Just 9% of Businesses Plan to Use 5G for IoT Deployments: IDC Survey

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About 79% of organizations intend to use 4G for cellular IoT installations, with only 9% planning to use 5G, a new report on IoT revealed.

5G promises to be ten times faster than existing LTE networks and could enable IoT systems to share data faster than ever before. However, IoT stakeholders are skeptical about 5G’s real-world potential, a new survey by IDC has revealed. Organizations are also apprehensive about managing expenditures concerning IoT and having adequate developer tools and APIs to accommodate these initiatives.

According to the ‘Streamlining Connectivity Management for Cellular IoT SuccessOpens a new window ‘ report penned by Stacy Crook, research director, Internet of Things at IDC, as many as 75% of IoT devices with cellular connectivity are, at-present, immobile.

5G, touted as the next generation of cellular technology, is the latest in a succession of wireless communication systems that have been in use since the 1980s and is the driving force behind this expansion. 5G is totally data-centric and was developed for a densely integrated society, offering higher speeds and more dependable connections.

Sensors and other devices are hooked up to the internet via cellular IoT, which utilizes the same cellular services as smartphones. Ericsson said the overall number of cellular IoT connections will rise at a CAGR of 23%, from 1.6 billion in 2020 to 5.4 billion in 2026.

Highlighting Key Concerns Around 5G

It takes a lot of effort to launch and scale worldwide cellular-connected devices. Several makers do not entirely grasp how to traverse such cellular networks because multiple network providers operate under different IT systems throughout the world. 

For any device to function, it must have seamless integration. According to Crook, 79% of organizations intend to use 4G for cellular IoT installations, with only 9% planning to use 5G. The following are some of the issues expressed by respondents concerning 5G service:

  • Tier 1 network access is restricted.
  • When devices are in motion, network quality suffers.
  • Inadequate troubleshooting abilities
  • During network disruptions, there are no failover alternatives.
  • Selecting which radio technology devices to connect to

The Survey Insights

The emergence of IoT devices, without question, drives us into unknown terrain. Using a single software platform, a single control panel, and a single set of integration tools, on the other hand, will reduce the technical and commercial challenges, resulting in seamless connectivity that is critical to a product’s success.

However, the key impediments in the growth of the IoT sector, based on information gathered by IDC, are:

  • Inadequate insight of device installations and usage in the U.S. and throughout the world
  • Ordering and selling SIMs and modules on time
  • Inability to try SIMs throughout the assessment process

Another issue with cellular IoT projects is cost, with 65% of businesses having to pay for overages and wasted data. Managing numerous cellular providers, as well as the related billing complexity, is a significant issue.

When determining the total cost of ownership, Crook suggests that organizations handling IoT cellular installations should build for scalability, guarantee global visibility and control, consider logistics operations, connectivity, time to market, and installation testing activities relating to data expenses.

The following are the top three use cases found by the study across all verticals:

  1. Buildings: smart lighting, HVAC, and elevators that are connected
  2. Alarm systems, physical access, and remote monitoring are all examples of security.
  3. Climate monitoring, temperature control, and soil monitoring are all examples of environmental monitoring.

Businesses manage large fleets of IoT devices. The average size of deployment is 1,700 people. This figure is 6,300 in major corporations.

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