Technavio analysts forecast the global low-power wide area networks (LPWAN) market to grow at a CAGR of more than 50% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global LPWAN market for 2017-2021. The report also presents the vendor landscape and a corresponding detailed analysis of major vendors operating in the market. It includes vendors across the US.
The market is expected to grow exponentially during the forecast period. The increased adoption of LPWAN solutions in various industries worldwide is likely to improve the overall market revenue in the next few years. LPWAN connectivity suits applications that employ broadly scattered devices to send and receive occasional status updates. Such applications include logistics tracking, environmental sensors, energy meters, and animal and crop monitoring. It is also used to remotely activate devices (lights, sprinklers, and air conditioning).
Technavio ICT analysts highlight the following three factors that are contributing to the growth of the global LPWAN market:
- Low cost and power consumption of LPWAN technology
- Increased penetration of mobile-computing devices
- Adoption of connected devices and services among consumers
Low cost and power consumption of LPWAN technology
LPWAN technologies work on M2M networking environments. LPWAN enables a wide range of M2M and IoT applications, which have constrained budgets and power limitations. The use of LPWAN technology reduces power requirements, provides longer range, and lowers operational cost compared with a mobile network (2G, 3G, and 4G LTE). LPWAN data transfer rates are very low as well as has a lower power consumption in case of connected devices.
Abhishek Sharma, a lead M2M and connected devices analyst at Technavio, says, “LPWAN provides connectivity for networks of devices. The connectivity requires less bandwidth than what the usual home equipment offers. These networks can also have number of devices in a large coverage area than consumer mobile technologies. LPWAN also has a better bi-directionality.”
Increased penetration of mobile computing devices
There is an increase in the use of computing devices for multiple purposes such as accessing social networking apps, reading news, surfing the web, and checking e-mails. IoT is another reason for the growth of the market, as most of the IoT devices are controlled by apps installed on mobile computing devices. In 2016, the unit shipment of mobile computing devices reached 2.12 billion units. It is expected to grow at a CAGR of 5.03% during the forecast period.
“With the increase in the smartphone penetration, the prevalence of apps is also rising. The number of health apps on the two leading platforms, iOS and Android, has more than doubled in less than three years. In 2015, the smartphone penetration was 44% of the population; older age groups being the highest users,” adds Abhishek.
Adoption of connected devices and services among consumers
The IoT connects billions of devices and sensors to develop innovative applications. The IoT communication primarily connects various devices, such as smartphones, laptops, and tablets, with people and systems. This connection also helps send data to the centralized server through networks such as WLAN, RFID, and Bluetooth.
Numerous low-cost and energy-efficient wireless sensor nodes are being used in the IoT systems. These nodes are easy to deploy and can be controlled and monitored from remote locations. Sensors include low power radio and power management mechanisms for continuous network operation and energy conservation.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.