Mobile operators can make IoT revenue of over $200 billion by 2025, says latest Analysys Mason IoT report.
The total addressable revenue for mobile operators in IoT will be over $200 billion by 2025. The total revenue of solutions supported by traditional cellular (e.g. 2G, 3G, 4G) and LPWA (e.g. NB-IoT, LoRa) is forecast by Analysys Mason to reach $201 billion in 2025.
Spend on connectivity will be $28 billion in 2025, just 14 percent of this total addressable market in IoT.
The chart is prepared by ITU indicates M2M growth in key countries.
Analysys Mason said that mobile operators and other players are seeking incremental value by offering other components of the value chain in addition to connectivity; hardware and applications.
Connectivity for new LPWA networks will generate lower share of the total spend than for IoT solutions using traditional cellular.
The application component generates 72 percent of the value in 2025 for traditional cellular (e.g. 2G, 3G, 4G), while hardware contributes 11 percent and connectivity 17 percent. Mobile operators are developing solutions to tap the applications component.
Hardware generates 49 percent of LPWA market, which addresses sectors such as smart metering while applications contribute 43 percent and connectivity 8 percent.
Automotive or connected car, the biggest market for traditional cellular, will reach $63 billion in 2025. Application will be 76 percent of the total value, connectivity will constitute 19 percent and the remainder will be hardware related revenue.
Utilities and Smart Buildings are the biggest markets for LPWA. The Utilities market will generate $21 billion in 2025. Hardware constitutes 55.5 percent, applications 38.5 percent and connectivity 6 percent.
The Smart Building market will grow to $17 billion in 2025. Hardware will comprise 55.7 percent, applications 39.6 percent and connectivity 4.7 percent of total revenue.
Emerging Asia Pacific — principally China — will be generating 24 percent of traditional cellular revenue in 2025. China has driven cellular IoT adoption in many sectors.
Developed regions including Western Europe, Central and Eastern Europe, Developed Asia-Pacific and North America will generate the largest share of LPWA network revenue, contributing over 75 percent of total revenue in 2025.
