Wireless IoT Connectivity Technologies and Markets

Wireless IoT Connectivity Technologies and Markets summarizes the main trends in the Internet of Things covering embedded technology, networking and applications.

This strategic research report from Berg Insight provides you with 160 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

Highlights from the report:

360-degree overview of the IoT ecosystem.
Comparison of wireless IoT connectivity technologies.
IoT strategies of key players in the semiconductor and IT industries.
Updated profiles of the main suppliers of IoT chipsets and modules.
Summary of adoption trends and vendor strategies in key vertical market segments.
Cellular IoT device market forecast until 2020.

This report answers the following questions: How will the wireless IoT technology market evolve over the next five years?
What are the base requirements for adding connectivity to a device?
Which vertical markets will become successful and which will fail?
What drives the development of IoT value propositions from global OEMs and consumer brands?
Why are the new standards LTE-M and NB-IOT so significant for the cellular IoT ecosystem?
What are the prospects for emerging LPWA technology standards?
What is the positioning of short-range technologies like Wi-Fi, Bluetooth, ZigBee and Thread in IoT?

Executive summary

Berg Insight estimates that 5.9 billion products with embedded microprocessors were sold worldwide in 2014. IoT is about networking these products as well as new device categories that can benefit from connectivity. Consumer products account for the vast majority of devices with embedded connectivity. Small appliances account for a third of the volume or roughly 2.0 billion units. Other top five categories are toys 1.0 billion, home entertainment 0.8 billion, HVAC equipment and controls 0.4 billion and home appliances 0.3 billion. Utility meters and motor vehicles are other significant categories with 0.2 billion and 0.1 billion units respectively.

Berg Insight firmly believes that the main growth segments in the IoT market until 2020 will be established products which sell in significant volumes and incorporate some form of microprocessor technology. Devices and things that do not have any form of digital intelligence today may only represent significant opportunities in the longer term, as greenfield applications normally need considerable time to reach maturity. Consumer oriented products will dominate in terms of volume as few industrial or enterprise products are produced in very large quantities. Potential exceptions are smart infrastructure (e.g. smart cities and intelligent traffic systems) and smart agriculture. Governments and local authorities may propose the deployment of massive sensor networks for resource management, security, safety, environment, traffic and other needs. Such projects will however inevitably become highly complex, expensive, controversial and difficult to implement. The likelihood for any project announced in 2016 to become fully implemented by 2020 is therefore close to zero. Smart agriculture falls into the same category. Some best practices for improved efficiency in the farming and forestry industries using connected sensors will be developed until the end of this decade. Implementing them at full scale will however take several decades and requires massive financial support from governments.

Berg Insight has identified six primary segments that are mainly consumer related and meet the mentioned criteria: energy meters, automotive, home appliances, HVAC equipment & controls, home entertainment and lighting. Moreover, connected wearables are by definition included among the major application categories. The diversity of the market is reflected in the fragmentation among IoT networking technologies due to the broad variety of application environments, communication needs and cost constraints. IoT comprises everything from premium cars with the computing power of hundreds of microprocessors powered by an engine to low-cost sensors based on basic microcontrollers running on coin-cell batteries. One size does not fit all and therefore fragmentation will remain.

Cellular technologies have a prominent role in the IoT market, enabling high value applications with significant data requirements. 2G technologies have dominated cellular IoT for many years, but recently there has been a rapid transition to 3G/4G, starting in North America and parts of Asia-Pacific. LTE Rel-13, due for publication in January 2016, will include several new enhancements that will facilitate the migration of IoT applications to 4G networks. The first set of enhancements are referred to as LTE-M, which defines a new low complexity device category type that supports reduced bandwidth, reduced transmit power, reduced support for downlink transmission modes, ultra-long battery life via power consumption reduction techniques and extended coverage operation. As a complement to LTE-M, a new narrowband radio technology called NB-IOT will be defined to provide improved indoor coverage, support of massive number of low-throughput, low-delay sensitivity, ultra-low device cost, lower device power consumption, and optimized network architecture. NB-IOT has good prospects to bridge the gap between cellular and emerging LPWA technologies such as Sigfox and LoRA.

Another major group of wireless technologies relevant for IoT is wireless local area and personal area networks (WLAN/PAN). Established and emerging standards such as Wi-Fi, Bluetooth, ZigBee and Thread play a key role for networking in homes, buildings and other facilities. International standard organisations and their standards are important for the ecosystem by establishing common foundations for technologies and device interoperability.

The adoption of various technologies and standards also depends on which type of network architecture they are designed for as different end-users and applications have very diverse requirements. Radio frequency availability is yet another important factor.

About the Author

Tobias Ryberg
is co-founder and principal analyst responsible for the M2M research series. He is an experienced analyst and author of numerous articles and reports about IT and telecom for leading Swedish and international publishers. All major vertical market segments for Wireless M2M have been his major research area for the past 12 years.

Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Berg Insight also offers detailed market forecast databases and advisory services. Our vision is to be the most valuable source of intelligence for our customers.

Executive summary
1 Embedded systems and the Internet of Things
1.1 Introduction to embedded systems
1.1.1 Market figures and key segments
1.1.2 Technology trends
1.1.3 Business and adoption trends
1.2 Embedded application environments
1.2.1 Embedded hardware and chipsets
1.2.2 Embedded software and applications
1.2.3 End-to-end application platforms and solutions
1.3 Embedded connectivity and the Internet of Things
2 Wireless IoT connectivity technologies
2.1 Wireless technologies and standards
2.1.1 International standard organisations
2.1.2 Network architectures
2.1.3 Unlicensed and licensed frequency bands
2.2 Cellular technologies
2.2.1 2G/3G networks
2.2.2 4G networks
2.2.3 LTE-M and NB-IOT
2.3 LPWA and satellite technologies
2.3.1 Proprietary and semi-proprietary LPWA technologies
2.3.2 LoRa
2.3.3 Sigfox
2.3.4 Ingenu
2.3.5 Wi-SUN
2.3.6 Weightless
2.3.7 Satellite technologies
2.4 WLAN/WPAN technologies
2.4.1 Wi-Fi
2.4.2 Bluetooth
2.4.3 ZigBee
2.4.4 WirelessHART
2.4.5 Thread
2.4.6 Z-Wave
2.4.7 ULE
2.4.8 DSRC
3 Semiconductor companies and module vendors
3.1 Semiconductor industry players
3.1.1 ARM Holdings
3.1.2 Intel
3.1.3 Qualcomm
3.1.4 Atmel
3.1.5 Broadcom
3.1.6 Cypress
3.1.7 Dialog Semiconductor
3.1.8 Marvell
3.1.9 Mediatek
3.1.10 Microchip
3.1.11 NXP Semiconductors
3.1.12 Renesas
3.1.13 Samsung Electronics
3.1.14 STMicroelectronics
3.1.15 Texas Instruments
3.1.16 Toshiba Semiconductors
3.1.17 Altair Semiconductors
3.1.18 GreenPeak Technologies
3.1.19 Nordic Semiconductor
3.1.20 SemTech
3.1.21 Sequans Communications
3.1.22 Silicon Labs
3.2 Cellular M2M/IoT module vendors
3.2.1 Sierra Wireless
3.2.2 Gemalto M2M
3.2.3 Telit
3.2.4 u-blox
3.2.5 SIMCom
3.2.6 Quectel
3.2.7 Huawei
3.2.8 ZTE WeLink
3.2.9 Fibocom
3.2.10 Other cellular module vendors
3.3 WLAN/WPAN M2M/IoT module vendors
3.3.1 Adeunis RF
3.3.2 Advantech
3.3.3 Bluegiga
3.3.4 Digi International
3.3.5 GainSpan
3.3.6 Ingenu
3.3.7 Laird Technologies
3.3.8 Lantronix
3.3.9 Linear Technology
3.3.10 Murata
3.3.11 NWave Technologies
3.3.12 Radiocrafts
3.3.13 Sigma Designs
3.3.14 Silex Technology
4 Key vertical markets
4.1 Automotive & Industrial
4.1.1 OEM automotive
4.1.2 Aftermarket automotive
4.1.3 Industrial automation
4.2 Infrastructure
4.2.1 Smart grids
4.2.2 Smart cities
4.2.3 Intelligent traffic systems
4.3 Consumer & Home
4.3.1 IoT platforms for the consumer market
4.3.2 Smart homes and building automation
4.3.3 Consumer electronics, small appliances and toys
5 Market analysis and forecasts
5.1 IoT market analysis
5.1.1 Insights from the US IoT market
5.1.2 Market positioning of major network technologies
5.2 Cellular technologies
5.2.1 Cellular IoT device shipments
5.2.2 Vertical markets
5.2.3 Regional markets
5.2.4 Technology standards
5.3 LPWA technologies
5.4 WLAN/WPAN technologies
List of Figures
Figure 1.1: Examples of MPU architectures
Figure 1.2: Microcontroller revenues and market share by vendor (World 2013)
Figure 1.3: Examples of embedded operating systems and memory requirements
Figure 2.1: Unlicensed and reserved radio frequencies available for wireless IoT
Figure 2.2: Comparison of LTE-family cellular technologies
Figure 2.3: Comparison of LPWA and satellite technologies
Figure 2.4: Major LPWA technology platforms for smart metering (2014)
Figure 2.5: Overview of the LoRa wide area network architecture
Figure 3.1: Top ten semiconductor vendors by revenue (World 2014)
Figure 3.2: Overview of the mbed ecosystem
Figure 3.3: Overview of the Intel IoT platform
Figure 3.4: Qualcomm IoT/M2M cellular module vendor licensees (June 2015)
Figure 3.5: Top wireless module vendors, by M2M sales and shipments (World 2014)
Figure 3.6: Sierra Wireless embedded modules and terminals (Q2-2015)
Figure 3.7: Gemalto M2M embedded modules and terminals (Q2-2015)
Figure 3.8: Telit embedded wireless modules (Q2-2015)
Figure 3.9: u-blox embedded wireless modules (Q2-2015)
Figure 3.10: SIMCom embedded wireless modules (Q2-2015)
Figure 3.11: Quectel embedded wireless modules (Q2-2015)
Figure 3.12: Huawei embedded wireless modules (Q2-2015)
Figure 4.1: Motor vehicle production, by region and country (World 2014)
Figure 4.2: Motor vehicle sales by market (2014)
Figure 4.3: Estimated number of vehicles in use (World 2013)
Figure 4.4: Smart meter penetration in key markets (2013/2023)
Figure 4.5: Installed base of smart electricity meters by technology (EU/US 2013–2020)
Figure 4.6: HVAC market estimates (World 2014)
Figure 4.7: Installed base of smart thermostats (Europe/North America 2014–2020)
Figure 4.8: Top providers of monitored security alarms (World 2015)
Figure 4.9: Connected wearables shipments by region (World 2013–2019)
Figure 4.10: Global small appliances unit sales (2013)
Figure 5.1: Estimated shipments of microprocessor powered products (World 2014)
Figure 5.2: Primary market segments for consumer-related IoT (US 2014)
Figure 5.3: Cost comparison for IoT technologies (2015)
Figure 5.4: Main wireless technologies for major IoT segments
Figure 5.5: Cellular IoT device shipment forecast, by region (World 2014–2020)
Figure 5.6: Cellular IoT device revenue forecast, by region (World 2014–2020)
Figure 5.7: Cellular IoT device market forecast, by vertical (World 2014–2020)
Figure 5.8: Cellular IoT device market forecast, by vertical (Europe 2014–2020)
Figure 5.9: Cellular IoT device market forecast, by vertical (North America 2014–2020)
Figure 5.10: Cellular IoT device market forecast, by vertical (Latin America 2014–2020)
Figure 5.11: Cellular IoT device market forecast, by vertical (Asia-Pacific 2014–2020)
Figure 5.12: Cellular IoT device market forecast, by vertical (MEA 2014–2020)
Figure 5.13: Cellular IoT device shipments, by network technology (World 2014–2020)
Figure 5.14: LPWA IoT device shipments (World 2014–2020)

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