Telematics in heavy equipment market expected to reach US$ 6,473.3 mn by 2025

According to a new market report published by Transparency Market Research titled “Telematics in heavy equipment Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2017 – 2025”, the global telematics in heavy equipment market is expected to reach a value of US$ 6,473.3 million (€5480.97 million) by 2025. The market is projected to expand at a CAGR of 15.1% during the forecast period from 2017 to 2025.

Telematics is used to collect, record, and transmit vehicle operational data on a web-based platform which can be used by vehicle owner for further analysis. Growing demand for various field positioning capabilities offered by the telematics has increased the penetration and growth of telematics solutions in heavy equipment globally. Increasing usage of smartphones, availability of high speed data networks and various benefits of telematics has increased the adoption of telematics in heavy equipment, says Pragati Pathrotkar, senior SEO at Transparency Market Research.

Developed regions such as North America and Western Europe are expected to witness increased adoption of telematics for vehicle tracking and fleet management over the forecast period. However, the high R&D expenditure on telematics equipment is likely to be limiting factor for the global telematics in heavy equipment market growth in the coming years. The key trends prevalent in the telematics in heavy equipment market are adoption of big data in telematics and integration of telematics with Application Platform Interface (API).

In terms of application, the market has been divided into vehicle tracking, fleet management, satellite navigation, vehicle safety communications and others. Adoption of telematics for fleet management and tracking of vehicles is increasing rapidly in order to reduce the accidents on the field.

Vehicle tracking application segment is expected to consistently dominate during the forecast period owing to the growing need for monitoring the location, movements, status and behavior of a vehicle or fleet of vehicles in order to reduce accidents and vehicle theft on the field.

Apart from vehicle tracking, satellite navigation segment is also expected to hold significant market share during the forecast period. The numerous advancements such as 4G and 5G networks, advanced GPS, implementation of Internet of Things (IoT) and big data are expected to boost the telematics in heavy equipment market. Increasing use of telematics in various applications such as road safety and transportation, wireless communication, internet and multimedia services is enhancing the growth of telematics in heavy equipment market across different regions of the world.

On the basis of technology, the global telematics in heavy equipment market is segmented into cellular and satellite. Cellular segment is anticipated to grow at highest CAGR during the forecast period as the cellular network is available in most places and it is very affordable to set up.

In terms of geography, the market has been divided into North America, Europe, Asia Pacific, Middle East & Africa and South America. In 2016, Asia Pacific was the topmost revenue generating region followed by North America. The global telematics in heavy equipment market in Asia Pacific is further expected […]

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5G connections to reach 1.4 billion by 2025, says Juniper Research

5G connections will reach 1.4 billion by 2025, says Juniper Research

The number of 5G connections is likely to top one billion by 2025, according to new figures by Juniper Research. However, revenues from 5G IoT are likely to disappoint, analysts warned.

The forecasts represent an increase from an estimated one million in 2019, the anticipated first year of commercial launch. This will represent an average annual growth of 232 percent.

The analyst company’s new report, 5G Market Strategies: Consumer & Enterprise Opportunities & Forecasts 2017-2025, warned that to be successful, 5G fixed wireless broadband would need to meet expectations in real-world scenarios to compete with fibre broadband.

It said that China, the US and Japan would have the highest number of 5G connections by 2025; together these three countries will have 55 percent of all 5G connections.

The research found that the US alone will account for over 30 percent of global 5G IoT connections by 2025, with the highest number of 5G connections underpinning fixed wireless broadband and automotive services.

Read more: Wait for 5G? The IoT needn’t hold its breath

Disappointing IoT revenues from 5G

In terms of commercial IoT revenues, Juniper forecasts that  ARPC (average revenue per connection) will be disappointing, including those for smart city and digital health applications.

The firm says this is due to low data requirements and nominal duty-cycles. The research urged operators to develop new business models in order to minimize network operating costs, including software-based solutions to manage the diverse requirements of individual 5G IoT connections.

The research outfit added that maximizing connectivity revenues through 5G fixed wireless broadband would prove crucial to offset this disappointment, with ARPC from these connections forecast to remain above $ 50 until 2025.

“Operators and vendors must test their networks in a real-world environment at scale, ensuring speeds can compete with fibre services,” said research author Sam Barker. “Networks that can deliver the highest speeds and greatest reliability will command the highest ARPCs, hastening an operators’ return on 5G investment.”

Read more: IoB Insiders: The certain uncertainties of 5G

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IoT Reality: Market Value less than $0.5T Globally by 2025

IoT Reality: Market Value less than $ 0.5T Globally by 2025

By David Kerr, Harvey Cohen, Chris Ambrosio, Andrew Brown, Matthew Wilkins at Strategy Analytics.

IoT undoubtedly offers significant cost savings, improved efficiency, reduced downtime, enhanced supply chain and new business opportunities. However, the market value for IoT solutions has been dramatically inflated.

Strategy Analytics latest report “Global IoT: A Billion not Trillion Dollar Opportunity” concludes that IoT deployments remain limited and largely in trial or development phases.

Figure 1: Scaling IoT Potential vs Global IT and GDP

Strategy Analytics table: Scaling IoT Potential vs Global IT and GDP

Strategy Analytics interviewed IT decision makers across 9 vertical markets in the U.S., UK, France, and Germany in January 2017.

Key findings include:

  • Over 70% of current IoT deployments in the U.S. for example involve less than 500 devices. 2/3 of businesses spent less than $ 100K on IoT projects.
  • Globally, 35% of firms with IoT deployments note fewer than 100 devices connected.
  • Primary Processing, Security and Utilities are the three largest vertical markets accounting for almost half of the global IoT market today. By 2025, Security, Primary Processing and Automotive will each generate over $ 50 Billion annually in IoT revenue.
  • Services will continue to be the biggest revenue opportunity accounting for 64% of global IoT revenue or $ 219 Billion by 2025. The opportunity for professional services from vendors like IBM, HP, Cisco, SAP, Microsoft as well as Accenture, Cap Gemini and others is significant but competition is intense.

Harvey Cohen, President of Strategy Analytics, commented:
“Estimates that put the IoT market value at $ 3T or more have a credibility problem. Can IoT really be bigger than the entire IT industry? The economic value potential of IoT is indeed huge, but the opportunity for suppliers of products and services is likely to be measured in $ US Billions not Trillions. Nevertheless, the opportunity for professional services is attractive for firms who are seeing enterprise software sales stagnating.”

David Kerr, a VP at Strategy Analytics, noted:

“Claims that the IoT market has progressed from experimental to mainstream are just not supported by Strategy Analytics voice of the buyer data yet. IoT must compete for a share of the total IT budget; businesses and public entities move slowly and are not easily convinced by vague claims of future economic benefit.”

The analysis also concludes that many roadblocks to IoT remain including security, integration with legacy systems, proliferation of standards, privacy concerns, compliance issues, and the skill sets needed to extract value from the huge volume of data produced.

Andrew Brown, Executive Director of IoT, summarized:
“No one vendor or supplier has all the skills needed to deliver, support, and maintain highly complex IoT solutions. Partnerships and alliances will be critical. While the opening moves have been taken we are still early in the dance. None of the barriers are insurmountable with the right partnerships, the appropriate understanding of business motivations and requirements, and an ability to provide consistent support across hardware, software and services.”


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Worldwide IoT cellular connections to reach 2.4 billion by 2025

Worldwide IoT cellular connections to reach 2.4 Billion by 2025

The number of IoT cellular connections is set to grow to around 2.4 billion by 2025, according to a report by Strategy Analytics.

The analysts said that almost half of connections (46 percent) will be for automotive, utilities and security. Automotive will remain the single largest global vertical.

Across the forecast period, the automotive vertical market will not only remain the single largest global consumer of IoT cellular connections, but it will increase its market share position by 2025.

“With the industry focusing on the path to 5G and low-power 3GPP offerings, such as LTE Cat M1 and NB-IoT, coupled with a variety of established connectivity platforms, there are lots of choices for cellular connectivity in IoT and the outlook has never been brighter,” said Andrew Brown, executive director of Enterprise and IoT Research at Strategy Analytics.

“However, the bewildering array of choices also runs the risk of creating confusion for customers with regard to which technologies should be employed in which use cases.”

Read more: Huawei insists IoT networks need ‘systematic’ planning

Compelling use cases

The report said that the increase in cellular connections underlines the importance of cellular networks in IoT, with networks not just being used to facilitate simple connections, but increasingly supporting rich data that will enable new and compelling use cases.

“Asia Pacific will remain the single largest region across the forecast period, accounting for almost 1 billion connections in 2025,” added Matt Wilkins, senior analyst in IoT sesearch at Strategy Analytics, “with the top three regions (Asia Pacific, North America, and Western Europe) together accounting for over 75 percent of global cellular IoT connections in 2025.”

Appal Chintapalli, vice president of integrated rack systems in EMEA at infrastructure specialise Vertiv, told Internet of Business that businesses building mobile-first strategies will continue to increase, causing a greater need for processing data at the edge of the network.

“What’s more, the success of IoT is becoming ever increasingly dependent on edge computing – without local data processing power, connected devices will not reach their full potential. Edge computing will be instrumental in creating a future where IoT is mainstream in smart homes, smart cities and industry 4.0,” he said.

Read more: Building the foundation for IoT through LPWA networks

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