The LPWA (Low Power Wide Area) Networks Ecosystem: 2015 - 2030 - Opportunities, Challenges, Strategies, Industry Verticals & Forecasts

Published: Nov, 2015 | Pages: 192 | Publisher: SNS Research
Industry: ICT | Report Format: Electronic (PDF)

LPWA - low power wide area, is a term used to describe a group of technologies that possess affordable chipsets and networks, extended battery life (often longer than ten years), restricted data communications throughput capacity, and wide area connectivity features. LPWA technologies are complementary to existing short range and cellular network technologies, but are associated with lower costs and better power consumption. 

Most Internet of Things (IoT) and machine-to-machine (M2M) services are dependent on licensed satellite, cellular and wireline networks for wide area connectivity. Cellular networks, in particular, have dominated this space in the recent past. However, cellular networks consume a lot of power. Moreover, they are riddled with complex protocols that lower battery life. This renders them expensive for many low bandwidth IoT applications. LPWA, on the other hand, typically rely on unlicensed frequencies and have low data rates. Research indicates that the cost-per-module of LPWA could lower from USD 5-20 to USD 1-2 in volume quantities. 

Although non-existent in early 2013, LPWA is presently one of the fastest-growing components of IoT. This exponential growth is a result of the wide application scope facilitated by an evolving technological space. 

LPWA is already prevalent in applications like smart metering, parking management and lighting control. It is anticipated to contribute significantly to the IoT and M2M ecosystem in forthcoming years. Revenues in the global LPWA networks ecosystem market are expected to exceed USD 26 billion by 2020. Chief regional markets include North America, Asia Pacific, Middle East & Africa, Eastern Europe, Western Europe, and Latin & Central America. 

LPWA will enable connection of power-consuming assets to an electricity grid, thereby saving resources. It could be used to connect consumer devices, especially in domains like assisted living and home automation. It may equip a variety of smart city applications to improve efficiencies in everyday functioning. Its adoption in supply chain management would increase operational efficiencies and customer satisfaction, and create pathways for new business models. 

Lack of a universally-adopted standard for LPWA may restrict market growth. However, it is expected that a significant level of standardization will be achieved in the years to come. Initiatives are underway to introduce regulations that will dedicate spectrum bands exclusively for LPWA networks. LPWA is a priority for the mobile industry. Mobile companies are investing in their own LPWA networks so as to support low bandwidth IoT applications.

Topics Covered
The report covers the following topics: 
 - LPWA networks ecosystem
 - Market drivers and barriers
 - LPWA technologies, spectrum bands and key trends
 - Assessment of competing cellular, satellite, wireline and short range networking technologies
 - Vertical market applications, opportunities and deployment case studies
 - Regulatory landscape and standardization
 - Industry roadmap and value chain
 - Profiles and strategies of over 80 leading ecosystem players
 - Strategic recommendations for ecosystem players
 - Market analysis and forecasts from 2015 till 2030

Historical Revenue & Forecast Segmentation
Connection and service revenue forecasts are provided for the following submarkets:
Vertical Markets
 - Agriculture
 - Asset Management & Logistics
 - Automotive & Transportation
 - Consumer Applications & Home Automation
 - Energy & Utilities
 - Healthcare
 - Intelligent Buildings & Infrastructure
 - Public Safety, Security & Surveillance
 - Retail & Vending
 - Others

Regional Markets
 - Asia Pacific
 - Eastern Europe
 - Middle East & Africa
 - Latin & Central America
 - North America
 - Western Europe

Key Questions Answered 
The report provides answers to the following key questions:
 - How big is the LPWA networks opportunity?
 - What trends, challenges and barriers are influencing its growth?
 - How is the ecosystem evolving by segment and region?
 - What will the market size be in 2020 and at what rate will it grow?
 - Which regions and submarkets will see the highest percentage of growth?
 - How are smart city initiatives driving LPWA network investments?
 - What are the key performance characteristics of LPWA technologies such as Sigfox, LoRa and NB-IOT?
 - How does regulation impact the adoption of LPWA networks?
 - Do LPWA networks pose a threat to cellular network technologies?
 - Who are the key market players and what are their strategies?
 - What strategies should LPWA technology providers, mobile operators, MVNOs, aggregators, IoT platform providers and other ecosystem players adopt to remain competitive?

Key Findings 
The report has the following key findings: 
 - Already prevalent in IoT applications such as smart metering, lighting control and parking management, LPWA networks are expected to make a significant contribution to the M2M and IoT ecosystem, with an estimated $27 Billion in service revenue by 2020.
 - As of Q4’2015, SNS Research estimates the cost of a typical LPWA module to be $5-20, depending on the specific technology. As LPWA network deployments mature, we expect that the cost per module can drop down to as low as $1-2 in volume quantities.
 - At present, a majority of LPWA networks operate in license-exempt spectrum primarily in sub-GHz bands. There are a number of ongoing initiatives that call for regulators to dedicate spectrum bands exclusively for LPWA networks as mass market adoption of unlicensed LPWA networks can result in significant interference.
 - Besides optimizing their cellular networks for M2M services, mobile operators are increasingly investing in their own carrier-grade LPWA networks to support low bandwidth IoT applications.

 Table of Contents

1 Chapter 1: Introduction 13
1.1 Executive Summary 13
1.2 Topics Covered 15
1.3 Historical Revenue & Forecast Segmentation 16
1.4 Key Questions Answered 17
1.5 Key Findings 18
1.6 Methodology 19
1.7 Target Audience 20
1.8 Companies & Organizations Mentioned 21

2 Chapter 2: An Overview of LPWA Networks 24
2.1 M2M Networks & the IoT Vision 24
2.1.1 What is M2M Technology? 24
2.1.2 The IoT Vision 25
2.1.3 M2M & IoT Architecture 26
2.2 The Limitations of Traditional M2M Networking Technologies 27
2.3 What are LPWA Networks? 28
2.4 Key Characteristics of LPWA Networks 29
2.4.1 Long Range & Strong Propagation 29
2.4.2 Star Network Topology 29
2.4.3 Low Data Rates 30
2.4.4 Low Power Consumption 30
2.4.5 Battery Life Requirements 30
2.4.6 Scalability 30
2.4.7 Low Cost Modules & Infrastructure 31
2.4.8 Supplementary Features 31
2.5 Market Growth Drivers 32
2.5.1 Addressing Low Throughput IoT Use Cases 32
2.5.2 Cost Saving Potential 32
2.5.3 Energy Saving: Towards Green IoT Networks 33
2.5.4 The 2G Sunset 33
2.5.5 Regulatory Initiatives & Mandates 33
2.5.6 Interest from Vertical Markets 34
2.5.7 Commitments by Industry Giants 34
2.6 Market Barriers 34
2.6.1 Lack of Standardization 34
2.6.2 Interference Concerns 35
2.6.3 Low Revenue per Connection 35
2.6.4 Integration Complexities 35

3 Chapter 3: LPWA Networking Technologies 37
3.1 UNB (Ultra Narrow Band) 37
3.1.1 Sigfox 37
3.1.2 Telensa 38
3.2 LoRa Alliance 39
3.2.1 Semtech’s LoRA RF Platform 39
3.2.2 LoRaWAN 39
3.2.3 Link Labs’ Symphony Link 40
3.3 Weightless SIG 41
3.3.1 Weightless-W 42
3.3.2 Weightless-N 42
3.3.3 Weightless-P 43
3.4 Ingenu’s RPMA (Random Phase Multiple Access) 43
3.5 3GPP Technologies 44
3.5.1 NB-IOT (Narrow Band IOT) 44
3.5.2 Clean-Slate Approach: New Air Interface 44
3.5.3 NB-LTE (Narrow Band LTE) 45
3.5.4 EC-GSM (Extended Coverage GSM) 45
3.6 IEEE 802.11 ah & af 45
3.7 Spectrum Options for LPWA Networks 46
3.7.1 ISM (Industrial, Scientific, and Medical Radio) Bands 47
3.7.2 TVWS (TV White Spaces) 47
3.7.3 Licensed Spectrum 47
3.8 Competing M2M Networking Technologies 48
3.8.1 Traditional Cellular Networks 48
3.8.1.1 2G & 3G 48
3.8.1.2 LTE 49
3.8.1.3 5G 49
3.8.2 Satellite Communications 49
3.8.3 Wireline Networks 49
3.8.4 Short Range Networks 50
3.8.4.1 WiFi 50
3.8.4.2 Bluetooth 50
3.8.4.3 ZigBee 50
3.8.5 Others 50

4 Chapter 4: Vertical Market Applications, Opportunities & Case Studies 52
4.1 Agriculture 52
4.1.1 Precision Agriculture 52
4.1.2 Livestock Management 52
4.1.3 Agricultural Equipment Monitoring 53
4.2 Asset Management & Logistics 53
4.2.1 Maintaining Real-Time Asset Inventories 53
4.2.2 Supply Chain Visibility 53
4.2.3 Tracking Containers & Goods 53
4.2.4 Monitoring of Shipment Conditions 54
4.2.5 Other Applications 54
4.3 Automotive & Transportation 54
4.3.1 Tracking & Location Services 54
4.3.2 Remote Vehicle Management 54
4.3.3 Safety & Security 55
4.3.4 Other Applications 55
4.4 Consumer Applications & Home Automation 56
4.4.1 Wide Area Tracking 56
4.4.2 Sports & Fitness 56
4.4.3 Smart Homes & Intelligent Appliances 57
4.5 Energy & Utilities 57
4.5.1 Smart Metering 57
4.5.2 Applications in the Oil & Gas Sector 58
4.6 Healthcare 58
4.6.1 Health & Wellness Monitoring 58
4.6.2 Diagnostic Tools 58
4.6.3 Connected Prescription Reminders 59
4.6.4 Other Applications 59
4.7 Intelligent Buildings & Infrastructure 59
4.7.1 Intelligent Buildings 59
4.7.2 Public Infrastructure Management 60
4.7.3 Parking Management 60
4.7.4 Lighting Control 60
4.7.5 Waste Management 60
4.7.6 Environmental Monitoring & Other Applications 61
4.8 Public Safety, Security & Surveillance 61
4.8.1 Perimeter Access Control 61
4.8.2 Connected Security Alarms 61
4.8.3 Other Applications 62
4.9 Retail & Vending 62
4.9.1 POS (Point of Sale) Applications 62
4.9.2 Intelligent Shopping 62
4.9.3 Smart Restocking 63
4.9.4 Other Applications 63
4.10 Other Verticals 63
4.11 LPWA Deployment Case Studies 64
4.11.1 BT: Creating the UK’s First IoT Enabled Smart City 64
4.11.2 Du: Supporting Smart City Initiatives with LPWA Networking 64
4.11.3 Enevo: Waste Logistics Optimization 65
4.11.4 Securitas: LPWA Powered Home Security Monitoring 65
4.11.5 Senet: Optimizing Fuel Delivery with LPWA Networking 66
4.11.6 Smarteo Water: Enabling Smart Metering with LPWA Networking 66
4.11.7 Telensa: Smart Parking & Street Lighting 67
4.11.8 The Things Network: Crowdsouring IoT Networks 68

5 Chapter 5: Regulatory Landscape 69
5.1 3GPP (3rd Generation Partnership Project) 69
5.2 LoRa Alliance 70
5.3 Weightless SIG 71
5.4 IEEE (Institute of Electrical and Electronics Engineers) 72
5.5 Wireless IoT Forum 72
5.6 GSMA 73

6 Chapter 6: Industry Roadmap & Value Chain 75
6.1 Industry Roadmap 75
6.1.1 2015 – 2020: Initial Rollouts to Support Smart City Applications 75
6.1.2 2020 – 2025: Moving Towards Licensed Spectrum & Technologies 76
6.1.3 2025 – 2030 & Beyond: Cannibalizing Legacy Cellular M2M Connections 76
6.2 Value Chain 77
6.2.1 Enabling Technology 77
6.2.1.1 Hardware Providers 77
6.2.1.2 Software Providers 78
6.2.2 Connectivity 78
6.2.2.1 Mobile Operators 78
6.2.2.2 MVNOs & Aggregators 78
6.2.3 Service Enablement 78
6.2.3.1 CDP (Connected Device Platform) Providers 79
6.2.3.2 Application Platform Providers 79
6.2.4 Vertical Solutions 79
6.2.4.1 System Integrators 79
6.2.4.2 Vertical Market Specialists 79
6.2.5 Other Ecosystem Players 79
6.2.5.1 Cloud Platform Providers 80
6.2.5.2 Big Data & Analytics Specialists 80
6.2.5.3 Supplementary Service Providers 80

7 Chapter 7: Key Market Players 81
7.1 Accellus Communication Networks 81
7.2 Actility 82
7.3 Adeunis RF 83
7.4 Aerea 84
7.5 AMBER Wireless 85
7.6 Arkessa 86
7.7 Arqiva 87
7.8 AT&T 88
7.9 Atim 89
7.10 Atmel Corporation 90
7.11 Augtek 91
7.12 AXSEM 92
7.13 Bouygues Telecom 93
7.14 BT Group 94
7.15 Cellnex Telecom (Abertis Telecom) 95
7.16 CG-Wireless 96
7.17 Cisco Systems 97
7.18 Digi International 98
7.19 DT (Deutsche Telekom) 99
7.20 Du (Emirates Integrated Telecommunications Company) 100
7.21 Elster Group 101
7.22 Eolane 102
7.23 Ericsson 103
7.24 Etisalat Group 104
7.25 Eutelsat 105
7.26 FLASHNET 106
7.27 Helium Systems 107
7.28 Homerider Systems 108
7.29 Hope RF (Hope Microelectronics) 109
7.30 Huawei 110
7.31 IBM 111
7.32 IMST 112
7.33 Ingenu 113
7.34 Intel Corporation 114
7.35 Kerlink 115
7.36 KPN 116
7.37 Libelium 117
7.38 Link Labs 118
7.39 M2COMM (M²Communication) 119
7.40 M2M Spectrum Networks 120
7.41 Microchip Technology 121
7.42 Multi-Tech Systems 122
7.43 Nemeus 123
7.44 Nettrotter 124
7.45 NNNCo (National Narrowband Network Communications) 125
7.46 Nokia 126
7.47 NTT DoCoMo 127
7.48 Nwave Technologies 128
7.49 Orange 129
7.50 OrbiWise 130
7.51 PicoWAN 131
7.52 Plextek 132
7.53 Proximus Group 133
7.54 Qowiso 134
7.55 Qualcomm 135
7.56 Radiocrafts 136
7.57 Sagemcom 137
7.58 Samsara Networks 138
7.59 Samsung Electronics 139
7.60 Semtech Corporation 140
7.61 Senet 141
7.62 Sierra Wireless 142
7.63 Sigfox 143
7.64 Silicon Labs (Silicon Laboratories) 144
7.65 SimpleCell Networks 145
7.66 Singtel 146
7.67 SK Telecom 147
7.68 Stream Technologies 148
7.69 Swisscom 149
7.70 Tata Communications 150
7.71 Tele2 151
7.72 Telecom Design 152
7.73 Telecom Italia 153
7.74 Telefónica 154
7.75 Telensa 155
7.76 Telit Communications 156
7.77 Telkom SA 157
7.78 Telstra Corporation 158
7.79 The Things Network 159
7.80 TI (Texas Instruments) 160
7.81 U-blox 161
7.82 Vodafone Group 162
7.83 WAVIoT 163

8 Chapter 8: Market Analysis & Forecasts 164
8.1 Global Outlook of LPWA Networks 164
8.1.1 LPWA Network Connections 164
8.1.2 LPWA Network IoT Service Revenue 165
8.2 Connectivity vs. Application Services 165
8.2.1 Connectivity Revenue 166
8.2.2 IoT Application Service Revenue 166
8.3 Vertical Market Segmentation 167
8.3.1 Agriculture 168
8.3.2 Asset Management & Logistics 169
8.3.3 Automotive & Transportation 170
8.3.4 Consumer Applications & Home Automation 171
8.3.5 Energy & Utilities 172
8.3.6 Healthcare 173
8.3.7 Intelligent Buildings & Infrastructure 174
8.3.8 Public Safety, Security & Surveillance 175
8.3.9 Retail & Vending 176
8.3.10 Others 177
8.4 Regional Segmentation 178
8.4.1 Asia Pacific 179
8.4.2 Eastern Europe 180
8.4.3 Middle East & Africa 181
8.4.4 Latin & Central America 182
8.4.5 North America 183
8.4.6 Western Europe 184

9 Chapter 9: Conclusion & Strategic Recommendations 185
9.1 Why is the Market Poised to Grow? 185
9.2 Competitive Industry Landscape: Acquisitions, Alliances & Consolidation 185
9.3 Prospects of Licensed Spectrum for LPWA Networks 186
9.4 SWOT Analysis: LPWA vs. Competing Technologies 187
9.5 Geographic Outlook: Which Regions Offer the Highest Growth Potential? 188
9.6 Reducing LPWA Module Costs 189
9.7 Smart City Infrastructure Projects: Driving LPWA Network Rollouts 190
9.8 Impact on Mobile Operators: Opportunities & Challenges 190
9.9 Strategic Recommendations 191
9.9.1 LPWA Technology Providers 191
9.9.2 Other Enabling Technology Providers 191
9.9.3 Mobile Operators 192
9.9.4 MVNOs & Aggregators 192
9.9.5 IoT Platform Providers 192
9.9.6 System Integrators & Vertical Market Specialists 193

List of Figures  

Figure 1: The IoT Vision 25
Figure 2: M2M & IoT Network Architecture 26
Figure 3: Global Wide Area M2M Connections by Technology: 2015 – 2030 28
Figure 4: Telensa’s Smart Lighting Solution 38
Figure 5: LoRaWAN Architecture 40
Figure 6: Comparison of Weightless Open LPWA Standards 41
Figure 7: LPWA Networks Industry Roadmap 75
Figure 8: LPWA Networks Value Chain 77
Figure 9: Global LPWA Network Connections: 2015 - 2030 (Millions) 164
Figure 10: Global LPWA Network IoT Service Revenue: 2015 - 2030 ($ Billion) 165
Figure 11: Global LPWA Network IoT Service Revenue by Submarket: 2015 - 2030 ($ Billion) 165
Figure 12: Global LPWA Network Connectivity Revenue: 2015 - 2030 ($ Billion) 166
Figure 13: Global LPWA Network IoT Application Service Revenue: 2015 - 2030 ($ Billion) 166
Figure 14: Global LPWA Network Connections by Vertical: 2015 - 2030 (Millions) 167
Figure 15: Global LPWA Network IoT Service Revenue by Vertical: 2015 - 2030 ($ Billion) 167
Figure 16: Global LPWA Network Connections in Agriculture: 2015 - 2030 (Millions) 168
Figure 17: Global LPWA Network IoT Service Revenue in Agriculture: 2015 - 2030 ($ Billion) 168
Figure 18: Global LPWA Network Connections in Asset Management & Logistics: 2015 - 2030 (Millions) 169
Figure 19: Global LPWA Network IoT Service Revenue in Asset Management & Logistics: 2015 - 2030 ($ Billion) 169
Figure 20: Global LPWA Network Connections in Automotive & Transportation: 2015 - 2030 (Millions) 170
Figure 21: Global LPWA Network IoT Service Revenue in Automotive & Transportation: 2015 - 2030 ($ Billion) 170
Figure 22: Global LPWA Network Connections in Consumer Applications & Home Automation: 2015 - 2030 (Millions) 171
Figure 23: Global LPWA Network IoT Service Revenue in Consumer Applications & Home Automation: 2015 - 2030 ($ Billion) 171
Figure 24: Global LPWA Network Connections in Energy & Utilities: 2015 - 2030 (Millions) 172
Figure 25: Global LPWA Network IoT Service Revenue in Energy & Utilities: 2015 - 2030 ($ Billion) 172
Figure 26: Global LPWA Network Connections in Healthcare: 2015 - 2030 (Millions) 173
Figure 27: Global LPWA Network IoT Service Revenue in Healthcare: 2015 - 2030 ($ Billion) 173
Figure 28: Global LPWA Network Connections in Intelligent Buildings & Infrastructure: 2015 - 2030 (Millions) 174
Figure 29: Global LPWA Network IoT Service Revenue in Intelligent Buildings & Infrastructure: 2015 - 2030 ($ Billion) 174
Figure 30: Global LPWA Network Connections in Public Safety, Security & Surveillance: 2015 - 2030 (Millions) 175
Figure 31: Global LPWA Network IoT Service Revenue in Public Safety, Security & Surveillance: 2015 - 2030 ($ Billion) 175
Figure 32: Global LPWA Network Connections in Retail & Vending: 2015 - 2030 (Millions) 176
Figure 33: Global LPWA Network IoT Service Revenue in Retail & Vending: 2015 - 2030 ($ Billion) 176
Figure 34: Global LPWA Network Connections in Other Verticals: 2015 - 2030 (Millions) 177
Figure 35: Global LPWA Network IoT Service Revenue in Other Verticals: 2015 - 2030 ($ Billion) 177
Figure 36: LPWA Network Connections by Region: 2015 - 2030 (Millions) 178
Figure 37: LPWA Network IoT Service Revenue by Region: 2015 - 2030 ($ Billion) 178
Figure 38: Asia Pacific LPWA Network Connections: 2015 - 2030 (Millions) 179
Figure 39: Asia Pacific LPWA Network IoT Service Revenue: 2015 - 2030 ($ Billion) 179
Figure 40: Eastern Europe LPWA Network Connections: 2015 - 2030 (Millions) 180
Figure 41: Eastern Europe LPWA Network IoT Service Revenue: 2015 - 2030 ($ Billion) 180
Figure 42: Middle East & Africa LPWA Network Connections: 2015 - 2030 (Millions) 181
Figure 43: Middle East & Africa LPWA Network IoT Service Revenue: 2015 - 2030 ($ Billion) 181
Figure 44: Latin & Central America LPWA Network Connections: 2015 - 2030 (Millions) 182
Figure 45: Latin & Central America LPWA Network IoT Service Revenue: 2015 - 2030 ($ Billion) 182
Figure 46: North America LPWA Network Connections: 2015 - 2030 (Millions) 183
Figure 47: North America LPWA Network IoT Service Revenue: 2015 - 2030 ($ Billion) 183
Figure 48: Western Europe LPWA Network Connections: 2015 - 2030 (Millions) 184
Figure 49: Western Europe LPWA Network IoT Service Revenue: 2015 - 2030 ($ Billion) 184
Figure 50: SWOT Matrix: LPWA vs. Competing M2M Networking Technologies 187
Figure 51: Price Breakdown of an LPWA Module 189