The cellular IoT market is expected to grow from USD 1.55 billion in 2016 to USD 5.31 billion by 2022, growing at a CAGR of 23.34 percent from 2016 to 2022, estimates Markets and Markets. Rising demand for extended network coverage and capacity to accommodate large number of connected devices are expected to drive the market for cellular IoT. Moreover, increasing demand for end-to-end security between network connected devices also contributes to the growth of cellular IoT market.
2G is widely adopted for IoT applications because of low cost of chipset and majority of connected devices in massive IoT require low data transfer rate which makes 2G an ideal connectivity technology in comparison to 3G, 4G, and others. With growth in smart grid projects in countries such as China, Japan, and South Korea, adoption of 2G is expected to be higher, especially in smart meters, which is expected to drive the 2G market.
The demand for energy management, along with the increasing demand for green homes drives the growth of the building automation market. Moreover, low power consumption is an important factor that drives the growth adoption of cellular IoT modules for building automation. Also, smart city projects in North America and Asia-Pacific regions are expected to drive building automation market.
North America, which comprises the US, Mexico, and Canada, dominates the cellular IoT market on a global level. North America presents a huge opportunity for cellular IoT connectivity considering the IoT developments taking place in infrastructure, smart buildings, utilities, agriculture, and transportation. The US government has been investing significant amounts toward the implementation of IoT across various sectors such as infrastructure and utilities under programs such as Smart America. The Smart America project exhibits the manner in which IoT can improve transportation, emergency services, healthcare, security, energy conservation, and manufacturing. This is expected to bring huge opportunity for cellular IoT in North America.