Skip to main content

More IoT and M2M Apps will Gain Momentum in 2017

There's more growth for the Internet of Things (IoT) technologies sector during 2017. According to the latest market study by Berg Insight, global shipments of cellular IoT devices will grow at a compound annual growth rate (CAGR) of 22.7 percent from 155.6 million units in 2016, to reach 530.1 million units in 2022.

Strong growth is fueled by fast-growing demand in China and the global adoption of connected car technology in the automotive industry. Berg Insight believes that the maturity of the ecosystem is a crucial advantage for 3GPP-based standards in the IoT market.

"LTE-M and NB-IoT are the latest in a long line of cellular standards already connecting hundreds of millions of devices worldwide," said Tobias Ryberg, senior analyst at Berg Insight. "Alternative non-cellular LPWA technologies have a very long way to go before they achieve the same prominence.”

Berg Insight estimates that annual shipments of non-cellular LPWA devices for IoT reached 13.5 million units in 2016. Also, 802.15.4 WAN accounted for 8.0 million units, while shipments of LoRa and Sigfox were around 4.0 million and 1.5 million units respectively.

The vast majority of 802.15.4 devices are smart energy meters deployed in North America and other regions. Looking ahead, Berg Insight believes that LoRa and Sigfox will outgrow 802.15.4 WAN and achieve annual shipments in the range of 50–100 million units each by 2022.

Based on initial feedback from the market, volume segments for non-cellular LPWA in the near to medium term will be asset tracking, buildings or security and smart cities.

Industry-Specific IoT and M2M Application Example

In a separate Berg Insight study, they uncovered that the number of cellular M2M connections in the retail industry reached 33.7 million worldwide in 2016. Cellular M2M technology enables devices such as POS terminals, ATMs, digital signs and ticketing machines to be used at new locations where fixed line connectivity is unavailable or impractical.

The technology has a more transformational effect on markets such as vending and parking, where machine operators need to reorganize their operations in order to benefit from the availability of real-time information.

Berg Insight forecasts that the number of cellular M2M connections in the global retail industry will grow at a compound annual growth rate (CAGR) of 10.0 percent during the next five years to reach 49.2 million connections in 2020.

Shipments of cellular M2M devices for retail applications will at the same time increase at a CAGR of 5.6 percent from 11.5 million units in 2016 to 14.4 million units in 2020. POS terminals constitute the largest device segment and accounted for 89 percent of all cellular M2M connections in the retail industry at the end of 2016.

The market for wirelessly connected POS terminals is however relatively mature, and most of the market growth is driven by the increasing use of electronic payments in emerging markets.

"The multi-space parking meter segment was one of the first vertical markets to embrace cellular M2M connectivity and has today reached the highest connectivity penetration of 59 percent," said Johan Fagerberg, senior analyst at Berg Insight.

In recent years, cellular connectivity has also found its way into the single-space parking meters market, which has become one of the fastest growing segments. Berg Insight expects that the vending machine segment will present a major opportunity for wireless connectivity in the long term.

Today only 1.8 million of the world’s 17.1 million vending machines are online. According to the Berg assessment, every vending machine will eventually be connected, but costs for the wireless M2M hardware and service subscriptions need to become more affordable before this vision is a reality.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Why Cloud-Native is The Future of IT Spending

The leading organizations that create a digital transformation plan will gain the most from their use of public cloud computing. However, some CIO and CTO leaders still struggle with how to build a modern cloud migration strategy. The worldwide cloud computing Infrastructure as a Service (IaaS) market grew 41.4 percent in 2021, to a total of $90.9 billion -- that's up from $64.3 billion in 2020, according to the latest market study by Gartner. "The IaaS market continues to grow unabated as cloud-native becomes the primary architecture for modern workloads," said Sid Nag, vice president and analyst at Gartner . Cloud IaaS Market Development Cloud supports the scalability and composability that advanced technologies and applications require, while also enabling enterprise leaders to address emerging needs such as sovereignty, data integration, and enhanced customer experience. In 2021, the top five IaaS providers accounted for over 80 percent of the market. Amazon AWS conti

Private 5G Networks and Enterprise Wi-Fi Converge

The global enterprise wireless networking market is evolving. Driven by a desire to take advantage of the available 6 GHz communications spectrum, with greatly improved broadband throughput and latency rates, more organizations may choose to adopt Wi-Fi 6E technologies. According to the latest worldwide market study by ABI Research, shipments of Wi-Fi 6E access points and routers will rise from 1.5 million units in 2022 to 5.2 million units by 2024. Wireless spectrum expansion is just one facet of the commercial wireless network market transition, as the technology of Wi-Fi customer premise equipment will be upgraded once again with Wi-Fi 7 (IEEE 802.11be standard) devices. Enterprise Wireless Network Market Development "The adoption of Wi-Fi 7 access points will accelerate following the protocols standardization in 2024, and just two years later, most 6 GHz enabled access point shipments will be supporting Wi-Fi 7," said Andrew Spivey, industry analyst at ABI Research . Anot