×

The current state and prospects of using LPWAN radio technologies in the IoT market

July 2017

Analytical Report (full version)

Request cost of the full version of the study: news@json.tv

Analytical Report (full version)

The current state and prospects of using LPWAN radio technologies in the IoT market
The current state and prospects of using LPWAN radio technologies in the IoT market
July 2017

The current state and prospects of using LPWAN radio technologies in the IoT market

July 2017

To register or Log in, to download the file

Download file

+7 926 011 43 17; news@json.tv

Write, call, if you have questions

 

J'son & Partners Consulting presents a brief updated research of the state and prospects for the use of low-power and wide-coverage radio technologies (LPWAN) for the Internet of things. The main prospects of such technologies are associated with cheapening of communication modules and end devices, the integration of several standards in one chipset and adaptation of regulation.

 

Principal LPWAN technologies

 

There are LPWAN technologies which are developed mainly by cellular operators under the auspices of the GSM Association and within the 3GPP consortium, and use the licensed spectrum - LTE-M, NB-IoT and EC-GSM-IoT. There are also alternative technologies - LoRa, Sigfox, etc., which work in the unlicensed spectrum and have the advantage of "time-to-market" (appeared earlier in the market). In total, according to data at the end of 2016, at least 7 different LPWAN technologies were used in the world.

 

Among the technologies using the licensed spectrum, NB-IoT technologies (NB-IoT commercial networks were launched in 6 countries) and LTE-M (4 commercial networks in two countries) by the end of July 2017 were the most popular in the world. At the end of 2017, the world expects 25 commercial networks NB-IoT. The plans for the deployment of LTE-M networks were announced by the operators KPN, KDDI, NTT DoCoMo, Orange, Telefonica, Telstra, TELUS and others.

 

Technologies in the unlicensed spectrum are developed, basically, by small alternative operators. Although there are exceptions, for example, in 2016, South Korean operator SK Telecom deployed the national network LoRaWAN (in the same year, the operator also deployed a large-scale LTE-M network).

 

Development of LPWAN networks in Russia

 

In Russia the most promising are the two standards: NB-IoT and LoRaWAN. In addition, the local LPWA technologies LPWAN-NB-Fi (Narrow Band Fidelity),  “Strizh” and others are developing. In July 2017, the Association of the Internet of Things, established by the Foundation for the Development of Internet Initiatives (FRI), introduced a project of the Russian communication standard to Rosstandart Ffor the Internet of things - NB-Fi. This technology is designed to transfer small amounts of data in the area of ​​utilities, electricity, transport and logistics, within the concept of "smart city". It is expected that the implementation of the standard will allow to collect data with minimal costs for device installation, unify the information collection process and ensure compatibility of information collection devices from different manufacturers.

 

Large operators are still at the planning stage of LPWAN pilot projects. For example, MTS and ER-Telecom Holding will engage in "local testing" of NB-IoT and LoRaWAN technologies, respectively.

 

MegaFon, as well as MTS, relies on the NB-IoT standard. In March 2017, the operator based on this technology demonstrated the work of smart counters for utilities, and in May signed an agreement with Innopolis on the creation of a pilot zone NB-IoT.

 

According to the representatives of cellular operators, the use of the licensed frequency band guarantees reliability, safety and continuity of data transmission. The "fee" for these advantages is the relatively high costs and complexity of providing network coverage in hard-to-reach places.

 

LPWAN application areas

 

It is expected that solutions based on LPWAN will allow utility services and management companies to quickly obtain information on resource consumption, automatically control costs, and in the future - to limit the flow of resources to debtors. Residents who switched to a new solution will no longer have to transmit meter readings manually; Tthey will also be able to monitor the consumption of electricity, water and gas through the mobile application remotely.

 

Areas of application of LPWAN technologies are not limited to the area of ​​housing and communal services. For example, in Norway at the end of 2016, the world's first "smartclever" solution in agriculture - in the field of irrigation systems, and later - for sheep monitoring was launched on the basis of NB-IoT technology. The operator Telstra (Australia) plans to use the Cat M1 standard for logistics, medicine, transport, agriculture, industry and other fields. In 2016, MegaFon demonstrated an example of the application of the NB-IoT standard - smart parking. MTS at the initial stage of the pilot project, MTS plans to install sensors in the premises to monitor the flow of water and electricity, and possibly on utility vehicles to monitor the regularity of garbage disposal, as well as to control lighting in yards. Other applications of LPWAN include environmental monitoring, smart buildings, smart insurance, vending machines, etc. (Figure 1).

 

The state and prospects of the use of LPWAN technologies in agriculture are analyzed in detail in the study by J'son & Partners Consulting "Communication technologies for the Internet of things in agriculture (Agro IoT) and the role of telecom operators" (http://json.tv/ict_telecom_analytics_view/kommunikatsionnye-tehnologii-dlya-interneta-veschey-v-selskom-hozyaystve-agro-iot-i-rol-operatorov-svyazi--20170705011636).

 

Source: Ericsson, June 2017

 

Main drivers and barriers

 

At the moment, there are several drivers and constraints to the development of LPWAN technologies.

 

Main drivers:

  • Standardization and development of commercial networks and LPWAN solutions in the licensed spectrum, development of the LPWAN ecosystem. The NB-IoT standard as part of 3GPP Release-13 was finalized in June 2016, and after several pioneer operators deployed the first commercial networks, many other large operators began to prepare for their example - at least made public statements about test and commercial launches in perspective.
  • The emergence of chipsets with the support of several technologies at once in case of uncertainty of the market prospects of specific LPWAN standards and insufficient network coverage of new technologies at the initial stage of their deployment. For example, in mid-2017, Sierra Wireless introduced the world's first AirPrime WP77 chipset with support for two LPWA technologies-LTE-M (Cat-M1) and NB-IoT (Cat-NB1), as well as 2G support. The Russian supplier of telemetry based on LPWAN, Vaviot plans to integrate NB-IoT technology into its products using the unlicensed spectrum.

 

The emergence of hybrid chipsets that support various standards in the licensed and non-licensed spectrum, as well as various standards in the licensed spectrum, is an essential driver for the development of LPWAN technologies in Russia and in the world.

 

The main constraints for the development of LPWAN networks in the licensed spectrum are:

  • Relatively high costs for deploying networks in the absence of successful business cases.
  • High cost of end devices. For mass demand in developed markets, the cost of modules should be no more than $ 5 (in developing countries - no more than $ 2-3), while the cost of NB-IoT modules in the middle of 2017 is from € 10 to € 15, and the cost of LTE-M modules - even higher. For example, the cost of the Skywire LTE CAT M1 modem (such a solution, in particular, is used on the operator's network operator AT & T) is $ 69-75.
  • Insufficient LTE coverage in many countries. LTE-M (Cat-M1) and NB-IoT standards are being implemented on existing LTE networks, so it is obvious that such networks are deployed, first of all, in countries with good LTE coverage - in South Korea, the US and others.

 

In the unlicensed spectrum, the main constraints are related to the lack of consolidation of market participants and insufficiently favorable regulation. So, in Russia there are significant restrictions on the power of radio transmitters for the frequency range in which, for example, LoRa technology works. In this case, the experience of South Korea is indicative.

 

One of the most important drivers for the development of LPWAN and IoT in general are regulatory issues. For example, in South Korea, large-scale launches of LPWAN networks occurred after in March 2016 the industry regulator MSIP reported on the planned increase in the maximum permissible capacity of a radio transmitter operating in the 900 MHz band (917-923.5 MHz), from 10 mW to 200 mW. 

 

Forecasts

 

According to IDTechEx forecasts, about 12 billion devices will be connected to LPWAN networks within the next 10 years. The main areas of application of such technologies include smart houses and cities, asset tracking and agriculture.

 

According to Riot Research forecasts, the LPWAN market in 2017-23. Wwill grow in monetary terms with a CAGR of 45%, and by the end of the forecast period will reach $ 19.1 billion. At the same time, the shares of various LPWAN technologies will change significantly. Thus, the share of NB-IoT and LTE-M technologies using the licensed spectrum will increase significantly, as a result these technologies will dominate by the number of connections by the end of the forecast period.

 

Similar forecasts are made by Lux Research, according to analysts, NB-IoT's leadership will be due to a wider geographical coverage compared to other LPWAN technologies (Sigfox, LoRaWAN, etc.), as well as a "scale effect" - in 2016, total revenue of operators , Cconsidering NB-IoT as the priority LPWAN technology, was $ 578 billion against $ 416 billion from LoRa and Sigfox operators in the aggregate. As a result, by 2022, according to Lux Research, NB-IoT will account for more than 90% of connections in the world. In this case LoRaWAN will most likely complement NB-IoT in some applications.

 

Source: Lux Research, 2017

 

According to J'son & Partners Consulting, by the end of 2022 in Russia will have not less than 10 million connections in the framework of the LPWAN technology. The LPWAN standards will be used primarily in housing, smart cities, logistics, transport and farming. In general, the Russian market will develop in line with global trends, with a delay of 1-3 years from the developed countries.

 

 

Detailed results of the research are presented in the full version of the report:

«The current state and prospects of using LPWAN radio technologies in the IoT market»

 

Summary

INTRODUCTION

  1. The state of LPWA networks in the world in 2015-2017.

1.1.   LPWA network in the world by technology

1.2.   LPWA network in the world by regions

  1. Classification, main characteristics and application areas of LPWAN technologies

2.1.   Technology in the licensed spectrum (3GPP)

2.1.1.   LTE-M (eMTC, LTE Cat M1)

2.1.1.1.           Brief overview of the technology

2.1.1.2.           Chipsets and modules

2.1.1.3.           The cost of the modules

2.1.1.4.           Devices

2.1.1.5.           Projects in the world

2.1.1.6.           Projects in Russia

2.1.1.7.           Basic application areas

2.1.2.   NB-IoT (LTE Cat-M2, Cat-NB1)

2.1.2.1.           Brief overview of the technology

2.1.2.2.           Chipsets and modules

2.1.2.3.           The cost of the modules

2.1.2.4.           Devices

2.1.2.5.           Projects in the world

2.1.2.6.           Projects in Russia

2.1.2.7.           Basic application areas

2.1.3.   EC-GSM (EC-GPRS, EC-GSM-IoT)

2.1.3.1.           Brief overview of the technology

2.1.3.2.           Projects in the world

2.1.3.3.           Projects in Russia

2.1.3.4.           Basic application areas

2.2.   Technologies in the unlicensed spectrum

2.2.1.     LoRaWAN

2.2.1.1.           Brief history of the LoRa technology emergence

2.2.1.2.           Application areas

2.2.1.3.           The LoRaWAN network architecture

2.2.1.4.           Security and data privacy

2.2.1.5.           Basic types of devices in LoRaWAN networks

2.2.1.6.           Frequency ranges

2.2.1.7.           The cost of the modules

2.2.1.8.           Regulatory issues

2.2.1.9.           Projects in the world

2.2.1.10.       Projects in Russia

2.2.2.     Sigfox

2.2.2.1.           Brief overview of the technology

2.2.2.2.           Projects in the world

2.2.2.3.           Basic application areas

2.2.3.     Russian technologies

2.2.3.1.           «STRIZH»

2.2.3.2.           NB-Fi («Vaviot»)

2.2.3.3.           «Telekan»

2.2.3.4.      «Altonika»

2.2.4.   Other technologies

  1. Application areas of various LPWAN  technologies

3.1.   Housing

3.2.   Smart Grid

3.3.   Smart farming

3.4.   Smart City

3.5.   Smart logistics and transport

3.6.   Smart buildings

3.7.   Other application areas

  1. Drivers and constraining factors in the development of LPWAN

4.1.   Main drivers

4.2.   Main barriers

  1. Forecasts of the development of LPWAN

5.1.   Forecasts in the world

5.2.   Forecasts in Russia

  1. Apps

6.1.   Main Sigfox projects in the world

6.2.   Main LoRaWAN projects in the world

 

 

The newsletter was prepared by J'son & Partners Consulting. We make every effort to provide factual and forecast data that fully reflect the situation and are available at the time of the release of the material. J'son & Partners Consulting reserves the right to revise the data after the publication of new official information by individual players. 

 

 

Copyright © 2017, J’son & Partners Consulting. The media can use the text, graphics and data contained in this market review only using a link to the source - J’son & Partners Consulting or with an active link to the  JSON.TV portal

™ J’son & Partners [registered trademark] 

 

 

 

J'son & Partners Consulting presents a brief updated research of the state and prospects for the use of low-power and wide-coverage radio technologies (LPWAN) for the Internet of things. The main prospects of such technologies are associated with cheapening of communication modules and end devices, the integration of several standards in one chipset and adaptation of regulation.