Of late, the global cellular Internet of things (IoT) market is displaying a significant surge in its size and valuation. The ubiquitous mobility, robust networks, and strong security are the main factors that are driving the growth of this market across the world. In addition to this, the increasing need for connecting several low power high density and cost-efficient devices at a reasonable scale is expected to fuel the demand for cellular IoT platforms substantially.
The significant increase in the uptake of LTE and the continuous technological advancements in the IoT ecosystem, globally, are the prime factors behind the rising demand for IoT over traditional cellular networks. Apart from this, the ability to function with local networking technologies and connectivity, such as Bluetooth and Wi-Fi, are also making consumers prefer cellular IoT solutions, which is expected to reflect positively on the growth of the global market for cellular IoT.
Various applications, such as healthcare device connectivity, fleet management, automotive connectivity, and wearables, are likely to fuel the uptake of cellular networks in the near future, subsequently, driving the need for cellular IoT. Additionally, the widening application base of cellular IoT, which includes applications, such as weather monitoring systems, smart metering, infrastructure security systems, agricultural management, flood management, and personnel traffic pattern monitoring, are also projected to boost this market considerably in the near future.
IoT (Internet of Things) technologies are growing rapidly and along with this, cellular IOT is also evolving due to increasing demand of low power and low bandwidth cellular connectivity solutions. Cellular internet of things (IOT) uses existing machine to machine network to provide an access layer specifically designed for low power IOT applications. Cellular IOT provides range of connectivity services with greater visibility and control over all the connected devices in network. This technology uses existing network infrastructure to provide wide range of coverage and reliable connectivity to benefit businesses. Cellular IoT meets the requirements of low-power and long-range applications. The cellular IOT operations are designed to ensure reliability and optimized performance as the number of mobile devices needing a low power, low bandwidth connection increases in a network. The cellular internet of things enables manufacturers to access new and cost efficient communication hardware that can operate on a small battery for longer time and is connected to global network through the dedicated access layer. It allows customers to connect devices using deep indoors or underground places, such as water meters, parking monitors and gas meters. Cellular IOT can be used to connect simple devices, such as sensors, and others to reduce operational costs and create new business models. Smart meters, environmental monitoring and precision agriculture are some of the applications of cellular IOT.
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Adoption of IOT in cellular technology is increasing due to growing demand for long network coverage and capability to accommodate huge number of connected devices. Also cellular technology has been used with machine to machine (M2M) applications such as asset tracking, utility metering and others where adoption of IOT with existing infrastructure is saving huge labor and cost. Moreover, the requirement for end-to-end security among network connected devices has increased which contributes to the growth of cellular IoT market. Along with these, the demand for energy management and low power consumption and initiation of green homes drives leads the growth of the cellular IOT market. Thus, factors such as the demand for optimized longer-range communications with the increasing demand for strong connectivity between mobiles across a wide area is anticipated to drive the market during the forecast period.
Lack of awareness of IOT technologies among manufacturers and users is one of the major challenge faced in the growth of cellular IOT market. IoT covers a wide range of applications that requires high bandwidth, like real-time surveillance and asset tracking where small data throughput is required. Also there are certainly many handovers as mobile move which might not be possible in cellular IOT. This means that cellular IOT may not fit the specific needs of an IoT solution. All such factors are expected to restrict the market growth during the forecast period.
The cellular IoT market can be segmented on the basis of geography, type, offerings and end-use applications. The market is segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America on the basis of geography. Investment from the U.S. government for the implementation of Cellular IoT across various sectors such as utilities, and building automation provides growth opportunities to the cellular IoT market. On the basis of offering, the market is segmented into hardware and software. On the basis of type, the market is segmented into narrowband-IoT (NB-IOT), WCDMA (2G and 3G), 4G, LTE-M (Long term evolution), NB-LTE-M, and 5G. On the basis of end-use application, the market is segmented into Banking, Financial Services and Insurance, IT and telecommunications, healthcare, retail, energy, utilities, transportation and others.
Key players in the cellular-IoT market are Qualcomm Technologies, Inc., Gemalto NV, U-Blox Holding AG, MediaTek Inc., Telit Communications PLC, ZTE Corporation, Vodafone Group Plc, Sequans Communications, and CommSolid GmbH.