5G IoT Endpoint Market Trends

Growth Drivers

• Expansion of industrial IoT ecosystems driven by government incentives
  catalyst: The push to expand the adoption of industrial IoT (IIoT) technology in sectors such as logistics, manufacturing, and energy is driving the 5G endpoint sector’s growth. The enactment of government-backed stimulus packages along with tax incentives to heighten the adoption of industrial IoT bodes well for the market. The table below highlights policy stimulus for the market.
• 5G network slicing adoption in critical industries: A key factor propelling the sector’s growth is the rise of 5G network slicing technology. The tech allows carriers to dedicate bandwidth of specific use cases, and create specialized networks for industries such as healthcare, transportation, and security. The technology is important for IoT endpoints, where congestion can be avoided whilst transferring high-priority data. 5G slicing is slated for greater mainstream adoption by 2026, supported by major carriers such as Verizon and Vodafone. In terms of measurable impact, the 5G ultra-wideband network of Verizon experienced a 10% increase in IoT-enabled endpoint traffic after offering network slicing in mid-2023. Opportunities are slated to be rife for long-term partnerships with telecom providers, with the sustainability of the driver estimated at over 10 years due to the rising demand of 5G connectivity from autonomous vehicles as well as smart cities.

Challenges

• Supply chain integration barriers in 5G IoT endpoints: A key challenge permeating the global 5G IoT endpoint market is the complexities associated in the integration of 5G-enabled IoT devices. Whilst 5G offers considerable potential for real-time data transmission to support operation, the constraint arises from integration with legacy systems. Additionally, the market structure for 5G IoT endpoints is highly fragmented due to numerous players providing network components. This fragmentation adds to the constraint of merging 5G IoT devices with supply chain technologies that are not designed to effectively leverage the premier capabilities of 5G networks.