Cellular networks for Massive Internet of Things

Ericsson White Paper Overview: Enabling Low-Power Wide-Area Applications with Cellular Networks

Core Findings:

• Massive IoT Connectivity: Ericsson's white paper highlights the availability of new radio access technologies specifically targeted at the connectivity requirements of Massive Internet of Things (IoT) applications. Key technologies include Narrowband IoT (NB-IoT) and LTE for Machine-Type Communication (LTE-M), which are crucial for enabling low-power wide-area (LPWA) applications across diverse industries.

Market Growth and Adoption:

• According to the GSMA Mobile IoT rollout report, the number of launched commercial networks for LTE-M (supporting Cat-M1 devices) stands at 35, and for NB-IoT, it's 92, with continuous growth. These networks support a wide array of commercial devices ranging from various types of meters, sensors, trackers, and wearables across sectors like utilities, automotive, transport, logistics, agriculture, manufacturing, healthcare, warehousing, and mining.

Digital Transformation and New Business Opportunities:

• The digitalization of industries is poised to significantly advance IoT capabilities. Cellular IoT acts as a pivotal enabler for this transformation, offering extensive machine-to-machine (M2M) and machine-to-person communications. By connecting and intelligently managing software-defined products, both consumers and industries benefit from enhanced connectivity. Ericsson forecasts a surge in IoT devices, reaching 5 billion by 2025, connected through 3GPP access technologies.

The New IoT Landscape:

• The IoT revolution promises substantial value in terms of increased efficiency, sustainability, and safety for both industry and society. With an estimated 87% of global enterprises deploying IoT now expressing interest in expanding their IoT applications or use cases, the market for IoT is expected to grow at a CAGR of 24.9% globally through 2023. IoT plays a pivotal role in generating cost savings, new revenue streams, and improving quality across various vertical sectors.

Value Proposition and Business Logic:

• Each IoT application necessitates a clear value proposition aligned with the prevailing ecosystem, business models, and value chains of stakeholders. Solutions must be integrated onto scalable platforms capable of handling millions of devices efficiently. Ensuring the successful deployment of end-to-end use cases requires alignment among all stakeholders and components of the setup.

Role of Service Providers:

• Communications service providers are well-positioned to capture a share of the value generated by the emerging cellular IoT market. Their responsibility for global wireless connectivity offers them a significant opportunity to monetize connectivity and provide end-to-end solutions to vertical markets.

Segmentation of IoT Applications:

• IoT applications are segmented based on coverage needs and performance requirements, including data volume, speed, and latency demands. Coverage needs vary widely, from highly localized applications to those requiring global service coverage. Cellular technologies dominate use cases with large geographic coverage needs and medium to high-performance requirements, supported by all necessary functionalities and frameworks.

Capillary Network Approach:

• While existing 3GPP end-to-end connectivity might not always be feasible, cellular technology can still provide key benefits through its use as a bridging option, particularly as an aggregation and routing solution. This approach allows end devices to leverage varying access solutions from both short-range and LPWA domains, utilizing gateway devices to connect to cellular networks.

Wider Range of Cellular IoT Requirements:

• The market is expanding beyond Massive IoT deployment to encompass more advanced solutions, categorized into three additional segments: Broadband IoT for large data volumes and high-speed data transfer, Critical IoT for ultra-high reliability and low latency, and Industrial Automation IoT for seamless integration of cellular connectivity into industrial infrastructure.

Conclusion: Ericsson's white paper underscores the transformative potential of cellular networks in driving the IoT revolution. With a focus on enabling LPWA applications, enhancing connectivity, and fostering innovation across industries, the document paints a comprehensive picture of the current state and future prospects of cellular IoT technology.