By 2026, NB-IoT market size will exceed US$31.9 billion

According to a Valuates report, the global narrowband Internet of Things (NB-IoT) market size is expected to grow from US$992 million in 2019 to US$31.9256 billion by 2026, with a compound annual growth rate of 64.2% from 2019 to 2026.

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Trends that influence the development of the NB-IOT market:

The COVID-19 pandemic has led to a global lockdown, affecting global supply chains and logistics. Most countries have stopped all imports due to concerns about the further spread of the virus. With the decline in the supply of connectivity hardware, the NB-IoT market is expected to grow slightly slower than previously forecast.

However, the NB-IoT market is also driven by the growing demand for navigation, telematics and in-vehicle infotainment services in the automotive and transportation industries. Additional benefits of NB-IoT, such as low power consumption, excellent penetration range and lower component costs, also expand the growth of the NB-IoT market size.

In particular, the development of artificial intelligence (AI), machine learning (ML) and big data analysis technologies will enable enterprises to analyze large amounts of data collected from tracking and monitoring activities using IoT networks. Therefore, the adoption of IoT and connected devices through industrial and commercial applications, as well as AI, ML and big data analysis will continue to grow, which will also drive the growth of the NB-IoT market size.

Meanwhile, the lack of a consistent, cost-effective network pricing model and sufficient network coverage to sustain major widespread IoT deployments will hamper market development. Although the overall module and service costs of NB-IoT solutions have declined over the past two years due to huge investments in R&D activities and module growth, pricing remains a major concern for large-scale NB-IoT deployments. This, in turn, is expected to hamper market growth during the forecast period.

NB-IOT market share analysis

Based on region, North America is expected to hold the largest NB-IoT market share during the forecast period. Many leading system manufacturers and network service providers are located in North America, focusing on the development and commercial delivery of consumer and industrial applications. Other major factors driving the demand in North America include rising disposable income, growing tech-savvy population, and continuous adoption of new technologies for personal and enterprise applications.

Asia Pacific is expected to register the highest growth rate during the forecast period. This rapid growth is attributed to the increasing internet penetration, continuous deployment of internet infrastructure networks, rise in smart city initiatives, and rising disposable income, particularly in economies such as China, India, and Japan.

Major players in the NB-IOT market:

• Huawei Technologies
• Vodafone
• Etisalat
• Telecom Italia
• Qualcomm
• China Unicom
• Intel
• Ericsson
• Nokia
• Verizon
• …

Solution Type:

• Security Solutions
• Real-time streaming analytics
• Soil Monitoring Solutions
• Asset Tracking Solutions
• Logistics tracking solutions
• Smart Parking Management Solutions
• Smart Governance
• Smart metering
• Smart Buildings
• Smart Asset Tracking
• …

Related market information

(1) NB-IoT (Narrowband Internet of Things) Chip Market

The growing acceptance of IoT and the increasing use of connected devices are the major factors driving the growth of the NB-IoT chips market size. The growing demand for connected devices with remote connectivity is expected to drive the implementation of M2M/IoT devices such as smart meters, smart street lights, livestock tracking devices, and smart parking solutions.

In addition, emerging smart cities and smart buildings are expected to drive the growth of the NB-IoT chip market size.

(2) Cellular Internet of Things Market

The global cellular IoT market size was approximately USD 2 billion in 2018 and is expected to reach USD 5.11 billion by the end of 2025, with a CAGR of 12.3% between 2019 and 2025.

The growing need for extended network coverage and flexibility to support a large number of connected devices is expected to drive the growth of the cellular IoT market size. In addition, the growing need for end-to-end security between connected network devices is also driving the growth of the cellular IoT market.

(3) Tracking Solutions Market

In 2018, the global tracking solutions market size was USD 1.38 billion and it is expected to reach USD 4.70 billion by the end of 2025, with a CAGR of 16.5% during 2019-2025.

North America dominated the global market for tracking solutions in 2015. The region’s large share can be attributed to the existing healthcare systems in the U.S. and Canada, and rising R&D spending in pharmaceuticals and biotechnology.

(4) Smart meter market

The growth drivers of this market are government support for smart grid development, infrastructure development, population growth, and technological advancements. These reasons have led to the installation of more smart meters and are expected to augment the growth of the smart meters market size over the forecast period.

(5) Internet of Things (IoT) Market

In 2018, the global IoT market size was USD 164 billion and is expected to grow at a CAGR of 38.62% between 2018 and 2025.