IoT has been big for a while, but it’s about to get bigger. A study by Juniper Research says the global number of cellular IoT devices will increase from 3.4 billion in 2024 to 6.5 billion by 2028. In fact, operator revenue from IoT roaming will grow from $1.1 billion in 2024 to $2.2 billion in 2029 and 5G IoT devices will be instrumental in driving this increase; accounting for more than 40% of total revenue by 2029, despite accounting for fewer than 10% of IoT roaming connections.
5G-enhanced roaming services, which provide improved quality of service for 5G IoT use cases, such as Ultra Reliable Low Latency Communications (URLLC) will be key to this revenue growth. However, the study predicts that this 90% growth in connections will require the deployment of new services enabling the efficient automation of IoT device management and security.
Read more: Zoom Phone now available in India
The research identified intelligent infrastructure management solutions, which enable IoT users to automate the configuration of devices, security processes and connectivity in real-time, as key to handling the large increase in cellular data. The anticipation is that global cellular IoT data generated will grow to 46 petabytes in 2028, up from 21 petabytes this year; leading to further investment in IoT automation services, such as federated learning.
Also, the global value of the cellular IoT market is predicted to reach $61 billion by 2026, rising from $31 billion in 2022. And the growth of 5G and cellular LPWA (Low-power Wide Area) technologies are key to this 95% increase over the next four years.
In fact, LPWA solutions, such as NB-IoT and LTE-M, will be the fastest-growing cellular IoT technologies over the next four years. The low cost of connectivity and hardware will drive adoption for remote monitoring in key verticals, such as agriculture, smart cities and manufacturing. In turn, LPWA connections are expected to grow 1,200% over the next four years.
In fact, 2G and 3G networks shutdowns will drive LPWA, a reason why operators should migrate IoT connections on legacy networks to networks that support LPWA technologies. Demand from enterprises for low-cost monitoring technologies, enabled by LPWA networks, will increase as these legacy networks are shut off over the next four years.
Research co-author Charles Bowman commented, “Operators must educate users on the suitability of LPWA as a replacement technology for legacy networks. However, many IoT networks cannot solely rely on LPWA technologies. More comprehensive technologies, such as 5G, must underpin IoT network architectures and work in tandem with LPWA technologies to maximise the value of IoT services.”
Conversely, 5G IoT services is supposed to generate $9 billion of revenue by 2026, rising from $800 million in 2021. This represents a growth of 1,000% over the next five years as 5G coverage expands and operators benefit from the increased number of 5G IoT connections. To capitalise on this growth, operators should offer value-added services, like network slicing and edge computing, to IoT users to maximise the value of 5G adoption.
Another study by Juniper Research predicts that there will be over 600 million roaming IoT connections by 2028, rising from 145 million in 2023, necessitating the implementation of new roaming standards to detect and monetise IoT roaming. To capitalise on this substantial growth in connections, the report identified BCE (Billing & Charging Evolution) as a critical technology that will enable operators to identify new roaming connections. In turn, this will allow operators to fully maximise inbound roaming revenue.
The research named future prospective IoT roaming vendors as Vodafone Roaming Services, Telefónica, Tata Communications, TNS, and BICS. In fact, Vodafone Roaming Services retains leading position in the market with continued expansion of its global IoT roaming network. Its comprehensive portfolio of IoT management solutions and significant coverage places Vodafone Roaming Services as the leading IoT vendor to enable operators to maximise future inbound roaming revenue.
Read more: How data centers keep the world running 24/7
Additionally, Telefónica has risen six places in ranking. Crucial in driving Telefónica’s progress in the IoT roaming market over the last year has been its innovation with solutions that simplify the roaming monetisation process. For example, the company has continued to innovate with BCE, and services that assist operators in managing different roaming regulations.
With all this progress, another prediction is that the number of satellites in orbit that can be leveraged for IoT connectivity will grow 150% over the next five years. These satellites will grow from 10,000 in 2024 to over 24,000 by 2029; owing to increased demand for connectivity in nomadic locations from IoT network users. The forecast is that 98% of satellites launched over the next five years will be LEOs, due to the low cost of launches.
