Fuelled by the rapid growth of the Internet of Things, the number of connected devices will grow at a CAGR of 19% over the next six years, with 5G networks set to play a huge role for cellular connections

There will be an estimated 30 billion connected devices by the year 2023, with 20 billion of those being connected to the Internet of Things (IoT), according to a recently published industry report.

The Ericsson Mobility Report suggests that connected IoT devices will grow at a compound annual growth rate (CAGR) of 19%, as the declining price of IoT devices and sensors fuels growth in the sector.   

The report also suggests that there will be a sharp increase in the number of IoT devices using cellular connections. The number is set to increase from 0.5 billion in 2017, to 1.8 billion by 2023. The advent of 5G services will play a key role in facilitating this.

“5G will arrive in 2019 and serve the market for 20 years thereafter. It needs to offer more than just higher speeds. 5G is not just about connecting people, it is about enabling the Internet of Things,” Rahim Tafazolli from the University of Surrey told members of the press at a recent event in London.

The roll out of 5G will be crucial to the evolution of the IoT, allowing for the implementation of new and more ambitious services. 

“5G will provide mechanisms for rapid and cost-effective introduction and provisioning of new IoT services. Based on technologies like Cat-M1 and NB-IoT, a growing number of cellular IoT networks are being deployed, with more than 20 networks now commercially launched across several regions,” read the Ericsson Mobility Report.

The report states that global 5G coverage will hit 20% by the year 2023.