Evolving Cellular IoT for industry digitalization
Commercialization of 5G to stimulate the growth of Cellular IoT
The rising investments in 5G by network operators and continuous advancements in communications technologies are the major factors that are enabling the adoption of advanced technologies such as artificial intelligence, AR/VR, IoT, and blockchain. The unprecedented surge in the number of connected devices, data traffic, and high quality content among consumers is pushing the limits of existing 2G, 3G, and 4G networks. Hence, the demand for a more robust and efficient communication network which could handle the rising demand for high capacity and low latency. Some of the major drivers for the increasing adoption of 5G services include high mobile broadband speeds, enhanced AR/VR experiences, and high quality audio & video streaming. Countries like the US and China are anticipated to offer ample growth opportunities for the growth of cellular IoT market during the forecast period of 2019 to 2027.
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Technology Insights
The cellular IoT market, by technology, is segmented into 2G & 3G, 4G, LTE-M, NB-IoT, and 5G. The 2G & 3G technology dominated the cellular IoT market in 2018. Mobile subscribers across the world are growing at a steady pace of ~3% y-o-y growth to a total of 8 billion in 2019, according to the Ericsson mobility report (2019). China, Indonesia and Philippines are the major contributors to this growth with net additions of 14 million, 9 million, and 8 million respectively, during the third quarter of 2019. The adoption of 3G is anticipated to grow in developing and underdeveloped regions owing to affordable tariffs and data plans.
The key players influencing the market are Arm Holdings Plc, AT&T, Inc., Ericsson, Huawei Technologies Co., Ltd., Mediatek Inc. , Qualcomm Incorporated, Sierra Wireless, Inc., Sequans Communications SA, Thales group, ZTE Corporation, Other.
End Use Industry Insights
The cellular IoT market, by end use industry, is segmented into industrial, infrastructure & construction, retail, consumer electronics, automotive & transportation, energy & utilities, healthcare, and others. The consumer electronics industry dominated the cellular IoT market in 2018. The continual changes in consumer behavior, cost structures, and business models have led to the integration of advanced technologies such as IoT and artificial intelligence in consumer electronics by companies to remain competitive in the market.
Strategic Insights
Market initiative and new development strategies are commonly adopted by companies to expand their footprint worldwide and meet the growing demand. These strategies are mostly observed in Europe and APAC. The players present in the cellular IoT market adopt the strategy of expansion and investment in research and development to enlarge customer base across the world, which also permits the players to maintain their brand name globally.