LPWAN IoT Landscape: NB-IoT and LoRa Set Industry Standards

Narrowband IoT (NB-IoT) and LoRa in the Low Power Wide Area Network (LPWAN) IoT connections landscape

Recent research from Omdia has highlighted the dominance of Narrowband IoT (NB-IoT) and LoRa in the Low Power Wide Area Network (LPWAN) Internet of Things (IoT) connections landscape. In 2023, these two technologies accounted for a staggering 87% of total LPWAN connections. This stronghold is expected to continue, with projections indicating that NB-IoT and LoRa will maintain 86% of all LPWAN connections by 2030. This article delves into the reasons behind this dominance, the current market dynamics, and the future prospects of these technologies.

The Dominance of NB-IoT and LoRa

NB-IoT: The Leader Driven by China

NB-IoT, a cellular LPWAN technology, has seen significant growth primarily driven by its widespread adoption in China. According to Shobhit Srivastava, Senior Principal Analyst at Omdia, over 90% of NB-IoT connections are in China. This is largely due to the Chinese government and the three national mobile operators advocating for its widespread adoption, supported by Chinese chipset vendors.

Government Support: The Chinese government’s policies and initiatives have been pivotal in promoting NB-IoT adoption. Subsidies, incentives, and regulatory support have created a favorable environment for the technology to thrive.

National Mobile Operators: China's three major mobile operators have played a crucial role in deploying NB-IoT infrastructure across the country, ensuring extensive coverage and reliability.

Affordable Modules: Chinese vendors have introduced cost-effective NB-IoT modules, making the technology accessible for a wide range of applications.

LoRa: The Global Contender

Outside China, LoRaWAN, a non-cellular LPWAN technology, remains the leading LPWAN connectivity technology. LoRaWAN has built a strong ecosystem through its alliance-driven approach, allowing customers to choose from a range of partners and application-specific experts.

Mature Ecosystem: The LoRa Alliance has successfully created a robust and mature ecosystem that supports a wide variety of applications. This ecosystem includes device manufacturers, network operators, and solution providers, ensuring comprehensive support for LoRaWAN deployments.

Flexibility and Versatility: LoRaWAN's flexibility makes it suitable for a diverse range of applications, from smart buildings and smart homes to asset tracking and industrial IoT. Its ability to support private networks further enhances its appeal for enterprise use cases.

Market Dynamics and Applications

NB-IoT's Expansion Beyond China

While NB-IoT is currently dominated by China, its expansion into other regions, particularly Europe, is set to reshape the LPWAN landscape. Several factors contribute to this anticipated growth:

Satellite-Based Connectivity: Service providers in Europe are deploying satellite-based NB-IoT connectivity to address coverage gaps in remote areas. This initiative will enhance NB-IoT’s reach and applicability in regions with challenging terrains.

Government Regulations: Certain government regulations and initiatives in Europe are promoting the adoption of NB-IoT for smart metering and utilities, driving further growth.

Affordable Chinese Modules: As Chinese vendors introduce affordable NB-IoT modules in Europe and South America, the technology is expected to gain traction in these regions, broadening its global footprint.

LoRaWAN's Stronghold in Private Networks

LoRaWAN continues to lead in most regions outside China, thanks to its well-established ecosystem and suitability for private IoT connections. Its focus on high-growth areas ensures its sustained leadership:

Smart Buildings and Homes: LoRaWAN’s ability to support various smart building and smart home applications, including energy management, security, and automation, makes it a preferred choice for these sectors.

Asset Tracking: The technology’s long-range communication and low power consumption are ideal for asset tracking solutions, ensuring real-time visibility and management of assets across large areas.

Industrial IoT: LoRaWAN’s robustness and reliability make it suitable for industrial IoT applications, such as monitoring and controlling industrial processes and equipment.

Future Outlook

The LPWAN market is at a pivotal point, with NB-IoT and LoRa leading the charge. The future outlook for these technologies remains promising, driven by their respective strengths and strategic initiatives:

NB-IoT

Momentum in Europe: NB-IoT is expected to gain significant momentum in Europe, driven by satellite-based connectivity solutions and supportive regulations. This expansion will diversify NB-IoT’s geographical footprint and application range.

Cost-Effective Implementations: The affordability of NB-IoT modules, particularly those introduced by Chinese vendors, will facilitate widespread adoption in emerging markets, further bolstering its growth.

LoRaWAN

Ecosystem Development: LoRaWAN’s alliance-driven approach and mature ecosystem will continue to attract partners and customers, ensuring sustained growth and innovation.

High-Growth Areas: By focusing on high-growth areas such as smart buildings, smart homes, and asset tracking, LoRaWAN will maintain its relevance and leadership in the LPWAN market.

Emerging Technologies

While NB-IoT and LoRa dominate the current LPWAN landscape, newer technologies like Wi-SUN and Mioty are also gaining traction. These technologies are following the successful alliance model championed by LoRa to develop robust ecosystems:

Wi-SUN: Aimed at smart utility and smart city applications, Wi-SUN is known for its reliability and scalability, making it a strong contender in the LPWAN space.

Mioty: Designed for massive IoT deployments, Mioty offers robust communication and low power consumption, positioning it as a promising technology for large-scale IoT applications.

The dominance of NB-IoT and LoRa in the LPWAN IoT connections landscape is set to continue through 2030, driven by their respective strengths and strategic initiatives. NB-IoT’s stronghold in China and expanding presence in Europe, coupled with LoRaWAN’s established ecosystem and versatility, ensure their sustained leadership in the market.

As the LPWAN market evolves, the competition between NB-IoT and LoRa is expected to drive further innovation and growth, benefiting a wide range of IoT applications. The emergence of newer technologies like Wi-SUN and Mioty adds to the dynamic landscape, offering additional options for specific use cases.

Ultimately, the future of LPWAN IoT connections will be shaped by the continued advancements and strategic deployments of these technologies, ensuring that they remain at the forefront of the IoT revolution.