Over 5 billion connections using LPWA networks forecast,
with $13.4 Billion in revenue by 2022
Boston, MA -
September 03, 2014 - Low-Power, Wide-area (LPWA) networks are opening
new M2M use cases where connectivity costs are expressed in dollars per
year rather than dollars per month. LPWA networks
seek to address a sweet spot of high coverage with minimal power
consumption and low coverage, impacting industry verticals such as
advanced healthcare and utilities according to a new Strategy Analytics
report “Low
Power Wide Area (LPWA) Networks - Technologies, Players, and Opportunities”. The
study examines technologies and use cases within and beyond the scope of cellular M2M.
Click here for the report:
http://bit.ly/1lz8z2H
LPWA connections are forecast to have a high growth rate as part of the
Internet of Things (IoT), growing from 11 million in 2014 to just over 5
Billion in 2022.
Low-Power,
Wide-Area technology opens up the possibility of non-cellular,
horizontal WAN players (e.g. Neul and SIGFOX), with unique use cases
such as low-power tracking.
“LPWA
network vendors will face new challenges - they have to balance
expanding their networks with growing revenue from a business that has
long life cycles and potentially
lower revenues per connection than cellular M2M. Many cellular
providers have established relationships and operations globally in the
M2M space and can exploit synergies with selective partnerships in the
LPWA space”
said Andrew Brown, Director of Enterprise Research at Strategy Analytics.
Local
Area technologies such as ZigBee mesh can be combined with cellular
backhaul to address wide-area use cases as a hybrid network. Hybrid
networks are being successfully
used by application builders and providers to address vertical
solutions e.g. smart street lighting and parking.
“There
are a number of positions that service providers with M2M strategies
can assume to take advantage of LPWA solutions. For example, BT has
(re)gained a position
as wireless service provider by operating the NeulNET in the UK –
NeulNET is an LPWA network using the Weightless standard”
added Brown
The
largest revenue generating opportunity in LPWA by 2022 will be in
Asia-Pacific at $4.6 Billion, followed by North America and Western
Europe.