Cellular IoT device shipments to top 500 million by 2022, says Berg
April 5, 2017
Global shipments of cellular IoT devices are set to grow at a compound annual growth rate (CAGR) of 22.7 per cent from 155.6 million units in 2016 to reach 530.1 million units in 2022, according to market watcher Berg Insight.
Strong growth is fuelled by fast-growing demand in China and the global adoption of connected car technology in the automotive industry. Berg Insight believes the maturity of the ecosystem is a crucial advantage for 3GPP-based standards in the IoT market.
“LTE-M and NB-IoT are the latest in a long line of cellular standards already connecting hundreds of millions of devices worldwide,” said Tobias Ryberg, senior analyst and author of the report. “Alternative non-cellular LPWA technologies have a very long way to go before they achieve the same prominence.”
Berg estimates that annual shipments of non-cellular LPWA devices for IoT reached 13.5 million units in 2016. The 802.15.4 WAN segment accounted for eight million units, while shipments of LoRa and Sigfox were around four million and 1.5 million units, respectively.
The vast majority of 802.15.4 devices are smart energy meters deployed in North America and other regions. Looking ahead, Berg believes that LoRa and Sigfox will outgrow 802.15.4 WAN and achieve annual shipments in the range of 50 to100 million units each by 2022.
Based on initial feedback from the market, volume segments for non-cellular LPWA in the near to medium term will be asset tracking, buildings and security, and smart cities.