Cellular and LPWAN Technologies to Threaten Short-Range Wireless Solutions in Nascent IoT Markets

Oyster Bay, New York - 18 May 2017

Short-range wireless technologies, like Bluetooth, Wi-Fi, and 802.15.4, increasingly target nascent IoT markets beyond the consumer space. ABI Research finds that these technologies will face a greater competitive risk from emerging M2M cellular and LPWAN technologies, particularly in specific IoT market segments. The new competition will target transportation and logistics, utilities and energy management, smart cities and smart buildings, industrial automation, and smart agriculture markets, among others.

“LPWAN technologies including RPMA, SIGFOX, LoRa, LTE Cat-M1, NB-IoT, and EC-GSM-IoT comprise a very competitive and rapidly evolving IoT connectivity landscape,” says Andrew Zignani, Senior Analyst at ABI Research. “These technologies are specifically designed for IoT and are arguably much better matches for outdoor, larger-scale IoT applications due to their abilities to target greater coverage areas, their ease of deployment, and their greater scalability. In contrast, short-range wireless connectivity solutions, such as Bluetooth, Wi-Fi, and ZigBee, are created for computing and consumer applications but are increasingly extended to address IoT verticals, as well.”

ABI Research forecasts the IoT will represent 15% of Wi-Fi, 27% of Bluetooth, and over 60% of 802.15.4 device shipments by 2022, as these technologies continue to evolve and target emerging opportunities ranging from wearables and healthcare to beacons, smart home, building and industrial automation, and smart cities, among others. LPWAN and legacy M2M cellular technologies are set to ship nearly 575 million chipsets by 2022, growing faster than any short-range connectivity solution across IoT verticals.

ABI Research finds that cellular and LPWAN technologies, often perceived as more reliable than short-range connectivity solutions, require less intermediary gateways, can support greater distances between end nodes, and scale from the very smallest to the largest number of end devices, while providing a battery life that exceeds 10 years. Therefore, to maintain their status in the competitive market, short-range wireless chipset suppliers will need to take advantage of mesh networking functionality, lower chipset costs, wider availability, greater brand awareness, established and proven technologies, security features, IPv6 support, no service costs, and other unique advantages that include higher data rates and strong presence in human-machine interface devices like smartphones.

“IoT markets are diverse, and there is no one size fits all technology solution,” concludes Zignani. “Implementers and product designers must make numerous decisions on the required bandwidth, coverage area, capacity, reliability, battery life, cost, security features, topology, and frequency of messages, scalability, among other criteria. Only then will many of these technologies be able to carve out success stories despite the strong competitive landscape.”

These findings are from ABI Research’s Wireless Connectivity Technology Segmentation & Addressable Markets report.                       

About ABI Research

ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.

ABI Research提供开创性的研究和战略指导,帮助客户了解日新月异的技术。 自1990年以来,我们已与全球数百个领先的技术品牌,尖端公司,具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。

For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.

Contact ABI Research

Media: Interview an Analyst

Media Contacts

Americas: +1.516.624.2542
Europe: +44.(0).203.326.0142
Asia: +65 6950.5670