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South Korea 5G Industrial IoT Market

ID: MRFR/ICT/56736-HCR
200 Pages
Aarti Dhapte
October 2025

South Korea 5G Industrial IoT Market Research Report By Component (Hardware, Solution, Service), By Organization Size (Large Enterprise, Small & Medium Enterprise) and By Application (Predictive Maintenance, Business Process Optimization, Asset Tracking & Management, Logistics & Supply Chain Management, Real-time Workforce Tracking & Management, Automation Control & Management, Emergency)-Forecast to 2035

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South Korea 5G Industrial IoT Market Summary

As per MRFR analysis, the 5G industrial-IoT market size was estimated at 13.5 USD billion in 2024. The 5g industrial-iot market is projected to grow from 14.34 USD Billion in 2025 to 26.3 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 6.25% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The South Korea 5G industrial-IoT market is poised for substantial growth driven by technological advancements and strategic initiatives.

  • Enhanced connectivity solutions are transforming operational efficiencies across various sectors.
  • Smart manufacturing initiatives are gaining traction, particularly in the automotive and electronics segments.
  • Government support and policy frameworks are fostering innovation and investment in 5G technologies.
  • Rising demand for automation and the expansion of smart cities are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 13.5 (USD Billion)
2035 Market Size 26.3 (USD Billion)
CAGR (2025 - 2035) 6.25%

Major Players

Ericsson (SE), Nokia (FI), Huawei (CN), Qualcomm (US), Cisco (US), Samsung (KR), Intel (US), Siemens (DE), GE (US)

South Korea 5G Industrial IoT Market Trends

The industrial-IoT market is experiencing notable advancements., particularly in South Korea, where the integration of cutting-edge technologies is reshaping various sectors. The nation's robust telecommunications infrastructure, characterized by high-speed connectivity and low latency, facilitates the deployment of innovative industrial applications. This environment fosters the development of smart factories, automated supply chains, and enhanced asset management systems. As industries increasingly adopt these technologies, the potential for operational efficiency and productivity gains appears substantial. Furthermore, the collaboration between government entities and private sectors is likely to accelerate the growth of this market, as initiatives aimed at promoting digital transformation gain momentum. In addition, South Korea's strategic focus on research and development in the field of 5g industrial-iot is indicative of its commitment to maintaining a competitive edge. The government has implemented various policies to support the expansion of this market, including funding for startups and incentives for businesses to adopt IoT solutions. This proactive approach may lead to a flourishing ecosystem where innovation thrives, and new business models emerge. As the 5g industrial-iot market continues to evolve, it is expected that South Korea will play a pivotal role in shaping the future of industrial automation and connectivity, potentially influencing trends in other regions as well.

Enhanced Connectivity Solutions

The 5g industrial-iot market is witnessing a surge in demand for enhanced connectivity solutions. This trend is driven by the need for real-time data transmission and seamless communication between devices. Industries are increasingly relying on 5g technology to support applications such as remote monitoring, predictive maintenance, and automated operations. As a result, businesses are likely to experience improved operational efficiency and reduced downtime.

Smart Manufacturing Initiatives

There is a growing emphasis on smart manufacturing initiatives within the 5g industrial-iot market. Companies are adopting IoT-enabled devices and systems to optimize production processes and enhance supply chain management. This trend suggests that manufacturers are leveraging advanced analytics and machine learning to make data-driven decisions, ultimately leading to increased productivity and reduced costs.

Government Support and Policy Frameworks

Government support and policy frameworks are playing a crucial role in the development of the 5g industrial-iot market. Initiatives aimed at fostering innovation and encouraging investment in IoT technologies are becoming more prevalent. This trend indicates that regulatory bodies are recognizing the importance of digital transformation and are actively working to create an environment conducive to growth and collaboration.

South Korea 5G Industrial IoT Market Drivers

Expansion of Smart Cities

The development of smart cities in South Korea is a critical driver for the 5g industrial-iot market. As urban areas increasingly integrate technology to improve infrastructure and services, the demand for connected devices and systems is expected to rise. The South Korean government has committed substantial investments, estimated at over $2 billion, to enhance urban connectivity and implement smart solutions. This initiative includes the deployment of 5G networks, which are essential for supporting the vast number of IoT devices required for smart city applications. The integration of 5G technology into urban planning is likely to create new opportunities for the 5g industrial-iot market, as it enables efficient traffic management, energy consumption monitoring, and public safety enhancements.

Rising Demand for Automation

The 5g industrial-iot market in South Korea is experiencing a notable surge in demand for automation across various sectors. Industries are increasingly adopting automated solutions to enhance operational efficiency and reduce labor costs. This trend is driven by the need for real-time data processing and analytics, which 5G technology facilitates. According to recent estimates, the automation market in South Korea is projected to grow at a CAGR of approximately 15% over the next five years. This growth is likely to propel the adoption of 5G industrial-iot solutions, as businesses seek to integrate advanced technologies such as AI and machine learning into their operations. Consequently, the 5g industrial-iot market is poised to benefit significantly from this rising demand for automation, as companies strive to remain competitive in an evolving landscape.

Growing Cybersecurity Concerns

As the 5g industrial-iot market expands, so do the concerns regarding cybersecurity. The increasing interconnectivity of devices raises the potential for cyber threats, prompting industries to prioritize security measures. In South Korea, the government has recognized the importance of cybersecurity in the context of industrial IoT and has initiated various programs to enhance security protocols. Investments in cybersecurity solutions are expected to reach approximately $1 billion by 2027, reflecting the growing awareness of the need to protect critical infrastructure. This focus on cybersecurity is likely to drive the demand for secure 5G industrial-iot solutions, as companies seek to mitigate risks associated with data breaches and cyberattacks.

Increased Focus on Industry 4.0

The 5g industrial-iot market is significantly influenced by the growing emphasis on Industry 4.0 in South Korea. This paradigm shift towards digital transformation in manufacturing is characterized by the integration of IoT, AI, and big data analytics. As industries strive to optimize production processes and enhance supply chain management, the role of 5G technology becomes increasingly vital. The South Korean manufacturing sector is projected to invest approximately $5 billion in digital transformation initiatives by 2026. This investment is likely to drive the adoption of 5G industrial-iot solutions, as companies seek to leverage real-time data for decision-making and operational improvements. The alignment of Industry 4.0 with 5G capabilities presents a promising landscape for the growth of the 5g industrial-iot market.

Advancements in Telecommunications Infrastructure

The ongoing advancements in telecommunications infrastructure in South Korea are a pivotal driver for the 5g industrial-iot market. The country has made significant strides in deploying 5G networks, with coverage reaching over 90% of urban areas. This robust infrastructure is essential for supporting the high-speed, low-latency communication required for industrial IoT applications. As businesses increasingly rely on connected devices for monitoring and control, the availability of reliable 5G connectivity is likely to enhance the adoption of industrial IoT solutions. Furthermore, the South Korean government has set ambitious goals to expand 5G coverage to rural areas, which could further stimulate the growth of the 5g industrial-iot market by enabling more industries to leverage advanced connectivity.

Market Segment Insights

By Component: Hardware (Largest) vs. Service (Fastest-Growing)

In the South Korea 5g industrial-iot market, the hardware segment holds the largest market share, driven by the increasing demand for robust infrastructure and devices that support 5g connectivity. Hardware components are critical for ensuring seamless connectivity and operational efficiency, making them a crucial investment for industries transitioning to 5g technology. On the other hand, the service segment is emerging rapidly, reflecting a growing recognition of the need for managed services, cloud computing, and IoT solutions that provide added value to hardware investments. Growth trends in the segment indicate that while hardware remains dominant, the service sector is catching up quickly. The rapid advancement of technology and the diversified applications of 5g in various industries are driving service demand, particularly for analytics, maintenance, and security services. As industries increasingly adopt cloud-based solutions and interconnected devices, the service segment is anticipated to continue its upward trajectory, becoming a critical component of the overall market strategy for businesses.

Hardware (Dominant) vs. Service (Emerging)

The hardware segment in the South Korea 5g industrial-iot market is characterized by robust infrastructure components such as routers, antennas, and sensors that facilitate 5g connectivity. This segment serves as the backbone for numerous industrial applications, enabling high-speed communication and real-time data processing. On the other hand, the service segment, while currently emerging, encompasses crucial offerings like IoT platform management, data analytics, and cybersecurity services. As industries strive for digital transformation and optimize their 5g capabilities, the demand for comprehensive service solutions is rapidly expanding, enhancing the overall value proposition of the South Korea 5g industrial-iot market.

By Organization Size: Large Enterprise (Largest) vs. Small & Medium Enterprise (Fastest-Growing)

In the South Korea 5g industrial-iot market, the market share distribution between Large Enterprises and Small & Medium Enterprises is notable. Large Enterprises dominate this segment, leveraging their resources to implement advanced 5g technologies for improved efficiency and productivity. Meanwhile, Small & Medium Enterprises are rapidly gaining traction as they adopt innovative solutions to enhance their operational capabilities, gradually increasing their share in the market. Growth trends in this segment are driven by the increasing digital transformation across various industries. Large Enterprises continue to invest heavily in 5g infrastructure, which fuels their dominance. Conversely, Small & Medium Enterprises are seen as the fastest-growing segment, as they are increasingly adopting 5g technology to remain competitive. The demand for flexible and scalable solutions is prompting these smaller organizations to explore partnerships and technologies that enhance their agility and responsiveness.

Organization Size: Large Enterprise (Dominant) vs. Small & Medium Enterprise (Emerging)

Large Enterprises in the South Korea 5g industrial-iot market are characterized by significant investments in technology and infrastructure, enabling them to implement comprehensive solutions tailored to their extensive operations. They benefit from economies of scale, allowing for more effective deployment of 5g capabilities. In contrast, Small & Medium Enterprises are emerging as a dynamic force in the market, characterized by their agility and adaptability. They tend to adopt 5g solutions faster to optimize their processes and compete with larger rivals. The trend towards digitalization among these smaller entities is fostering innovation, making them critical players in the evolving landscape of the market.

By Application: Predictive Maintenance (Largest) vs. Automation Control & Management (Fastest-Growing)

In the South Korea 5g industrial-iot market, the application segment exhibits diverse use cases with Predictive Maintenance leading the market due to its critical role in reducing downtime and maintenance costs. Following closely are Logistics & Supply Chain Management and Asset Tracking & Management, which contribute significantly to operational efficiencies in various industries. Real-time Workforce Tracking & Management is also gaining traction as remote operations become more prevalent. The growth trends in this segment are driven by increasing demands for operational efficiency and data-driven decision-making. Automation Control & Management is poised to become the fastest-growing area, spurred by advancements in AI and machine learning. The emphasis on real-time analytics is increasing, allowing businesses to respond promptly to market changes, thus enhancing overall productivity and competitiveness.

Predictive Maintenance (Dominant) vs. Automation Control & Management (Emerging)

Predictive Maintenance stands out as the dominant application in the South Korea 5g industrial-iot market, allowing industries to proactively address equipment failures and optimize maintenance schedules. This capability leads to substantial reductions in operational downtime and cost management. In contrast, Automation Control & Management is emerging rapidly, driven by technological advancements that facilitate real-time monitoring and control of industrial processes. This application enhances efficiency and automates routine tasks, making it essential for manufacturers aiming to leverage IoT technologies. As industries increasingly adopt these technologies, the distinction between dominant and emerging applications becomes more pronounced, highlighting the need for continuous adaptation to technological innovations.

Get more detailed insights about South Korea 5G Industrial IoT Market

Key Players and Competitive Insights

The competitive dynamics within the 5g industrial-iot market in South Korea are characterized by rapid technological advancements and a strong push towards digital transformation. Key growth drivers include the increasing demand for automation in manufacturing, enhanced connectivity solutions, and the integration of AI technologies. Major players such as Samsung (KR), Ericsson (SE), and Huawei (CN) are strategically positioned to leverage these trends. Samsung (KR) focuses on innovation in network infrastructure and IoT solutions, while Ericsson (SE) emphasizes partnerships with local telecom operators to enhance service delivery. Huawei (CN) is actively investing in R&D to develop cutting-edge 5g technologies, which collectively shape a competitive environment that is both dynamic and collaborative.

Key business tactics employed by these companies include localizing manufacturing to reduce costs and optimize supply chains. The market structure appears moderately fragmented, with several players vying for market share, yet the influence of key players remains substantial. This competitive landscape fosters innovation and encourages companies to differentiate their offerings through advanced technologies and tailored solutions.

In October 2025, Samsung (KR) announced a strategic partnership with a leading South Korean automotive manufacturer to develop 5g-enabled smart vehicles. This collaboration is significant as it not only enhances Samsung's footprint in the automotive sector but also aligns with the growing trend of smart mobility solutions. The integration of 5g technology into vehicles is expected to improve safety and efficiency, thereby positioning Samsung as a leader in this emerging market.

In September 2025, Ericsson (SE) launched a new suite of IoT solutions specifically designed for industrial applications, aimed at enhancing operational efficiency. This move is crucial as it addresses the increasing demand for reliable and scalable IoT solutions in various sectors, including manufacturing and logistics. By focusing on tailored solutions, Ericsson strengthens its competitive edge and responds effectively to market needs.

In August 2025, Huawei (CN) unveiled its latest 5g chipset, which promises to enhance connectivity for industrial IoT applications. This development is pivotal as it showcases Huawei's commitment to innovation and its ability to deliver high-performance solutions. The introduction of advanced chipsets is likely to drive further adoption of 5g technologies across industries, reinforcing Huawei's position in the market.

As of November 2025, current competitive trends are heavily influenced by digitalization, sustainability initiatives, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering collaboration that enhances innovation and market responsiveness. Looking ahead, competitive differentiation is expected to evolve, with a shift from price-based competition towards a focus on technological innovation, reliability in supply chains, and sustainable practices. This transition underscores the importance of adaptability and forward-thinking strategies in maintaining a competitive advantage.

Key Companies in the South Korea 5G Industrial IoT Market market include

Industry Developments

Recent developments in the South Korea 5G Industrial IoT Market reveal significant advancements and collaborations among key companies.

In October 2023, LG Electronics announced the establishment of an advanced 5G IoT platform aimed at enhancing smart manufacturing processes, representing a strong move towards Industry 4.0. Samsung Electronics continues to play a pivotal role in driving 5G technology, with extensive investments in infrastructure and partnerships with local enterprises to facilitate smart city initiatives.

In August 2023, SK Telecom launched a new Industrial IoT solution focusing on predictive maintenance, which is set to improve operational efficiencies across various sectors, including manufacturing and logistics. Meanwhile, Kia Corporation has focused on integrating 5G technology into its automotive production lines, showcasing the automotive industry's adaptation to smarter tech.

Notably, in January 2023, a merger between Hyundai Motor Company and Daewoo Engineering and Construction was publicly acknowledged, paving the way for synergies in construction and automotive IoT solutions.

The ongoing growth in market valuation reflects increased demand for innovative technologies, driving competition among major entities such as Samsung SDS, Naver Corporation, and Hanwha Group, further shaping the ecosystem. The South Korean government's proactive policies continue to support the development of a robust 5G Industrial IoT landscape.

 

Future Outlook

South Korea 5G Industrial IoT Market Future Outlook

The 5G industrial-IoT market in South Korea is poised for growth at 6.25% CAGR from 2024 to 2035, driven by enhanced connectivity, automation, and data analytics.

New opportunities lie in:

  • Development of smart manufacturing solutions leveraging real-time data analytics.
  • Implementation of predictive maintenance systems to reduce downtime and costs.
  • Expansion of IoT-enabled supply chain management platforms for improved efficiency.

By 2035, the market is expected to achieve substantial growth, driven by technological advancements and increased adoption.

Market Segmentation

South Korea 5G Industrial IoT Market Component Outlook

  • Hardware
  • Solution
  • Service

South Korea 5G Industrial IoT Market Application Outlook

  • Predictive Maintenance
  • Business Process Optimization
  • Asset Tracking & Management
  • Logistics & Supply Chain Management
  • Real-time Workforce Tracking & Management
  • Automation Control & Management
  • Emergency
  • Incident Management & Business Communication

South Korea 5G Industrial IoT Market Organization Size Outlook

  • Large Enterprise
  • Small & Medium Enterprise

Report Scope

MARKET SIZE 2024 13.5(USD Billion)
MARKET SIZE 2025 14.34(USD Billion)
MARKET SIZE 2035 26.3(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 6.25% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled Ericsson (SE), Nokia (FI), Huawei (CN), Qualcomm (US), Cisco (US), Samsung (KR), Intel (US), Siemens (DE), GE (US)
Segments Covered Component, Organization Size, Application
Key Market Opportunities Integration of advanced automation and real-time data analytics in the 5g industrial-iot market.
Key Market Dynamics Rapid technological advancements and regulatory support drive growth in the 5G industrial-IoT market.
Countries Covered South Korea

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FAQs

What is the expected market size of the South Korea 5G Industrial IoT Market in 2024?

The South Korea 5G Industrial IoT Market is expected to be valued at 16.69 billion USD in 2024.

What will be the projected market size of the South Korea 5G Industrial IoT Market by 2035?

By 2035, the South Korea 5G Industrial IoT Market is projected to reach a valuation of 30.0 billion USD.

What is the expected compound annual growth rate (CAGR) for the South Korea 5G Industrial IoT Market from 2025 to 2035?

The expected CAGR for the South Korea 5G Industrial IoT Market from 2025 to 2035 is 5.475%.

What is the market size for hardware in the South Korea 5G Industrial IoT Market in 2024?

The market size for hardware in the South Korea 5G Industrial IoT Market is valued at 6.5 billion USD in 2024.

How much is the market size for solutions in the South Korea 5G Industrial IoT Market expected to be in 2035?

The market size for solutions is expected to reach 7.5 billion USD by 2035 in the South Korea 5G Industrial IoT Market.

What is the anticipated market size for services in the South Korea 5G Industrial IoT Market by 2024?

The anticipated market size for services in the South Korea 5G Industrial IoT Market is 6.19 billion USD in 2024.

Who are the key players in the South Korea 5G Industrial IoT Market?

Key players in the South Korea 5G Industrial IoT Market include LG Uplus, Samsung Electronics, SK Telecom, and Hyundai Motor Company.

Which segment is projected to show significant growth in the South Korea 5G Industrial IoT Market?

The hardware segment is projected to exhibit significant growth, increasing from 6.5 billion USD in 2024 to 11.5 billion USD by 2035.

What are the major growth drivers for the South Korea 5G Industrial IoT Market?

Key growth drivers for the South Korea 5G Industrial IoT Market include advancements in technology, increased demand for automation, and improved connectivity.

What potential challenges may the South Korea 5G Industrial IoT Market face in the coming years?

Challenges in the South Korea 5G Industrial IoT Market may include regulatory hurdles and the need for substantial infrastructure investment.

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