Overview:

According to the latest research from Counterpoint’s IoT (Internet of Things) service, global IoT cellular connections grew 41% annually to the end of 3Q 2017, having already crossed the half billion mark earlier in 2017.

Cellular IoT acts as the backbone in driving secure connectivity for different devices to the internet and across different verticals. The type of access used will depend on the nature of the application. 3GPP WAN technologies like GSM (2G), WCDMA (3G), 4G LTE and upcoming 5G technologies, operate in licensed spectrum and have primarily targeted high-quality mobile voice and data services. However, they are being complemented with new functionality and the new radio access standards like EC-GSM, LTE-M and narrowband IoT (NB-IoT), specifically tailored to be an attractive solution for emerging low power wide area (LPWA) applications that will be the key IoT connectivity drivers alongside 5G in coming years

IoT Connectivity Market Analysis – Q3 2017

China Mobile grew 21% QoQ and leads the market with 32% share of connections. China Mobile has leapfrogged global operators, exercising enormous domestic scale, quickly transitioning to 4G LTE IoT connections and now aggressively rolling out NB-IoT connections to further exploit the IoT opportunities. China Mobile was a bit late starting its NB-IoT service but is now aggressively pursuing the service rollout. In August 2017, China Mobile issued RFPs (Requests for Proposals) for two projects, worth a combined total of CYN 39.6 billion (US$ 6 billion) to achieve nation-wide NB-IoT commercialization by early 2018:
- Wireless and core network equipment for cellular IoT 2017-2018
- Procurement of NB-IoT antennas 2017-2018
Vodafone grew 37% YoY and holds the second position with 10.9% market share. As of 3Q2017, Vodafone had launched NB-IoT in four countries including, The Netherlands, Ireland, Czech Republic and Spain. Vodafone added commercial NB-IoT networks in Turkey and Australia in early 4Q 2017.
China Unicom grew 39% YoY and holds third position with 9.4 % market share. China Unicom announced pre-commercialization of NB-IoT in May. Shanghai became the first trial city for its pre-commercial network. China Unicom is still in the pre-commercial stage with no officially announced tariff plan. It will have pre-commercialization in 10 domestic cities by the end of 2018.
AT&T grew 23% YoY and holds fourth spot with 6.4 % market share. AT&T’s LPWA IoT strategy currently is focusing on LTE-M, which the operator began rolling out in 2Q 2017 with initial applications being asset tracking (pallet tracking) and smart meters.
China Telecom grew 17% YoY and holds fifth place with 5% market share. In terms of NB-IoT, it was the fastest developing company for NB-IoT connection among Chinese operators. It completed network coverage of 800 million people under NB-IoT by the end of June 2017, and announced commercialization of NB-IoT in July. In so doing it became the first operator in China to officially kick-off the commercialization of an NB-IoT service.
Asia grew 64.2% YoY and dominates cellular IoT connections with a 57.2% share. China is the major contributor with 81% of Asian connections and grew 75% YoY:
- Japan And South Korea grew 15 % and 25 % YoY respectively. Japan holds 5% share and South Korea holds 2% share within Asia.
- In terms of LPWA development, South Korea is ahead of Japan. S.K.Telecom, LG U+ and KT Corp commercialised their NB-IoT services in 3Q 2017. KT Corp also commercialised LTE-M in 2Q2017. South Korean Operators are looking forward to driving their LPWA connections in 2018 with specific focus areas being agriculture and energy utilities.
Americas grew 20% YoY and holds second position with a 19.6% share. The USA’s four operators account for 68% of the connections in the Americas region. The US grew 17% YoY:
- AT&T and Verizon are the only US operators that have so far commercialised LTE-M networks - both in 2Q2017. Within the US, these two operators hold 72.5% of IoT cellular connections.

Table of Contents:

1) Cellular IoT Connection

Table 1.1 : IoT Cellular Connection
Table 1.2 : IoT Cellular Connection Market Share %
Table 1.3 : IoT Cellular Connection by Technology
Table 1.4 : IoT Cellular Connection by Technology Share %

2) C-IoT Connection by Technology

Table 2.1 : IoT Cellular 2G Connection
Table 2.1A : IoT Cellular 2G Connection Market Share %
Table 2.2 : IoT Cellular 3G Connection
Table 2.2A : IoT Cellular 3G Connection Market Share %
Table 2.3 : IoT Cellular 4G LTE Connection
Table 2.3A : IoT Cellular 4G LTE Connection Market Share %
Table 2.4 : IoT Cellular LTE-M Connection
Table 2.4A : IoT Cellular LTE-M Connection Market Share %
Table 2.5 : IoT Cellular NB-IoT Connection
Table 2.5A : IoT Cellular NB-IoT Connection Market Share %
Table 2.6 : IoT Cellular LPWA Connection
Table 2.6A : IoT Cellular LPWA Connection Market Share %

3) C-IoT Connection by Region

Table 3.1 : Global IoT Cellular Connection by Region
Table 3.1A : Global IoT Cellular Connection by Region Market Share %
Table 3.2 : Asia IoT Cellular Connection by Country
Table 3.2A : Asia IoT Cellular Connection by Country Market Share %
Table 3.3 : Americas IoT Cellular Connection by Country
Table 3.3A : Americas IoT Cellular Connection by Country Market Share %

4) Charts and Graphs

5) AT-A- GLANCE

Table 5.1 : Global IoT Cellular Connection 3Q2017
Table 5.1A : Global IoT Cellular Connection 3Q2017 Market Share %
Table 5.2 : Global IoT Cellular Connection by Connection
Table 5.2A : Global IoT Cellular Connection by Connection Market Share %

6) Operators

China Mobile
China Unicom
China Telecom
Vodafone
AT&T
Verizon
T-Mobile
Sprint
Telefonica
Orange
Telenor
Deutsche Telekom**
SoftBank*
NTT Docomo
KDDI
Tesltra
Telia
SK Telecom
KT Crop
LGU+

Authors: Neil Shah and Satyajit Sinha (analyst@counterpointresearch.com)
Published Date: January 2018

IoT Cellular Connection Tracker 2017