Berg Insight: LTE To Become Leading IoT Technology In 2019

 

LTE To Become Leading IoT Technology In 2019

 

This week, Berg Insight – Machine-to-Machine (M2M) and the Internet of Things (IoT) global specialists – published their latest report “Wireless IoT Connectivity Technologies and Markets”, analysing the main trends in IoT and offering insights into embedded technology, networking and applications.

 

 

The study defined the IoT market as a vast segment that comprises everything from premium cars with the computing power of hundreds of microprocessors, to low-cost sensors based on basic microcontrollers running on coin-cell batteries.

According to Berg Insight, cellular connectivity has a prominent role in the development of key technologies, such as IoT, due to it being an enabler for applications with significant data requirements. Previously 2G dominated IoT cellular technologies, but recently a rapid transition to 3G/4G connectivity has taken place, enabling applications to transfer data faster and more efficiently – meaning more advanced applications can now be run over cellular.

The key findings from the research include the following:

  • IoT devices will grow at a CAGR of 20.1%, reaching 239.7 million units by 2019
  • Shipments of 3G cellular IoT devices are expected to peak in 2018
  • Shipments of LTE devices are expected to surpass GPRS devices by 2019

 

The rapid growth and widespread availability of LTE has given rise to a new era of high bandwidth and performance capabilities, delivering more than 3G and 2G communications have historically been able to deliver for Internet of Things applications.

Today, LTE communications are able to match or outperform fixed lines, both in terms of speed and bandwidth, resulting in LTE becoming a true wireless alternative and a catalyst for improving enterprise networks for the better – providing a level of flexibility not possible with fixed line solutions alone. It is this level of flexibility, and the ability to scale rapidly, that is helping to drive the growth of the Internet of Things.

Tobias Ryberg, Senior Analyst at Berg Insight and author of the report, commented on the study’s findings; “2G is still growing rapidly in emerging markets and has a clear cost advantage in Europe. The economics of 4G is however dramatically improved with LTE Cat-0 and the upcoming LTE-M standard. Once these are in place there will be no more significant barriers left against migration from 2G.”