As the number of deployments of the global Internet of Things continues to increase, according to the design, the composite annual growth rate of global IoT endpoints in 2016-2021 is growing at a rate of 19.4%. IDC estimates the Internet of Things endpoints in 2021. The number of installations will reach 36.1 billion, indicating that the Internet of Things market has great opportunities for development. In addition, IDC's research report also suggests the driving force and potential resistance of the Internet of Things market.
First, the driving force
(1) Device capacity and broadband demand
Expectations: Due to the increasing deployment of the Internet of Things, various devices need to be connected, and most of the fields are based on networks with low-bandwidth sensors. In this case, LPWAN (Low-Power Wide-Area Network) technology is very suitable for connecting and integrating sensor data at low cost.
Impact: LPWAN connectivity will compete with cellular technologies, so cellular communication technology providers will need to establish innovative and flexible large-scale pricing mechanisms to maintain a competitive advantage.
(ii) Deploying a 5 G network
Assumption: Many IoT deployments require low latency real-time communication and can accommodate large amounts of data traffic. 5G network is expected to be launched to Volkswagen in 2019-2020, while AT&T and Verizon in the US have done some early tests in 2017. The 5G network will have faster speed, larger communication pipes and wider. Coverage, lower power consumption and lower latency.
Impact: The emergence of 5G networks is expected to be the gospel of IoT cellular communications, and will help cellular communication providers maintain a stronger competitive advantage than LPWAN.
Second, the potential resistance
(i) Spectrum and quality of service
Anticipation: For organizations that are considering connecting endpoints, the most important thing is to measure the cost value of various connectivity options by quality of service. The spectrum of the user license is connected to ensure that the service operates at a specific frequency. However, unlicensed spectrum, such as LoRa technology and Sigfox operators, will be difficult to guarantee the quality of service.
Impact: Despite the satisfactory advantages of the LPWAN solution, unqualified spectrum and unique technology quality of service, such as Sigfox and LoRa, will result in end users applying unlicensed spectrum to non-critical applications. Will become the resistance of LPWAN's recent development. However, LPWAN connectivity is an emerging high growth area. Narrowband IoT (Narrowband IoT) and another LPWAN technology have been certified by 3GPP LPWA, and commercial solutions are expected to be launched in 2017.
(2) The need to develop standards
Expectations: Although progress has been made in the development of standards, the relevant agencies have yet to see actual results in providing, promoting openness and data agreements. IDC's research indicates that preliminary standard protocols designed specifically for the Internet of Things have been of deep interest to the market, and multiple standards organizations are actively developing and marketing their own standards to lead the next IoT standard.
Impact: Although it is not clear that one or more IoT agreements will emerge in the market, this will enable the global IoT market to plan for the added value of IoT solutions to achieve the benefits that companies and consumers expect.
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