According to a recent report by market research firm International Data Corporation (IDC), the number of 5G connections in the Asia-Pacific region, including both mobile subscribers and Internet of Things (IoT) connections, is projected to soar from 574 million in 2021 to 3.2 billion in 2025. This represents a five-year compound annual growth rate (CAGR) of 87.9 per cent. The deployment of 5G services in the region is being driven by various factors, with the Industrial Internet of Things (IIoT) being a significant contributor.
IDC found that around 12.4 per cent of telecom carriers surveyed in Asia-Pacific identified IoT as one of the primary drivers for implementing 5G. Telecom companies view vital industries like manufacturing, Smart Cities with smart mobility, and smart buildings as key use cases for the introduction of 5G technology.
Digitisation and connectivity are expected to enable the transition towards a greener, low-carbon future, as stated by Piyush Singh, Senior Market Analyst for Telecommunications and IoT in the Asia-Pacific region at IDC. Singh further emphasised the concept of efficiency equating to energy savings within Industry 4.0. Any energy-saving initiatives undertaken by organisations ultimately enhance their overall efficiency.
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Manufacturing facilities across Asia-Pacific have already adopted private or dedicated networks to control various on-premises equipment. However, unstable wireless communication and latency pose significant barriers to digital transformation. The implementation of 5G can address these challenges effectively. The report highlights that IoT devices require reliable communication, which can be facilitated through private 5G networks.
As the Asia-Pacific region experiences exponential growth in 5G connections, driven by the potential of IIoT and the need for enhanced connectivity, organisations are poised to benefit from improved efficiency, increased sustainability, and greater opportunities for digital transformation.