In 2016, the global cellular IoT market was worth USD 1,788.5 millions. This market is expected to grow over the forecast period. The market's key functions are resilient networks, ubiquitous mobility, robust security, and strong growth. The increasing demand for IoT platforms in different verticals will be aided by the requirement to connect low-cost, high-density, and low-power devices on a cost-effective scale.
There are many solutions available that use broadband connections to transmit machine-to-machine information. LTE technology is the backbone of this communication network. The key to the increasing IoT demand for cellular networks is the "massive" adoption of LTE technology and technological innovations within the IoT ecosystem. This is not all. The ability to use local connectivity and networking technologies such as Bluetooth and Wi-Fi will have a significant impact on the solutions' ability to address a wide range of IoT uses.
The growth of cellular networks is expected to be driven by emerging applications such as fleet management, automotive connectivity, healthcare device connectivity, wearables, and vehicle connectivity. They are also used in many other applications such as smart metering and weather monitoring systems, personnel traffic pattern monitoring and infrastructure security systems.
Many industry players across the value chain are actively supporting and initiating the increasing penetration of cellular technology to be the dominant connectivity standard. These initiatives are attracting a lot of interest from industry players, such as chip and module manufacturers, IoT solution providers, carriers, and infrastructure providers. Collaborations are the key to the widespread adoption of broadband technology within the IoT ecosystem.
Market growth may be limited by factors such as fragmentation or strong competition from LPWAN technology, such as LoRA, SigFox and SigFox. However, many efforts to standardize the industry as well as emerging venues for cellular IoT will help to ensure that the technology continues to thrive over the next few years.
Due to the high number of devices deployed, the hardware segment holds a large share in the overall cellular IoT marketplace. The cellular technology can also be used to address Use cases that require large deployments of sensors or nodes. It can also be easily augmented using local network connections. In 2016, the hardware market accounted for over 65%.
The software segment can be further divided into signal processing and device management. In the future, the signal processing sub-segment will gain momentum. The signal processing segment will grow steadily in the future, despite the fact that the infrastructure for cellular connections has been in place. However, a software update would be required to enable new LTE bands to become available. Over the forecast period, the software segment will grow at a remarkable CAGR of 23.3%.
Based on technology, the market can be divided into 5G, 3G and 4G. 2G accounted for the largest share of the market in 2016 in terms of revenue, as it offers low-cost modem options and certifications. 2G will likely lose ground as IoT and machine-to-machine standards continue to evolve and offer more efficient cellular services.
LTE-M and NB LTE-M technologies are expected to be commercialized before the end of 2017. They are also expected to expand rapidly in industrial applications. NB-LTE-M is expected to grow at a 42.3% CAGR over the forecast period due to its widespread adoption in industrial machine-to-machine communications. While 5G technology is still being defined, it is expected to grow at the fastest rate as it can cater to many different applications and provide high bandwidth for high speed applications.
Mobile technologies are likely to gain popularity in applications that require large deployments and high density end-point connections. This is why industries like energy, utilities and manufacturing will reap the greatest benefits. In 2016, the energy sector held 21.0% of the market and this share is expected to increase in the future.
It is essential to make the most of new technologies like IoT, cloud and big data. This can be achieved by making cost-effective and efficient use of sensor networks. These advantages have led to a rising demand for smart city applications. This application is expected to grow at a rate of 23.8% during the forecast period.
North America is expected to be the largest market for IoT implementations, with component manufacturers and solution vendors aggressively seeking out projects. The rapidly evolving technology landscape and the ability of industries to use smart and connected products from their inception are key factors driving the region's success. This region is expected to grow at 18.8% annually and reach USD 3.28 trillion by 2025.
The European region is also expected to see a significant increase in revenue and a healthy growth rate over the forecast period. The application will see the highest growth in Asia Pacific due to its cellular connectivity. Market growth will be driven by the increasing population, the high demand for consumer goods and the recent proliferation of disruptive technology in industrial applications.
Among others, the prominent players include Qualcomm Inc. and Sierra Wireless, ZTE Corporation.
Key market players have taken numerous initiatives to standardize and increase the use of cellular IoT in new applications. This is the key factor in the industry. Many industry associations and working groups have been created to promote widespread adoption of machine-to-machine technology, including NB-IoT and LTE-M. Interesting is the involvement of all industry stakeholders, from component manufacturers to service providers, to promote these technologies.
This report predicts revenue growth at the global, regional and country level and analyzes industry trends in each sub-segment from 2014 to 2025. Grand View Research has divided the global cellular IoT industry based on types, regions, and components.
Component Scope (Revenue, USD Million; 2014 - 2025)
Hardware
Software
Device Management
Signal Processing
Type Scope (Revenue USD Million; 2014-2025)
2G
3G
4G
LTE-M
NB-LTE M
NB-IoT
5G
End-use Scope (Revenue USD Million; 2014-2025)
Agriculture
Automotive & Transportation
Consumer Electronics
Energie
Environment Monitoring
Healthcare
Retail
Smart Cities
Other
Regional Outlook (Revenue USD Million; 2014-2025)
North America
U.S.
Canada
Europe
UK
Germany
Asia Pacific
China
India
Japan
Latin America
Brazil
Middle East & Africa (MEA)
Up Market Research published a new report titled “Cellular IoT Market research report which is segmented by Component (Hardware, Software), by Type (NB-IoT, 4G, 2G, 3G, NB-LTE-M, LTE-M, 5G), By Players/Companies Qualcomm Inc, Sequans Communications, Mistbase Communication System, Telit Communications PLC, MediaTek Inc, Gemalto NV, Texas Instruments, among others, Commsolid GmbH, Sierra Wireless, ZTE Corporation”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Cellular IoT Market Research Report |
By Component | Hardware, Software |
By Type | NB-IoT, 4G, 2G, 3G, NB-LTE-M, LTE-M, 5G |
By Companies | Qualcomm Inc, Sequans Communications, Mistbase Communication System, Telit Communications PLC, MediaTek Inc, Gemalto NV, Texas Instruments, among others, Commsolid GmbH, Sierra Wireless, ZTE Corporation |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 228 |
Number of Tables & Figures | 160 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Component (Hardware, Software), by Type (NB-IoT, 4G, 2G, 3G, NB-LTE-M, LTE-M, 5G).
Cellular IoT Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Cellular IoT Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
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