Global 5G Industrial IoT Market By Component (Hardware, Solutions, and Services), By End User (Process Industries and Discrete Industries), By Application (Predictive Maintenance, Business Process Optimization, Asset Tracking and Management, Logistics and Supply Chain Management, Real-Time Workforce Tracking and Management, Automation Control and Management, Emergency and Incident Management, and Business Communication), By Region, Competition Forecast & Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 7.39 Billion
CAGR (2026-2031)	19.89%
Fastest Growing Segment	Process Industries
Largest Market	North America
Market Size (2031)	USD 21.95 Billion

Market Overview

The Global 5G Industrial IoT Market will grow from USD 7.39 Billion in 2025 to USD 21.95 Billion by 2031 at a 19.89% CAGR. The Global 5G Industrial IoT market comprises the deployment of fifth-generation cellular connectivity within industrial environments to facilitate ultra-reliable communication between automated systems and machinery. Key drivers supporting this expansion include the escalating necessity for predictive maintenance to reduce downtime and the demand for flexible production lines that require high-bandwidth wireless capabilities. These operational imperatives differ from general digital trends by addressing specific efficiency deficits in manufacturing logic and process automation.

A significant challenge impeding faster market expansion is the complexity and high cost associated with establishing private network infrastructure alongside legacy equipment. Despite these barriers, industrial commitment to this technology remains strong as enterprises seek to secure long-term operational resilience. According to the Global mobile Suppliers Association, in 2025, there were 1,907 organizations globally deploying private mobile networks, with manufacturing recognized as the leading sector. This statistic underscores the resilience of the sector and the prioritization of cellular connectivity to support mission-critical industrial applications.

Key Market Drivers

Rapid adoption of Industry 4.0 and smart manufacturing is fundamentally reshaping industrial connectivity requirements, necessitating networks that can support massive data volumes and ultra-low latency. As factories transition from isolated automation to fully interconnected ecosystems, the integration of advanced technologies such as artificial intelligence and machine learning becomes critical for optimizing production efficiency. This digital evolution drives the demand for 5G Industrial IoT solutions capable of handling real-time data processing for predictive maintenance and autonomous operations. According to Rockwell Automation, June 2025, in the '2025 State of Smart Manufacturing Report', 95% of manufacturers have either invested in or plan to invest in AI and machine learning technologies within the next five years, highlighting the urgent need for robust connectivity infrastructures like 5G to support these data-intensive applications.

The surge in the deployment of private 5G networks represents a parallel force, offering industrial enterprises dedicated bandwidth, enhanced security, and tailored network performance that public infrastructures cannot match. These private networks allow facilities to bypass the congestion of public grids, ensuring the reliability essential for mission-critical control systems and robotics. The tangible financial benefits of this technology are accelerating its uptake across various heavy industries. According to Nokia, September 2025, in the '2025 Industrial Digitalization Report', 87% of on-premise edge and private network adopters are seeing a return on investment in just one year. Furthermore, according to Verizon Business, in July 2025, the division reported a 350% growth in its private 5G revenue during the previous year, underscoring the rapid commercial scalability and market prioritization of these dedicated industrial solutions.

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Key Market Challenges

The complexity and high cost associated with establishing private network infrastructure alongside legacy equipment act as a primary impediment to the growth of the Global 5G Industrial IoT market. Manufacturing facilities frequently operate with older machinery that utilizes incompatible communication standards, requiring extensive and costly retrofitting to communicate with advanced 5G networks. This integration process demands high-level technical expertise and specialized bridging hardware, which significantly inflates the total cost of ownership. These financial and technical hurdles force organizations to delay full-scale implementation, opting instead for pilot programs that limit the immediate market revenue potential and slow the overall adoption rate.

These integration challenges are intensified by the massive scale of connectivity required in modern production environments. As enterprises attempt to connect thousands of sensors and machines, the network architecture becomes increasingly difficult to manage and secure. According to the GSMA, in 2025, the total number of IoT connections globally reached 25 billion. This immense volume of connected endpoints underscores the operational difficulty enterprises face in harmonizing new cellular connections with existing legacy systems, creating a dense environment that discourages risk-averse industrial operators from committing to comprehensive network upgrades.

Key Market Trends

The transition from Non-Standalone (NSA) to Standalone (SA) 5G architectures is a critical evolution for the market, as it eliminates the reliance on legacy 4G cores that bottlenecks performance. Unlike NSA, SA architectures enable native network slicing, allowing operators to create virtualized, isolated channels with guaranteed quality of service for mission-critical industrial workflows. This shift is essential for the ultra-reliable low-latency communications required by precise robotic control and safety systems. The commercial reality of this technology is rapidly materializing; according to Ericsson, November 2025, in the 'Ericsson Mobility Report', 65 network slicing cases have already moved beyond proof-of-concept into commercial services, facilitated by the expanding deployment of 5G SA cores. This infrastructure maturity signals a definitive move from experimental connectivity to scalable, reliable industrial networks.

Concurrently, the convergence of Multi-Access Edge Computing (MEC) with 5G is redefining data processing by shifting computation closer to the source of generation. By processing information locally rather than transmitting it to centralized clouds, MEC dramatically reduces latency, which is indispensable for real-time applications such as digital twins and autonomous mobile robots. This architecture ensures that sensitive operational data remains secure within the facility while enabling immediate automated responses to production anomalies. This trend has achieved widespread integration; according to Nokia, September 2025, in the '2025 Industrial Digitalization Report', 94% of surveyed industrial enterprises have deployed on-premise edge technology alongside private wireless networks to support AI-driven use cases. This high penetration rate validates edge computing as a non-negotiable component of modern industrial connectivity strategies.

Segmental Insights

Based on market analysis from trusted sources, the Process Industries segment is identified as the fastest-growing category within the Global 5G Industrial IoT Market. This accelerated growth is primarily driven by the critical need for ultra-reliable, low-latency communication in sectors such as oil and gas, chemicals, and utilities, where continuous operations are paramount. Unlike discrete manufacturing, these industries often operate in vast, hazardous, or remote environments where deploying traditional wired infrastructure is cost-prohibitive or logistically difficult. Consequently, process industries are rapidly adopting 5G capabilities to enable real-time predictive maintenance, remote asset monitoring, and critical control applications, thereby significantly enhancing operational safety and efficiency.

Regional Insights

North America maintains a dominant position in the Global 5G Industrial IoT Market, fueled by early infrastructure development and widespread enterprise adoption. The United States drives this growth through a robust industrial sector prioritizing automation and digital transformation in manufacturing and logistics. A key enabler has been the Federal Communications Commission (FCC), which actively modernized regulations and allocated essential spectrum to facilitate rapid network rollout. This supportive policy framework, combined with a strong concentration of technology providers, allows regional industries to leverage private 5G networks for improved connectivity, predictive maintenance, and operational control.

Recent Developments

• In January 2025, Siemens announced a significant expansion of its industrial-grade private 5G infrastructure solution designed to cover larger manufacturing areas while maintaining reliable connectivity. The updated system supported up to 24 radio units, with each unit capable of covering approximately 5,000 square meters, making it suitable for extensive industrial sectors such as intralogistics, heavy industry, and food and beverage. This development allowed companies to operate their networks independently without relying on third-party providers, thereby ensuring enhanced cybersecurity and data privacy through on-site installation. The solution was made available in multiple countries, including Germany and Brazil, with plans for further international rollout.
• In December 2024, Ericsson collaborated with Vodafone to deploy a 5G Standalone mobile private network at the CIMPOR production center in Alhandra, Portugal, which is the country’s first network of this kind in a heavy industry environment. This infrastructure was designed to integrate advanced automation and communication technologies into the cement plant’s operations, enabling real-time asset monitoring and maintenance to mitigate risks and reduce costs. The network supported various industrial use cases, such as machine health monitoring with thousands of IoT sensors and drone-based inspections, directly boosting the facility's digitalization and reducing its environmental footprint.
• In October 2024, Qualcomm Technologies introduced the IQ series, a new family of industrial-grade processors specifically engineered for challenging safety-grade operating environments with wide temperature ranges. This launch was accompanied by a new IoT Solutions Framework that utilized these chipsets alongside edge AI tools to help enterprises develop end-to-end solutions for industrial intelligence. The initiative aimed to transition industrial endpoints into connected, intelligent devices, empowering developers to build sophisticated edge AI applications across various manufacturing verticals. The strategic move was positioned to address the complex requirements of modern industrial workloads by combining high-performance computing with power-efficient connectivity.
• In October 2024, Nokia established a global go-to-market partnership with NTT DATA to accelerate the transformation of private 5G networks across key sectors, including airports and smart cities. The collaboration focused on delivering enterprise-ready, carrier-grade radio access networks to meet the demand for reliable connectivity in mission-critical operations. As part of this initiative, the companies deployed a private 5G network for the City of Brownsville, Texas, to support public safety and operational efficiency. The partnership combined advanced radio access portfolios with a globally available network-as-a-service platform, aiming to provide high-bandwidth, low-latency wireless capabilities for industrial and municipal environments.

Key Market Players

• China Mobile Limited
• China United Network Communications Group Co. Ltd.
• Vodafone Group plc
• Advantech Co. Ltd.
• ASOCS Ltd.
• Intel Corporation
• Bosch.IO GmbH
• Deutsche Telekom AG
• Thales Group
• NTT DATA Corporation

By Component	By End User	By Application	By Region
Hardware Solutions and Services	Process Industries and Discrete Industries	Predictive Maintenance Business Process Optimization Asset Tracking and Management Logistics and Supply Chain Management Real-Time Workforce Tracking and Management Automation Control and Management Emergency and Incident Management and Business Communication	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global 5G Industrial IoT Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• 5G Industrial IoT Market, By Component:

• Hardware
• Solutions
• and Services

• 5G Industrial IoT Market, By End User:

• Process Industries and Discrete Industries

• 5G Industrial IoT Market, By Application:

• Predictive Maintenance
• Business Process Optimization
• Asset Tracking and Management
• Logistics and Supply Chain Management
• Real-Time Workforce Tracking and Management
• Automation Control and Management
• Emergency and Incident Management
• and Business Communication

• 5G Industrial IoT Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE