Gartner predicts that 5G IoT installed endpoints for outdoor surveillance cameras will reach 11.2 million units in 2022, but will be surpassed by connected cars in 2023.
In 2020, outdoor surveillance cameras are forecast to account for 70 per cent of the global base of IoT endpoints. By 2023, their market share is expected to fall to 32 per cent as they are overtaken by connected cars, according to Gartner.
Gartner’s Market Trends: 5G Opportunities in IoT for Communications Service Providers report predicts that 5G IoT installed endpoints for outdoor surveillance cameras will reach 2.5 million in 2020, 6.2 million units in 2021 and 11.2 million units in 2022, but will be surpassed by connected cars in 2023.
“Cameras deployed by city operators or used to ensure building security and provide intruder detection offer the largest addressable market as they are located outdoors, often across cities, and require cellular connectivity,” said Stephanie Baghdassarian, Senior Research Director at Gartner.
Gartner predicts that the 5G IoT endpoint installed base will more than triple between 2020 and 2021, from 3.5 million units in 2020 to 11.3 million units in 2021.
By 2023, the 5G IoT endpoint installed base is expected to approach 49 million units (see Table 1).
5G capabilities open up new enterprise market opportunities, so communications service providers must assess many use cases to prioritise investment for IoT solutions, Gartner said.
“Their investments should focus on outdoor surveillance cameras, connected cars and government and physical security,” said Baghdassarian.
Results of studies surrounding the effectiveness of surveillance cameras are mixed, with some finding they are more effective in solving and responding to crime, rather than preventing it.
In a recent study based on 40 years of evaluation research, CCTV was found to be most effective in reducing crime in car parks and residential areas, and when combined with multiple interventions. CCTV schemes incorporating active monitoring were more effective than passive systems.
In the Boston bombing case, police used footage and images from state, public and private sources to identify the suspects. CCTV was also used to identify suspects in the co-ordinated bomb attacks in Sri Lanka in April 2019.
The use of surveillance systems also raises privacy concerns, especially with the introduction of facial recognition technology.
In 2023, Gartner expects that the automotive industry will become the largest market opportunity for 5G IoT solutions, representing 53 per cent of the overall 5G IoT endpoint opportunity.
Within the automotive sector, embedded connected-car modules are tipped to be the major use case for 5G.
Embedded endpoints in connected cars for commercial and consumer markets are predicted to represent an installed base of 19.1 million units out of a total of 25.9 million 5G endpoints in the automotive sector in 2023.
In 2023, the automotive industry will become the largest market opportunity for 5G IoT solutions.
“The addressable market for embedded 5G connections in connected cars is growing faster than the overall growth in the 5G IoT sector,” said Baghdassarian.
In addition, the share of 5G-connected cars actively connected to a 5G service is forecast to grow from 15 per cent in 2020 to 74 per cent in 2023, before reaching 94 per cent in 2028. By then, 5G technology is predicted to be used for cellular V2X communications, which enable messages to be sent and received within vehicles and between vehicles, infrastructure, pedestrians, cyclists and more.
Gartner states that, ultimately, connected cars actively connected to a 5G service will help keep traffic moving and improve road safety.
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