The Low Power Wide Area Network (LPWAN) market size is expected to grow from USD 1.01 Billion in 2016 to USD 24.46 Billion by 2021, at an estimated Compound Annual Growth Rate (CAGR) of 89.3% during the forecast period. Major growth drivers of the LPWAN market are increasing adoption of IoT/M2M devices, rising need of long range connectivity between these devices, and low power and low cost of LPWAN technologies. These factors are expected to shape the future of the Low Power Wide Area Network market.
The LPWAN technology market in this report has been defined as the summation of spending on SIGFOX, LoRaWAN, Weightless, and others that include Neul, Nwave, Random Phase Multiple Access (RPMA), and NB-IOT. Given the immediate need for LPWAN in IoT deployments, multiple connectivity technologies have emerged offering the right balance of bandwidth, battery life, power consumption, and distance range and the right cost.
The market consists of professional services and managed services. The increasing integration of IoT and Machine-to-Machine (M2M) across various industries is expected to remain the primary driver for the growth of market. Managed services are expected to grow at a higher CAGR. These managed service providers leverage partnerships with prime satellite and mobile networks to offer high-end managed services to application providers, system integrators, and end user clients.
The LPWAN network deployment market in this report has been defined as the summation of spending by public sector and private sector. Private sector is expected to occupy a larger share of the market while public sector is expected grow at a higher CAGR. Municipal authorities are focusing on developing their public infrastructures such as smart cities to improve citywide services like trash, parking, streetlights, water meters and leak detectors, and more.
Application in smart gas and water metering is expected to witness the highest growth rate. Smart meter rollouts represents a paradigm shift to understand the energy consumption at all the levels in the power grid. The mass adoption of LPWAN technology will promote greater standardization between different smart meter manufacturers and vendors.
The Low Power Wide Area Network market in the oil and gas vertical is expected to witness wide adoption. The implementation of the technology will offer overall plant automation, process optimization, supply chain optimization, increased safety, integrated business processes, and corporate social responsibility.
The global LPWAN market has been segmented on the basis of regions into North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America to provide a region-specific analysis in the report. Europe occupies the largest share in the market while APAC is expected to grow with the highest CAGR. China, Japan, India, and Australia are the most potential countries adopting M2M communication applications. A sweeping change has transformed the wireless M2M communication modules industry in the past years in the region.
The Low Power Wide Area Network market faces challenges such as lack of governance and privacy and security concerns. LPWAN uses open standards and hence deployment of LPWAN is expected to become easy. However, open standards for LPWAN are projected as a risk factor due to the privacy intrusion. Open standards of M2M communication through LPWAN are likely to upsurge the threat of confidentiality interference.
Major vendors that offer LPWAN technologies are Semtech Corporation (California), LORIOT (Switzerland), NWave Technologies (London), SIGFOX (France), WAVIoT (Texas), Actility (France), Ingenu (San Diego), Link Labs (Maryland), Weightless SIG, and Senet, Inc. (Portsmouth). The dominant players in the market include Semtech, NWave, SIGFOX and WAVIoT. The companies have adopted different types of organic and inorganic growth strategies such as new product launches, partnerships and collaborations, and mergers and acquisitions to expand their offerings in the Low Power Wide Area Network market.
To speak to our analyst for a discussion on the above findings, click Speak to Analyst