#Japan #Tokyo #5G Technology #Seed Planning #IoT Service Market

The Growth of IoT Services in a 5G and 6G Era

As industries evolve in response to demographic changes like workforce reduction and aging populations, the need for efficiency across sectors such as manufacturing, logistics, construction, and agriculture has surged. Recent findings from Seed Planning, a leading Japanese consulting firm, highlight the expanding landscape of IoT communication services across various sectors. Their ambitious study analyzed the current state of the IoT market across 10 sectors involving 137 markets, shedding light on trends leading to an anticipated market size of approximately 12.65 trillion yen (about 120 billion USD) by 2025.

Background and Purpose of the Study

In an environment marked by significant technological advancements—including the rise of 5G Standalone (SA), Local 5G, Beyond 5G/6G, LPWA (Low Power Wide Area), and satellite communications—the possibilities for IoT applications have increased. Additionally, AI technology advancements and the reduction in costs of IoT devices further enhance the market landscape. Recognizing these factors, Seed Planning aimed to quantitatively and qualitatively analyze the IoT service market and share insights on its growth.

Key Findings of the Study

The research predicts that the IoT service market, spanning the 10 targeted fields, will grow from approximately 9 trillion yen in 2023 to around 12.65 trillion yen by 2025 and is expected to reach roughly 22 trillion yen by 2030. A compound annual growth rate (CAGR) of 12.6% from 2024 to 2030 will propel this expansion.

With a burgeoning demand for efficiency in various sectors such as manufacturing, logistics, and agriculture, there's a noticeable uptick in the adoption of IoT solutions. Areas like logistics, automotive, healthcare, and home-related sectors are witnessing substantial implementation, paving the way for an uptick in IoT applications across more extensive industrial and societal infrastructures.

Mobile WAN Growth Predictions

It is estimated that mobile WAN contracts for 5G and 4G will increase from 9.515 million in 2025 to approximately 15.24 million by 2030—a staggering growth of 160%. While the growth rate for smartphone contracts may decelerate, the demand for cellular IoT communication modules continues its upward trajectory.

Applications in remote monitoring of manufacturing facilities, logistics management, vehicle tracking, and surveillance of social infrastructures showcase the versatility of IoT technology in modern operations. The proliferation of technologies like 5G SA and RedCap supports this growth by facilitating various IoT device connectivity, pointing towards a thriving corporate IoT communication market.

Local Network Expansion

The relative importance of localized networks is predicted to rise, leading to a substantial increase in the number of local wireless and near-field networks expected to reach 12 times the number of cellular lines by 2030. This shift reveals that cellular communication is only a fraction of the overall IoT system; local networks that encompass a multitude of sensors and devices will become increasingly critical. By 2030, the projected number of such networks is estimated to increase by 136% compared to 2025.

As IoT adoption accelerates, the significance of utilizing not only mobile networks but also various local wireless technologies such as Wi-Fi, Bluetooth, and 920MHz band communications becomes evident. As the integration between 5G SA and local networks strengthens, we can foresee an escalation in the implementation of combined IoT systems that leverage both broad and close-range communications.

Conclusion

Seed Planning's comprehensive survey engaged around 332 major enterprises and stakeholders in the field, gathering insights from industry reports and direct consultations with companies to ensure a holistic view of the market landscape. With digital transformation propelling industries forward, the IoT service market is set for unprecedented growth as it continues adapting to the complexities of modern technological advancements.

For further details and inquiries, please contact:

Seed Planning, Inc.
113-0034
Bunkyo, Tokyo, Japan
Yushima First Building 4F
Email: [email protected]
Public Relations Department