The global number of cellular IoT subscribers reached 648 million at the end of 2017
LONDON, Jan. 18, 2018 /PRNewswire/ -- The Global M2M/IoT Communications Market analyses the latest trends and developments in cellular IoT and low power wireless networking.
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This strategic research report from Berg Insight provides you with 170 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.
Highlights from this report:
- 360-degree overview of the cellular IoT communication ecosystem.
- Update on the adoption of NB-IoT and LPWA standards for M2M/IoT networking.
- Reviews of the IoT strategies of leading mobile operators.
- Summary of industry trends in all world regions.
- Statistical data on cellular IoT subscribers in all world regions.
- Extensive global and regional market forecasts lasting until 2022.
The global number of cellular IoT subscribers reached 648 million at the end of 2017
Berg Insight estimates that the global number of cellular IoT subscribers increased by 56 percent during 2017 to reach 647.5 million at the end of the year – corresponding to around 8 percent of all mobile subscribers. Until 2022, the number of cellular IoT subscribers is forecasted to grow at a compound annual growth rate (CAGR) of 33.1 percent to reach 2,700.1 million at the end of the period. During the same period, cellular IoT network revenues are forecasted to grow at a compound annual growth rate (CAGR) of 27.3 percent from € 6.3 billion in 2017 to approximately € 21.2 billion in 2022. Meanwhile the monthly ARPU is expected to drop to € 0.65.
The global cellular IoT market is going through a massive change, driven by the Chinese government's policies for accelerating adoption. China has set the ambitious goal of reaching 600 million NB-IoT connections in 2020, three years after the launch of the first commercial networks.
Berg Insight believes that the target must be seen as realistic in light of the 150 million net additions and almost 100 percent yearly growth rate in 2017, the year before low-cost NB-IoT devices were even available.
China has embarked on one of the world's largest digital infrastructure projects that will result in billions of new connected devices in the coming five years. The massive effort will be a catalyst for reducing the price of cellular IoT chipsets and modules below US$ 2 and driving the global transition from 2G to 4G networks. China's choice of NB-IoT as the country's preferred LPWA technology will elevate the emerging standard to global dominance. It will also change the structure of the global cellular IoT subscriber base.
The next wave of cellular IoT adoption is focused on new vertical segments like smart cities and infrastructure, smart industrial supply chains and connected consumer products.
Berg Insight believes the new wave will start in China, where government authorities and manufacturing companies will be first in the world to deploy connected devices using NB-IoT technology on a massive scale. Berg Insight does not expect to see similar levels of adoption in any other world region in the coming five years.
Most new connected consumer products will launch first in China and get exported if successful. Berg Insight finds it likely that embedded cellular IoT connectivity will become a standard feature in mass-market whitegoods and similar high-volume consumer goods.
China Mobile is the world's largest provider of cellular IoT connectivity. At the end of Q2-2017, the operator reported 150 million IoT subscribers and a year-on-year growth rate of 87 percent. Vodafone ranked second with 59 million IoT subscribers and a yearly growth rate of 43 percent.
China Unicom captured the third spot with 50 million, surpassing AT&T at close to 36 million. China Telecom grew at an exceptional 250 percent year-on-year to reach 28 million cellular IoT subscribers in the period. Deutsche Telecom, Softbank/Sprint, Verizon and Telefónica currently have in the range of 15–20 million cellular IoT subscribers, which are growing at yearly rates of 15–30 percent.
Telenor was the last player in the top ten with approximately 12 million cellular IoT subscribers. With an aggregate base of 407 million connections in mid-2017, the top ten mobile operators had a combined global market share of 76 percent. IoT is starting to make a substantial contribution to the revenues of the world's mobile operators.
Top international players such as AT&T, Verizon and Vodafone generate in the order of € 1 billion in sales from IoT. Overall, the share of mobile operator revenues from IoT is in the range of 1 percent. This is consistent with IoT's share of total mobile data traffic reported by telecom regulators in Scandinavia.
Cellular IoT communication providers are at the forefront of adopting next generation network technology. Global IoT connectivity platforms aggregate cellular and non-cellular networks in every part of the world on a shared core network infrastructure.
Some players have even developed complete mobile core networks based on virtualized network infrastructure and operated as a service on commercial clouds. From a technical perspective, network aggregation has intrinsic advantages in terms of coverage and flexibility. Any provider of international IoT connectivity must rely on external radio networks. Being tied to a single radio network in the domestic market can sometimes be a disadvantage. The main competitive advantages of traditional telecom operators in IoT are not technical but commercial. In the end, any technical platform will only be as good as the underlying commercial relationships between the connectivity provider and the radio network operators.
This report answers the following questions:
How will the global cellular IoT market evolve over the next five years?
How will Chinese government policies shape the global IoT market?
Which are the main market trends in Europe and North America?
What is the status of cellular IoT in emerging markets?
What are the leading global mobile operators' strategies for the IoT market?
How much revenues did leading telecom groups generate from IoT in 2017?
When will NB-IoT replace GPRS in mass-market applications?
What is the outlook for emerging low power wireless networking technologies?
Who should buy this 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 M2M/ 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.
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