Cellular-connected IoT, the top 20 applications

At Transforma Insights we undertake the most granular and rigorous forecasting of the Internet of Things market opportunity, looking at hundreds of different applications, technology splits, revenue opportunities, installed base and shipments on a country-by-country basis.

This allows us to produce things like the chart below, which shows the top 20 IoT applications ranked by the number of cellular-connected devices that will ship between 2022 and 2032 split by the various cellular generations, including 5G mMTC (i.e. NB-IoT, LTE-M and evolutions).

This top 20 accounts for almost 80% of all cellular-based connections.

What are the top 20 cellular IoT applications?

Below is a brief explanation of what is included in all of these top 20.

Vehicle Head unit

Embedded hardware providing a commercial or consumer road vehicle’s wide area connection. Typically, they support multiple applications including navigation and infotainment. Demand for connected car services is rising rapidly, in part due to the increasing adoption of electric vehicles, while OEMs are using the new services as a mechanism for driving indirect monetisation. Their adoption may be slightly constrained by some OEMs favouring handset tethering for connectivity and also by some security concerns. These devices are one of the foremost adopters of 5G. Connected motorcycles are also increasingly important.

Track & Trace

The use of trackers to monitor the location and condition of specific items (such as supply chain assets). Mostly used for theft detection, reducing operational loss, improving supply chain efficiency, asset location monitoring and optimising product lifecycle management. Strong regulatory push to monitor moving goods, especially from the pharmaceutical and food industries to reduce spoilage, contamination and falsified items. They are becoming more economical and LPWA is gaining momentum.

Smart Watches

Lightweight devices that are intended for everyday purposes (such as entertainment, communication, and recreation). Covid-19 and evolving consumer needs (such as portable, pocket-size smart devices) are driving the demand. Ubiquitous smartphones have expanded the scope for headphones and smart watches. Smart Watches are one of the biggest 5G applications, and probably the definitive application using 5G RedCap.

Electricity Smart Meters - Residential

Record electricity consumption in residential buildings and send this data to electricity providers. They are more efficient, can provide real-time energy consumption information and prevent electricity theft. Their adoption can be slightly hindered by the associated expenses. Their rollout is generally as a government-led initiative and consumers are provided added benefits such as subsidies or refunds on using limited electricity during peak hours. Some use cellular connectivity, often from an aggregation point, with many alternatives such as LoRaWAN, PLC and RF mesh used for meter connections.

Water Smart Meters - Residential

Devices that monitor water consumption at a location and transmit this data to providers. Mainly deployed due to water scarcity from increasing water demand and usage by individuals and families, water leakages, and water loss. Other factors include the ability to track costs associated with resource utilisation and monitor and diagnose commercial and industrial water consumption patterns. Mostly, these devices run on LPWA technologies (including NB-IoT and LoRaWAN).

Home Fridges & Freezers

Smart-connected white goods can connect to the internet and allow consumers to run and control them via smartphone applications. Consumers can monitor usage, check for defects, and optimise the device’s efficiency and energy use. Accessibility and availability of cheaper technology are driving the market. Security concerns may hamper the market. Currently, short range technologies dominate (Wi-Fi, PLC, NFC, Bluetooth and Zigbee). As network coverage expands, NB-IoT and LTE-M will find greater usage.

Gas Smart Meters - Residential

Record natural gas consumption in residential settings and transmit this data to the providers. They are increasingly adopted owing to the rising awareness about energy consumption, to identify wasteful and obsolete equipment, highlight supply issues (including leakage detection) and efficiently track usage and spending. Increasing natural gas prices, more focus on renewable energy sources and the ongoing war between Russia and Ukraine may influence the market. LPWA technologies (LoRaWAN, Sigfox and NB-IoT) are commonly used, as is Wireless M-Bus.

Home Washing & Drying

Another category of white goods, which allow consumers to manage them via smart phone apps, as well as allowing manufacturers to track performance, warranty compliance and other factors. Because they tend to be located within range of a home router they tend to favour short range technologies, particularly Wi-Fi. However LPWA technologies such as LoRaWAN and NB-IoT will start to be adopted.

Usage-Based Insurance

Used to monitor vehicle usage and drivers’ behaviour for more accurate or reduced insurance premiums, hasten claims, and limit fraudulent claims. This application allows automotive OEMs to directly market their add-on service offerings by bundling deals. Using UBI users’ data, insurance providers give personalised offers and services to drivers to enhance customer loyalty and increase renewal rates. The dominant connectivity technologies in these devices are short range (over 50%) but a large number use direct cellular connectivity, particularly 4G, and 5G mMTC. Europe (particularly Italy) and North America will be the largest markets.

Home Dishwashers

The third category of white goods (along with Home Fridges & Freezers and Home Washing & Drying), which will also see a significant growth in cellular connections, stimulated predominantly by the availability of NB-IoT.

Security Alarms

Sensors and management devices, used for safety and security in commercial premises and residential buildings. Increasing deployment in newly constructed buildings due to increasing construction activities and alliances between construction companies and security vendors. Growing customer awareness, decreasing cost of security devices and attractive home insurance are driving their growth in existing buildings. Some of them work wirelessly, mostly through Wi-Fi, Bluetooth and mesh configurations (Z-Wave and Zigbee). Relatively small numbers use cellular but the overall installed base is large.

Vehicle Telematics Devices – Light Duty Vehicles

A sub-category of Road Fleet Management devices, these are specific to adoption within light vehicles. Overall, Fleet Management refers to in-vehicle transportation logistics such as job allocation, vehicle tracking, vehicle and driver monitoring, maintenance planning, safety compliance, fuel management, and incident management. These devices save fuel, reduce maintenance costs, and time spent on fleet management maintenance tasks. Initial costs may hinder smaller companies from entering the market. Dominant connectivity technologies will be 4G and 5G mMTC. North America, China and Europe will be the biggest markets.

Fire Alarms

As with Security Alarms, but specifically for monitoring for fires, and often for carbon monoxide. Typically connected using short range technologies, but wide area cellular, specifically NB-IoT, is becoming a more viable alternative with long battery life.

Private Electric Vehicle Charging

Charging points/chargers to monitor usage, load, power distribution and payments related to EV charging, and specifically within private premises. Public charging points are counted in a separate category. Growth is primarily driven by government initiatives and incentives. Lack of charging infrastructure and higher cost of EVs may hinder the market. Cellular (5G mMTC) will be the dominant technology. In 2020, Greater China had the highest number of connections, followed by Europe and North America.

E-Bikes

Connected electric bicycles that include features like automatic emergency calls, integrated navigation, social media connection, anti-theft system, embedded dash display and remote diagnostics. Adoption will be driven by increasing demand for sustainable transportation, technological advancements in batteries and equipment, lower insurance costs, and comparatively low parking fees. The required infrastructural expense may hamper their growth. Short range technologies, Cellular 4G and Cellular mMTC currently dominate.

Card Payment Terminals

Card payment terminals are deployed to improve efficiency and ensure a consistent customer experience. These systems allow purchase monitoring and better stock and time management. They also lessen staff requirements, reducing operational costs. The adoption of contactless processing devices was driven by Covid-19. Card payment terminals will become increasingly common in Latin America and Greater China. Short range technologies dominate, but direct cellular connectivity is increasingly common.

CCTV

Video surveillance cameras, that are primarily used for public safety monitoring. Increasing usage due to the emergence of more advanced AI software, affordable computers and improved network infrastructure. AI-based surveillance technology is being increasingly embraced, with China leading the way (driven by government initiatives). The most commonly used connectivity is Ethernet and Wi-Fi, followed by Cellular (3G and 4G). This will be a strong growth opportunity for 5G.

In-Vehicle Infotainment

Connected devices used for a variety of in-vehicle media functions including music, video and device tethering. Increasing demand for streamed media from consumers and availability of cheaper bandwidth are driving adoption. Widespread coverage of 4G networks and the growing availability of 5G technologies to add impetus. Easy availability of smartphones may limit the market. Due to the requirements for mobile, high bandwidth connection, most of them rely on Cellular (4G) technology and once network coverage has increased, 5G non-mMTC will gain momentum.?

Stock-Level Monitoring

Used for remote monitoring of volumes and inventory, and stock levels. Deployed to reduce employees’ workloads, and gather data to evaluate employees’ performance and increase operational efficiency. It also allows inventory optimisation, better stock management and reduces damage to goods. Regulations and the latest pandemic have benefitted the market.?Short range technologies (Wi-Fi, Bluetooth and IR) will be a popular choice. A small share of devices will be using non-mMTC LPWA and 5G mMTC technologies.

Home Cooking

The final of the four White Goods categories, related to connected ovens and hobs. Typically connected using short range technologies, usually Wi-Fi, but increasing interest in using NB-IoT and other LPWA technologies.

Check out the recording of our 25th May IoT Forecast webinar, and the associated report

If you are interested in the growth of the global IoT market and the opportunity over the next 10 years, watch the recording of Transforma Insights' recent webinar ‘Are We Nearly There Yet?: Annual Update On Transforma Insights’ IoT Market Forecasts’ to hear about which applications and verticals will dominate in future, which technologies will be used, which countries will see the biggest growth and what is the revenue opportunity.

We also recommend checking out the Global IoT Forecast Report, 2022-2032, which provides a snapshot of the state of the IoT market in 2022 and forecasts to 2032. The report comprises analysis of connections and revenues including splits by geography, technology, vertical sector and use case/application. This includes analysis of cellular connections and generation splits (2G, 3G, 4G and 5G), LPWA connections, public vs private network splits and many more. It also includes tables containing high level data. The report also provides details of methodology, segmentation and definitions which will be useful to anyone using the forecasts.

The above are available to anyone registering for a free 'Essential' subscription. Click on the links above and follow the page links to register.

For a full set of data, subscribers should go to the IoT Forecast Database.