Cover Image
Market Research Report

IoT Forecast: Connections, Revenue and Technology Trends 2018-2027

Published by Analysys Mason Product code 806148
Published Content info 25 Slides
Delivery time: 1-2 business days
Price
Back to Top
IoT Forecast: Connections, Revenue and Technology Trends 2018-2027
Published: March 13, 2019 Content info: 25 Slides
Description

"By 2027, only 2% of all IoT connections will be made using 2G, as operators close their networks; 5G will be in ascendancy and will power 3% of all IoT connections, primarily in the automotive sector."

The IoT opportunity for network operators continues to grow. We forecast that the total number of connections will increase to 5.4 billion in 2027, although a high degree of uncertainty still exists for some LPWA use cases. Connectivity revenue will increase to USD213 billion by 2027 but is subject to increasing competition. ARPC erosion will be significant over the forecast period. This report outlines the technology trends, sector shares and the revenue trajectories for cellular and LPWA connectivity in the IoT market.

This report includes the analysis of:

  • technology trends including the number of 2G, 3G/4G, 5G, NB-IoT, LTE-M and 'other LPWA' connections worldwide
  • key industry sectors and the share of connections and revenue that they contribute
  • the revenue generated worldwide from hardware, applications and connectivity services.

Coverage

Geographical coverageKey metrics

    Regions modelled

    • Central and Eastern Europe (CEE)
    • Developed Asia--Pacific (DVAP)
    • Emerging Asia--Pacific (EMAP)
    • Latin America (LATAM)
    • Middle East and North Africa (MENA)
    • North America (NA)
    • Sub-Saharan Africa (SSA)
    • Western Europe (WE)
    Full country level coverage of the forecasts is included in Analysys Mason's DataHub.
  • Revenue for the following value chain elements:
    • applications
    • connectivity services
    • IoT hardware.
  • IoT connections worldwide and by region, by technology type:
    • 2G
    • 3G/4G
    • 5G
    • NB-IoT
    • LTE-M
    • 'other LPWA'.
  • Connections and revenue, by sector:
    • automotive
    • finance
    • health
    • industries
    • smart cities
    • retail
    • smart buildings
    • utilities
    • agriculture
    • tracking.
Table of Contents

Table of Contents

  • 7. Worldwide trends
  • 8. Worldwide: the number of IoT connections will grow strongly over the forecast period, driven by an increase in LPWA connectivity
  • 9. Worldwide: significant uncertainty regarding LPWA adoption prevails in some sectors
  • 10. Worldwide: the largest number of 5G IoT connections will come from emerging Asia-Pacific due to the dominance of China
  • 11. Worldwide: applications will generate most of the IoT revenue because specialist assets and skills are required to deliver them to enterprises
  • 12. Worldwide: revenue from LPWA connectivity will be low and subject to intense pricing pressure as new connectivity suppliers enter the market
  • 13. Worldwide: the largest share of revenue will come from the automotive sector, despite large numbers of LPWA connections from elsewhere
  • 14. Worldwide: China will continue to be the largest single IoT market in 2027
  • 15. Western Europe
  • 16. Western Europe: LoRa operators took an early lead in the western European LPWA market in terms of connection numbers, but NB-IoT will dominate by 2027
  • 17. Western Europe: the automotive sector' s share of IoT revenue will decline during the forecast period because LPWA connectivity will spur growth in new sectors
  • 18. Central and Eastern Europe
  • 19. Central and Eastern Europe: operators are deploying NB-IoT across the region and are trialling new services based on this technology
  • 20. Central and Eastern Europe: LPWA networks in the region are expanding, and LPWA technology will start to contribute significantly to revenue growth
  • 21. Middle East and North Africa
  • 22. Middle East and North Africa: LPWA network deployment has been slower than in other developed regions; there are currently only three commercial networks
  • 23. Middle East and North Africa: the total IoT value chain revenue will grow to over USD6.9 billion; 12% of this will come from connectivity
  • 24. Sub-Saharan Africa
  • 25. Sub-Saharan Africa: South Africa dominated the region' s IoT market in 2018, and generated 67% of all regional connections
  • 26. Sub-Saharan Africa: new entrants will compete fiercely for connectivity contracts, and connectivity ARPC will probably decline as a result
  • 27. Emerging Asia-Pacific excluding China
  • 28. Emerging Asia-Pacific excluding China: 2G networks currently support the majority of IoT connections, but this technology will be superseded by NBIoT by 2027
  • 29. Emerging Asia-Pacific excluding China: few operators in the region are well-positioned to capture a large share of IoT revenue beyond connectivity
  • 30. China
  • 31. China: China will be the largest 5G IoT market in the world by 2027 in terms of connections; almost 50% of all 5G IoT connections will come from China by 2027
  • 32. China: Chinese operators are investing significantly to develop applications and sector-specific services
  • 33. Developed Asia-Pacific
  • 34. Developed Asia-Pacific: operators in the region have been slow to exploit the IoT opportunity, but investment in IoT is growing
  • 35. Developed Asia-Pacific: the total IoT value chain revenue will grow to 27.6 billion in 2027, and regional operators will increase their investments to take a larger share
  • 36. North America
  • 37. North America: the USA is one of the most successful IoT markets; the number of IoT connections will grow to 947 million by 2027
  • 38. North America: the region will generate the highest IoT revenue of all regions worldwide in 2027 (USD51 billion)
  • 39. Latin America
  • 40. Latin America: Brazil is the largest IoT market in the region; it had over 20 million connections in 2018 and accounted for 54% of all regional IoT connections
  • 41. Latin America: IoT connectivity revenue will grow to USD1.6 billion across the region, 40% of which will come from LPWA connectivity in 2027
  • 42. Forecast methodology and assumptions
  • 43. Comparison of the 2018 forecast with the new 2019 forecast
  • 44. Definitions [1]
  • 45. Definitions [2]
  • 46. Definitions [3]
  • 47. Definitions [4]
  • 48. Definitions [5]
  • 49. Definitions [6]
  • 50. Definitions [7]
  • 51. Definitions [8]
  • 52. About the authors and Analysys Mason
  • 53. About the authors
  • 54. Analysys Mason' s consulting and research are uniquely positioned
  • 55. Research from Analysys Mason
  • 56. Consulting from Analysys Mason

List of figures

  • Figure 1: IoT connections by network type, worldwide, 2027
  • Figure 2: Total IoT connections by network type, 2015-2027
  • Figure 3: Existing, emerging and potential LPWA applications
  • Figure 4: 5G IoT connections by region, 2020-2027
  • Figure 5: Revenue by type and blended ARPC, worldwide, 2015-2027
  • Figure 6: Cellular value chain revenue, worldwide, 2027
  • Figure 7: LPWA value chain revenue, worldwide, 2027
  • Figure 8: Cellular and LPWA connectivity revenue and ARPU, 2015-2027
  • Figure 9: Connections share by sector, worldwide, 2015-2027
  • Figure 10: Connectivity revenue share by sector, worldwide, 2015-2027
  • Figure 11: Total IoT connections and total value chain revenue by region, 2027
  • Figure 12: Share of IoT connections by network type, WE, 2018 and 2027
  • Figure 13: Connections by sector, WE, 2015 and 2027
  • Figure 14: 5G connections by sector, WE, 2020-2027
  • Figure 15: Connectivity revenue and ARPC by technology, WE, 2015-2027
  • Figure 16: Connectivity revenue share by sector, WE, 2015-2027
  • Figure 17: Share of IoT connections by network type, CEE, 2018 and 2027
  • Figure 18: Connections by sector, CEE, 2015 and 2027
  • Figure 19: Share of IoT connections by sector, CEE, 2015-2027
  • Figure 20: Connectivity revenue and ARPC by technology, CEE, 2015-2027
  • Figure 21: Connectivity revenue share by sector, CEE, 2015-2027
  • Figure 22: Share of IoT connections by network type, MENA, 2018 and 2027
  • Figure 23: Connections by sector, MENA, 2015 and 2027
  • Figure 24: Share of IoT connections by sector, MENA, 2015-2027
  • Figure 25: Connectivity revenue and ARPC by technology, MENA, 2015-2027
  • Figure 26: Connectivity revenue share by sector, MENA, 2015-2027
  • Figure 27: Share of IoT connections by network type, SSA, 2018 and 2027
  • Figure 28: Connections by sector, SSA, 2015 and 2027
  • Figure 29: IoT connections by network type, South Africa, 2015-2027
  • Figure 30: Connectivity revenue and ARPC by technology, SSA, 2015-2027
  • Figure 31: Split of IoT revenue between South Africa and the rest of SSA, 2027
  • Figure 32: Share of IoT connections by network type, EMAP (excluding China), 2018 and 2027
  • Figure 33: Connections by sector, EMAP (excluding China), 2015 and 2027
  • Figure 34: IoT connections by network type, Indonesia, 2015-2027
  • Figure 35: Connectivity revenue and ARPC by technology, EMAP (excluding China), 2015-2027
  • Figure 36: Connectivity revenue share by sector, EMAP (excluding China), 2015-2027
  • Figure 37: Share of IoT connections by network type, China, 2018 and 2027
  • Figure 38: Connections by sector, China, 2015 and 2027
  • Figure 39: 5G connections by sector, China, 2020-2027
  • Figure 40: Connectivity revenue and ARPC by technology, China, 2015-2027
  • Figure 41: Connectivity revenue share by sector, China, 2015-2027
  • Figure 42: Share of IoT connections by network type, DVAP, 2018 and 2027
  • Figure 43: Connections by sector, DVAP, 2015 and 2027
  • Figure 44: Share of IoT connections by sector, DVAP, 2015-2027
  • Figure 45: Connectivity revenue and ARPC by technology, DVAP, 2015-2027
  • Figure 46: Connectivity revenue share by sector, DVAP, 2015-2027
  • Figure 47: Share of IoT connections by network type, NA, 2018 and 2027
  • Figure 48: Connections by sector, NA, 2015 and 2027
  • Figure 49: 5G connections by sector, USA, 2020-2027
  • Figure 50: Connectivity revenue and ARPC by technology, NA, 2015-2027
  • Figure 51: Connectivity revenue share by sector, NA, 2015-2027
  • Figure 52: Share of IoT connections by network type, LATAM, 2018 and 2027
  • Figure 53: Connections by sector, LATAM, 2015 and 2027
  • Figure 54: IoT connections by sector, Brazil, 2015-2027
  • Figure 55: Connectivity revenue and ARPC by technology, LATAM, 2015-2027
  • Figure 56: Connectivity revenue share by sector, Brazil, 2015-2027
  • Figure 57: Previous IoT connections forecast versus new IoT connections forecast, worldwide, 2015-2026
  • Figure 58: Previous total value chain revenue forecast versus new total value chain revenue forecast, worldwide, 2015-2026
  • Figure 59: Previous connectivity revenue forecast versus new connectivity revenue forecast, worldwide, 2015-2026
  • Figure 60: Network definitions
  • Figure 61: Other definitions
  • Figure 62a: Definitions of IoT connectivity sectors and applications
  • Figure 62b: Definitions of IoT connectivity sectors and applications
  • Figure 62c: Definitions of IoT connectivity sectors and applications
  • Figure 62d: Definitions of IoT connectivity sectors and applications
  • Figure 62e: Definitions of IoT connectivity sectors and applications
  • Figure 62f: Definitions of IoT connectivity sectors and applications
Back to Top