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Figures are based on the analysis of world-wide LPWAN network roll-outs and state of adoption across nine industry segments including smart cities
The number of connected low power wide area networks (LPWAN) devices is forecast to grow at compound annual growth rate (CAGR) of 109 per cent until 2023 when it will reach more than 1.1 billion active connections.
According to a new market report from IoT Analytics, LPWAN is emerging as the fastest growing Internet of Things (IoT) communication technology with the “strong growth in adoption” driven by world-wide public network roll-outs and private network deployments.
As active global IoT connections grow from seven billion in 2018 to 22 billion in 2025, LPWAN are expected to be a key growth driver, the LPWAN Market Report 2018-2023 notes.
LPWAN technologies provide low-power, low data-rate communication over long distances or from deep indoor environments, enabling battery-operated devices to operate for up to 10 years without any human intervention.
While the market fragmentation remains high, NB-IoT, LoRa and Sigfox are emerging as the most popular LPWAN technologies both in terms of end-user adoption as well as ecosystem support, with the first two forecasted to be the dominant technologies over the forecasted period in public network and private network deployments respectively. Annual spending for connectivity is expected to surpass $4.7bn by 2023.
“The LPWAN market is currently going through an “early adoption phase” characterised by a high degree of technological fragmentation and a network footprint that is still far from being global. IoT Analytics counts at least 16 LPWAN technologies currently on the market, all of them with a relatively limited degree of adoption and geographical footprint,” said Eugenio Pasqua, main author of the report and connectivity expert at IoT Analytics.
"NB-IoT and LoRa already make up about 70 per cent of the market today and are expected to grow their share of the market to almost 85 per cent within the next five years”
“However, our data shows the market is quickly consolidating around a few of these. LoRa is the current market leader, but NB-IoT is growing faster and is expected to surpass LoRa by the end of 2018, after which it will maintain the leadership for the years to come.
Together NB-IoT and LoRa already make up about 70 per cent of the market today and are expected to grow their share of the market to almost 85 per cent within the next five years.”
The numbers are based on the analysis of world-wide LPWAN network roll-outs and state of adoption across nine industry segments including smart cities, buildings and infrastructure, utilities, industrial, transportation and supply chain and logistics. The market is broken down into five technologies (Sigfox, LoRa, NB-IoT, LTE-M, and others).
The report also analyses in detail the seven most important LPWAN technologies today – Sigfox, LoRa, RPMA, Weightless, LTE-M, NB-IoT and EC-GSM – discussing their technical features, ecosystem and business model, and provides a brief overview of nine other LPWAN technologies (Thingstream, Telensa, NB-Fi) as well as seven other technologies that are similar or complementary to LPWAN (Wi-Sun).
In developing the 260-page report, the analyst team at IoT Analytics studied more than 25 communication technologies that offer a combination of low-cost, low-power, long-range communication for large numbers of devices, and looked into more than 150 companies either offering network access and/or services or developing products or solutions based on these technologies.
Further input to the report included more than 40 industry interviews and numerous expert discussions at 10 leading IoT conferences.
IoT Analytics is a provider of market insights and competitive intelligence for the Internet of Things, M2M, and Industry 4.0.
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