5G Expansion to Boost IoT Development in Europe by 2025

2025-01-10 wireless

Brussels, Friday, 10 January 2025.
5G technology in Europe is expected to significantly enhance IoT deployment across various sectors, enabling real-time data processing and device collaboration, driving market innovation by 2025.

Current State of 5G Infrastructure

As of early 2025, Europe has made substantial progress in 5G deployment, with coverage expanding significantly throughout 2024 [3]. The infrastructure has particularly benefited from successful commercial implementations, such as Europe’s first commercial 5G cloud RAN deployment completed by Nokia and Elisa in December 2024 [4]. This expansion has created a robust foundation for IoT development, with industries such as manufacturing, logistics, and automotive already adopting 5G through mobile private networks (MPN) [3].

IoT Growth and Innovation

The European IoT market is experiencing unprecedented growth, with IDC projecting IoT-generated data to reach 80 zettabytes by 2025, growing at a CAGR of 28.7% [7]. This expansion is driven by increasing demands for actionable data and advanced edge processing capabilities [7]. The Wireless Broadband Alliance (WBA) predicts that early adopters of new wireless technologies will include technology-driven industries and smart cities, focusing on high-density connectivity for IoT devices and public venues [2].

Technological Integration and Standards

A significant development in the ecosystem is the implementation of Automated Frequency Coordination (AFC) systems across the EU [2]. These systems will manage 6 GHz usage for unlicensed Wi-Fi, enhancing the overall network capacity for IoT devices [2]. Additionally, major telecom operators are expected to invest over €25 billion in 5G infrastructure by the end of 2025 [6], while AI-driven networks will optimize performance in smart homes and IoT environments [2].

Future Outlook and Challenges

Looking ahead to 2025, the focus will be on maximizing the business and societal impact of 5G as a driver of innovation [3]. The European Commission has recently announced a new initiative to integrate 5G networks with IoT applications across urban areas [6]. However, challenges remain, particularly in addressing fragmentation in the European landscape, which complicates cross-border implementation due to differing regulatory frameworks [3]. The transition to 5G NR is expected to continue through 2025, with mass-market adoption of advanced features like RedCap anticipated by 2027-2028 [7].

Bronnen

5G technology IoT development