A report from Dell’Oro Group predicts that IoT applications using Wide Area Network (WAN) technologies such as NB-IoT and LTE-M will produce nearly $ 33 billion in sales for service providers by 2022
According to the prediction, cellular technologies will account for 98 percent of the revenues. Overall, the revenue generated by wide area IoT applications is expected to grow around 2.5x over 2017 levels.
Stefan Pongratz, Senior Director at Dell’Oro Group, says:
“Service Providers have invested in cellular technologies for the past 30-plus years, and they are now in a unique position to capture new revenue from a diverse set of IoT use cases with minimal incremental mobile infrastructure investments.
The business case using cellular technologies, such as NB-IoT and LTE-M, is extremely compelling. Our analysis suggests the incremental investment in mobile radio access network and core infrastructure will yield around 30x of potential growth for the carriers by the end of the forecast period.”
Additional highlights from the Advanced Research: Wide Area IoT Report includes:
LTE connections, including NB-IoT and LTE-M, are expected to dominate the LPWA market.
5G NR mMTC connections are expected to be negligible over the forecast period.
Dell’Oro Group’s report joins a similarly bullish recent forecast by ABI Research which predicts that revenues across 12 major smart city verticals will grow from $ 25 billion in 2017, to $ 62 billion in 2026.
Dominique Bonte, Vice President at ABI Research, comments:
“Interest in and focus on smart cities has skyrocketed in 2017, with a very large number of vendors from across the value chain repositioning and optimising their IoT portfolios to take advantage of this beckoning opportunity.
By its very nature of aggregating a wide range of solutions and technologies, the smart cities segment offers the perfect environment for suppliers to offer horizontal IoT platform solutions and addresses a recent trend toward more holistic, cross-vertical approaches.”
Seems the analysts can all agree the coming years are going to see huge growth in wide area networks — driven by the Internet of Things.
What are your expectations for WAN technologies in the coming years? Let us know in the comments.