Market research firm, Counterpoint has released a new report stating that the Global Internet of Things (IoT) cellular connections will surpass five billion number by 2025. The firm also added that China would account for two-thirds of such connections leading the chart by a huge margin. The report, coming from Counterpoint's IoT service revealed that the Global IoT Cellular Connections are up by 72% during the first half of 2018, which is a significant improvement when compared to the first half of 2017.
Emerging Markets Like India, Brazil Will Contribute to the Growth
"Emerging markets like India, Brazil and Africa can offer tremendous scale but will likely be late followers compared to China in this path to connected everything," said Research Analyst Satyajit Sinha.
"However, the massive growth opportunity remains in terms of cellular-IoT connections in emerging markets which will be possibly catalysed by operators such as Jio in India but more specifically from multi-market players such as Telefonica or MTN or Vodafone," Sinha noted.
Mobility Applications Will Be the Key Growth Drivers for IoT
Smart manufacturing, utilities and mobility applications such as automotive and asset tracking will be the key growth drivers for IoT over the next 5-7 years. Narrowband IoT (NB-IoT) will dominate the market with 45% of global IoT cellular connections, due to the wide variety of application opportunities and faster adoption rates in the overall ecosystem.
"If operators are looking to capture maximum value, the strategies need to provide an end-to-end IoT solutions by bundling IoT devices, secure connectivity, platform, and data management to capitalise on the overall opportunity," said Research Director Neil Shah.
2G, 3G IoT Connections Will Be Faced Away by 2025
2G IoT connections will occupy less than 1% of global IoT cellular connections by 2025. 3G IoT connections face the same fate as 2G. "However, 3G will go extinct much faster than 2G," said the report.
4G LTE IoT connections (high bandwidth and low latency) will grow at a much faster rate till 2022. "However, post-2022, we expect a smooth transition from 4G LTE family to 5G. 4G LTE IoT connections will hold slightly more than a third of global IoT cellular connections in 2025," the report noted