The global 5G internet of things (IoT) market is set to explode from US$2.6 billion in 2021 to US$40.2 billion by 2026, growing at a Compound Annual Growth Rate (CAGR) of 73 percent, due to increasing demand for smart grid, telemedicine, connected cars and industrial automation, according to a new report by Research and Markets. The most growth will be seen in managed services, healthcare use cases and in the Asia Pacific (APAC) region.
The managed services segment is expected to see the highest growth as companies outsource their networks to improve network operations and reduce the expenses of managing products, processes, people and infrastructure.
“Managed services connect people across all business functions and regions and provide them with relevant information related to intelligent designs, operations and maintenance, as well as offering high-quality services and safety,” the report said.
Another highlight of the report was the growth of the healthcare segment, which will be the highest in terms of CAGR during the forecast period.
“Demand for 5G IoT in the healthcare industry is largely being driven by the need to reduce costs and improve the quality of care,” the report said. “The concept of 5G IoT in healthcare has transformed the way healthcare organizations interact with patients and day-to-day decision-making, thereby resulting in increased operational efficiency and optimized healthcare outcomes.”
In the APAC region, major investments have been made in business expansion, and companies, such as ZTE (China), Samsung (South Korea), and Huawei (China), are heavily investing in 5G technology.
“APAC is expected to be the highest contributor to the 5G IoT market, followed by Europe, because several South Korean and Chinese telecom operators are launching 5G networks and the increasing demand for high-speed networks in manufacturing industries,” the report said.