European cellular IoT market to grow 384% by 2023, but telcos warned of LoRa, Sigfox

Ryan Harbison of ABI Research

The European market for cellular machine-to-machine (M2M) communications will grow to 416.5 million connections by 2023, from 86 million at the end of 2017, according to ABI Research. This growth, of 384%, will come with the launch of new Internet-of-Things (IoT) based LTE-M and NB-IoT networks and services, notably.

However, ABI warned European operators must seek new business models to retain their overall market share, and fight off competition from non-cellular low-power, wide-area (LPWA) technologies like LoRa and Sigfox.

“While cellular LPWA connections such as NB-IoT and LTE-M will make up the largest portion of M2M connections in Europe in 2023, operators will face increased competition from non-cellular technologies such as SigFox and LoRa,” saids Ryan Harbison, research analyst at ABI Research, and author of a new report on the European M2M market.

“By focusing on defining use cases and providing value-added solutions that go beyond just the connectivity piece of the value chain, operators can provide differentiated offerings in their respective domestic and international markets. Moving forward, European network operators not only need to know their business, but they also need to know their target customer’s business to recognise market opportunities.”

The European M2M market, a function of the broader IoT space, is heavily influenced by European Union initiatives and regulations, noted Harbison.

Over two thirds (67.4%) of M2M connections are currently related to telematics and other transportation applications, partly due to the EU’s eCall initiative on having connected devices in each new vehicle to relay airbag deployment and impact sensor information to emergency agencies in the event of a crash.

Similarly, almost a quarter (22%) are related to smart city and other infrastructure industries, partly due to the EU’s Smart Grids Task Force on spurring smart energy deployment and development.

The likes of Deutsche Telekom, Orange, and Vodafone have deployed NB-IoT because connections within these categories fit the NB-IoT use case of generally transmitting small amounts of data infrequently, said ABI.

Harbison commented: “European operators are largely realising that connectivity is the lowest common denominator and are shifting their focus to the long-term value these connections generate.

“Vodafone’s M2M strategy is focused on putting a greater emphasis on its own cloud services than on just the connectivity component, while Deutsche Telekom and Orange have opened IoT labs to develop and test application-specific IoT prototypes. By focusing on these new technologies and market opportunities, European network operators can maximise the value that their connections and solutions provide.”

Chip-maker Nordic Semiconductor said last week the adoption of cellular IoT technologies is not being slowed by the high price of chipsets, but by the complexity of their design, reckons chip supplier Nordic Semiconductor. The industry narrative about the falling pricing of IoT chipsets – as LTE-M modules have fallen below $10 (€8.62)per unit from AT&T and Verizon, and below $1 (€0.86) per unit with Sigfox – is misleading, it said. The cellular IoT market will not reach doubling targets of 3.5 billion units by 2023 by joining a race-to-the-bottom.

Unlicensed networks, mostly based on LoRa and Sigfox, make up two-thirds of LPWA networks today, according to research. A third of the total network deployments are geared towards smart city applications, the report found. Last month, UK tech incubator Digital Catapult meshed its Things Connected LoRaWAN network in with the UK footprint of Amsterdam-based LoRaWAN project The Things Network to create the UK’s largest free-to-use LPWA network.

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow

RECENT ARTICLES

Enhance EV charging performance with cellular connectivity

Posted on: March 28, 2024

Electric vehicles (EVs) are steadily growing their market share at the expense of internal combustion engine vehicles. The growth is fuelled by several factors. Perhaps most importantly, prices for EVs have started to drop as competition in the industry is intensifying. New players and models are emerging, prompting several established EV makers to lower their

Read more

Panasonic and Jasmy unveil Web3 Platform for IoT data control

Posted on: March 28, 2024

Panasonic has joined forces with Jasmy (JASMY) blockchain to introduce a Web3 platform that will facilitate the connection of personal data on the Internet of Things (IoT). The collaboration between the Japanese-based blockchain and Panasonic Advanced Technology was initiated in February, but the official announcement was made on March 26.

Read more
FEATURED IoT STORIES

What is IoT? A Beginner’s Guide

Posted on: April 5, 2023

What is IoT? IoT, or the Internet of Things, refers to the connection of everyday objects, or “things,” to the internet, allowing them to collect, transmit, and share data. This interconnected network of devices transforms previously “dumb” objects, such as toasters or security cameras, into smart devices that can interact with each other and their

Read more

The IoT Adoption Boom – Everything You Need to Know

Posted on: September 28, 2022

In an age when we seem to go through technology boom after technology boom, it’s hard to imagine one sticking out. However, IoT adoption, or the Internet of Things adoption, is leading the charge to dominate the next decade’s discussion around business IT. Below, we’ll discuss the current boom, what’s driving it, where it’s going,

Read more

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more