Telecom IoT Market

Market Insights

"The global telecom IoT market was estimated at USD 20.21 billion in 2022 and is likely to grow at a CAGR of 41% during 2023-2028 to reach USD 160.52 billion by 2028".

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Market Dynamics

Introduction

Telecom IoT refers to connecting diverse physical assets to the cloud and remotely managing operations, investigating malfunctions, running firmware upgrades, and keeping track of inventory. It uses asset management and remote system monitoring. These devices can collect, send and act on data they obtain from the surrounding environment or share with each other.

Telecom tools need to be monitored regularly for maintenance purposes, like finding potential areas of equipment failure. The IoT in telecom allows companies to monitor their equipment in real-time to avoid long-term loss of revenue. IoT in telecom reduces operational and maintenance costs and also ensures more productive power management. IoT in telecom helps companies to generate analytics and gain important business perception.

Market Drivers

The key factors that are driving the growth of the telecom IoT market are:

• The growing adoption of Telco cloud.
• Growing penetration of smart connected devices.
• Automation in communication operations.
• Need for network bandwidth management.
• The emerging next-generation wireless networks and growing usage of smart technology & distributed applications.

The lack of regulation related to the allocation of spectrum is a major restraining factor for the growth of the market. The market is highly fragmented wherein operational relationships between telecom service providers and IoT platform providers can change regionally, thereby significantly impacting the relationships among the stakeholders of the market ecosystem.

Benefits range from efficient asset management to building new services and revenue streams-

Being one of the most technologically advanced industries with access to innovative connectivity infrastructures and engineering talent, Telecom has been the leading industry vertical in terms of IoT innovations. However, there are still challenges arising from the sheer scale of IoT use cases for Telecom, which include prevailing over the risk of overstretching resources and ensuring good quality of service.

To flourish in IoT, cloud, big data, and AI-intensive environments, telecom communication service providers (CSPs) need to take the initiative as leaders in technological advancement. There are several kinds of IoT solutions enabled by the solution providers that CSPs can add to their roadmaps when strategizing on their IoT transformation.

One of the most focused IoT Telecom use cases is asset management and remote system monitoring. By using an IoT platform, telecom companies can connect their wide range of physical assets to the cloud and remotely manage their operations, run firmware upgrades, investigate malfunctions, and monitor inventory.

Telecom CSPs can also enable their infrastructures to offer new services such as tailored wide-area IoT solutions, consumer applications, and IoT-managed services. Utilizing a highly flexible IoT cloud platform, any telecom CSP can provide its own IoT solution to a range of industries. Uniquely positioned with extensive access to network infrastructure and wide pools of user data, CSPs can deliver wider scale and better performance and usability than other IT service providers.

Another opportunity for telecom CSPs is to begin new revenue streams by offering edge computing infrastructure for over-the-top (OTT) content providers and application developers. Providing cloud capabilities for network hardware such as modems, CMTSs, IP DSLMs, or base stations, will allow telecom CSPs to provide their infrastructure as a revenue-generating service from which consumer behavior patterns can be discovered and acted upon. This is where Telecom IoT solution vendors can help streamline the growth.

Segment Analysis

Connectivity Technology Trends

"NB-IoT connectivity technology accounted for the largest share of the market in 2022 & is expected to witness the highest growth rate during the forecast period".

• The NB-IoT connectivity technology component of the market is estimated to witness the highest growth rate over the forecast period because of the advancing low-power high-range wireless connectivity technologies.
• Network security management solution is expected to witness the highest growth rate over the forecast period as it secures the data and resources in a network with the help of a firewall and other IoT-enabled security solutions for better network management.

Application Trends

"Smart building and home automation applications accounted for a significant share of the market in 2022 & are likely to dominate the market over the forecast period".

• The key driving factors of the smart building and home automation application are the increasing disposable income of people in emerging economies, the growing importance of home monitoring from remote locations, the growing number of internet users and increasing adoption of smart devices, increasing concern about safety, security, and convenience among the general population, expansion of smart home product portfolio by numerous vendors, and increasing awareness for energy-saving and low carbon emission-oriented solutions.
• Smart building and home automation applications involve automating the entire home environment using an integrated in-built monitoring system. The monitoring system is also capable of controlling electrical, electronic, and security appliances from a single mobile or desktop app interface. Convenience, efficiency, and security are the key factors that impact the adoption of any new technology. A smart home coordinates with security, lighting, temperature, and audio/video systems automatically to provide energy-saving, security, and convenience to its user.
• Smart building and home automation products give convenience and save time and effort required to carry out household tasks. Security is a top focus of smart home systems. Smart security systems can alert users, who are away from their homes in case of intrusion; furthermore, they also provide room-by-room surveillance. Access control systems play a crucial role in enabling security in residential areas. These systems have emerged since their inception to deliver efficient and user-friendly support.
• The market is also projected to witness the highest rate in transportation, logistics tracking, and traffic management application over the forecast period because of the growing usage of smart technologies for managing traffic and logistics.

Regional Analysis

"North America accounts for the largest market share in 2022 & is expected to grow at a robust CAGR during the forecast period".

• Because of the increasing adoption of smart connected devices and technologies in the regions, telecom operators promoting OTT applications are the factors driving the adoption of Telecom IoT.

"Europe is also estimated to grow at a high pace during the forecast period".

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Key Players

The following are the key players in the Telecom IoT Market (arranged alphabetically).

• Aeris
• AT&T Inc.
• China Mobile Ltd.
• Deutsche Telekom AG
• Ericsson
• Huawei Technologies Co. Ltd
• Sprint Corporation
• Swiscomm AG
• T-Mobile USA, Inc.
• Verizon Communications Inc.

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

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Research Methodology

• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

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