YOU ARE AT:5GAnalysts expect strong growth in 5G and Industrial IoT

Analysts expect strong growth in 5G and Industrial IoT

Bolstered by the continued development of next-generation “5G” mobile networks, industrial automation is expected to see strong adoption as the “internet of things” takes shape. In a pair of new reports, analysts detail expectations for strong market growth in 5G and industrial IoT.

5G technology to reach 24M subscribers globally by the end of 2021 with the US, Japan, China and South Korea expected to be most advanced markets

A new study from Ovum finds North America and Asia will each account for more than 40% of global 5G subscriptions at the end of 2021, followed by Europe with more than 10% of overall 5G subscriptions, and the Middle East and Africa accounting for the remainder.
According to the consultancy firm, 5G networks will be commercially available in more than 20 markets by the end of 2021. Ovum estimates that the majority of 5G subscriptions will be concentrated in the U.S., Japan, China and South Korea, where major operators have revealed aggressive timelines for launching 5G services.
“The main use case for 5G through 2021 will be enhanced mobile broadband services, although fixed broadband services will also be supported, especially in the U.S.,” Mike Roberts, Ovum practice leader, said. “Over time, 5G will support a host of use cases including internet of things and mission-critical communications, but Ovum does not believe those use cases will be supported by standardized 5G services through 2021.”
South Korea is seen as the most advanced market in terms of 5G development. The government of the Asian nation expects that its local mobile operators, including SK Telecom, KT and LG Uplus, will be able to trial 5G services during 2017 and then introduce commercial services in December 2020. The government said the operators will be able to launch 5G service demos during the XXIII Olympic Winter Games, which will be held during February 2018 in the city of Pyeongchang.

Installed base of wireless industrial IoT devices reached 14.3M units in 2015; global market is forecasted to grow at a CAGR of 27.7% in 2015-2021

The installed base of wireless industrial IoT devices used for automation reached a total of 14.3 million units by the end of 2015, according to a recent study by Sweden-based machine to machine/IoT market research firm Berg Insight.
The study revealed that the number of wireless industrial IoT devices in automation networks is expected to grow at a compound annual growth rate of 27.7%, reaching 62 million by 2021.
Berg Insight said that Wi-Fi and Bluetooth are the most widespread technologies in factory automation while cellular connectivity typically is used for remote monitoring and backhaul communication among industrial plants. The research firm also said that the emerging area of Low-Power Wide-Area Networking is a promising alternative in remote monitoring applications.
The wireless IoT device market is served by a multitude of players from various backgrounds including global automation solution providers, automation equipment and solution vendors, industrial communication specialists, and IoT communication specialists. Emerson, Honeywell, GE and Yokogawa are leading vendors of 802.15.4 devices in industrial automation, Berg Insight said. Siemens, Cisco, Belden, Moxa, Schneider Electric and Eaton are major vendors of Wi-Fi devices while Eaton, GE and Sierra Wireless are important vendors of cellular devices for industrial automation applications.
“Wireless communication and industrial IoT solutions can provide integration of different automation systems as well as enterprise systems which enables supply chains to be lean, even with a complex mix of products and output levels,” Berg Insight’s senior analyst Johan Svanberg said. “Connected automation solutions also open up the possibility for entirely new business and service models, which can give companies a much needed competitive edge in today’s manufacturing landscape.”

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.