5G IoT synergy: Building intelligent connected ecosystems

At some point, in some classroom, for some reason, most of us must have come across the term called ‘cross-elasticity’. What seems like a chapter in Economics has profound implications in the world of technology. We never know when two technologies behave as tea and coffee, and when they play out as tea and milk. When they compete as margarine and butter, and when they become pally-pally enough to work as hot dogs and buns. And the most interesting one—when they are neither. When they give an elasticity-cold shoulder to each other, that matches that of a handbag to a car tyre.

The way the Internet of Things (IoT) is evolving makes us view 5G through a curious lens. These two technologies have their spawning grounds, graphs, and challenges. However, the way they correspond in some use cases makes one think: are they the tea and milk of the technology market, or as far apart as milk and oil? And in either case, which one is the milk?

5G Emerges as IoT’s Natural Propeller

Before we delve into that question, let us take a brief walk through a farm in Telangana, where Wells Fargo has been working with its technology team to enhance farmers' lives. These tech-volunteers are contributing to solutions that equip farmers with actionable insights for better decision-making, covering weather forecasts, crop management advice, fertiliser application and spraying techniques, as well as real-time market prices and updates on government schemes.

To date, over 70,000 farmers have achieved a 20% reduction in input costs. While Harish Mohan, Head of Digital Technologies and Innovation at Wells Fargo India and the Philippines, lauds the speed and data proximity that such solutions provide, he also highlights the leaps that can be achieved through improvements in connectivity. “The application of computer vision and real-time data in Indian agriculture is not growing as fast as one would expect, owing to several factors. Reliable internet connectivity, especially in rural areas, is crucial for real-time data transmission and processing,” he highlights.

ITC’s IoT sensors in Andhra fields analyse soil 24/7, boosting yields by 25% while cutting water use by 40%. Jio’s 5G drones spray pesticides 60 times faster, cutting chemical waste by 30%. Then there is the catch, as pointed out by Ameya Waingankar, Partner at Practus, “Rural 5G coverage is at 35% and farmers in many states of India are still disconnected.”

IoT is largely about devices, their placement, power configuration, and the advantages related to latency. However, it is the Internet that tumbles like a pack of cards when the main one is missing, and that is precisely where 5G steps in.

Real-World Impact Across Farms and Factories

Marco Contento, VP Product Management, Mobile Broadband Products, Telit Cinterion, a major global player in the IoT Solutions space, explains the impact of 5G on IoT. “Scalability, efficiency and adaptability make 5G a major propeller for IoT, especially as the number of connected devices scales globally and enterprises look to achieve competitive and strategic business advantages.”

A key impact area, as Contento weighs in, is 5G’s capacity to support massive-scale deployments. “Through technologies like massive machine-type communication (mMTC), 5G can accommodate up to one million IoT devices per square kilometre. As the number of IoT devices is projected to exceed 29 billion by 2030, this is essential. Additionally, mMTC is optimised for power-sensitive devices that transmit small data packets, which makes it ideal for smart meters, environmental sensors, and other low-power IoT use-cases growing in popularity.”

As 5G becomes more pervasive, IoT is poised to shift from fragmented deployments to intelligent, integrated ecosystems across industries, Vivek Kalra, Head of Telecom Business for India and SAARC at Juniper Networks, echoes. “The impact will be most pronounced in sectors where real-time data exchange, low latency, and high device density are critical, such as industrial automation, logistics, energy, and healthcare.”

And then comes the factor of RedCap or 5G Reduced Capability. “It provides a balance between performance and efficiency, critical for operations utilising applications like industrial sensors, smart wearables and video surveillance. For devices that do not require ultra-low latency or ultra-high speed, it is also a cost-effective alternative to a full 5G New Radio (NR),” Contento argues.

As Praveen Arora, VP and Business Head – IoT at Tata Communications, puts it pithily, 5G is helping enterprises move from reactive models to predictive, real-time operations, particularly in safety and security, which are critical performance-intensive environments.

Examples prove the path. Siemens’ 5G-powered factories use AR glasses with zero lag. Mahindra’s Chakan plant runs India’s first 5G-enabled auto line, cutting defects by 20%. Tata Steel predicts equipment failures before they happen. 5G handles millions of devices per square km. From Bengaluru’s AI traffic systems reducing congestion by 30% to Barcelona’s adaptive streetlights saving 30% energy, urban IoT is scaling up. In India, lag-free 5G telesurgery is helping to close rural healthcare gaps. “We also see 4K drone surveillance, AR-guided warehouses, and Jio’s agri-drones spraying pesticide 60 times faster, resulting in cutting chemical waste by 30%,” notes Waingankar.

The common word in all these examples is 5G. Why?

Why One ‘G’ More Matters for Real-Time IoT

There is a reason why 5G is a generation apart from 4G when we look at how IoT is scaling and evolving. “5G offers significant performance improvements over previous generations. This includes data speeds of 10 to 20 Gbps, ultra-low latency, and high reliability. Real-time communication and the processing of large data volumes are enabled, both of which are essential for mission-critical applications like autonomous vehicles, remote healthcare, and smart manufacturing. 5G also opens the door to entirely new verticals that were previously unattainable with 4G LTE—smart cities, precision agriculture, connected health care, and energy automation are prime examples,” Contento explains.

5G is delivering ultra-fast connectivity, sub-millisecond latency, and massive scalability, enabling real-time responsiveness, seamless connectivity, and robust, mission-critical systems across industries, contends Gopalan Govindrajen, Advisory Systems Engineer at Dell Technologies.

Customised and secure deployments tailored to specific use-cases are also enabled. Features like network slicing and private 5G networks provide this adaptability, which allows enterprises and OEMs to enter new markets and drive additional revenue streams, Contento opines.

Kalra also adds that network slicing will enable differentiated service tiers for mission-critical IoT applications, while cloud-native architectures will support dynamic scaling and orchestration. This ‘G’ can add a previously unexplored scale and possibilities for IoT use cases that were still somewhat uncertain.

“In agriculture, low-latency wireless networks enable smart irrigation, soil sensing, and drone-based crop monitoring, all powered by edge intelligence and real-time analytics. In manufacturing, the rise of Industry 4.0 demands ultra-reliable, AI-native infrastructure to support autonomous robots, predictive maintenance, and digital twins. Meanwhile, smart cities are redefining infrastructure through IoT-led innovations such as adaptive traffic control, real-time air quality monitoring, and intelligent lighting systems,” observes Kalra.

Enterprise Architectures for Scale and Edge

Agriculture offers a clear view of how 5G is transforming IoT deployments—moving from isolated use cases to intelligent, responsive ecosystems.

Sagar PV, CTO of Mindsprint, provides a hands-on perspective: “We are moving from isolated data points to integrated, intelligent systems that respond in real time. 5G’s technical capability to support thousands of devices per square kilometre means we can finally build truly connected agricultural ecosystems. It is about immediate responses rather than delayed reactions.”

Connectivity can transform the speed and scale of IoT. “With traceability solutions built on industry-agnostic design using tools like polygon mapping for farmers, we provide complete visibility into where agricultural products come from, how they meet compliance standards, and their sustainability footprint,” explains Sagar.

In manufacturing, too, 5G is propelling IoT, as Govindrajen illustrates. “IoT sensors monitor equipment health, helping anticipate failures and enabling proactive maintenance. Dell Technologies has implemented such solutions in rolling stock yards to support preventive maintenance and predictive analytics, ensuring smoother operations and reduced downtime.”

Arora notes that manufacturing is experiencing a surge in connected worker solutions, where IoT-enabled wearables and geolocation technologies provide real-time visibility into worker safety, productivity, and compliance. “Beyond asset monitoring, the priority is now on ensuring human well-being on the shop floor.”

Here is a real example in progress as seen at Jupiter Wagons. “What began as passive data capture is now central to intelligent, real-time decision-making, etc. With smart sensors and connected systems, we can continuously monitor and manage processes. For instance, the European ISR platform tracks each freight wagon’s load status, location, and journey history through a unified digital network. We believe that India will soon adopt such a system. When that happens, automated brake testing, hotbox detection, and self-diagnostic sensors will become standard, and we will phase out manual processes. To support this vision, we facilitated a visit by the Railway Board to Tatravagonka in Slovakia,” shares Vivek Lohia, Managing Director, Jupiter Wagons.

“Tata Steel’s Jamshedpur plant predicts furnace failures, cutting downtime by 15%. Mahindra’s 5G assembly line utilises AR-guided robots, resulting in a 20% reduction in defects. Giants like Siemens, Bosch, and Tata are already reshaping factory floors with 5G,” points out Waingankar from Practus.

Even in the area of smart cities, traffic management and public safety are two of the most prominent applications. Govindrajen cites that real-time data integration with urban infrastructure helps optimise traffic flow and reduce congestion. “Connected sensors and cameras also enhance security and enable faster, more coordinated emergency response efforts.”

Bengaluru’s AI-driven 5G traffic system reduced peak-hour delays by 30%. Delhi-Mumbai Industrial Corridor is deploying over one million smart sensors for air quality, sewage, and utilities monitoring, Waingankar cites.

Arora reckons, “Video-based IoT, when paired with edge AI, can detect anomalies and trigger alerts within milliseconds—transforming safety, security, compliance, and efficiency across industries.”

Enterprises, Here is Your Cue

It may sound easy when we think of 5G as the milk that the storm in the IoT-Cup always hoped for. However, boiling this milk to the right degree is not that easy. One would need specific architecture and should be cognizant of specific challenges and caution areas while looking to serve IoT with a 5G boost.

As Contento suggests, with aspirations of scalability, enterprises may want to consider mMTC-based architectures in the context of a 5G footprint. “This is well suited for large-scale, low-data-rate and battery-powered IoT deployments. Smart metering, asset tracking, and fleet management are modern-day examples. For operations requiring mid-level performance, 5G RedCap offers a cost-effective and power-efficient option that bridges the gap between legacy LTE technologies and full 5G NR.”

Contento also discusses network slicing as another key architectural strategy. “It enables operators to create multiple virtual networks on a shared physical infrastructure. Each slice can be tailored to specific application needs.”

Lohia is confident that the integrated, data-driven model is the way forward for the industry and Indian railways as a whole. “In our foundries, the IoT systems monitor the electric arc furnace energy usage every three seconds. This data is transmitted over 4G and 5G to our central office in Kolkata.”

He further added that the process helped them reduce energy costs by over Rs three crore annually. “We have automated our testing infrastructure with 45,000 foot-pound draft gears. These gears are validated through sensor-based load testing. The results of load testing are instantly shared with global clients. These systems have allowed us to meet international benchmarks and maintain certifications from the Association of American Railroads without requiring on-site audits.”

Agri-businesses ignoring 5G IoT risk 40% lower profits by 2026. Factory heads without it face 25% higher downtime and compliance costs. Cities that delay smart rollouts could experience 35% worse traffic by 2030, according to Waingankar.

A lot, as we can see, is possible when 5G and IoT intersect at the right points, but only when it happens with caution and intention.

Caution Flags on the Road to 5G IoT

If only it were that simple to plug 5G into the IoT socket. There could be many decisions and step-back points that come in the way.

To begin with, let us consider the gradual sunset of LTE networks, expected to start around 2030. Contento calls it the most significant challenge. “While that may seem distant, the transition is already underway. Mobile Network Operators (MNOs) have begun repurposing spectrum from 4G to 5G through Dynamic Spectrum Sharing (DSS), which enables 4G and 5G to coexist on the same frequencies. Although it is an inefficient approach, resulting in a loss of up to 20% in network capacity. Thus, as MNOs are reframing the spectrum to prioritise 5G, they leave only lower bands available for 4G, particularly for Low Power Wide Area (LPWA) devices like LTE Cat-M and Cat-1/1bis. Enterprises relying on LTE-based IoT solutions like these should begin planning for this shift now to avoid future disruptions.”

It is crucial to plan for IoT with a broader horizon view. “IoT devices often have long life cycles, selecting technologies that are forward-compatible is essential for protecting long-term investments. RedCap or LPWA options like LTE-M and NB-IoT are preferable,” Contento recommends.

Success across various verticals depends on more than technology. It requires interoperability, intelligent data infrastructure, and simplified adoption, Sagar PV reminds.

We should also not forget how infrastructure costs present an additional barrier, particularly for private 5G networks and the integration of newer 5G technologies. “The rapid evolution of 3GPP standards then requires continuous attention from enterprises to stay aligned with the latest releases. Failure to do so risks device incompatibility and performance de-optimisation,” Contento warns.

5G’s role of cross-elasticity would also determine a lot, to the extent that vendors decide their roles and ambits, while standards keep evolving.

There is the risk of vendor lock-in with proprietary solutions that may not keep pace with evolving standards. “As such, open-standard-based solutions should be prioritised to maintain flexibility. Another overlooked issue is the role of connectivity in the IoT value chain. Many OEMs delegate connectivity to their customers, missing the opportunity to integrate managed IoT connectivity into their offerings. OEMs can add value, streamline deployment, and increase their share of the ecosystem by embedding IoT SIMs and connectivity solutions directly into products,” Contento dissects the picture here.

Additionally, there are security, financial ease, and power consumption issues to consider. “5G towers consume 3.5 times more power than 4G. A Mumbai smart grid hack resulted in losses of Rs 50 lakh. 5G means faster hacks—imagine a city-wide blackout. Private 5G for factories (like Bosch) costs crores but SMEs risk being left behind. BSNL 5G rollout was delayed due to high cost. Organisations should think about subsidised IoT devices, plus rural 5G towers, manufacturing needs affordability, SME-friendly 5G models and workforce upskilling,” Waingankar reminds.

Cross-Elasticity and the Commoditisation Risk

5G has been proving itself as quite the milk for the tea called IoT. When one advances, the other gains. They do correspond in many ways. So far, there are no vegan tea drinkers who threaten to spoil this equation between 5G and IoT. That is not to say we should not consider almond milk someday.

Would it be in the bottle called 6G? Not too soon. Would it be in a lactose-intolerant-ready box called ‘Self-capable IoT’? Not too easy. Meanwhile, enterprises should not let this golden opportunity slip away. Brew 5G as much as you can while it is hot. Whether it is this tea or that milk, in the kitchen of technology, they all, someday-somehow, turn into that economic term which every innovator dreads. Commodities.