Internet of Things - Global IoT market trend and prospects

Internet of Things - Global IoT market trend and prospects

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Description: Even as our world today becomes increasingly connected, many industry experts testify to a bigger growth of IoT in the future. According to the International Data Corporation (IDC), the IoT market is expected to grow from $655.8 billion in 2014 to $1.7 trillion in 2020. More specifically, this vast market can be broken down to modules/sensors, connectivity, services and other technologies.

More than two-thirds of the forecasted market share will be driven by the first three market segments with modules/sensors ranking first and connectivity coming in second.1) As such, technologies capable of connecting billions of devices together are more important than ever before.

 
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Contents:
Internet of Things

Introducing innumerable opportunities
www.samsungnetworks.com

The Internet of Things (IoT) market is continuously growing as more and more devices are joined
together. We are now witnessing an unprecedented increase of information, services, devices and
people that are dynamically interconnected. The digital interactions are being harmonized into an
ambient experience that rewrites the traditional definition of being connected.
2

Internet of Things

Global IoT market trend and prospect
Even as our world today becomes increasingly connected, many industry experts testify to a
bigger growth of IoT in the future. According to the International Data Corporation (IDC),
the IoT market is expected to grow from $655.8 billion in 2014 to $1.7 trillion in 2020.
More specifically, this vast market can be broken down to modules/sensors, connectivity,
services and other technologies. More than two-thirds of the forecasted market share will be
driven by the first three market segments with modules/sensors ranking first and connectivity
coming in second.1) As such, technologies capable of connecting billions of devices together
are more important than ever before

$1.7 trillion

x
2.6

- ‌Devices
(Module/Sensors)

- Connectivity
- IT Services

$655.8 billion

More than
60%

2020
2014

Communication technologies that empower the IoT world can be divided according to
the distance across which devices need to communicate. Up to now, the majority of IoT
business has been focused on short-range communication technologies such as WiFi, Zigbee
and Bluetooth. These technologies can be utilized for stationary objects or at generally short
distances at scales of tens of hundreds of meters. Smart homes, where stationary home
appliances such as refrigerators, televisions and lighting systems are all situated close to each
other, can be connected with such technologies. Smart offices, where printers, card readers
and other devices can be connected, are also an ideal place to implement short-range
connectivity.
However, the market is now requiring technologies for longer-range communications,
particularly with the emergence of demand for connectivity between mobile objects or
objects spread out across a wide area. These objects usually don’t need to transmit high
amounts of data and are often used to track the state of an object or its environment.
Smart metering for electricity or gas, smart farming, such as checking the soil moisture
levels, and smart tracking of freight are all excellent examples of such applications for IoT.
All of these cases require a network where only small amounts of data will be transferred
but spread across a wide area. Such networks are now referred to as Low Power Wide Area
(LPWA) networks. Although not as developed as short-range IoT, there are already cases
where long-range communication for IoT is being used and this trend will continue to grow
exponentially. Operators are quickly realizing that this is a chance to develop a new source
of revenue; LPWA network can be utilized by countless consumers as well as across virtually
any industry imaginable.

3

SAMSUNG NETWORKS

LPWA & Cellular IoT Networks
There are several different technologies that an operator can choose to deploy LPWA
networks. An operator may consider either an evolved version of the current LTE cellular
network such as LTE-M and Narrow Band-IoT (NB-IoT) or new IoT technologies such as LoRa
and SIGFOX.

Gbps

Short
Distance

Mbps

Cellular
UMTS, HSPA, LTE, LTE A

WiFi
Zigbee

kbps

LPWA

Bluetooth
LoRa, SigFox, NB-IoT, LTE-M

bps
10m

100m

1Km

10Km

LPWA technologies all share certain traits that make them uniquely suitable for long distance
and low-power communication. Devices typically have a long battery life with usually over
10 years of operation possible depending on traffic and coverage needs. People are used
to charging the batteries of their smartphones or tablets on a daily basis. However, this is
impossible to do for most cellular IoT devices; they are often deployed to areas with no
available power or in hard-to-reach locations as in the case of gas/electricity/water metering,
agricultural monitoring or transportation tracking. If these devices had only a short lifespan
such as today’s consumer LTE devices, people would need to change the batteries of millions
of devices on a regular basis – an unnecessarily costly and time-consuming job.
Because devices are spread out in such a wide area and devices can be situated in hardto-reach places such as basements or inside elevators, an enhanced coverage is necessary.
Many of the deployed objects may also be moving and therefore broad coverage will
also be needed to ensure uninterrupted coverage. At the same time, devices only need to
send small amounts of data e.g. kilobytes at a time) to relay information about a certain
object and heavier data, such as images or videos, is rarely involved. Therefore, these LPWA
technologies only need a very small amount of bandwidth and can be deployed efficiently.
The cost of the devices themselves is now undergoing a significant decrease. Billions of
devices are expected to be deployed in our connected future, and it would be virtually
impossible to construct an IoT network with expensive devices. In order for mass deployment
to become a reality, the total cost of ownership (TCO) should be very low.

4

Internet of Things

Similar to LTE, LPWA technologies can be deployed in either licensed or unlicensed
spectrum. LoRa and SiGFOX are great examples of LPWA technologies that use unlicensed
spectrum. These technologies are developed for the sole purpose of enabling Machine Type
Communication (MTC) and can connect sensors with ultra-low data transfer requirements.
These technologies are available today and are already in-use in many countries, enabling
services such as bicycle tracking.
Cellular IoT, evolved from LTE, includes technologies such as LTE-M and NB-IoT. Both
technologies have been standardized with NB-IoT being an integral part of the recently
finished 3GPP Release 13. They are designed to be operated within spectrum bands – either
GSM or LTE. LTE-M is readily available today and is a mature solution for MTC. Although
evolved from LTE, it serves as something of a middle ground between the traditional
capabilities of LTE networks and the requirements of IoT devices, supporting slightly higher
data rates than existing LPWA technologies. LTE-M supports FDD, TDD and half duplex (HD)
modes and can be deployed in any LTE spectrum. It can also coexist with other LTE services
within the same band and only requires a very narrow bandwidth between 1.08 and 1.4MHz,
compared to the 5, 10 or 20MHz bandwidth of a normal LTE carrier.
Narrowband-IoT, or NB-IoT, is expected to be available in 2016 and is designed to more
closely match the requirements of LPWA-type networks. Geographical coverage is extended
over that of LTE-M while supported data rates are lower, allowing even longer battery life for
devices and narrower spectrum requirements of 180 to 200 kHz. NB-IoT supports 3 modes
of operation in terms of frequency; standalone, guard band, and in-band. The guard band
mode, as the name suggests, utilizes the otherwise unused narrow resource block within
an LTE carrier’s guard band. The in-band mode utilizes resource blocks within a normal LTE
carrier. The standalone mode operates in its own individual block of frequency and may be
deployed either on an LTE band or as part of a formerly used GSM carrier.

LPWA (Low Power Wide Area)
Cellular IoT (3GPP Standard-based)
LTE-M
Cat 1

(Rel.8)

Cat 0

(Rel.12)

Cat M

Non-Cellular IoT
NB-IoT
(Rel.13)

LoRa

SigFox