Internet of Things in Telecom

Satellite Internet of Things

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2024

The number of cellular IoT connections in the world has grown to 3.3 billion over the year

At the end of 2023, the number of cellular connections in the Internet of Things (IoT) segment on a global scale reached 3.3 billion. This is almost a quarter - by 24% - more than the previous year, when the figure was estimated at 2.7 billion. Such data are reflected in the Counterpoint Technology Market Research review, which TAdviser got acquainted with in early November 2024.

According to the type of technology used, the authors of the study distinguish six key segments: these are traditional 2G, 3G, 4G and 5G mobile networks, as well as NB-IoT and LTE-M networks. The NB-IoT standard is narrowband Internet of Things technology. It is used to obtain data from numerous devices: these can be all kinds of autonomous sensors, trackers, meters, systems for a smart city, equipment for the production sector, etc. In turn, LTE-M is a low-power radio technology developed by the 3GPP consortium for machine-to-machine applications.

Counterpoint Technology Market Research estimates that in 2023 the lion's share of cellular IoT connections in the world was provided by the 4G standard. Geographically, China became the leader, where the number of IoT compounds rose by 26% over the year, reaching 2.3 billion. Thus, the share of the PRC in the total volume of the industry under consideration is at the level of 70%. The number of IoT cellular connections in China has exceeded the number of mobile subscribers: this is due to the rapid development of the Internet of Things ecosystem as a whole, as well as the digitalization of various industries.

{{QuoteChina continues to deploy low-cost IoT solutions. A significant part of the connections in the country is based on 2G and NB-IoT technologies with an average income per unit of subscriber equipment of less than $2.2 per year, says Mohit Agrawal, director of research at Counterpoint Technology Market Research.}}

In monetary terms, the global industry of cellular IoT connections in 2023 showed an increase of 17% on an annualized basis with a final result of $13.7 billion. Moreover, such a significant dynamics was recorded against the background of a general decrease in income in terms of a unit of subscriber equipment. Most of the revenue came from the 4G segment. About 36% of the total market in money was provided by China.

We have seen a significant increase in cellular IoT usage in areas such as utilities and data-sharing vehicles across mobile networks. Many developing countries are implementing digital transformation programs that prioritize the deployment of advanced solutions to sustain public services. The spread of 5G will play a decisive role in stimulating revenue, says Siddhant Cally, analyst at Counterpoint Technology Market Research.

The authors of the study believe that in the future, the CAGR in the market under consideration will be 10%. Thus, by 2030, the number of cellular IoT connections on a global scale, according to the presented estimates, will reach 6.2 billion. At the same time, the total revenue will exceed $26 billion. Internet-connected vehicles, smart meters, and smart retail systems will continue to dominate, collectively taking over 60% of the cellular IoT market by the end of 2030. At the same time, analysts believe that 5G will account for almost 50% of world revenues. But 4G connections will remain the most common.^[1]

Antennas for the Internet of Things have been created, completely based on Russian components

LETI St. Petersburg State Electrotechnical University has made a breakthrough in the development of antenna systems for Internet of Things technologies: scientists have created innovative holographic W-band antennas (75-100 GHz), completely devoid of imported components and implemented on the basis of the domestic element base. This was announced at the end of May 2024 by the associate professor of the Department of Theoretical Foundations of Radio Engineering LETI Liubov Lyubina. Read more here.

A federal network of the Internet of Things is being built in Russia

In 2026, the launch of the LTE network for the Internet of Things in Russia for the transfer of data from smart meters and sensors is scheduled. This was reported in the presentation of Minister Maksut Shadayev at a meeting of the State Council working group on the digital economy, which took place at the end of April 2024.

As Vedomosti writes with reference to this document, it is planned to redesign the 450 MHz range for the federal IoT network, on the basis of which it was previously planned to create wireless communications for officials and security officials. But this project was never implemented.

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LTE-450 is distinguished by very large coverage and at the same time low throughput, for metering devices and sensors - this is the most effective solution, - a representative of the Ministry of Digital Development told the publication.

He added that one LTE-450 base station provides a coverage radius of 20 km. According to experts interviewed by the newspaper, the commercial potential of the LTE-450 network in the context of IoT is minimal. Rostelecom needs the network in order to receive state money, and hardly anyone will use it, believes one of the Vedomosti informants close to one of the operators.

The rest of the big four operators opposed the idea of ​ ​ creating a federal network in the 450 MHz band:, MTS"" and VimpelComMegaFon"." In their letter, the operators warned the department that this range is occupied by Rostelecom, Tele2 which threatens to monopolize the market and raise prices for services for servicing smart sensors and counters.

According to the general director of the ComNews group Leonid Konik, all attempts to build free-standing IoT networks and, above all, LoRaWAN and SigFox standards with national coverage were unsuccessful. In other countries, communication networks in the 450 MHz range have almost disappeared and various ideas around its use in Russia look like an attempt to at least somehow use this resource, he said.^[2]

2023

The number of cellular IoT connections in the world has grown to 3.3 billion over the year

At the end of 2023, the number of cellular connections in the Internet of Things (IoT) segment on a global scale reached 3.3 billion. This is almost a quarter - by 24% - more than the previous year, when the figure was estimated at 2.7 billion. Such data are reflected in the Counterpoint Technology Market Research review, which TAdviser got acquainted with in early November 2024.

According to the type of technology used, the authors of the study distinguish six key segments: these are traditional 2G, 3G, 4G and 5G mobile networks, as well as NB-IoT and LTE-M networks. The NB-IoT standard is narrowband Internet of Things technology. It is used to obtain data from numerous devices: these can be all kinds of autonomous sensors, trackers, meters, systems for a smart city, equipment for the production sector, etc. In turn, LTE-M is a low-power radio technology developed by the 3GPP consortium for machine-to-machine applications.

Counterpoint Technology Market Research estimates that in 2023 the lion's share of cellular IoT connections in the world was provided by the 4G standard. Geographically, China became the leader, where the number of IoT compounds rose by 26% over the year, reaching 2.3 billion. Thus, the share of the PRC in the total volume of the industry under consideration is at the level of 70%. The number of IoT cellular connections in China has exceeded the number of mobile subscribers: this is due to the rapid development of the Internet of Things ecosystem as a whole, as well as the digitalization of various industries.

China continues to deploy low-cost IoT solutions. A significant part of the connections in the country are based on 2G and NB-IoT technologies with an average income per unit of subscriber equipment of less than $2.2 per year, says Mohit Agrawal, director of research at Counterpoint Technology Market Research.

In monetary terms, the global industry of cellular IoT connections in 2023 showed an increase of 17% on an annualized basis with a final result of $13.7 billion. Moreover, such a significant dynamics was recorded against the background of a general decrease in income in terms of a unit of subscriber equipment. Most of the revenue came from the 4G segment. About 36% of the total market in money was provided by China.

We have seen a significant increase in cellular IoT usage in areas such as utilities and data-sharing vehicles across mobile networks. Many developing countries are implementing digital transformation programs that prioritize the deployment of advanced solutions to sustain public services. The spread of 5G will play a decisive role in stimulating revenue, says Siddhant Cally, analyst at Counterpoint Technology Market Research.

The authors of the study believe that in the future, the CAGR in the market under consideration will be 10%. Thus, by 2030, the number of cellular IoT connections on a global scale, according to the presented estimates, will reach 6.2 billion. At the same time, the total revenue will exceed $26 billion. Internet-connected vehicles, smart meters, and smart retail systems will continue to dominate, collectively taking over 60% of the cellular IoT market by the end of 2030. At the same time, analysts believe that 5G will account for almost 50% of world revenues. But 4G connections will remain the most common.^[3]

Growth of the global market for cellular IoT modules by 23% to $15.2 billion

At the end of 2023, the global market for cellular IoT solutions reached $15.2 billion. This is 23% more compared to 2022, when costs in this area were estimated at $12.3 billion. Such data are provided in a study by IoT Analytics, which TAdviser got acquainted with at the end of August 2024.

In 2023, suppliers of cellular IoT modules faced a 10 percent decrease in revenue on an annualized basis due to lower sales, the report said. However, revenue from IoT cellular connections as a whole rose year-on-year by almost a quarter. In the total market volume, approximately 8% of expenses fell on the 5G segment, and 92% - on all other cellular technologies combined.

The total number of cellular IoT connections by the end of 2023 increased to 3.56 billion. The growth rate of revenues in the market under consideration exceeded the performance of software suppliers and hyperscalers, despite the rapid development of artificial intelligence, the widespread adoption of cloud services and increased demand for high-performance computing. The observed picture suggests that cellular communication plays an important role in expanding the global IoT infrastructure. The list of leading industry players includes:

1. China Mobile. This operator in 2023 provided 46% of global IoT cellular connections and 20% of global revenue in the corresponding segment. The number of IoT connections at China Mobile rose by 20% on an annualized basis thanks to a strategy aimed at promoting complex solutions. It covers hardware components, including specialized chips, software and other elements. The company is focused on three main areas of application: video services, urban solutions and the industrial Internet of Things.

2. China Telecom. The company controls 15% of IoT cellular connections globally, with a revenue share of approximately 7%. The number of mobile IoT connections of China Telecom increased by 28% compared to 2022 due to the focus on solutions for urban management. We are talking about a variety of uses of technology - from flood detection to fire protection. IoT platforms provide a comprehensive view of the state of the urban environment, including aspects such as heat distribution, power consumption, facility status, etc.

3. China Unicom. This operator accounted for 14% of global IoT cellular connections and 10% of global revenue in 2023. The increase in the number of IoT connections on an annualized basis was recorded at around 28%. Analysts cite the active introduction of high-speed 4G and 5G technologies as a key factor in the increase in revenue.

4. Vodafone. The company's share in 2023 was 5% in terms of the number of IoT cellular connections and 9% in terms of income. The growth in the number of connections was at the level of 15% on an annualized basis. The key driver is the high demand from the automotive sector.

5. AT&T. This operator accounted for 4% of the world's IoT cellular connections and 12% of revenue. The company was able to increase the number of IoT connections by 19% compared to 2022 due to the expansion of the automotive segment.

Analysts believe that in the future, the average annual growth rate in the global Internet of Things market for cellular communications will be 18%. As a result, by 2030, costs will reach $49.5 billion. At the same time, the contribution of the 5G segment will rise to 49%. 5G IoT connections are expected to increase with a CAGR of 44% from 2024 to 2030.^[4]

2022: The global market for cellular IoT modules climbed 14% and updated the record

Global cellular module shipments for the Internet of Things (IoT) market climbed 14% in 2022 from the previous year to reach their highest level ever. This is stated in a study by Counterpoint Technology Market Research, the results of which were published on March 29, 2023.

In 2022 China , it still led the world IoT module market in terms of supply volumes. This is followed by North America and West. Europe Meanwhile India , it showed the highest growth rates, followed by Latin America and North America. Eastern Europe has become the only region in which a decline has been recorded, which is explained by the current geopolitical situation.

According to the results of 2022, Quectel became the largest player in the IoT modules industry with a share of approximately 38.5% in the total mass of shipments. This company has made significant progress due to the development of products for the automotive sector. In second place with a large lag is Fibocom - 7.5%. Closes the top three Sunsea, which showed a result of 5.3%.

Qualcomm remains the leader in the segment of IoT chipsets with cellular support, which in 2022 accounted for 40% of total sales. The company has strengthened its position in LTE Cat 4 and higher technologies, while maintaining its dominance in 5G. In the second position in the ranking of leading suppliers is Unisoc with an indicator of about 20%, in the third - ASR with 9.4%.

In 2022, the standard NB-IoT remained the most popular connectivity technology in the LPWA IoT (energy efficient long-range network) segment, followed by 4G Cat 1 and 4G Cat 4 solutions. Together, they provided 60% of supplies in the IoT module market. Implementation 5G Internet in the field of things was slower than in the sector, smartphones due to the higher cost of products.^[5]

2021: Internet of Things, What a Manager Needs to Know

Internet of Things, aka IoT (Internet of Things). What is it? How is this different from M2M? How can this be used? How much is it? How to implement? Read more here.

2020: IoT Cellular Module Market Cut by 8%, to $3.1 Billion - IoT Analytics

The global market for cellular modules of the Internet of Things (IoT) in 2020 showed a decrease of 8%, to $3.1 billion in monetary terms. Such data are given in the report of IoT Analytics, published at the end of May 2021.

An analysis of the revenues and supplies of 33 companies specializing in cellular modules of the Internet of Things shows that the global market for IoT modules for cellular communications was significantly affected in 2020 due to the COVID-19 coronavirus pandemic, while global revenues decreased by 8% on an annualized basis to $3.1 billion. However, shipments of cellular Internet of Things modules in China in 2020 increased by 14% compared to the same period in 2019, while in the rest of the world these indicators decreased.

The market for cellular modules of the Internet of Things for 2020 fell by 8%

Experts call COVID-19 the reason why the Chinese market has expanded, while others have shrunk. Many IoT-related initiatives have been suspended or, in some cases, canceled in 2020 precisely because of the coronavirus. However, the deployment of IoT projects in the PRC suffered to a lesser extent - after a temporary blocking due to COVID-19, their development continued.

IoT Analytics segments the IoT cellular module market by connectivity technology, including two different 4G sub-segments: LTE-Cat 1 and other 4G standards. One of the main trends identified in the study is that the connection pattern in the PRC is very different from the rest of the world. Outside of China, LTE-Cat 1 penetration is much stronger than, for example, narrowband (NB) -IoT penetration. LTE-Cat 1 accounts for 23% of the market outside of China, but only 12% in China.

Unlike five years ago, as of 2020, the Internet of Things cellular module market is dominated by Chinese providers. Quectel, Fibocom and SUNSEA AIoT have established themselves as market leaders and market expansion in China during 2020 has increased their market position.

It is expected that 4.5 billion cellular IoT connections will be deployed by 2025. The cellular IoT modules market, according to IoT Analytics, is in a long-term cyclical upward trend.^[6]

2019

The market for cellular IoT modules jumped 22% to 265 million units

In early June 2020, Berg Insight released a report according to which global deliveries of cellular IoT modules in 2019 increased by 22%, reaching a new record level of 265 million copies. Annual revenue grew more slowly and increased only 7% due to increased price pressures and an increase in the share of low-cost LPWA modules in the assortment.

Analysts note that IoT technologies are undergoing a rapid transformation. The development of the Chinese market accelerates the global transition to LTE technologies, while earlier almost 40% of annual module deliveries were 2G technologies. Experts suggest that in the next five years (from 2020 to 2024), 3GPP specifications for global low-power communications - LTE-M and NB-IoT - will make a significant contribution to the growth of this sector.

Cellular IoT Modules Market Jumped 22% in 2019

In Europe, deliveries of NB-IoT modules began in 2019 and should accelerate in 2020, and the introduction of LTE-M will also accelerate from 2021. China is moving from GPRS to NB-IoT in the mass market segment, but at the same time, demand for LTE Cat-1 modules is growing in the Asian region, as Chinese operators choose it instead of LTE-M.

Although 5G coverage is growing rapidly in developed markets, 5G-enabled IoT modules will only go on sale in sufficiently high volumes in the second half of 2020. The first 5G-enabled products will be routers and gateways, which are likely to hit the market before the end of 2020. The first passenger cars equipped with 5G IoT modules are planned to be released in 2021. Additional areas of application of 5G-enabled IoT modules in the future may be the area of ​ ​ video surveillance and other multimedia applications, which so far rely on wired communication.

The results of the latest market share assessment of cellular IoT module suppliers by Berg Insight experts show that the five largest module suppliers cover 71% of the market in terms of revenue. Fredrik Stalbrand, senior IoT analyst at Berg Insight, notes that annual revenues from the sale of IoT modules among the five largest players - Quectel, Sierra Wireless, Thales, Sunsea AIoT and Telit - rose 5% to $2.2 billion in 2019, and their total market value reached approximately $3.1 billion.

In 2019, Quectel became the leading provider of cellular IoT modules, overtaking Sierra Wireless. Thales, which completed its acquisition of Gemalto in April 2019, was in third place, followed by Sunsea AIoT and Telit.

Analysts predict that suppliers of cellular IoT modules are waiting for pronounced fluctuations in sales in the end markets in 2020 due to the COVID-19 pandemic. Resource supplying organizations make up the largest end market in terms of volume, and although projects with the installation of smart equipment continue to work, their pace has fallen. Similarly, plant closures by major automakers and lower demand for passenger cars will have a significant impact on sales of cellular IoT modules for automotive applications in 2020.

Despite the problems in the short term, Berg Insight believes that in general, the current situation will accelerate the pace of digitalization in the coming years.

Delivery dynamics of cellular IoT devices, Berg Insight data

Enterprises that have begun their digital transformation path already have an advantage and today provide tremendous value to customers thanks to remote process control of connected devices, which avoids unnecessary contacts, says Fredrik Stalbrand.[7]

MTS launched a unified protocol for the Internet of Things

In December 2019, MTS launched a unified protocol for the Internet of Things (IoT) using SCEF (Service Capabilities Exposure Function) equipment from Oracle. The system integration project was carried out by NVision Group (part of the MTS group). Read more here.

2018: Telecom picks different avenues to embrace IoT

In April 2018, Ericsson released the results of a study that showed that telecommunications operators use several paths to master the Internet of Things and generate revenue from it. By the time the report is published, few market participants have full IoT strategies.

More than two-thirds of telecom providers do not have clear plans to bring IoT technology to work, according to an Ericsson survey. They are only looking for sources of income from IoT solutions, so they are testing various approaches.

The Ericsson study found that telecommunications operators use multiple pathways to master and generate revenue from the Internet of Things (IoT).

Ericsson conducted a study to learn how international telecommunications companies support IoT initiatives. The report examined 20 leading operators. They all agree on the great potential of the Internet of Things, especially when it comes to new IoT technologies for cellular communications, like the Narrow Band IoT (NB-IoT).

This standard, as operators note, is optimal for collecting, analyzing and managing data, remote monitoring of devices. The launch of such networks will allow testing and introducing high-tech products and services based on the Internet of Things in the pilot zone for the development of a smart city, including solutions in the field of security, monitoring transport and the environmental situation, digitalization of various industries, the work of government agencies, etc. According to Ericsson, the telecom wants to earn "out of communication."

The report confirms the importance of IoT for the current and future business of leading service providers, regardless of where they work in the world, says Jeff Travers, head of IoT at Ericsson Effers. - As for IoT as a new type of business, operators are investing in new technologies and creating new business models for revenue sharing and greater use of indirect channels. They are also developing new models to deliver products as services and online services, as well as developing innovations in conjunction with partners and customers.

Ericsson distributes the structure of the Internet of Things between four main links:

• telecom operators providing the basic infrastructure for connecting IoT services;
• communication providers that run and manage IoT services;
• service providers providing service platforms for IoT system developers;
• service developers who become IoT service providers in their own right.

Representatives of most of the telecommunications companies surveyed said they consider the roles of telecom operators and communication providers fundamental to the growth of IoT revenue. Additional revenues can provide either differentiation of services through intermediate roles, or progressive delivery of complex IoT solutions to customers.

Telecommunications companies can play different roles at any time, depending on use cases and other factors, the study found.

Ericsson experts also concluded that operators launch the IoT business as a separate startup, after which they assess the success of the project based on key performance indicators (KPIs), such as the number of application downloads or the number of devices involved in the network.

Operators call fleet management, logistics, Internet-connected cars, smart cities and industrial automation the most profitable areas of application of the Internet of Things. Consumer projects are less interesting due to the "non-obvious advantages" and "competition from large players."^[8]

See also

• Article:Internet of Things (IoT)
• Article:Internet of Things, IoT, M2M (Global Market)
• IIoT - Industrial Internet of Things
• Internet of Things: you can't stay in time
• RFID
• Smart Grid
• NB-IoT Low-Power and Wide-Area Standard, LPWAN

• Internet of Things in Medicine
• Internet of things in housing and communal services
• Internet of Things in the Electric Power Industry
• Internet of Battle Things (IoBT)

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