The article published on October 1, 2024, by 5G Americas, sheds light on the crucial role that the Internet of Things (IoT) is playing in the success and expansion of wireless cellular technology, specifically 5G. IoT has experienced substantial growth, with global subscriptions reaching an impressive 3.4 billion, alongside 6.7 billion smartphone subscriptions. This piece emphasizes the ongoing transition from 4G LTE to the more advanced 5G technologies, such as 5G Reduced Capability (RedCap), which promise improved energy and network efficiencies. Furthermore, projections suggest that by 2029, IoT subscriptions will hit 5.2 billion, and smartphone subscriptions will climb to 8.2 billion.
The Rise of 5G Beyond Smartphones
5G in Enterprise Applications
Viet Nguyen, Vice President of PR and Technology at 5G Americas, highlights the versatility of 5G technology that extends well beyond smartphones. One of the key areas where 5G is making significant strides is in enterprise settings, where IoT-connected devices such as sensors and cameras are being deployed at an unprecedented scale. These devices enable businesses to gather real-time data, optimize operations, and improve overall efficiency. By leveraging the low latency and high bandwidth capabilities of 5G, enterprises can implement advanced IoT solutions that were previously impractical with older wireless technologies.
The growth of global 5G connections, which surpassed two billion in Q2 2024, further underscores the expanding reach of this technology. Nguyen points out that the projections estimate 5G connections will hit a staggering 8.6 billion by 2029, capturing 59 percent of all wireless cellular networks. This surge in connectivity is not just about more devices being online; it is about smarter, more efficient, and more versatile applications of wireless technology across various sectors.
Mid-band Spectrum and Standalone Networks
One of the main drivers of 5G adoption in North America has been the expansion of the mid-band spectrum and the shift towards 5G standalone networks. As of the last quarter, North America boasted 242 million 5G connections, representing 34 percent of all wireless connections in the region. This growth is expected to continue, reaching an impressive 761 million by 2029. Kristin Paulin, a principal analyst at Omdia, highlights the significant efforts made by operators to expand 5G coverage and capabilities, ensuring that the technology can meet the high expectations of both consumers and enterprises.
The deployment of 5G standalone networks, which operate independently of 4G LTE infrastructure, marks a significant milestone in the evolution of wireless technology. These networks offer several advantages, including lower latency, improved security, and better support for advanced IoT applications. By investing in standalone 5G networks, operators are laying the groundwork for a more robust and versatile wireless ecosystem that can support a wide range of use cases, from smart cities to autonomous vehicles.
Global Adoption of 5G
Growth in Latin America
Latin America has also witnessed robust growth in both 4G LTE and 5G technologies. The region currently has 592 million LTE connections and has seen a 21 percent increase in 5G connections, which have reached 57 million. Jose Otero, Vice President of Latin America and the Caribbean for 5G Americas, notes that while 4G LTE remains a reliable choice for many, 5G is steadily gaining traction, particularly in urban areas where the demand for high-speed, reliable connectivity is most pronounced.
The adoption of 5G in Latin America is driven by several factors, including significant investments in infrastructure, regulatory support, and a growing consumer appetite for advanced mobile services. As operators continue to roll out 5G networks across the region, we can expect to see a proliferation of innovative applications and services that leverage the unique capabilities of 5G technology. From enhanced mobile broadband to mission-critical communications, the potential of 5G in Latin America is vast and varied.
Comparison with 4G LTE
The benefits of 5G for IoT are numerous, including faster data transfer rates, lower latency, and the ability to connect a vast array of devices efficiently. These enhancements are particularly vital for sectors such as healthcare, automotive, and smart cities, where reliable and fast connectivity is crucial. Looking ahead, forecasts indicate that by 2029, IoT subscriptions will surge to 5.2 billion, while smartphone subscriptions are expected to jump to 8.2 billion. This growth trajectory underscores the pivotal role that IoT and 5G technologies will continue to play in our increasingly connected world.