Connections and Revenues in IoT |
NEWS |
Average revenue per unit (ARPU) is a common term that is used when connectivity is offered on a subscription basis. Although not all IoT device connections will be priced on a subscription basis, knowing the number of device connections and total revenue generated by these connections enables the ability to calculate ARPUs. This provides a useful means to measure the opportunity by application segment. In this ABI Insight, ARPUs are analyzed for the top application segments showing the highest ARPUs and growth.
Mobility and Industrial |
IMPACT |
Analysis of ARPUs by application segment can identify three buckets based on ARPU range. ARPUs in the three segments are < $50; $50 to $150; > $150 per year. Applications in the > $150 per year are the only ones that show increasing ARPUs over the next 5 years. This bucket is labelled Mobility and Industrial, and includes all the telematics segments (OEM, fleet, aftermarket, UBI), solar/wind energy monitoring, and container monitoring. Later in the forecas…
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