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The Global M2M/IoT Communications Market - 8th Edition

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  • 220 Pages
  • July 2023
  • Region: Global
  • Berg Insight AB
  • ID: 5397217

Unraveling the Power of Low Power Wireless Networking: Global Trends and Forecasts in the M2M/IoT Communications Market

The Global M2M/IoT Communications Market analyses the latest trends and developments in cellular IoT and low power wireless networking. This strategic research report provides you with 220 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

The report estimates that the global number of cellular IoT subscribers increased by 27 percent during 2022 to reach 2.7 billion at the end of the year - corresponding to around 24 percent of all mobile subscribers. Until 2027, the number of cellular IoT subscribers is forecasted to grow at a compound annual growth rate (CAGR) of 15.4 percent to reach 5.4 billion at the end of the period. During the same period, cellular IoT connectivity revenues are forecasted to grow at a CAGR of 14.6 percent from € 10.8 billion in 2022 to approximately € 21.4 billion in 2027. Meanwhile the monthly ARPU is expected to drop to € 0.35.

China is the world’s largest market for cellular IoT connectivity services by volume. According to data from the national telecom regulator, the installed base in the country grew by 32 percent year-on-year to reach 1.8 billion IoT connections at the end of 2022. This corresponded to about 70 percent of the global installed base. It is believed the role of the Chinese government is the main explanation for why China is ahead of the rest of the world in the adoption of IoT. Authorities actively endorse large-scale IoT deployments as a method for addressing problems affecting the society, whether it is crime, fire safety, energy conservation or traffic management. The private sector is directed and encouraged to do the same.

North America and Western Europe ranks as the second and third largest markets for IoT solutions with 240 million and 218 million IoT subscribers respectively at the end of 2022. In contrast to China, developments in these regions are largely driven by commercial interests. The connected car is currently one of the strongest trends with close to 90 percent of new cars sold featuring embedded cellular connectivity in the regions. Other key application areas are fleet management of commercial vehicles, smart utility metering and monitored alarm systems. Latin America, Central & Eastern Europe and South Asia had in the range of 44-62 million IoT subscribers, while Middle East, Africa and Southeast Asia had around 30 million each. Australia & Oceania was the smallest region with approximately 11 million connections.

China Mobile is the world’s largest provider of cellular IoT connectivity services. At the end of 2022, the operator reported 1.06 billion cellular IoT connections and a year-on-year growth rate of 32 percent. China Telecom and China Unicom ranked second and third with 407 million and 390 million connections respectively. Vodafone ranked first among the Western operators and fourth overall with 160 million connections, followed by AT&T with 107 million in fifth place. Verizon, Deutsche Telekom and Telefónica had in the range of 36-57 million cellular IoT connections. KDDI and Orange were the last players in the top ten with about 30 million each. The year-on-year growth rates for the mentioned operators were in the span of 1-37 percent.

IoT connectivity revenues are growing at a slower rate than the number of connections, though the sustained decline in the global ARPU decelerated in 2022. The analysis of the IoT business KPIs released by mobile operators in different parts of the world suggests that global IoT connectivity revenues increased by around 24 percent during 2022, while the monthly APRU dropped by 1 percent. On average, IoT connectivity revenues account for around 2 percent of total revenues for the largest mobile operator groups. As the value in IoT lies in value-added services rather than connectivity, mobile operators increasingly focus on boosting their IoT portfolios by adding cloud services and security capabilities on top of their connectivity offering to capture a larger share of the market. Several players have embarked on vertical integration strategies, typically by acquiring local solution providers in application areas like fleet and asset tracking. Private LTE/5G is an emerging focus area, where many operators act as managed service providers.

China Mobile reported the highest IoT connectivity revenues of € 2.2 billion in 2022 but had one of the lowest monthly ARPUs of € 0.19. China Unicom reported € 1.2 billion in IoT sales for the year, and the highest growth rate of 42 percent. AT&T and Vodafone are believed to have generated IoT connectivity revenues in the range of € 1.1 billion and € 0.9 billion respectively. Verizon generates annual IoT revenues of more than US$ 1.5 billion (€ 1.4 billion) with almost 60 percent coming from the Verizon Connect fleet management and telematics business. Annual IoT connectivity revenues are believed to be in the range of € 700-750 million.

Highlights from the report:

  • 360-degree overview of the cellular IoT communications ecosystem.
  • Update on the adoption of 5G and LPWA standards for IoT networking.
  • Reviews of the IoT strategies of the leading mobile operators.
  • Summary of industry trends in all world regions.
  • IoT business KPIs for leading global mobile operators.
  • Statistical data on cellular IoT subscribers in all world regions.
  • Extensive global and regional market forecasts lasting until 2027.

This report answers the following questions:

  • How will the global cellular IoT market evolve over the next five years?
  • Why has China become the world’s largest market for cellular IoT?
  • Which are the main market trends in Europe and North America?
  • What impact will 5G have on the IoT market?
  • What are the leading global mobile operators’ strategies for the IoT market?
  • What is the status of cellular IoT in emerging markets?
  • How much revenues from IoT were generated by major mobile operators in 2022?
  • What is the outlook for low power wireless networking technologies?

Who should read the report?

The Global M2M/IoT Communications Market is the foremost source of information about cellular IoT and low power wireless networking in all regions and major IoT vertical markets. 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. 

Table of Contents

Executive Summary
1    Wide Area Networks for the Internet of Things
1.1    3GPP family of cellular technologies
1.1.1    3GPP Release 13 - Introducing LTE-M and NB-IoT
1.1.2    3GPP Release 14 - IoT enhancements and C-V2X
1.1.3    3GPP Release 15 - The first phase of 5G specifications
1.1.4    3GPP Release 16 - URLLC enhancements, IIoT features and 5G NR C-V2X
1.1.5    3GPP Release 17 - RedCap and non-terrestrial network communications
1.1.6    Network footprint
1.1.7    2G/3G mobile networks
1.1.8    4G mobile networks
1.1.9    4G/5G mobile IoT networks (LTE-M and NB-IoT)
1.1.10    5G mobile networks
1.2    LPWA and satellite technologies
1.2.1    LoRa
1.2.2    Sigfox
1.2.3    Satellite networks
1.3    IoT networking platforms
1.3.1    IoT connectivity management platforms
1.3.2    SIM solutions and embedded UICC
1.4    International coverage and alliances
1.4.1    Roaming and international coverage
1.4.2    Mobile operator alliances

2    Europe
2.1    Regional market trends
2.1.1    Western Europe
2.1.2    Central and Eastern Europe
2.2    Mobile operators
2.2.1    A1 Telekom Austria
2.2.2    Altice Group
2.2.3    Bouygues Telecom
2.2.4    BT Group
2.2.5    CK Hutchison Group Telecom
2.2.6    Deutsche Telekom
2.2.7    KPN
2.2.8    MegaFon
2.2.9    MTS
2.2.10    Orange
2.2.11    Manx Telecom
2.2.12    POST Luxembourg
2.2.13    Proximus
2.2.14    Tele2
2.2.15    Telecom Italia
2.2.16    Telefónica
2.2.17    Telenor
2.2.18    Telia Company
2.2.19    Vodafone
2.3    IoT managed service providers
2.3.1    1NCE
2.3.2    1oT
2.3.3    Airnity
2.3.4    BICS
2.3.5    Caburn Group (CSL Group)
2.3.6    Com4 (Wireless Logic)
2.3.7    Cubic Telecom
2.3.8    CSL Group
2.3.9    EMnify
2.3.10    Eseye
2.3.11    floLIVE
2.3.12    Freeeway
2.3.13    iBASIS
2.3.14    Onomondo
2.3.15    Pelion
2.3.16    Pod Group (Giesecke+Devrient)
2.3.17    Transatel
2.3.18    Truphone
2.3.19    Velos IoT
2.3.20    Wireless Logic
2.4    LPWA networks
2.4.1    LoRa networks
2.4.2    Sigfox and network partners

3    The Americas
3.1    Regional market trends
3.1.1    United States and Canada
3.1.2    Brazil
3.1.3    Rest of Latin America
3.2    Mobile operators
3.2.1    AT&T
3.2.2    Bell
3.2.3    Verizon
3.2.4    T-Mobile USA
3.2.5    Rogers Communications
3.2.6    TELUS
3.2.7    América Móvil
3.2.8    Vivo and Telefónica Hispam
3.2.9    Other mobile operators in Latin America
3.3    IoT managed service providers
3.3.1    Aeris
3.3.2    Blues Wireless
3.3.3    Hologram
3.3.4    KORE Wireless
3.3.5    Sierra Wireless (Semtech)
3.3.6    Telit Cinterion
3.4    LPWA networks
3.4.1    LoRaWAN networks
3.4.2    Sigfox and network partners

4    Asia-Pacific
4.1    Regional market trends
4.1.1    China
4.1.2    Japan and South Korea
4.1.3    Australia and New Zealand
4.1.4    India
4.1.5    Southeast Asia
4.2    Mobile operators
4.2.1    China Mobile
4.2.2    China Unicom
4.2.3    China Telecom
4.2.4    KDDI
4.2.5    KT
4.2.6    NTT Docomo
4.2.7    Singtel
4.2.8    SK Telecom
4.2.9    SoftBank
4.2.10    Telstra
4.2.11    Vodafone Idea
4.3    IoT managed service providers
4.3.1    Plintron
4.3.2    Quectel
4.3.3    Soracom
4.3.4    Tata Communications
4.4    LPWA networks
4.4.1    LoRa networks
4.4.2    Sigfox networks

5    Middle East & Africa
5.1    Regional market trends
5.1.1    Middle East
5.1.2    Africa
5.2    Mobile operators
5.2.1    e&
5.2.2    MTN
5.2.3    Ooredoo
5.2.4    Turkcell
5.2.5    Vodacom
5.2.6    Zain
5.3    IoT managed service providers
5.3.1    Flickswitch
5.4    LPWA networks
5.4.1    LoRa networks
5.4.2    Sigfox networks

6    Satellite IoT Communications
6.1    Introduction to satellite IoT networks
6.2    Market analysis
6.3    Satellite IoT operator market shares
6.4    European satellite operators
6.4.1    Astrocast
6.4.2    Eutelsat
6.4.3    Inmarsat
6.4.4    Kineis
6.4.5    Lacuna Space
6.4.6    Additional satellite connectivity providers
6.5    North American satellite operators
6.5.1    Globalstar
6.5.2    Iridium
6.5.3    Kepler Communications
6.5.4    Ligado Networks
6.5.5    Orbcomm
6.5.6    Swarm Technologies
6.5.7    Additional satellite connectivity providers
6.6    Chinese satellite operators
6.6.1    CASC and CASIC
6.6.2    Commsat
6.6.3    Galaxy Space
6.6.4    Head Aerospac
6.6.5    Additional satellite connectivity providers
6.7    Rest of World satellite operators
6.7.1    Fleet Space Technologies
6.7.2    Innova Space
6.7.3    Myriota
6.7.4    Sky and Space Company
6.7.5    Thuraya
6.7.6    Additional satellite connectivity providers

7    Market Forecasts and Trends
7.1    Industry trends
7.1.1    Top ten mobile operators manage 2.3 billion cellular IoT subscribers
7.1.2    IoT revenues continue to grow slower than connections
7.1.3    IoT managed service providers connect 150+ million cellular devices
7.1.4    International carriers enter the cellular IoT market
7.1.5    New entrants disrupt distribution channels
7.1.6    IoT MVNOs are driving consolidation in the IoT connectivity market
7.2    Geographic markets
7.2.1    Global market summary
7.2.2    Europe
7.2.3    North America
7.2.4    Latin America
7.2.5    Asia-Pacific
7.2.6    Middle East & Africa
7.3    Vertical markets
7.3.1    Connected cars on the rise
7.3.2    Telematics giants increasingly dominate the fleet management industry
7.3.3    The opportunity to create smarter and safer cities
7.3.4    Smart metering turns to new LPWA options for deployments in the 2020s
7.3.5    Asset tracking to drive the second wave of LPWA deployments
7.3.6    Consumer-grade tracking solutions have mass-market potential
7.3.7    Connected healthcare reaches the masses
7.3.8    Home energy and EV charging solutions to become new volume segments
7.4    Technology trends
7.4.1    Cellular technologies dominate wireless IoT
7.4.2    NB-IoT deployments remain concentrated to China
7.4.3    RedCap will accelerate the adoption of 5G in IoT
7.4.4    Distributed core networks facilitate global IoT connectivity services
7.4.5    Private cellular to grow from a niche into a substantial market
7.4.6    eSIM adoption is gathering pace
7.4.7    Mobile operators partner with satellite IoT players to extend coverage


Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • 1NCE
  • 1oT
  • Aeris
  • Airnity
  • América Móvil
  • A1 Telekom Austria
  • Altice Group
  • AT&T
  • Astrocast
  • Bell
  • BICS
  • Blues Wireless
  • Bouygues Telecom
  • BT Group
  • Caburn Group (CSL Group)
  • CASC and CASIC
  • China Mobile
  • China Telecom
  • China Unicom
  • CK Hutchison Group Telecom
  • Commsat
  • Com4 (Wireless Logic)
  • Cubic Telecom
  • CSL Group
  • Deutsche Telekom
  • e&
  • EMnify
  • Eseye
  • Eutelsat
  • floLIVE
  • Fleet Space Technologies
  • Flickswitch
  • Freeeway
  • Galaxy Space
  • Globalstar
  • Head Aerospac
  • Hologram
  • iBASIS
  • Innova Space
  • Inmarsat
  • Inmarsat
  • Iridium
  • iBASIS
  • KDDI
  • Kepler Communications
  • Kineis
  • KPN
  • KORE Wireless
  • KT
  • Lacuna Space
  • Ligado Networks
  • Manx Telecom
  • MegaFon
  • MTN
  • MTS
  • Myriota
  • NTT Docomo
  • Ooredoo
  • Onomondo
  • Orange
  • Orbcomm
  • Pelion
  • Plintron
  • Pod Group (Giesecke+Devrient)
  • POST Luxembourg
  • Proximus
  • Quectel
  • Rogers Communications
  • Sierra Wireless (Semtech)
  • Singtel
  • Sky and Space Company
  • SK Telecom
  • SoftBank
  • Soracom
  • Swarm Technologies
  • T-Mobile USA
  • Tata Communications
  • Telia Company
  • Telit Cinterion
  • Telecom Italia
  • Telefónica
  • Telefónica Hispam
  • Tele2
  • Telenor
  • Telstra
  • Thuraya
  • Transatel
  • Truphone
  • Turkcell
  • Verizon
  • Vodacom
  • Vodafone
  • Vodafone Idea
  • Vivo
  • Wireless Logic
  • Zain





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