5G and IoT: New opportunities for companies

Differences between 5G and other mobile networks – and when to use which technology

Compared to 4G, 5G provides IoT sensors and devices with significantly higher bandwidth, up to ten times faster data transmission and lower latency. So far 4G has been sufficient for several IoT applications, but 5G networks open up new possibilities for high-performance workloads, e.g. real-time applications such as autonomous driving, which 4G is not capable of.

At the same time, not every IoT project requires 5G. LPWAN (Low Power Wide Area Network) technologies such as NB-IoT (Narrowband-IoT) and LTE-M score points with particularly low energy consumption, good building penetration, and affordable IoT connectivity and are intended as a niche technology for low-power IoT applications in indoor areas. On the other hand, 5G connects numerous IoT devices and sensors across a large area and supports a wide range of IoT solutions. Currently NB-IoT is being integrated into 5G improving its performance.

The following overview summarizes the strengths, typical areas of application, and rough guidelines for the various IoT protocols:

Many small sensors without real-time requirements work most efficiently with NB-IoT or LTE-M. LTE-M is ideal for mobile telemetry and voice communication. Video, AR, or other data-intensive IoT technologies benefit from 5G.

What 5G really does for IoT: eMBB, uRLLC, mMTC

5G mobile communications comprises three performance profiles: eMBB, uRLLC, and mMTC. The importance of these profiles varies depending on the IoT use case. Most IoT devices combine the 5G profiles: mMTC for extensive sensor data, plus uRLLC for a few critical control paths.

eMBB (enhanced Mobile Broadband)

The eMBB profile stands for high data rates and is suitable wherever large amounts of data need to be transferred quickly. This includes mobile video inspections in 4K, AR instructions, or OTA firmware updates for entire device fleets. Depending on the network and location, download and upload speeds in the range of around 100 Mbit/s to over 1 Gbit/s are possible in practice.

uRLLC (Ultra-Reliable Low-Latency Communications)

This performance profile addresses time-critical processes with very low latency and high reliability. Typical areas of application include near-real-time robotics and AGVs, teleoperation, process control, and protection and control technology. Realistically, end-to-end latencies in the single-digit millisecond range can be achieved, especially with the right architecture, e.g., with edge processing.

mMTC (massive Machine-Type Communications)

The mMTC profile allows for very high device density while consuming little energy. This makes it ideal for smart metering, environmental and condition monitoring, and asset tracking. It is characterized by many endpoints per cell with small data volumes and correspondingly long battery life.

5G NSA vs. 5G SA – and what network slicing means for IoT

The architecture of 5G determines whether the IoT technology simply works quickly or runs predictably with guaranteed response times. The standard distinguishes between 5G Non-Standalone (NSA) and 5G Standalone (SA).

5G NSA (Non-Standalone)

NSA connects 5G radio cells to an existing 4G core network. This makes it easy to get started and scales well over existing coverage. For data-intensive applications such as video, AR support, or mobile terminals, NSA delivers high rates and solid latencies without the complexity of a new 5G core.

• Strengths: Wide availability, high throughput, rapid rollout on existing infrastructure
• Please note: Advanced 5G features such as consistent slicing or very low, guaranteed latencies are only available to a limited extent or not to the same degree.

5G SA (Standalone)

SA relies on an independent 5G core. Only then can uRLLC profiles, precise QoS control, and network slicing be fully utilized, forming the basis for guaranteed machine communication and cleanly separated application paths. 5G Standalone is suitable when IoT processes must always respond within defined limits.

• Advantages: Lower and more stable latencies, end-to-end control, full slicing support
• Suitable when: Deterministic response times, hard QoS guarantees, or strict separation of data streams are required (e.g., production, eHealth, energy)

What is Network Slicing?

A slice is a virtual, logically separate 5G network with guaranteed resources, policies, and security rules. In practice, this means an IoT infrastructure with multiple dedicated 5G networks, each tailored precisely to a specific use case (especially under SA).

Examples from everyday factory life:

• Production slice: uRLLC path for machine and robotics control, prioritized safety signals, local routing to the edge
• AR Support Slice: Prioritized eMBB for stable video/XR streams with defined minimum bandwidth.
• Service/IT slice: Best effort for monitoring, telemetry, and non-critical data

Practical benefits: Critical loads remain separate from non-critical ones, performance becomes predictable, compliance becomes easier, and changes (e.g., new lines, additional cameras) can be implemented via policy without disrupting the entire network.

5G and its benefits for IoT 

• Increased data transmission rate:  A high data transmission rate of up to 10 gigabits per second is crucial for applications that require the processing of large amounts of data in real time. These include industrial automation and Internet of Things (IoT) solutions in the healthcare sector. Cities, urban areas and local networks also benefit from the increased data transmission rate.
• Low latency: Latency times of less than one millisecond allow almost instant communication between IoT devices in 5G. This feature is particularly relevant for time-critical applications such as autonomous vehicles and remote surgery.
• High capacity: 5G in IoT can simultaneously connect up to one million devices per square kilometer. Capacity is becoming increasingly important as more and more IoT devices need to communicate with each other, e.g. sensors in smart cities or household appliances.
• Improved energy efficiency: Despite the high data rate and connection density, 5G is geared towards energy efficiency. The battery life of IoT devices is extended, and maintenance costs are reduced. This applies particularly to devices used indoors.
• Stable connection: 5G promotes machine-to-machine communication (M2M) through a stable and fast connection. This is relevant for applications such as industrial automation, where reliable communication between machines is essential. In addition, 5G in IoT will connect rural areas to the internet more reliably once it replaces the aging 2G and 3G networks.
• High security: 5G ensures high security standards in the Internet of Things. Critical applications such as industrial control systems and medical devices benefit from that.
• New application areas: 5G supports new IoT technologies such as massive Machine Type Communication (mMTC) and Ultra-Reliable Low-Latency Communication (URLLC). This means many applications with low latency can be reliably connected.

5G use cases for the Internet of Things

A 5G network is particularly suitable for IoT applications that require high bandwidths and low latencies.

Healthcare

In the healthcare sector, 5G on the Internet of Things enables telemedicine and remote patient monitoring. Doctors can perform operations remotely and medical devices can transmit data in real time. 5G technology thus facilitates the remote treatment of patients, e.g. in rural areas.
 

Industrial automation

In Industry 4.0, 5G in IoT optimizes production processes through the automation and networking of production facilities. That includes the seamless integration of robotics, sensors and AI into production lines. Machines are controlled and monitored more efficiently, resulting in higher productivity and less downtime.

Smart cities

5G in smart cities is used for traffic control, monitoring environmental conditions and intelligent lighting systems. A smart traffic and energy management system can increase efficiency and improve the quality of life in cities.

Agriculture

IoT sensors and devices use 5G to monitor soil and weather conditions to determine precise irrigation and fertilization. The outcome is higher yields and the sustainable use of resources.

Transportation and logistics

5G in smart transportation ensures the efficient control and monitoring of fleet vehicles. Real-time data enables better route planning and reduces downtime, whilst 5G technology also promotes the development of autonomous driving. This allows vehicles to communicate with each other and with the infrastructure simultaneously. 

Energy industry

In the energy industry, 5G in IoT monitors and controls power grids. Enabling energy suppliers to analyze data in real time and react immediately significantly improves network efficiency and security of supply. 

5G campus network for IoT: Data sovereignty, security, and predictable performance

A campus network is a private 5G network located within a company's premises. It has its own radio infrastructure and customized policies, and can be operated independently or in partnership with a provider.

Benefits of 5G for the Internet of Things:

• Deterministic performance: Dedicated resources, predictable latency, and throughput
• Data sovereignty: On-premises (edge) processing, clear data sovereignty
• Security by Design: SIM-based identities, segmentation by slice/policy, zero-trust principles
• Scalability: From a single room to a campus, integration into the corporate LAN/OT

How IoT companies operate a 5G campus network determines security, controllability, and time-to-value. In practice, three models have become established, which differ primarily in terms of control, effort, and speed.

• Own spectrum/SNPN: Companies operate a completely private 5G network (standalone non-public network) with their own radio and core infrastructure. This provides maximum sovereignty: policies, QoS, security, and data flows remain with the company, and sensitive applications stay local. This requires greater planning and approval efforts, more CAPEX, and expertise in operation and further development.
• Operator model/MOCN: In the operator model, providers supply radio and core. The infrastructure and resources are shared, and the network is set up on the factory premises. The advantages are very fast implementation, clear SLAs, less operational risk, and an optional seamless connection to the public network.
• Hybrid: The hybrid approach combines both. Critical processes run on a private slice or in a private sub-infrastructure, while non-critical traffic uses the public 5G network. This allows guaranteed paths and data sovereignty for core processes to be combined with the cost-effectiveness and range of the provider network.

A 5G campus network pays off when IoT technologies require strict QoS commitments (e.g., robotics, safety signals), compliance and data sovereignty require local processing, or many end devices in demanding environments need to be reliably supplied.  

Implementation roadmap for 5G networks in IoT: From concept to stable operation

The shortest route to resilient 5G technology for the Internet of Things is clear and small, verifiable steps. The goal is to obtain a realistic cost/benefit picture early on, isolate risks, and ultimately operate a network that delivers predictable performance even under load.

1. Assess & business case

The first step is sorting: Which applications primarily require bandwidth (e.g., video/AR), which require low latency (control/robotics), and which require device density or energy efficiency (sensors)? At the same time, companies check the location for indoor/outdoor coverage, possible sources of interference, and available fiber optics/backhaul. The business case is derived from these facts.

2. Architecture & security

This forms the basis for the target vision: NSA/SA mix, required slices, edge topology, and integration into existing IT/OT systems (identities, certificates, logging/SIEM). Companies determine how devices are networked and kept up to date, whether IoT eSIMs or physical IoT SIM cards are used, and define a zero-trust model. In the end, everyone involved knows which data stream is allowed to go where, with what priority, and what commitments.

3. PoC & field test

For each prioritized use case, a minimum viable slice is defined with specific target values for latency, jitter, throughput, packet loss, and availability. Companies then conduct tests under load and with real end devices. The acceptance criteria (e.g., “≤ x ms in 99.9% of packets”) are set out in writing, and only when they are met can the process continue. This helps companies avoid discovering weaknesses only during rollout.

4. Rollout & Scaling

Detailed planning determines small cell locations, redundancies, and indoor coverage. Recurring tasks are automated: provisioning (SIM/eSIM), configuration, observability, and, if available, CI/CD for edge workloads. At the same time, companies establish operational processes such as incident/problem/change management, patch windows, and emergency runbooks. This ensures that operations remain reproducible even as the device fleet grows.

5. Operation & optimization

Transparency is key in regular operations. Continuous telemetry makes deviations visible at an early stage. Policies per slice and radio parameters are adjusted as needed, and edge resources are distributed dynamically. Security remains a process. Regular pen tests, OT scenario exercises, and compliance audits keep standards high and prevent gradual deterioration.

Typical KPIs for measuring success:

• End-to-end latency and jitter per use case
• Availability and SLA compliance per slice
• Quality/process indicators (e.g., first-pass yield, error rate, downtime)
• Throughput and time savings in logistics/service
• Mean-Time-to-Repair und Tickets je Monat

Step by step, a 5G network for the Internet of Things is being created that is measurable, auditable, and scalable in operation.

Challenges and future of 5G for the IoT technology

On the Internet of Things the high 5G frequencies have shorter ranges and difficulties penetrating buildings, which leads to uneven coverage, especially indoors. More transmission masts and a denser network coverage are required for the infrastructure.

The implementation of 5G technology in IoT is costly and time-consuming. Companies have to invest in new hardware and software, which increases the initial costs considerably, and represents a financial burden for smaller companies in particular.

The increasing IoT connectivity through 5G also increases the risk of cyberattacks. Every connected IoT device is a potential target for hacker attacks, therefore the introduction of 5G requires a robust network security to protect data and devices.

Future outlook of 5G network and IoT

Despite these challenges, 5G offers immense opportunities for the Internet of Things. In the coming years, 5G will play a crucial key role in the digital transformation of sectors such as healthcare, industry and transportation. The benefit of 5G makes new innovative IoT technologies possible that cannot be realized with previous technologies, and the integration of LPWAN technologies such as NB-IoT and LTE-M into 5G networks will further improve coverage and optimize energy consumption.

FAQ on 5G and IoT

How does 5G impact IoT?

The Internet of Things (IoT) connects numerous devices and collects their data. 5G in IoT provides the necessary speed and capacity to transfer large amounts of data efficiently and enables seamless communication between IoT devices.

What are the benefits of 5G for IoT?

The extremely high data rates and low latency of 5G are ideal for IoT devices and sensors that rely on fast and reliable data transmission.

In which cases is 5G more suitable than 4G?

5G is faster and has lower latency than 4G. This is relevant for real-time applications and, in addition, 5G connects more devices simultaneously.

How many IoT devices can 5G support?

5G supports up to one million IoT sensors and devices per square kilometer at the same time, whilst other IoT technologies have a lower capacity.