IoT Market Tracker Insights – ARPU Growth Concentrated in One Sector

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By Dan Shey | 4Q 2016 | IN-4300


Connections and Revenues in IoT


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


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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