectors such as retail, education, and hospitality, each adopting 5G IoT at a smaller scale. Collectively, they contribute the remaining 4% of the market. These sectors use 5G for applications like inventory control, AR/VR experiences, and real-time customer analytics.

5G IoT Market, Segmentation by Geography

In this report, the 5G IoT Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

5G IoT Market Share (%), by Geographical Region

North America
North America holds the largest share in the 5G IoT market, accounting for approximately 35%. This dominance is attributed to early 5G deployment, strong tech infrastructure, and widespread adoption of IoT in industries like healthcare, automotive, and manufacturing. The U.S. is particularly driving growth through continuous investments in smart cities and edge computing.

Europe
Europe contributes around 25% to the 5G IoT market. The region is focusing heavily on digital transformation, green energy, and smart infrastructure projects. Countries such as Germany, the UK, and France are leading in adopting 5G-enabled industrial IoT for smart factories and urban mobility solutions.

Asia Pacific
Asia Pacific is the fastest-growing region in the 5G IoT market, currently holding about 22%. Rapid urbanization, strong government backing, and large-scale IoT rollouts in countries like China, Japan, and South Korea are driving adoption. The focus here is on smart manufacturing, agriculture tech, and next-gen transportation systems.

Middle East and Africa
Middle East and Africa represent a smaller yet steadily growing portion, contributing roughly 10% to the market. Governments are investing in smart city initiatives and 5G infrastructure, particularly in the UAE, Saudi Arabia, and South Africa. The region is also exploring 5G IoT use cases in oil & gas, public safety, and remote healthcare.

Latin America
Latin America holds about 8% of the 5G IoT market. Countries like Brazil and Mexico are gradually implementing 5G infrastructure to support sectors like transportation, agriculture, and public services. Despite challenges such as digital divide and regulatory barriers, the region is showing promising growth in 5G-powered IoT adoption.

This report provides an in depth analysis of various factors that impact the dynamics of 5G IoT Market. These factors include; Market Drivers, Restraints and Opportunities Analysis.

Drivers, Restraints and Opportunity Analysis

Drivers

• Speed and bandwidth capabilities
• Increasing demand for connectivity solutions
• Rise of smart cities initiatives

• Enhanced network coverage and efficiency - Enhanced network coverage and efficiency is a key driver of the 5G IoT market, as 5G technology offers significantly higher data speeds, low latency, and massive device connectivity compared to previous generations. These advancements are critical for supporting complex and data-intensive IoT applications across sectors such as manufacturing, transportation, healthcare, and smart cities. With broader and more reliable coverage, 5G networks enable seamless real-time communication, allowing devices to operate with greater precision and responsiveness.

  Improved efficiency in terms of energy consumption and network scalability further boosts the deployment of 5G IoT solutions. The ability to connect billions of IoT devices without congestion enhances operational effectiveness and supports the development of new services such as autonomous vehicles, remote surgeries, and intelligent infrastructure. As industries increasingly depend on automation and connectivity, enhanced 5G network capabilities are playing a pivotal role in accelerating global IoT adoption.

Restraints

• Security and privacy concerns
• Compatibility and standardization challenges

• Regulatory and spectrum allocation issues - Regulatory and spectrum allocation issues are significant restraints in the 5G IoT market, as inconsistent policies and limited availability of licensed spectrum can delay infrastructure deployment and market expansion. Effective implementation of 5G requires access to low-, mid-, and high-band frequencies, which must be carefully managed by regulatory authorities to avoid interference and ensure optimal performance. In many regions, the lack of harmonized spectrum policies creates uncertainty for telecom providers and hinders investment planning.

  Additionally, delays in auction processes, high licensing costs, and fragmented regulatory frameworks can slow the rollout of 5G networks, particularly in developing economies. Without clear guidelines and equitable access to spectrum, network operators may face challenges in scaling 5G IoT applications across industries. Addressing these regulatory hurdles through global coordination, transparent licensing models, and public-private collaboration is essential to unlocking the full potential of 5G-enabled IoT ecosystems.

Opportunities

• Expansion of industrial IoT applications
• Emergence of edge computing technologies
• Integration with AI and machine learning

• Growth in autonomous vehicle systems - Growth in autonomous vehicle systems presents a transformative opportunity for the 5G IoT market, as these vehicles rely on ultra-low latency, high-speed communication, and real-time data exchange to function safely and efficiently. 5G networks enable seamless connectivity between vehicles, infrastructure, and cloud platforms, supporting crucial applications such as vehicle-to-everything (V2X) communication, collision avoidance, and dynamic route optimization. These capabilities are vital for enabling autonomous driving and intelligent transportation systems.

  As the automotive industry accelerates investments in self-driving technology, the integration of 5G IoT solutions is becoming essential for ensuring reliability, safety, and scalability. Enhanced network capabilities allow autonomous vehicles to process and respond to data from various sensors and connected devices with minimal delay. This real-time responsiveness is key to improving road safety, traffic flow, and urban mobility. The rising adoption of autonomous systems is expected to drive long-term demand for 5G-powered IoT infrastructure worldwide.

Key players in 5G IoT Market include:

• Qualcomm
• Ericsson
• Nokia
• Huawei
• Intel
• Verizon Communications
• AT&T
• Cisco Systems
• Samsung Electronics
• Telefonaktiebolaget LM Ericsson

In this report, the profile of each market player provides following information:

• Company Overview and Product Portfolio
• Market Share Analysis
• Key Developments
• Financial Overview
• Strategies
• Company SWOT Analysis