The Global M2M/IoT Communications Market 7th edition

The Global M2M/IoT Communications Market 7th edition

The Global M2M/IoT Communications Market analyses the latesttrends and developments in cellular IoT and low power wirelessnetworking. This strategic research report from Berg Insight providesyou with 250 pages of unique business intelligence including 5-yearindustry forecasts and expert commentary on which to base yourbusiness decisions.

The Global M2M/IoT Communications Market 7th edition

Berg Insight estimates that the global number of cellular IoT subscribers increased by 22percent during 2021 to reach 2.1 billion at the end of the year – corresponding to around 21percent of all mobile subscribers. Until 2026, the number of cellular IoT subscribers isforecasted to grow at a compound annual growth rate (CAGR) of 15.6 percent to reach 4.34billion at the end of the period. During the same period, cellular IoT connectivity revenues areforecasted to grow at a CAGR of 14 percent from € 8.6 billion in 2021 to approximately € 16.6billion in 2026. Meanwhile the monthly ARPU is expected to drop to € 0.34.

China is the world’s largest market for cellular IoT connectivity services by volume. Accordingto data from the national regulator, the installed base grew by 23 percent year-on-year toreach 1.4 billion IoT connections at the end of 2021. This corresponded to two thirds of theglobal installed base. Berg Insight believes that the role of the Chinese government is themain 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 addressingproblems affecting the society, whether it is crime, fire safety, energy conservation or trafficmanagement. 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 IoTsolutions with 215 million and 194 million IoT subscribers respectively at the end of 2021. Incontrast to China, developments in these regions are largely driven by commercial interests.The connected car is currently one of the strongest trends with more than 80 percent of newcars sold featuring embedded cellular connectivity in the regions. Other key application areasare fleet management of commercial vehicles, smart utility metering and monitored alarmsystems. Latin America and South Asia had in the range of 39–58 million IoT subscribers,while Russia & CIS, Middle East and Africa had around 30 million each. Southeast Asia,Central Eastern Europe and Australia & Oceania were in the span 9–20 million.

China Mobile is the world’s largest provider of cellular IoT connectivity. At the end of 2021, theoperator had an estimated 801 million cellular IoT connections and a year-on-year growthrate of 22 percent. China Unicom and China Telecom ranked second and third with 300million and 298 million connections respectively. Vodafone ranked first among the Westernoperators and fourth overall with 142 million connections, followed by AT&T with 95 million infifth place. Deutsche Telekom and Verizon had in the range of 45–55 million cellular IoTconnections each, when counting T-Mobile USA’s customers as part of DT’s IoT subscriberbase. Telefónica, KDDI and Orange were the last players in the top ten with about 31 million,23 million and 20 million connections respectively. The year-on-year growth rates for thementioned operators were in the span of 0–41 percent.

IoT connectivity revenues are growing at a considerably slower rate than the number ofconnections. Berg Insight’s analysis of the IoT business KPIs released by mobile operators indifferent parts of the world suggests that global IoT connectivity revenues increased byaround 15 percent during 2021, while the monthly APRU dropped by 2 percent. On average,IoT connectivity revenues account for around 1 percent of total revenues for most operatorgroups. As the value in IoT lies in value-added services rather than connectivity, mobileoperators increasingly focus on boosting their IoT portfolios by adding cloud services andsecurity capabilities on top of their connectivity offering to capture a larger share of themarket. Several players have embarked on vertical integration strategies, typically byacquiring local solution providers in application areas like fleet and asset tracking. PrivateLTE/5G is an emerging focus area, where many operators act as managed service providers.

China Mobile reported the highest IoT connectivity revenues of € 1.5 billion but had thelowest monthly ARPU of just € 0.13. AT&T is believed to have generated IoT connectivityrevenues in the range of € 900 million. Similarly, annual IoT revenues for the Vodafone groupamounted to around € 900 million with a monthly ARPU of € 0.58. IoT connectivity servicesaccount for the vast majority of the revenues. China Unicom is the fourth largest mobileoperator by IoT connectivity revenue, reporting € 787 million in IoT sales for the year. Verizongenerates annual IoT revenues in the range of € 1.5 billion with close to 60 percent comingfrom the Verizon Connect fleet management and telematics business.

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
1.1.6 Network footprint
1.1.7 2G mobile networks
1.1.8 3G/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 Eastern Europe
2.1.3 Russia & CIS
2.2 Mobile operators
2.2.1 Vodafone
2.2.2 Deutsche Telekom
2.2.3 Orange
2.2.4 Telefónica
2.2.5 Telenor
2.2.6 CK Hutchison Group Telecom
2.2.7 A1 Telekom Austria
2.2.8 Altice Group
2.2.9 Bouygues Telecom
2.2.10 BT Group
2.2.11 KPN
2.2.12 MegaFon
2.2.13 MTS
2.2.14 POST Luxembourg
2.2.15 Proximus
2.2.16 Telecom Italia
2.2.17 Telia Company
2.2.18 Tele2
2.3 IoT managed service providers
2.3.1 1NCE
2.3.2 1oT
2.3.3 Airnity
2.3.4 Arkessa (Wireless Logic)
2.3.5 BICS
2.3.6 Caburn Group
2.3.7 Com4 (Wireless Logic)
2.3.8 Cubic Telecom
2.3.9 EMnify
2.3.10 Eseye
2.3.11 floLIVE
2.3.12 Freeeway
2.3.13 iBASIS
2.3.14 JT IoT
2.3.15 Onomondo
2.3.16 Pelion
2.3.17 Pod Group (Giesecke+Devrient)
2.3.18 Transatel
2.3.19 Truphone
2.3.20 u-blox
2.3.21 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 Verizon
3.2.3 T-Mobile USA
3.2.4 Rogers Communications
3.2.5 Bell
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
3.3.6 Telit
3.3.7 Twilio
3.4 LPWA networks
3.4.1 LoRaWAN networks
3.4.2 Sigfox and network partners
4 Asia-Pacifi c
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 SoftBank
4.2.5 NTT Docomo
4.2.6 KDDI
4.2.7 SK Telecom
4.2.8 KT
4.2.9 Telstra
4.2.10 Singtel
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 Orbcomm
6.5.5 Swarm Technologies
6.5.6 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 Aerospace
6.6.5 Additional satellite connectivity providers
6.7 Rest of World satellite operators
6.7.1 Fleet Space Technologies
6.7.2 Myriota
6.7.3 Sky and Space Company
6.7.4 Thuraya
6.7.5 Additional satellite connectivity providers
7 Market forecasts and trends
7.1 Industry trends
7.1.1 Top ten mobile operators manage 1.8 billion cellular IoT
7.1.2 IoT revenues continue to grow slower than connections
7.1.3 IoT managed service providers connect 100+ 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
7.3.6 Consumer-grade tracking solutions have
mass-market potential
7.3.7 Connected healthcare reaches the masses
7.3.8 Connected video cameras to become one of the early
volume 5G use cases
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
7.4.6 eSIM adoption is gathering pace as the standard

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