The NB-IoT chipset market is expected to grow from USD 2484 million by 2020 to USD 26456 million by 2027 at a CAGR of 40.2 %. Narrowband Internet of Things (NB-IoT) is a wireless technology which allows several devices to connect across cellular telecommunication bands.
Increasing M2M communications is driving the growth of the connected devices market, especially in the industrial sector. Additionally, industry trends such as IoT have facilitated connectivity in almost every industry, including healthcare, consumer electronics, and retail. Smart devices require sensors to generate real-time data. The declined price of these sensors has led to a significant increase in the adoption of IoT across organizations. Moreover, the key reasons for the increased adoption of NB-IoT include smooth communications through better connectivity, low power requirements, and a growing preference for a smarter and greener planet. The rising demand for connected devices for long-range connectivity is expected to drive the deployment of M2M/IoT devices, such as smart meters, smart streetlights, livestock monitoring devices, and smart parking solutions.
With the growing number of connected devices, the demand for LPWA networking technologies is growing. From smart homes to high-end laboratories and industries, LPWA networks are deployed using low-cost and low-power smart wireless sensors and are providing new opportunities for the implementation of IoT in various applications. Thus, the LPWA technologies having similar capabilities as NB-IoT are creating huge limiting the growth of the NB-IoT chipset market.
Smart cities are pivotal to adding digital intelligence to existing urban systems and connected applications as they provide real-time, transparent information in the form of actionable insights to users. Energy and resource, physical infrastructure, mobility and transport, and safety and security are the major functional areas of more than 1,000 smart city projects that are currently under progress across the world. These projects present prominent growth opportunities for the NB-IoT players to expand their market.
NB-IoT devices have low data transfer rates, which limits its cellular capabilities in various applications such as video surveillance and voice communication that required high-bandwidth. It is not suited to mobile devices, which use GSM, 3G, and LTE for voice, messaging, high-rate data transmission, and so on. However, emerging technologies such as LTE-M have higher data rates, and this allows them to offer the broadest range of cellular capabilities. LTE-M has the largest bandwidth among all LPWA technologies, and is ideal for fixed and mobile applications. This can limit the adoption of NB-IoT in applications such as health or fitness wearables and smart meters, which require higher data transfer rates. However, the development of dual-mode chipsets offering CAT M1 and CAT NB1/NB2 is expected to decrease the impact of this challenge in the near term.
Some of the key players in the narrowband IoT (NB-IoT) chipset market are Intel Corporation (U.S.), Huawei Technologies Co. Ltd., (China), Ericsson (Sweden), Nokia Corporation (Finland), Quectel Wireless Solutions Co. Ltd. (China), Sierra Wireless (Canada), Deutsche Telekom AG (Germany), China United Network Communications Group Co., Ltd. (China), Qualcomm Technologies Inc., (U.S.), Vodafone Group plc (U.K) and others
The growing adoption of NB-IoT technology in multiple applications, such as smart meters, smart parking, smart streetlights, and healthcare, is the key factor driving the growth of the NB-IoT chipset market in APAC. China is currently dominating the market in APAC. Favorable government policies and a strong presence of NB-IoT chipsets, modules, and infrastructure providers in China are the prime factors fueling the growth of the market in China.
The major countries contributing to the European NB-IoT chipset market are Germany, Norway, and Spain, among others. The pandemic has slowed down the majority of the economies, such as China, India, Japan, and Australia. However, technological advancements and digitization in countries such as China and India will keep up the demand for IoT in major verticals, such as healthcare and utilities. APAC accounted for 42% of the total installed smart meters in 2018, which is expected to increase in the future for remote monitoring and accessibility of the infrastructure during such crises.
Report : NB-IoT Chipset Market - By Deployment (Stand-Alone, Guard Band, In-Band) By Device (Smart Parking, Smart Meters, Trackers, Alarms and Detectors, Smart Streetlights, Smart Appliances, Wearable Devices, Other Devices ) By Vertical (Agriculture, Automotive and Transportation, Energy and Utilities, Healthcare, Manufacturing, Safety and Security, Infrastructure, Building Automation, Consumer Electronics) By Region (North America, Europe, Asia Pacific, Latin America and Middle East & Africa) - Industry Analysis, Opportunity and Forecast 2020 To 2027