Editor’s note: The booming demand for Internet of Things applications – from autonomous cars to mobile health and much more – will drive development and deployment of faster 5G wireless technology, says Stephanie Gibbons of Technology Business Research.

HAMPTON, N.H. – The Internet of Things (IoT) is a conceptual framework, driven by the idea of embedding connectivity and intelligence in a broad range of devices. It will present a wide range of use cases, the most prominent of which will be home automation, connected transportation, industrial automation, smart utilities and e-health. Each of these use cases will require varying levels of bandwidth, reliability and latency that will drive 5G investments.

Mobile networks were designed for high-capacity downlinks that enable users to view content such as Netflix on mobile devices. IoT will require the opposite: high-capacity uplinks with varying quality-of-service requirements, as sensors and devices send data to different aggregation platforms for analysis and response.

5G will be designed to offer this level of programmability because it will be a compilation of multiple technologies (e.g., 2G, 3G or 4G; WiFi; and small cells).

TBR believes IoT will be a significant driver for 5G investments, since high programmability requirements will justify vendor and operator spending for next-generation technology.

Latency and reliability requirements will differ by IoT use case Vendors and suppliers are working together to define 5G, and a consensus on technical parameters has been met. Specifically, 5G must meet six requirements 5G:

  • Higher system capacity (1,000 times the capacity)
  • Higher data rates (10 to 100 times current 4G rates)
  • Lower latency (below 1 millisecond)
  • Mass connectivity (100 times the number of connected devices)
  • Energy efficiency (10 times the network and device power savings)
  • Increased agility (10 times faster time to market)

Below are examples of current and future IoT use cases, which each differ in latency and reliability requirements:

  • Automotive: 5G technologies that support low-latency, high-reliability vehicle-to-vehicle or vehicle-to-infrastructure communications will enable multimedia-rich infotainment, advanced driver assistance systems and autonomous driving applications. Beyond the low-latency and high-reliability requirements of automotive, 5G will support the very high mobility requirement in this use case.
  • Sports and fitness: 5G networks will help deliver activity and body monitoring data from personal area networks to cellular networks, where the data will then be analyzed at centralized sites. The technology parameters for this IoT use case will not be as stringent as for others because biometric data collected are not critical enough to warrant sending over the networks in real time. Ultimately, the sports and fitness use case will be one IoT scenario that will be improved by 5G but will not require 5G.
  • Mobile health and wellness: 5G will allow medical professionals to access cloud-based medical records, which could contain high-resolution images. Remote health monitoring and consultation could also occur in real time, which means 5G will have to meet strict reliability requirements in this use case.
  • Smart home: Multiple wireless technologies, including Wi-Fi and Bluetooth, will power the smart home. Cellular will complement these technologies and help enable use cases, such as remote security surveillance and utility monitoring and control.
  • Smart cities: As urbanization continues, 5G will enable use cases such as remote monitoring of city infrastructure, real-time traffic information and public safety alerts for improved emergency response times. Each of these scenarios will demand high-reliability and low-latency requirements.
  • Industrial automation: 5G will complement other connectivity technologies in the factory setting and enable the low-latency, high-reliability requirements of factory automation processes. Examples of 5G use in industrial automation include supply chain optimization and equipment assessment in real time.

IoT use cases exist that leverage 2G and 3G networks, such as remote temperature control, security monitoring, and sports and fitness applications. However, more advanced, mission-critical IoT use cases, such as autonomous driving or smart city infrastructure monitoring, will require 5G capabilities. Figure 1 illustrates the varying technology parameters each IoT use case presents. As latency requirements approach less than 1 ms and data link requirements near more than 1 Gbps, the need for 5G becomes more critical; this is especially true for highly mobile applications, such as autonomous driving.

Many of the use cases mentioned above will not necessarily require 5G; however, the user experience that each scenario offers could be enhanced if run over a 5G network.

Vendors that can offer operators solutions addressing IoT’s wide range of technology parameters will be best positioned to benefit from 5G.

Wireless backhaul upgrades: The first step on the path to ‘real’ 5G Operators are under pressure to densify their networks to support the growing amount of LTE traffic; and the sheer number of IoT devices that will connect to the network over the next five years will only add to their network constraints. Therefore, on the path to 5G operators will first upgrade LTE networks through carrier aggregation, software-mediated solutions, network densification through HetNets and advanced antennae technologies, such as massive MIMO.

Many of these technologies are being deployed now and will be enhanced when prestandards 5G is available in 2018, creating a more scalable and flexible network architecture in preparation for “real” 5G deployment in 2020. Until 2020 operators, vendors and standards groups will collaborate to enhance the new 5G air interface in labs and accommodate an evolving mobile ecosystem that will include massive capacity, billions of connections and multiple technologies. In the race to 5G, operators and vendors that focus on only the new radio will be left behind.

5G and IoT: A synergistic relationship

Some industry pundits say 5G will be the key enabler of IoT, whereas others believe IoT is driving 5G development. TBR believes there are specific synergies between 5G and IoT. The programmability of future 5G networks will support the extreme variation in technical parameters IoT will create, and the expanding number of IoT use cases will justify 5G spending. But IoT is a concept being put into practice today.

There are a multitude of IoT service and solution providers, and while uncertainty remains regarding the best ways to monetize, the opportunities to generate revenue via IoT applications can be realized much sooner than the future revenue opportunities 5G will present.

TBR believes operators and suppliers should partner to launch 5G field trials now, while initiating and developing key relationships with IoT application providers on a broader scale.

Note:Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, and telecom vendors and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in a format that is uniquely tailored to clients’ needs. Our analysts are available to address client specific issues further or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996.

For more information, please visit www.tbri.com.

(C) TBR