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IoT forecast: connections, revenue and technology trends 2018–2027

Michele Mackenzie Principal Analyst, Research
William Hare Principal Analyst, Research
Rémy Giraud Analyst, Research

"By 2027, only 2% of all IoT connections will be made using 2G, as operators close their networks; 5G will be in ascendancy and will power 3% of all IoT connections, primarily in the automotive sector."

The IoT opportunity for network operators continues to grow. We forecast that the total number of connections will increase to 5.4 billion in 2027, although a high degree of uncertainty still exists for some LPWA use cases. Connectivity revenue will increase to USD213 billion by 2027 but is subject to increasing competition. ARPC erosion will be significant over the forecast period. This report outlines the technology trends, sector shares and the revenue trajectories for cellular and LPWA connectivity in the IoT market.

This report includes the analysis of:

  • technology trends including the number of 2G, 3G/4G, 5G, NB-IoT, LTE-M and ‘other LPWA’ connections worldwide
  • key industry sectors and the share of connections and revenue that they contribute
  • the revenue generated worldwide from hardware, applications and connectivity services.

Coverage

Geographical coverage

Key metrics

Regions modelled

  • Central and Eastern Europe (CEE)
  • Developed Asia–Pacific (DVAP)
  • Emerging Asia–Pacific (EMAP)
  • Latin America (LATAM)
  • Middle East and North Africa (MENA)
  • North America (NA)
  • Sub-Saharan Africa (SSA)
  • Western Europe (WE)

Full country level coverage of the forecasts is included in Analysys Mason's DataHub.

  • Revenue for the following value chain elements:
    • applications
    • connectivity services
    • IoT hardware.
  • IoT connections worldwide and by region, by technology type:
    • 2G
    • 3G/4G
    • 5G
    • NB-IoT
    • LTE-M
    • 'other LPWA'.
  • Connections and revenue, by sector:
    • automotive
    • finance
    • health
    • industries
    • smart cities
    • retail
    • smart buildings
    • utilities
    • agriculture
    • tracking.