LPWA To Contribute 55% OF All IoT Connections By 2020

lpwa_iotLow Powered Wide Area (LPWA) Internet of Things (IoT) connections are expected to grow at a much faster pace and may contribute more than half of all IoT connections in next 5 years. According to a recent research report from Pyramid Research LPWA will grow from just 20 million in 2014 to 861 million by 2020, which will be equivalent to 55% of all IoT connections.

Pyramid Research said this in its recent report ‘Low Power Wide Area Internet of Things: Market Forecasts and MNO Approaches’ and predicts that huge volume growth is expected from 2018, particularly when standard 3GPP LTE-M and NB-IoT modules become widely available.

“North America and Western Europe will initially be the largest LPWA regions. Proprietary LPWA IoT networks such as LoRa and SIGFOX are being rolled out in these regions, and we expect major Mobile Network Operators (MNOs) to begin deploying 3GPP LPWA in 2017, with aggressive coverage plans,” explains Guillermo Hurtado, Senior Analyst for Pyramid Research.

The company expects Asia-Pacific to become the largest region in terms of LPWA connections from 2018. It also said that though deployments of proprietary LPWA networks in Asia-Pacific have been limited, growth will pick up as 3GPP LPWA modules hit the market.

In terms of different MNO approaches to the new trend, a majority will await 3GPP LPWA to be standardized.. This method is beneficial because many want a single global standard to integrate so they can sell their product to a wide audience.

“It makes sense that most operators will follow the strategy of accelerating commercialisation of 3GPP LPWA technology, particularly if they have no urgent need to provide LPWA networks where no competitive network exists. However, a range of other strategies will be implemented by a number of MNOs over the forecast period,” adds Hurtado.

The report also predicts that a high-risk, albeit high-reward, strategy would be to address immediate demand with proprietary technology. This approach is being undertaken by a number of predominantly European telecom incumbents, such as Swisscom, with no or limited international exposure.

“Other strategies include supporting a range of different technologies and offering LPWA network services without deploying a network by becoming resellers. The former is particularly appropriate for international operators present in diverse markets, whereas the latter would be beneficial to companies with a good local service network operator and favourable terms,” adds Hurtado.

Leave a Reply

Your email address will not be published. Required fields are marked *

*