Cellular and LPWA IoT Device Ecosystems

  • ID: 4186746
  • Report
  • 102 pages
  • Berg Insight AB
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Report Ranks Connected Pallets as the Most Promising Greenfield IoT Application Enabled by LPWA Technologies

FEATURED COMPANIES

  • Altair Semiconductors
  • CEVA
  • Huawei
  • Mediatek
  • Quectel
  • Sierra Wireless
  • MORE

The Internet of Things is weaving a new worldwide web of interconnected objects. As of Q1-2017, more than half a billion devices were connected to wide area networks based on cellular or LPWA technologies. The market is highly diverse and divided into multiple ecosystems. The report forecasts that annual shipments of cellular and non-cellular LPWA IoT devices will grow at a compound annual growth rate (CAGR) of 26.1 percent from 169.1 million units in 2016 to 679.5 million units in 2022. Get up to date with the latest trends from all main regions and vertical markets with this unique 100 page report.

Cellular and LPWA IoT Device Ecosystems gives a comprehensive overview of the main wide area networking  technologies for the Internet of Things – 2G/3G/4G/5G  cellular, LoRa, Sigfox and 802.15.4 WAN. This strategic research report provides you with 100 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions. 

This new report ranks connected pallets as the most promising greenfield application enabled by the new wave of cellular and non-cellular LPWA technologies. As per some estimates, the global base of pallets used for transportation is around 10 billion units. “With an average sales price of US$ 10 per unit for regular pallets, the cost of adding connectivity can be justified by increasing efficiency in many logistics operations”, says Tobias Ryberg, Senior Analyst and author of the report. “The ability to track pallets can also contribute to extending their lifespan which is currently around 2 years”. He adds that connected pallets are being evaluated by several large industry players right now who could proceed with large-scale deployments in a very near future. Smart cities and smart agriculture are other potential mass-volume market segments where LPWA technologies will be a key enabler. Berg Insight however believes that there are significant barriers that must be overcome before they can scale. Moving from today’s limited smart cities demonstration projects to city-wide deployments will be costly, complex and time-consuming. Smart agriculture is in an even earlier stage of development where the initial focus lies on proof-of-concept and application prototyping. “Today’s top IoT devices – the connected car and the smart meter – needed more than a decade to mature”, says Mr Ryberg. “The smart city and the intelligent farm will need at least that much time to grow from vision to reality”.

Highlights from the report:

  • 360-degree overview of the main IoT wide area networking ecosystems.
  • Comparison of technologies and standards.
  • Updated profiles of the main suppliers of IoT chipsets and modules.
  • Cellular IoT module market data for 2016.
  • Early adoption trends for emerging LPWA technologies.
  • Cellular and non-cellular LPWA IoT device market forecast until 2022.

This report answers the following questions:

  • How will the IoT wide area networking technology market evolve over the next five years?
  • What are the base requirements for adding wide area networking connectivity to a device?
  • Will chipset vendors displace module suppliers in the IoT value-chain?
  • Which new mass-volume segments can be addressed by lowcost LPWA technologies?
  • Why are the new standards LTE-M and NB-IoT so significant for the cellular IoT ecosystem?
  • What are the prospects for emerging LPWA technology standards?
  • Will the IoT networking market always remain in a state of fragmentation?

Who should buy this report?
Cellular and LPWA IoT Device Ecosystems is the foremost source of information about all the major wide area networking technologies for the Internet of Things. Whether you are a chipset or module vendor, software vendor, utility, vehicle  manufacturer, telecom operator, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.

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FEATURED COMPANIES

  • Altair Semiconductors
  • CEVA
  • Huawei
  • Mediatek
  • Quectel
  • Sierra Wireless
  • MORE

Executive summary

1  Wide area networks for the Internet of Things
1.1  Which things will be connected to wide area networks?
1.1.1  Energy meters
1.1.2  Motor vehicles
1.1.3  Buildings
1.1.4  Low value assets
1.1.5  Future opportunities in smart cities and agriculture
1.2  What are the technology options?
1.2.1  Network architectures
1.2.2  Unlicensed and licensed frequency bands
1.3  Which are the leading technology ecosystems?

2  3GPP ecosystem
2.1  Technology characteristics
2.1.1  3GPP Release 13 – Introducing LTE-M and NB-IoT
2.1.2  3GPP Release 14 – IoT enhancements and V2X
2.1.3  3GPP Release 15 – The first 5G specifications
2.2  Network footprint
2.2.1  2G mobile networks
2.2.2  3G/4G mobile networks
2.2.3  4G-MTC mobile networks (eMTC/LTE-M and NB-IoT)
2.3  Chipset vendors and semiconductor IPR providers
2.3.1  Qualcomm
2.3.2  Intel
2.3.3  Mediatek
2.3.4  Altair Semiconductors
2.3.5 Sequans Communications
2.3.6  ARM Holdings
2.3.7  CEVA
2.4  Module vendors
2.4.1  Sierra Wireless
2.4.2  Gemalto
2.4.3  Telit
2.4.4  u-blox
2.4.5  Quectel
2.4.6  Huawei
2.4.7  ZTE WeLink
2.4.8  Other cellular module vendors
2.5  IoT device market

3  LoRa ecosystem
3.1  Technology characteristics
3.2  Network footprint
3.2.1  Europe
3.2.2  Asia-Pacific, North America and Middle East & Africa
3.3  Chipset and module vendors
3.3.1  Semtech
3.3.2  LoRa module vendors
3.4  IoT device market

4  Sigfox ecosystem
4.1  Technology characteristics
4.2  Network footprint
4.2.1  Europe
4.2.2  The Americas
4.2.3  Asia-Pacific
4.2.4  Middle East & Africa
4.3  Chipset and module vendors
4.3.1  Chipset vendors
4.3.2  Sigfox module vendors
4.3.4  IoT device market

5  802.15.4 ecosystem
5.1  Technology characteristics
5.1.1  IPv6 connectivity stacks based on 802.15.4
5.1.2  Wi-SUN
5.1.3  ZigBee and JupiterMesh
5.2  Network footprint
5.3  Chipset and module vendors
5.4  IoT device market

6  Market forecasts and trends
6.1  Market summary
6.2  3GPP technologies
6.2.1  Cellular IoT device market forecast
6.2.2  Vertical markets
6.2.3  Regional markets
6.2.4  Technology standards
6.3  Non-cellular LPWA technologies
6.3.1  Non-cellular LPWA IoT device market forecast
6.3.2  LoRa
6.3.3  Sigfox
6.3.4  802.15.4 (WAN)

Glossary

Index

List of Figures
Figure 1.1: Top wide area IoT target segments in key world regions (2015)
Figure 1.2: Building stock by category (EU/US 2015)
Figure 1.3: Unlicensed and reserved radio frequencies available for wireless IoT
Figure 2.1: Comparison of LTE MTC enhancements in 3GPP Release 13
Figure 2.2: LTE-M network deployment plans (Q1-2017)
Figure 2.3: Planned commercial NB-IoT services launching in 2017, by country
Figure 2.4: Qualcomm IoT/M2M cellular module vendor licensees (February 2017)
Figure 2.5: Top cellular module vendors, by revenues and shipments (World 2016)
Figure 2.6: Sierra Wireless embedded modules and terminals (Q4-2016)
Figure 2.7: Gemalto M2M embedded modules (Q1-2017)
Figure 2.8: Telit cellular IoT modules (Q1-2017)
Figure 2.9: u-blox embedded wireless modules (Q1-2017)
Figure 2.10: Quectel embedded wireless modules (Q4-2016)
Figure 2.11: Huawei embedded wireless modules (Q4-2016)
Figure 2.12: ZTE WeLink embedded wireless modules (Q2-2016)
Figure 2.13: Availability of cellular modules from tier 3/4 vendors in the US and Japan
Figure 3.1: LoRa wide area network architecture
Figure 3.2: LoRa network operators Europe (Q1-2017)
Figure 3.3: LoRa network operators in Asia-Pacific, North America and MEA (Q1-2017)
Figure 3.4: List of certified LoRa modules by vendor (Q1-2017)
Figure 4.1: Sigfox network architecture
Figure 4.2: Sigfox network partners in Europe (Q1-2017)
Figure 4.3: Planned Sigfox rollouts in Asia-Pacific, the Americas and MEA (Q1-2017)
Figure 4.4: List of Sigfox chipset and module vendors (Q1-2017)
Figure 5.1: Major 802.15.4 networking platforms for smart metering (2016)
Figure 6.1: Cellular/LPWA IoT device shipment forecast, by region (World 2016–2022)
Figure 6.2: Cellular/LPWA IoT device shipment forecast, by technology (2016–2022)
Figure 6.3: Cellular IoT device shipment forecast, by region (World 2016–2022)
Figure 6.4: Cellular IoT device revenues forecast, by region (World 2016–2022)
Figure 6.5: Cellular IoT device market forecast, by vertical (World 2016–2022)
Figure 6.6: Cellular IoT device market forecast, by vertical (Europe 2016–2022)
Figure 6.7: Cellular IoT device market forecast, by vertical (North America 2016–2022)
Figure 6.8: Cellular IoT device market forecast, by vertical (Latin America 2016–2022)
Figure 6.9: Cellular IoT device market forecast, by vertical (Asia-Pacific 2016–2022)
Figure 6.10: Cellular IoT device market forecast, by vertical (MEA, 2016–2022)
Figure 6.11: Cellular IoT device shipments, by network technology (World 2016–2022)
Figure 6.12: Non-cellular LPWA IoT device shipments forecast (World 2016–2022)
Figure 6.13: Non-cellular LPWA IoT device revenues forecast (World 2016–2022)
Figure 6.14: LoRa device shipments forecast (World 2016–2022)
Figure 6.15: LoRa device revenue forecast (World 2016–2022)
Figure 6.16: Sigfox device shipments forecast (World 2016–2022)
Figure 6.17: Sigfox device revenue forecast (World 2016–2022)
Figure 6.18: 802.15.4 (WAN) device shipments forecast (World 2016–2022)
Figure 6.19: 802.15.4 (WAN) device revenue forecast (World 2016–2022)

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FEATURED COMPANIES

  • Altair Semiconductors
  • CEVA
  • Huawei
  • Mediatek
  • Quectel
  • Sierra Wireless
  • MORE

The Internet of Things is weaving a new worldwide web of interconnected objects. As of Q1 2017, more than half a billion devices were connected to wide area networks based on cellular or LPWA technologies. The market is highly diverse and divided into multiple  ecosystems. This report will focus on the four most prominent technology ecosystems for wide area IoT networking – the 3GPP ecosystem of cellular technologies, the emerging LPWA technologies LoRa and Sigfox and the 802.15.4 ecosystem.

The potential market for IoT is popularly described as enormous as virtually every object could become networked. Over the past decades, adoption has spread from high value assets to medium value assets as the cost of communication has decreased. Today, the rise of LPWA technologies opens up new opportunities to address greenfield opportunities among low value assets that cost less than US$ 10. Measured by the potential number of nodes, the three largest opportunities in wide area IoT networking in high to medium value assets is energy meters, motor vehicles and buildings. Billions of energy meters enable consumption-based billing as the revenue base for the electricity and gas industry. Approximately 1.3 billion motor vehicles provide transportation of people and goods worldwide. Hundreds of millions of buildings provide housing and workspace for 7.5 billion humans. Next to these mega markets, there is a multitude of existing and potential device categories ranging in size from 1–100 million. These secondary market segments in high  value assets can be divided into enterprise & government where adoption is driven by hard economic value and the consumer segment where soft individual values have a greater influence.

Global demand for IoT wide area networking technology is in a rapid growth phase. Berg Insight forecasts that annual shipments of cellular and non-cellular LPWA IoT devices will grow at a compound annual growth rate (CAGR) of 26.1 percent from 169.1 million units in  2016 to 679.5 million units in 2022. Asia-Pacific is projected to increase its relative volume  market share from 40 percent to nearly 50 percent over the period. China is expected to see a continued acceleration in demand and in addition, significant growth is anticipated in India and South East Asia towards the end of the forecast period. Western Europe and North America will also make significant contributions to volume growth, while Latin America and the Middle East & Africa will remain relatively smaller in absolute terms.

The 3GPP family of standards is the leading global platform for wide area IoT networking. The report estimates that annual shipments of cellular IoT devices reached 155.6 million units in 2016, up 35 percent compared to the previous year. Automotive & fleet is the largest application segment, accounting for around 50 percent of the demand. Other major application categories include utilities, payment terminals, industrial & enterprise and buildings & security. The cellular IoT technology landscape is in a phase of transformation. GSM/GPRS is gradually losing its grip on the market, making way for 3G and 4G technologies. The trend will accelerate when NB-IoT devices start to appear in volumes by 2018. 2G will however remain as the main option in emerging markets where NB-IoT is unlikely to become widely available before the mid-2020s. By 2022, Berg Insight believes that 4G will account for 80 percent of global shipments of cellular IoT devices, with a relatively even distribution between high-speed CAT3+, mid-range LTE-M and low-end NB-IoT. 

Annual shipments of non-cellular LPWA devices for IoT reached approximately 13.5 million  units in 2016. 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 & security and smart cities. Sigfox says it is gaining strong traction in supply chain management where it claims that leading players consider adding its connectivity solution to millions of pallets. Rapid success in this segment will be crucial if the company should achieve its target of 100 million devices under contract by 2018. Semtech, the company behind the LoRa technology, says that it is gaining strong traction in smart gas and water metering and building automation. In addition it has identified smart  agriculture, logistics, smart manufacturing and smart cities as future growth markets.

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  • ARM Holdings
  • Altair Semiconductors
  • CEVA
  • Gemalto
  • Huawei
  • Intel
  • Mediatek
  • Qualcomm
  • Quectel
  • Sequans Communications
  • Sierra Wireless
  • Telit
  • u-blox
  • ZTE WeLink
Note: Product cover images may vary from those shown
6 of 6
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