Enterprise 5G is forecast to generate $45 billion annually by the mid-2020s through next generation application development, IT services, platforms and connectivity according to new Telsyte research.
The report, Australian Enterprise IoT & 5G Study 2019, said 68 per cent of IT and business leaders see 5G as crucial for their business strategy going forward.
Half of respondents said 5G was critical for future application development and supporting future applications.
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Future applications are expected to make use of the huge data transfer capability, more reliable connectivity and lower latency, which will have the ability to change software architectures, allowing for real-time services and cloud based AI architectures.
There is still an issue of lack of skills with more than 25 per cent of respondents indicating they will be looking for an outsourced partner to develop 5G applications.
The top three barriers to 5G investment cited were integration with current systems at 34 per cent, a lack of business case at 23 per cent and security concerns at 17 per cent.
Once 5G is implemented nearly half of businesses surveyed expect five times or greater connected devices than today within the next five years. This is due to the expansion and experimentation with IoT.
5G is slowly becoming a reality, with Telstra selling the first 5G consumer devices in Australia this week, the Samsung Galaxy S10 5G smartphone and a HTC 5G portable hubspot and multimedia tablet.
Telsyte’s latest Australian Enterprise IoT maturity model shows that 32 per cent of organisations now have a strategic approach to IoT, of which around half have pilot programs running or already have IoT in operations.
Close to a third of large organisations plan to adopt an IoT strategy within the next 12 months.
Some of the biggest barriers to IoT adoption according to Telsyte include a lack of a business case, IoT seen as too expensive and a lack or skills and experience.
Enterprise IoT will have a diverse range of functions with businesses surveyed saying it will be used in maintenance, manufacturing and sales.
From the report, 32 per cent of large firms say IoT will be suitable for customer service applications.
The study found more than half of the survey respondents believed that around a quarter of their IoT devices might be connected via cellular technology within three years’ time. Around a quarter of organisations believe up to 50 per cent could be connected via mobile networks.
A third of companies that measured the ROI of IoT and 65 per cent said it increased revenues, 50 per cent saw a growth in productivity and half realised “better customer satisfaction or advocacy”.
This closely aligns to the early adopters of IoT which have been in the transport, logistics or asset heavy industries.
Operational cost savings was reported by 39 per cent of organisations, of which around 80 per cent saw nearly a one-third reduction in costs, either through efficiency gains or better management of assets.