Abstract Researchers have already proved that data consumption in coming years will increase by leaps and bounds, so the present technologies like 3G, OFDM (Orthogonal Frequency Division Multiplexing) cannot hold the addition of huge capacitance, data use and demand of high data-rate. Hence, on that point is a necessity of fifth generation mobile communication system (5G). Presently the rollout for 5G is going virtually everywhere in the world and among several issues; selection of better modulation techniques is seen as unitary of the significant issues in the implementation of the 5G. In this work, we designed and analyse the performance of OFDM and FBMC (Filter Band Multi Carrier) multicarrier modulation schemes on the basis of Bit Error rate (BER) and Signal to Noise Ratio (SNR). Simulation results and mathematical analysis have confirmed that the performance and spectrum utilization of FBMC is better or equivalent as compared to OFDM, which can be very useful in next generation mobile communication and Internet of Things (IOT).