1.4 billion 5G connections predicted for 2025

1.4 billion 5G connections predicted for 2025

There will be 1.4 billion 5G connections by the year 2025, increasing from just 1 million in 2019, says an analyst company.

The new findings in the report from Juniper Research, 5G Market Strategies: Consumer & Enterprise Opportunities & Forecasts 2017-2025, represents an annual growth rate of 232% in six years.

The report says that in order for 5G fixed wireless to compete with fibre broadband it must “meet expectations in real-world scenarios”.

The researchers forecast that China, the US and Japan will have the highest number of 5G connections by 2025, and combined all three will hold 55% of global 5G connections.The US alone will account for 30% of global 5G IoT connections by the same year, says the report, with the highest number of fixed wireless broadband connections and automotive services.

Juniper Research predicts that commercial revenues in the IoT space, including smart cities and digital health, are set to disappoint, due to “low data requirements and nominal duty-cycles”. 

The report advises operators to develop new business models to keep operating costs down, including the application of software-based solutions to manage requirements of individual 5G IoT connections.

It adds that connectivity revenues through 5G fixed wireless broadband would prove crucial to offset this disappointment, with average revenue per connection forecast to remain above $50 until 2025.

“Operators and vendors must test their networks in a real-world environment at scale, ensuring speeds can compete with fibre services,” said research author Sam Barker. “Networks that can deliver the highest speeds and greatest reliability will command the highest ARPCs, hastening an operators’ return on 5G investment.”