Top ten mobile operators have 76 percent market share in cellular IoT

Top ten mobile operators have 76 percent market share in cellular IoT

Top ten mobile operators have 76 percent market share in cellular IoT

A new report from the IoT analyst firm Berg Insight says that the ten leading global mobile operator groups have a combined market share of 76 percent in cellular IoT.

The top players reported a combined active base of 407 million cellular IoT connections at the end of H1-2017.

China Mobile was number one with 150 million IoT connections in the period. Vodafone ranked second, with a reported 59 million connections, ahead of China Unicom with 50 million IoT connections. AT&T and China Telecom ranked fourth and fifth with 36 million and 28 million IoT connections respectively. Deutsche Telecom, Softbank/Sprint, Verizon and Telefónica currently had in the range of 15–20 million cellular IoT subscribers, which are growing at yearly rates of 15–30 percent. Telenor was the last player in the top ten with approximately 12 million cellular IoT subscribers.

Tobias Ryberg, Senior Analyst at Berg Insight and author of the report, said:

“The Chinese mobile operators achieved tremendous volume growth in 2017, driven by accelerating uptake of cellular IoT in the domestic market. China Mobile is believed to have reached 200 million cellular IoT connections at the end of 2017”.

Vodafone and AT&T are consolidating their positions as regional market leaders in Europe and North America respectively, serving multinational clients on a global basis. “In 2017, Vodafone extended its lead in the European market”, says Mr Ryberg. “The competitors are however also gaining momentum and the expanding market has room for multiple players”.

In terms of revenues, the Western mobile operators are ahead of their Chinese counterparts. Berg Insight expects that at least three operator groups – AT&T, Verizon and Vodafone – will generate more than US$ 1 billion in revenues from IoT in 2018.

Berg Insight chart: cellular IoT subscribers (World 2016-2022)“The main strategy for growing IoT revenues is vertical plays in major application areas,” says Mr Ryberg. “Verizon, Vodafone and others have made significant acquisitions in the connected vehicle space to extend their product portfolios. AT&T and Deutsche Telekom develop dedicated practices for smart cities and many operators seek to play leading roles in national projects in areas like smart metering and electronic road charging”.

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Shipments of cellular M2M terminals to reach 13.7 million by 2022

Shipments of cellular M2M terminals to reach 13.7 million by 2022

Shipments of cellular M2M terminals to reach 13.7 million by 2022

Berg Insight today released new findings about the market for cellular M2M terminals. About 4.9 million cellular M2M terminals were shipped globally during 2016, an increase of 28.0 percent from the previous year.

Growing at a compound annual growth rate (CAGR) of 18.8 percent, this number is expected to reach 13.7 million in 2022.

Berg Insight defines cellular terminals as standalone devices intended for connecting M2M applications to a cellular network. These include primarily general-purpose cellular routers, gateways and modems that are enclosed in a chassis and have at least one input/output port. Trackers, telematics devices and other specialised devices are excluded from this report.

North American and Asian vendors dominate the global cellular M2M terminal market.
Cradlepoint, Sierra Wireless and Digi International are the largest vendors in North America, whilst SIMCom is the main manufacturer on the Asian market. Combined, these four vendors generated close to US$ 415 million in revenues from M2M terminal sales during 2016. This is equivalent to nearly 50 percent of the global market.

Other noteworthy vendors include CalAmp, Multitech Systems and Encore Networks in the US, Xiamen Four-Faith, Maestro Wireless and InHand Networks in Asia, Teltonika, HMS Networks, Advantech B+B SmartWorx, NetModule, Matrix Electrónica, Eurotech, Gemalto, Dr. Neuhaus and Option in Europe and NetComm Wireless in Australia. A large number of small and medium sized vendors are active on the European market, whilst the North American market is dominated by a handful of major vendors, largely due to barriers in the form of carrier certifications required for cellular devices in the region.

Fredrik Stålbrand, IoT Analyst, Berg Insight, said:

“Adoption of 4G LTE in cellular routers, gateways and modems have increased rapidly in recent time due to increased focus on product life cycle costs and decommissioning of 2G networks.”

chart: annual shipments of cellular M2M terminals World 2016-2022He adds that two thirds of the cellular M2M terminals sold globally during 2017 used 4G LTE as the main standard. “LPWA technologies such as LTE Cat M1 and NB-IoT are expected to ease the transition from 2G to LTE networks further”, continued Mr. Stålbrand.

In 2017, introductions of cellular M2M terminals featuring LTE Cat M1 and NB-IoT technologies were made by Encore Networks, Maestro Wireless and MultiTech Systems and several vendors plan to launch new products with LPWA connectivity during 2018.

Download report brochure: The Global M2M/IoT Terminal Market

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5G Americas announces new report on progress towards 5G Cellular IoT

The Internet of Things (IoT) market is predicted to be a key business driver of  the telecom industry  and  its upcoming next generation. IoT will require new technology requirements for its varied use cases. 5G Americas, the industry trade association and voice of 5G and LTE for the Americas, mentions in its latest publication of LTE Progress Leading to the 5G Massive Internet of Things (Massive IoT).

“Some cellular service providers in the U.S. are already adding more IoT connections than mobile phone connections, and the efforts at 3GPP in defining standards for the successful deployment of a wide variety of services across multiple industries will contribute to the growing success for consumers and the enterprise,” noted Jean Au, Staff Manager, technical marketing, Qualcomm Technologies, Inc. and  co-leader of 5G Americas whitepaper LTE Progress Leading to the 5G Massive IoT (MIoT).

Today, Low-Power Wide-Area (LPWA) is already gaining  attention and  it  is anticipated that cellular-based  technologies such as LTE-M (Machine) and Narrowband-IoT (NB-IoT) will become  the leading LPWA standards by 2020.

Operators can choose from several Cellular IoT  (CIoT) technologies based  on their spectrum portfolio, legacy networks, and requirements of their offered services.

The generic requirements for IoT are low cost, energy efficiency, ubiquitous coverage, and scalability (ability to support a large number of connected machines in a network). Alternatively, Critical IoT applications will  have  very high demands  for reliability, availability, and low latency which could be enabled by LTE or 5G capabilities. The whitepaper is available for free download.   Read more…

 

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U.S. Cellular Operators Success in Key M2M Markets Could Be Jeopardized by Distraction and IoT Hype

U.S. Cellular Operators Success in Key M2M Markets Could Be Jeopardized by Distraction and IoT Hype

U.S. Cellular Operators Success in Key M2M Markets Could Be Jeopardized by Distraction and IoT Hype

ABI Research Identifies the real challenges and opportunities for U.S. Network Operators.

A new report by ABI Research forecasts that the U.S. cellular M2M market will grow beyond 300 million connections by 2022.

As U.S. network operators rush to deploy the latest LTE technologies, new competition is emerging. In this report, ABI Research identifies the key strategies and challenges facing the top four mobile operators: Verizon, AT&T, Sprint, and T-Mobile.

Total M2M connections at the end of 2016 were as follows:

  • Verizon: 23.85 million
  • AT&T: 30.32 million
  • Sprint: 14.90 million
  • T-Mobile: 13.58 million

The latest distractions facing the U.S. cellular M2M market include disruptive new LPWA technologies that are being positioned as competitive to cellular, increased interest in private network opportunities, and the on-going debate on the merits of licensed and unlicensed spectrum. “Carrier grade support and service is essential for mission-critical enterprise applications,” says Kevin McDermott, Principal Analyst at ABI Research.

“Some of the biggest opportunities and drivers for cellular operators are in telematics and asset tracking; coverage and low latency are the essential requirements for these fast-growing segments.”

In fact, the U.S. market adoption of technologies around connected cars is the main driver for the new applications that will benefit U.S. cellular operators, if they don’t get distracted by other technologies. Of the current 82.65 million cellular connected M2M devices at the end of 2016, 68.5% are related to telematics and other transportation applications.

LTE, which includes LTE Cat-M and Narrow-Band Internet of Things (NB-IoT), is expected to become the largest network standard for the IoT in the United States offering a range of options for data rates, range, and node power efficiency.

Competitive announcements from Comcast supporting long range wireless (LoRa) is a first for a mainstream provider in the U.S. market and a huge distraction for the top four U.S. mobile operators. “Comcast is building on the back of its two main network assets: backhaul infrastructure and successful Wi-Fi hotspot deployments. Comcast has reported its hotspot program has surpassed 16 million, and they are actively developing an M2M strategy,” McDermott points out.

These findings are from ABI Research’s U.S. Network Operator M2M Market Analysis report.

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