Image Paul Frankenstein. Used under CC BY-NC 2.0 licence
Gartner is tipping outdoor surveillance cameras to account for the bulk of IoT endpoints connected over 5G in 2020, but longer term says the automotive industry represents the biggest 5G IoT opportunity.
It is urging communications providers to skill up and invest to capitalise on this market.
Gartner is tipping the 5G IoT endpoint installed base to more than triple between 2020 and 2021, from 3.5 million units in 2020 to 11.3 million units in 2021 and close to 49 million units by 2023.
Gartner says surveillance cameras will account for 70 percent of 5G IoT endpoints in 2020 and will be the largest market for 5G IoT devices worldwide for the next three years, but by the end of 2023 will account for only 23 percent.
“5G IoT installed endpoints for outdoor surveillance cameras will reach 2.5 million in 2020, 6.2 million units in 2021 and 11.2 million units in 2022, but will be surpassed by connected cars in 2023,” says Gartner.
Automotive largest IoT endpoint market by 2023
“The automotive industry will become the largest market opportunity for 5G IoT solutions [in 2023 when it] will represent 53 percent of the overall 5G IoT endpoint opportunity.”
Within the automotive sector Gartner expects embedded connected-car modules to be the major use case for 5G. in 2023.
Embedded endpoints in connected cars for commercial and consumer markets will represent an installed base of 19.1 million units out of a total of 25.9 million 5G endpoints in the automotive sector in 2023.
Stephanie Baghdassarian, senior research director at Gartner, said the addressable market for embedded 5G connections in connected cars was growing faster than the overall growth in the 5G IoT sector.
“Commercial and consumer connected-car embedded 5G endpoints will represent 11 percent of all 5G endpoints installed in 2020, and this figure will reach 39 percent by the end of 2023,” she said.
Almost all cars on 5G by 2028
“In addition, the share of 5G-connected cars actively connected to a 5G service will grow from 15 percent in 2020 to 74 percent in 2023. This figure will reach 94 percent in 2028, when 5G technology will be used for cellular V2X communications that enable messages to be sent and received within vehicles and between vehicles, infrastructure, pedestrians, cyclists and more.”
She said communications service providers wanting to be relevant in the 5G IoT market should “put this industry at the forefront of their investments … in terms of personnel who understand the sector and [in terms] of partnerships that will move the market forward.”
