5G IoT: what it means for LTE-M, NB-IoT, and your deployment

5G is the fifth generation of cellular network technology, delivering significantly faster data speeds and lower latency than previous generations. This advanced network supports massive numbers of connected devices simultaneously with reliable performance, making it ideal for consumer and industrial applications.

5G further evolves the Internet of Things connectivity as IoT 5G incorporates existing technologies like NB-IoT and LTE-M, designed for low-power, wide-area applications common in many of today’s connected devices.

But what does reliable performance actually mean for IoT? While 5G promises significant advancements, the question remains: how are real-world deployments progressing, and do you really need 5G for your IoT deployments? Let’s take a critical look at 5G and IoT.

What does 5G mean?

5G represents the fifth generation of mobile telephony, standardized by the 3rd Generation Partnership Project (3GPP) starting with Release 15. Unlike previous generations focused on broader consumer adoption, 5G aims to serve diverse sectors, including time-critical applications and massive IoT connections.

Initial 5G rollout is focused on connecting consumer devices while most cellular IoT connections still happen with previous generations of LTE networks, and even 2G and 3G (despite sunset dates approaching soon or have already happened).

5G system: overview of key technologies

To enable all the benefits of 5G like high speeds, low latency, and massive device connectivity, let’s first look at 5G Core and 5G NR.

5G Core (5GC)

5G Core (5GC) is the central network infrastructure that manages and controls all data traffic and network functions. Think of it as the brain of the operation. It’s a completely redesigned, cloud-native architecture compared to previous generations, built for flexibility, scalability, and programmability.

5G New Radio (5G NR)

5G NR is the air interface or the radio access technology (RAT) for 5G. It’s the part of the 5G system that uses radio waves to connect devices (like smartphones, IoT devices, etc.) to the network. It’s like the voice of the operation, communicating between the devices and the core network. Key features of 5G NR include:

• Wider bandwidths: Uses a wider range of radio frequencies, including higher frequencies (mmWave) for faster speeds and lower frequencies for wider coverage.
• Lower latency: Reduces the delay between sending and receiving data, enabling real-time applications.
• Improved spectrum efficiency: Allowing more devices to connect simultaneously.
• Advanced antenna technologies: Employs techniques like beamforming and MIMO (Multiple Input Multiple Output) to improve signal strength and capacity.
• Flexible frame structure: Adapts the transmission frame structure to optimize performance for different types of data and applications.

Essentially, any network marketed as “5G” uses 5G NR. However, how this 5G is deployed can differ, leading us to the next two terms.

2 5G deployment paths: 5G NSA and 5G SA

5G Non-Standalone (5G NSA)

5G NSA (Non-Standalone) represents an early approach to 5G deployment. It’s called “non-standalone” because it relies on the existing 4G core network. In a 5G NSA network, the 5G NR works alongside the 4G LTE core network. This approach allows operators to roll out 5G services more quickly and cost-effectively by leveraging their existing investments.

5G Standalone (5G SA)

5G SA represents the future of 5G, offering significant improvements over both 4G and 5G NSA. In a 5G SA network, both the radio access network (RAN) and the core network are entirely 5G. This architecture unlocks the full range of 5G benefits like ultra-low latency and network slicing.

How is 5G used in IoT?

For IoT devices, particularly those with low bandwidth and low power requirements, 5G’s significance isn’t about raw speed. Instead, its value comes from being a unifying network technology that seamlessly integrates various access methods – satellite, WiFi, fixed lines, and cellular – to create a truly connected ecosystem.

While 5G in 2024 often means faster internet speeds on smartphones, its real innovation lies in how it was built from the ground up to support both human users and machines. As the GSMA notes, “At its conception, 5G was envisioned to enhance the human user experience and to enable various machine-related use cases.”

Like IoT itself, 5G doesn’t offer a one-size-fits-all solution. Instead, it’s designed to handle diverse needs through different types of use cases, which is listed below (as defined by ITU-R and 3GPP). This flexibility makes 5G the first cellular technology truly built with IoT in mind from the start.

3 application areas of 5G IoT

5G enhances and expands upon 4G services in several key areas:

Enhanced Mobile Broadband – eMBB

Enhanced Mobile Broadband (eMBB) was the first major development in 5G and its most widely recognized aspect, building upon 4G capabilities. It focuses on high-bandwidth applications like virtual/augmented reality, HD video streaming, and mobile internet. The main goal is delivering faster data speeds and lower latency than 4G, enabling a more digital lifestyle.

Ultra Reliability Low Latency Communication – URLLC

Ultra Reliability Low Latency Communication (URLLC) delivers the near-instant response times required for applications with reliability and minimal delay at the top of their priority. It’s designed for industrial and mission-critical uses like factory automation, self-driving vehicles, and remote control systems — essentially powering the digital transformation of industries.

Massive Machine-Type Communications – mMTC

Massive Machine-Type Communications (mMTC) is designed to support vast numbers of IoT devices that require low power and minimal bandwidth to communicate simultaneously within a given area. Devices that benefit from LTE-M or NB-IoT coverage fall under this category.

5G RedCap (or 5G NR-Light) – Reduced Capacity

5G Reduced Capacity, or simply RedCap, aims to fulfill the connectivity requirements of devices needing moderate bandwidth (up to 20 MHz and 220 Mbps downlink). In reference to LTE technology, think of 5G RedCap (or 5G NR-Light as referred to in 3GPP Release 17 in 2022) as a step above LTE cat 4 in terms of max downlink capacity.

5G eRedCap – enhanced Reduced Capacity

eRedCap, introduced in 3GPP Release 18, is a further simplified version of 5G RedCap, offering reduced complexity and cost compared to full 5G. eRedCap operates with a maximum 5 MHz bandwidth and 10 Mbps downlink. This makes eRedCap similar to the needs fulfilled by LTE cat 1 and LTE cat 1 bis.

Comparing 5G technology application areas

Specs	eMBB	URLLC	5G RedCap	5G eRedCap	mMTC (LPWAN: LTE-M, NB-IoT)
Latency	Low	Ultra low	Medium	Low to medium	High
Reliability	High	Ultra high	Medium	High to medium	Low
Data rate	High	Low to high	Medium	Low	Low
Device complexity	High	High	Medium	Low	Very low
Coverage	Normal	Normal	Normal	Normal	Extreme
Battery life	Medium	Medium	Medium	Medium to long	Very long
Connection density	Medium	Medium	Medium	Medium to high	Very high
Bandwidth	Wide	Wide	Medium	Medium	Narrow
Mobility	Supported	Supported	Supported	Supported	Supported (with varying capabilities for NB-IoT)

What is the future of 5G IoT?

NB-IoT and LTE-M are current LTE low-power wide-area (LPWA) technologies that meet 5G standards. Support for these technologies (LTE-M/eMTC and NB-IoT) is part of the original vision for 5G, with plans to incorporate them into the core 5G network. They will continue to be developed and will work with 5G networks, enabling devices to function even after carriers shut down their 4G networks. Although no carrier has implemented this yet, the option exists for a smooth operator transition and eventual market rollout.

What happens with LTE-M and NB-IoT in 5G IoT?

While LTE-M and NB-IoT are compatible with 5G core networks, mobile operators aren’t currently upgrading these LPWA networks. According to Sabrina Bochen, Director Product Planning & Marketing of u-blox, these networks will likely remain on existing 4G infrastructure, citing 4G’s lower cost and efficient spectrum use as key factors that allow it to operate effectively alongside 5G networks.

The development of 5G continues to progress, including work specific to 5G IoT. The 3GPP has established performance objectives for 5G mMTC, which will set the minimum standards for future LTE-M and NB-IoT rollout in 5G.

Parameters	5G requirements for mMTC
Message latency (for a 20-byte application layer packet at 164 dB MCL)	10 seconds or less
Battery life	10 years (15 years is desirable)
Coverage (MCL or Maximum Coupling Loss)	164 dB for a data rate of 160 bps at the application layer.
Connection density	1 million devices in a km2 urban setting
Complexity	Ultra-low complexity and cost IoT devices and networks

Note that actual real-world performance varies from the requirements set by the 3GPP.

How big is the 5G IoT market?

The market for 5G IoT is poised for growth, with China leading the way by holding 80% of global connections. According to a 2024 report by IoT Analytics, China experienced a dramatic 79% year-over-year growth in the first half of 2024, driven by substantial infrastructure investments and the widespread availability of affordable devices.

Two key sectors are powering this expansion: Fixed Wireless Access (FWA) and automotive applications. FWA dominates with 45% of global 5G IoT connections, providing high-speed internet access where traditional infrastructure is lacking. Meanwhile, the automotive sector represents 26% of connections, implementing 5G technology for advanced features like real-time navigation and Cellular Vehicle-to-Everything (C-V2X) communication, which enables vehicles to interact with infrastructure and other road users.

This growth highlights the advanced capabilities of 5G, particularly its high bandwidth and low-latency performance. However, we have yet to see how it handles massive device connections for low-power IoT currently benefiting from NB-IoT and LTE-M.

What are the challenges of 5G for IoT?

The transition to 5G brings both opportunities and obstacles for IoT deployments. Beyond the promise of faster speeds and lower latency, significant hurdles remain, including the need for upgraded infrastructure, alignment with diverse regional regulations, and balancing the high costs of implementation with scalable IoT solutions.

Rolling out 5G globally

5G deployment involves upgrading existing infrastructure and installing new equipment to implement support across various frequency bands and advanced features. The recent GSA 5G market snapshots highlight how 5G is rolling out globally (as of Q3 2024):

• 160+ operators in 75 countries and territories have released 5G based on 3GPP standards
• 300+ operators have released 5G NSA networks
• 60+ operators have deployed or launched 5G SA networks

These deployment figures show progress in global 5G adoption, though challenges remain in achieving universal coverage, particularly in developing regions and rural areas. While major urban centers are seeing rapid 5G implementation, the high costs of infrastructure upgrades and varying regulatory frameworks across countries continue to influence the pace of worldwide 5G IoT rollout.

Regulations and geopolitical limitations

Geopolitical issues such as trade policies and technology standards across borders add further complications to 5G’s wider deployment.

As our CTO and co-founder Henrik Aagard said, “Until regulations are further unified worldwide and telcos demonstrate a willingness to integrate networks at scale beyond territorial boundaries, the full vision of 5G as the connectivity fabric for a globally interconnected IoT remains immature.”

Choosing the right network technology today

While 5G promises transformative capabilities for IoT applications, the journey to full 5G maturity and widespread adoption will unfold over several years, up to a decade according to industry estimates.

For most IoT deployments today, existing technologies like LTE-M and NB-IoT already provide the optimal mix of coverage, power efficiency, and cost-effectiveness needed for successful implementations.

Rather than waiting for the complete 5G rollout (which also includes the certification process for 5G IoT devices), businesses should take a pragmatic approach — leveraging current technologies while preparing their IoT strategy for future 5G capabilities.

To determine which cellular network technology best suits your specific IoT project requirements, try our network technology assessment for a customized recommendation based on your use case.

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Resources

• O. Liberg et al., “Narrowband Internet of Things 5G Performance,” 2019 IEEE 90th Vehicular Technology Conference (VTC2019-Fall), Honolulu, HI, USA, 2019, pp. 1-5, doi: 10.1109/VTCFall.2019.8891588. https://ieeexplore.ieee.org/document/8891588
• A. A. Ateya, A. Muthanna, M. Makolkina and A. Koucheryavy, “Study of 5G Services Standardization: Specifications and Requirements,” 2018 10th International Congress on Ultra Modern Telecommunications and Control Systems and Workshops (ICUMT), Moscow, Russia, 2018, pp. 1-6, doi: 10.1109/ICUMT.2018.8631201. https://ieeexplore.ieee.org/document/8631201
• GSMA. Internet of Things in the 5G Era: Opportunities and Benefits for Enterprises and Consumers. 2019. https://www.gsma.com/solutions-and-impact/technologies/internet-of-things/gsma_resources/iot-5g-ltem-nbiot-opportunities-benefits/
• GSMA. Mobile IoT in the 5G Future. October 2024. https://www.gsma.com/solutions-and-impact/technologies/internet-of-things/wp-content/uploads/2018/05/GSMA-5G-Mobile-IoT.pdf
• GSMA. Mobile ioT in the 5G future – NB-IoT and LTE-M in the context of 5G. April 2018. https://www.ericsson.com/4ac64d/assets/local/reports-papers/5g/doc/gsma-5g-mobile-iot.pdf
• Sony Altair. Evaluation of LTE-M towards 5G IoT requirements. March 2018. https://altair.sony-semicon.com/wp-content/uploads/2019/04/White-Paper-LTE-M-Performance-Towards-5G.pdf
• Quectel. Is 5G RedCap the right fit for your IoT connectivity needs? https://www.quectel.com/library/5g-redcap-white-paper/
• Sultain, Alain, MCC. 5G System Overview. 3GPP. August 2022. https://www.3gpp.org/technologies/5g-system-overview