IoT connections will reach almost 25 billion globally by 2025, up from 12 billion in 2019, according to a new report by the GSMA.
“The business case for IoT is shifting from just connecting devices to addressing specific problems or needs with solutions to collect, process and integrate data from multiple sources, which can then be analysed to create value and provide actionable insight,” the report states. “Smart buildings will be the largest growth sector, driven by the proliferation of connectivity across enterprise assets and devices such as lighting, HVAC systems, security and automation.”
Enterprise IoT connections will overtake consumer in 2024, and will almost triple between 2019 and 2025 to reach 13.3 billion. This will account for just over half of all IoT connections in 2025, according to the GSMA study.
Consumer IoT connections will almost double to 11.4 billion in the same time frame.
According to the report, IoT is forecast to generate revenues of $1.1 trillion in 2025, up compared to $3.43 billion in 2019. Applications, platforms and services will represent 67% of total IoT revenues by 2025.
“With automation comes the need for companies to implement sophisticated controls and analytics. Therefore, most of the value gain for telcos and cloud firms supplying enterprise clients will be in the applications/platform layer,” according to the report.
According to the 2020 global edition of the GSMA’s ‘Mobile Economy’ report, 46 operators in 24 markets had launched commercially available 5G networks by 30 January 2020. Also, a total of 79 operators across a further 39 markets have announced plans to launch mobile services via 5G technology in the coming months.
However, the industry body noted that 4G technology will continue to expand over the next years. 4G supported more than half (52%) of global connections last year and is expected to account for 56% of global connections by 2025.
Mobile operators are expected to spend $1.1 trillion worldwide between 2020 and 2025 in mobile capex, of which approximately 80% will be invested in 5G networks.
According to the report, mobile technologies and services generated 4.7% of GDP globally last year, a contribution that amounted to $4.1 trillion of economic value added. This contribution is forecast to grow to $4.9 trillion (4.9% of GDP) by 2024.
GSMA also found that 5G is forecast to contribute $2.2 trillion to the global economy by 2034, with key industries such as manufacturing, utilities, and professional and financial services benefitting the most from the new technology.
