Machines of the Future to Speak Through Cellular IoT

Cellular IoT Market by Offering (Hardware and Software) , Type (2G, 3G, 4G, LTE–M, NB–LTE–M, NB–IoT, and 5G), End-Use Application (Automotive & Transportation, Energy, Manufacturing, Retail, Building Automation and Smart City) & Geography - Global Forecast to 2022


Seattle, United States -- (SBWIRE) -- 01/26/2017 -- The increasing adoption of connected devices is leading to a growing demand for secure, stable, and robust connectivity. In many cases, connected devices are located in remote areas where cellular connectivity is not optimized to transmit data continuously and transmitters operate at high power, thus draining the battery. Connected devices include alarms and detectors, trackers, smart appliances, smart meters, automotive and transportation, energy, healthcare, manufacturing, retail, safety and security, infrastructure and building automation, and wearable devices covering a wide range of applications. 2G, 3G and 4G LTE are the major cellular technologies used for machine-to-machine communication. The cellular technologies at present have certain shortcomings such as high cost, less battery life, and limitations in remote connectivity.

According to Federal Energy Regulatory Commission's (FERC) demand and response report for smart meters in the U.S., approximately 16.3 million advanced meters were installed by the U.S. Department of Energy (DOE) under the Smart Grid Investment Grant (SGIG) program as of March 2015. Moreover, according to National Association of Regulatory Utility Commissioners (NARUC), 65 million smart meters are projected to be deployed in the U.S., covering about 50% of the U.S. households by 2020. The following developments are expected to boost the growth of the cellular IoT market.

3rd Generation Partnership Project (3GPP), the industry expert behind the standardization of cellular systems, recently introduced three new standards, namely, LTE-M, Narrowband LTE-M, and Narrowband (NB) IoT. These new standards allow the devices which operate on cellular network to be less expensive and more power efficient. LTE-M has a higher data rate compared to NB-LTE-M and NB-IoT and can transmit large amounts of data. LTE-M, Narrowband LTE-M, and Narrowband (NB) IoT offer better security and lower interference as it uses a licensed spectrum-based network, unlike the unlicensed spectrum low power wide area (LPWA) solutions such as SigFox and LoRa.

The increasing adoption of machine-to-machine connectivity is expected to increase the need for managing the devices from remote locations and also for analyzing the huge amount of data generated through these devices in real time for better business outcomes. This is the major driver for the growth of the cellular IoT market. "The cellular IoT chipset market is expected to grow from USD 1.26 Billion in 2015 to USD 5.31 Billion by 2022, growing at a CAGR of 23.34% during the forecast period", says Sachin Garg - Associate Director, MarketsandMarkets who tracks the global market for semiconductor industry.

Smart parking is expected to be a major contributor to the advanced cellular IoT market. With the ever-growing population and urbanization, the problem of finding parking is an ever-increasing one. To address this issue, smart parking solutions are deployed in various cities. Huawei (China) and Vodafone (U.K.) have successfully completed their NB-IoT trial for smart parking in Spain and Turkey. As the major companies developing this technology are investing in smart parking, the market for the smart infrastructure application is expected to grow at a very high rate.

Vodafone (U.K.), along with Huawei (China), has successfully demonstrated NB-IoT in water meter. Moreover, Ericsson (Sweden) is planning to demonstrate the cellular IoT technology using Intel's XMM 7115 modem, which is specially designed to support the industry's devices and applications based on NB-IoT. Intel Corporation (U.S.) showcased the working demonstrations of NB-IoT technology with Ericsson (Sweden) and Nokia Networks (Finland) at Mobile World Congress held in Barcelona (Spain) in February 2016. Verizon (U.S.) and Sequans Communications (U.S.) collaborated to accelerate the commercialization of Category M (CAT M) LTE products, based on the Release 13 of the 3GPP LTE standard. Nokia Networks (Finland) collaborated with Ericsson (Sweden) and Intel Corporation (U.S.) to support narrowband long-term evolution (NB-LTE) technology.

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