Omdia: The LPWA Internet of Things grows at a compound annual growth rate of 23% over the next five years. NB-IoT and LoRa are far ahead

(Ace) New research from market research firm Omdia shows that the number of low-power wide-domain (LPWA) Internet of Things network connections will grow at a cagR of 23% from now and 2028, driven mainly by the growth of NB-IoT and LoRaWAN technologies. NB-IoT and LoRa will account for 87% of all LPWA types of IoT connections.

Omdia estimates that both technologies now account for 85% of the global LPWA-IoT connections; so their market share grew by only two percentage points. But Omdia forecasts the LPWA network market at a five-year cGR of 23%, indicating significant growth over the period and indicating that their combined growth will outpace the index and drive the overall market forward.

Shobhit Srivastava, senior chief analyst at Omdia, said NB-IoT and LoRaWAN based on non-cellular networks are in a more favorable position than their traditional competitors, LTE-M and Sigfox. He said, " Because of sufficient differences between the two technologies, both technologies will be successful until the end of the Omdia forecast period in 2028.”

 The development of NB-IoT remains a small story, largely confined to the Chinese market, with more than 90 percent by the end of 2022 of NB-IoT connections by the end of 2022 located in China and often deployed in fixed use cases such as utility meters and smart city monitoring. Shobhit Srivastava Comment: " Outside of China, NB-IoT adoption has been slow.... China will continue to be the main driver of NB-IoT adoption for the foreseeable future.”

But Omdia said Europe's renewed focus on NB-IoT suggests that there is room for NB-IoT to grow outside China. He noted that operators such as Telefonica (Telefonica) and Deutsche Telekom (Deutsche Telekom) are investing in satellite-based NB-IoT to cover remote areas, and that government agencies such as Spain's National Transport Authority (DGT) will deploy NB-IoT for warning beacons starting from 2026.

As for LoRaWAN, Omdia concluded: " LoRaWAN has experienced several years of undisputed growth, and the technology has built its own momentum and matured. LoRaWAN Future success still depends on its differentiated products and the value that the NB-IoT cannot easily match. LoRa has unparalleled accessibility for companies deploying IoT applications. This accessibility makes LoRaWAN one of the favorites among small developers, maker communities and OTT Iot networks.”