5G in IoT Market - Cumulative Impact of United States Tariffs 2025 - Global Forecast to 2030

The 5G in IoT Market size was estimated at USD 12.28 billion in 2024 and expected to reach USD 16.42 billion in 2025, at a CAGR 35.85% to reach USD 77.25 billion by 2030.

5G technology has emerged as a catalyst for the next wave of IoT innovation, delivering unprecedented bandwidth, ultra-low latency, and massive device connectivity. By overcoming the limitations of legacy cellular and wireless protocols, 5G empowers enterprises to deploy large-scale sensor networks, real-time analytics, and autonomous systems across diverse industries. From smart cities that dynamically manage traffic flows and energy consumption, to manufacturing floors orchestrating fleets of collaborative robots, the synergy of 5G and IoT is redefining operational excellence.

As decision-makers confront mounting pressure to optimize processes, reduce costs, and enable new service models, understanding how 5G reshapes the IoT landscape is critical. This executive summary offers an integrated perspective on the transformative shifts, policy headwinds, market segmentation, regional dynamics, key players, and strategic imperatives that will determine who wins in this rapidly evolving ecosystem.

Over the past two years, the convergence of 5G and IoT has triggered a series of paradigm shifts:

• Network Slicing Tailors Connectivity: By partitioning physical infrastructure into multiple virtual networks, enterprises can guarantee performance levels for high-priority IoT applications-be it mission-critical robotics or bandwidth-intensive video analytics-without impacting consumer traffic.

• Edge Computing Reduces Latency: Deploying compute and storage resources at the network edge slashes round-trip times to single-digit milliseconds, enabling real-time decision-making in industrial automation, autonomous vehicles, and telemedicine.

• Private 5G Networks Gain Traction: Industries with stringent security and reliability needs-such as manufacturing, energy, and logistics-are building campus-wide private 5G deployments that offer greater control over coverage, quality of service, and data sovereignty.

• Ultra-Reliable Low-Latency Communications Unlock New Use Cases: The deterministic performance of URLLC supports closed-loop control for robotics, precision agriculture, and remote surgery, expanding IoT’s addressable market beyond simple asset tracking.

• Integration with LPWA Protocols Drives Energy Efficiency: Harmonizing 5G NR-Less equipment with NB-IoT and LTE-M standards extends device battery life to years, enabling pervasive sensing across urban infrastructure and environmental monitoring.

• Software-Defined and Virtualized Architectures Accelerate Innovation: Disaggregated RAN and core network functions, orchestrated via NFV and SDN controllers, empower operators to roll out new IoT services rapidly and cost-effectively.

In 2025, the escalation of U.S. tariffs on imported network equipment and components has reverberated across the global IoT ecosystem:

• Hardware Cost Inflation: Tariffs on antennas, RF modules, connectivity chips, and edge servers have lifted hardware prices by up to 15%, prompting enterprises to defer large-scale rollouts or seek alternative suppliers in tariff-exempt markets.

• Supply Chain Diversification: Leading vendors have accelerated shifts of assembly lines from tariff-affected regions to Southeast Asia and Eastern Europe, though retooling delays and logistical bottlenecks have created intermittent shortages of critical sensors and compute modules.

• Vendor Portfolio Realignment: With U.S. sanctions limiting access to certain Chinese network equipment, operators are broadening their vendor base to include European and Japanese suppliers, while strategic partnerships among incumbents intensify.

• Impact on IoT Module Makers: Firms specializing in low-power cellular modules have seen margin compression as tariff-laden silicon components raise production costs, triggering selective price increases that threaten adoption rates in price-sensitive applications.

• Software Licensing Pressures: Network function virtualization and orchestration platforms face pass-through cost pressures, leading service providers to negotiate new licensing models or migrate to open-source alternatives.

• Investment Sentiment and CapEx Shifts: Heightened uncertainty around trade policies has nudged capital expenditure toward software-defined and cloud-native architectures, which offer greater flexibility to adapt to evolving tariff regimes.

An in-depth look at market segmentation reveals where the greatest opportunities and challenges lie:

By offering, the market divides into three pillars. Hardware spans antennas and RF components, connectivity and networking hardware, power and battery management, processing and edge computing devices, security and storage appliances, along with sensors and actuators. Services encompass managed offerings that oversee network operations and professional services that deliver system integration, consulting, and custom development. Software solutions include 5G core network and RAN suites, IoT platform and device management tools, NFV and orchestration frameworks, security and threat-management applications, plus SDN controllers that define traffic flows.

By technology, connectivity evolves through beamforming and massive MIMO techniques that boost spectral efficiency; low-power wide-area (LPWA) integration targeting battery-constrained endpoints; massive machine-type communications enabling millions of devices per square kilometer; multi-access edge computing platforms that localize data processing; network-slicing mechanisms that guarantee service levels; and ultra-reliable, low-latency communications unlocking mission-critical control loops.

By application, automotive and transportation systems leverage vehicle-to-everything connectivity for improved safety and logistics; energy management networks optimize grid stability and renewable integration; industrial automation and manufacturing floors deploy collaborative robotics and predictive maintenance; medical devices support remote patient monitoring and telesurgery; retail and supply-chain solutions track inventory and enhance customer engagements; smart homes and buildings automate climate control, security, and resource utilization.

By deployment mode, organizations balance the agility of cloud-based architectures-facilitating rapid scaling and service orchestration-with the predictability and compliance advantages of on-premises installations.

Collectively, hardware continues to command a significant share, but software and services are climbing faster as enterprises seek end-to-end, turnkey 5G IoT solutions. On the technology front, edge computing and network slicing post the strongest growth, while automotive, industrial, and energy use cases dominate demand. Cloud-native deployments are favored by startups and digital-first companies, even as regulated industries maintain an appetite for on-premises control.

Regional dynamics shape both market priorities and growth trajectories:

In the Americas, early spectrum auctions and proactive regulatory frameworks have catalyzed sprawling private network trials across manufacturing parks, oil and gas fields, and logistics hubs. North American operators are embedding IoT-as-a-service options into existing 5G portfolios, while Latin American carriers focus on bridging connectivity gaps in urban and rural zones.

Europe, the Middle East and Africa benefit from harmonized spectrum allocation under the Digital Europe program, accelerating cross-border deployments of smart city initiatives and industrial IoT clusters. Strong public-private partnerships in the Gulf and North Africa drive energy-management applications, whereas European OEMs lead in network slicing pilot projects for transport corridors.

Asia-Pacific commands the fastest rate of 5G rollout globally, propelled by government-backed smart city roadmaps in China, Japan, South Korea, and Singapore. High device density and advanced manufacturing ecosystems have spawned large-scale deployments in consumer electronics, precision agriculture, and port logistics. Regional supply-chain hubs further reinforce APAC’s dominance in hardware production and module assembly.

The competitive landscape features a multi-tiered roster of operators, vendors, integrators, and module specialists driving 5G IoT innovation:

Leading network operators-such as AT&T Inc., Verizon Communications Inc., China Mobile International Limited, China Telecom Corporation Limited and Jio Platforms Limited-are expanding private network offerings, bundling connectivity with edge compute and managed services. Traditional telcos in Europe, including BT Group PLC, Orange SA, Telefónica, S.A., and Vodafone Group PLC, are forging alliances with equipment suppliers to expedite network slicing trials.

Infrastructure heavyweights Nokia Corporation, Telefonaktiebolaget LM Ericsson, Huawei Investment & Holding Co., Ltd., Cisco Systems, Inc., and Juniper Networks, Inc. continually enhance their 5G core, RAN, and transport portfolios, embedding AI-driven network automation to optimize performance and reliability. Qualcomm Technologies, Inc. and u-blox AG lead in advanced chipsets and positioning modules, while module specialists such as Sequans Communications S.A., Sierra Wireless, Inc., and SIMCom Wireless Solutions Limited drive down costs for LPWA and NR-Light devices.

System integrators and professional service firms-including Capgemini SE, NEC Corporation, and F5, Inc.-are assembling end-to-end solutions that bundle connectivity, security, orchestration software, and analytics into industry-specific platforms. Market entrants like Telit Cinterion and Sunrise Communications AG focus on niche verticals, offering tailored IoT stacks for smart buildings and supply-chain orchestration.

Collectively, strategic partnerships and cross-sector collaborations are reshaping buyer expectations. Organizations now seek unified solutions that span network infrastructure, device management, security, and data analytics, creating opportunities for those who can deliver a seamless, interoperable ecosystem.

To secure a leadership position in the 5G IoT domain, industry participants should consider the following strategic imperatives:

• Forge Ecosystem Alliances: Partner with chipset vendors, cloud providers, device manufacturers, and system integrators to deliver integrated, plug-and-play IoT solutions that reduce deployment complexity and time-to-value.

• Invest in Edge-Native Platforms: Develop or acquire edge computing capabilities that bring analytics and AI inference close to the device, ensuring deterministic performance for latency-sensitive applications.

• Diversify Supply Chains: Mitigate tariff and geopolitical risks by qualifying second-source vendors in multiple regions, and explore on-shore or near-shore manufacturing partnerships.

• Embrace Open RAN and Virtualization: Leverage open interfaces and cloud-native network functions to accelerate innovation, reduce vendor lock-in, and dynamically scale network resources based on traffic demands.

• Prioritize Security by Design: Incorporate end-to-end encryption, zero-trust frameworks, and threat-management software from the outset, particularly for mission-critical IoT deployments in healthcare, energy, and transportation.

• Tailor Offerings by Vertical: Align product roadmaps with the specific requirements of automotive fleets, industrial automation, smart buildings, and utility networks, differentiating through specialized service bundles.

• Monitor Regulatory and Tariff Developments: Establish a cross-functional trade-compliance team to track policy shifts, ensuring rapid adaptation of sourcing strategies and pricing models.

The fusion of 5G and IoT represents a once-in-a-generation opportunity to reimagine operational models and unlock new revenue streams. As private networks scale, edge intelligence proliferates, and network-as-a-service offerings mature, organizations that master the interplay between connectivity, compute, and analytics will outpace the competition.

Navigating evolving tariff regimes and regional regulatory frameworks demands agility in sourcing and deployment strategies. Success hinges on delivering turnkey, secure, and scalable solutions tailored to the unique performance requirements of each industry segment. By forging collaborative ecosystems and investing in open, cloud-native architectures, market leaders can capture the full potential of 5G-powered IoT and set the standard for the next industrial revolution.

For a comprehensive deep-dive into market dynamics, competitive analysis, and growth strategies, reach out to Ketan Rohom, Associate Director, Sales & Marketing, to secure the full market research report today.