Global M2M/IoT Communications Market Report 2023: IoT MVNOs are Driving Consolidation in the IoT Connectivity Market

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Aug 17, 2023, 05:45 ET

DUBLIN, Aug. 17, 2023 /PRNewswire/ -- The "The Global M2M/IoT Communications Market - 8th Edition" report has been added to ResearchAndMarkets.com's offering.

The Global M2M/IoT Communications Market analyses the latest trends and developments in cellular IoT and low power wireless networking. This strategic research report provides you with unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

The report estimates that the global number of cellular IoT subscribers increased by 27 percent during 2022 to reach 2.7 billion at the end of the year - corresponding to around 24 percent of all mobile subscribers. Until 2027, the number of cellular IoT subscribers is forecasted to grow at a compound annual growth rate (CAGR) of 15.4 percent to reach 5.4 billion at the end of the period. During the same period, cellular IoT connectivity revenues are forecasted to grow at a CAGR of 14.6 percent from € 10.8 billion in 2022 to approximately € 21.4 billion in 2027. Meanwhile the monthly ARPU is expected to drop to € 0.35.

China is the world's largest market for cellular IoT connectivity services by volume. According to data from the national telecom regulator, the installed base in the country grew by 32 percent year-on-year to reach 1.8 billion IoT connections at the end of 2022. This corresponded to about 70 percent of the global installed base. It is believed the role of the Chinese government is the main explanation for why China is ahead of the rest of the world in the adoption of IoT. Authorities actively endorse large-scale IoT deployments as a method for addressing problems affecting the society, whether it is crime, fire safety, energy conservation or traffic management. The private sector is directed and encouraged to do the same.

North America and Western Europe ranks as the second and third largest markets for IoT solutions with 240 million and 218 million IoT subscribers respectively at the end of 2022. In contrast to China, developments in these regions are largely driven by commercial interests. The connected car is currently one of the strongest trends with close to 90 percent of new cars sold featuring embedded cellular connectivity in the regions. Other key application areas are fleet management of commercial vehicles, smart utility metering and monitored alarm systems. Latin America, Central & Eastern Europe and South Asia had in the range of 44-62 million IoT subscribers, while Middle East, Africa and Southeast Asia had around 30 million each. Australia & Oceania was the smallest region with approximately 11 million connections.

IoT connectivity revenues are growing at a slower rate than the number of connections, though the sustained decline in the global ARPU decelerated in 2022. The analysis of the IoT business KPIs released by mobile operators in different parts of the world suggests that global IoT connectivity revenues increased by around 24 percent during 2022, while the monthly APRU dropped by 1 percent. On average, IoT connectivity revenues account for around 2 percent of total revenues for the largest mobile operator groups. As the value in IoT lies in value-added services rather than connectivity, mobile operators increasingly focus on boosting their IoT portfolios by adding cloud services and security capabilities on top of their connectivity offering to capture a larger share of the market. Several players have embarked on vertical integration strategies, typically by acquiring local solution providers in application areas like fleet and asset tracking. Private LTE/5G is an emerging focus area, where many operators act as managed service providers.

Market Forecasts and Trends

Industry trends

Top ten mobile operators manage 2.3 billion cellular IoT subscribers
IoT revenues continue to grow slower than connections
IoT managed service providers connect 150+ million cellular devices
International carriers enter the cellular IoT market
New entrants disrupt distribution channels
IoT MVNOs are driving consolidation in the IoT connectivity market

Vertical markets

Connected cars on the rise
Telematics giants increasingly dominate the fleet management industry
The opportunity to create smarter and safer cities
Smart metering turns to new LPWA options for deployments in the 2020s
Asset tracking to drive the second wave of LPWA deployments
Consumer-grade tracking solutions have mass-market potential
Connected healthcare reaches the masses
Home energy and EV charging solutions to become new volume segments

Technology trends

Cellular technologies dominate wireless IoT
NB-IoT deployments remain concentrated to China
RedCap will accelerate the adoption of 5G in IoT
Distributed core networks facilitate global IoT connectivity services
Private cellular to grow from a niche into a substantial market
eSIM adoption is gathering pace
Mobile operators partner with satellite IoT players to extend coverage

A selection of companies mentioned in this report includes

1NCE
1oT
Aeris
Airnity
America Movil
A1 Telekom Austria
Altice Group
AT&T
Astrocast
Bell
BICS
Blues Wireless
Bouygues Telecom
BT Group
Caburn Group (CSL Group)
CASC and CASIC
China Mobile
China Telecom
China Unicom
CK Hutchison Group Telecom
Commsat
Com4 (Wireless Logic)
Cubic Telecom
CSL Group
Deutsche Telekom
e&
EMnify
Eseye
Eutelsat
floLIVE
Fleet Space Technologies
Flickswitch
Freeeway
Galaxy Space
Globalstar
Head Aerospac
Hologram
iBASIS
Innova Space
Inmarsat
Inmarsat
Iridium
iBASIS
KDDI
Kepler Communications
Kineis
KPN
KORE Wireless
KT
Lacuna Space
Ligado Networks
Manx Telecom
MegaFon
MTN
MTS
Myriota
NTT Docomo
Ooredoo
Onomondo
Orange
Orbcomm
Pelion
Plintron
Pod Group (Giesecke+Devrient)
POST Luxembourg
Proximus
Quectel
Rogers Communications
Sierra Wireless (Semtech)
Singtel
Sky and Space Company
SK Telecom
SoftBank
Soracom
Swarm Technologies
T-Mobile USA
Tata Communications
Telia Company
Telit Cinterion
Telecom Italia
Telefonica
Telefonica Hispam
Tele2
Telenor
Telstra
TELUS
Thuraya
Transatel
Truphone
Turkcell
Verizon
Vodacom
Vodafone
Vodafone Idea
Vivo
Wireless Logic
Zain

For more information about this report visit https://www.researchandmarkets.com/r/ena27s

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