LTE-M Devices Market Overview
The LTE-M Devices Market size is forecast to reach $6.2 billion by 2026, growing at a CAGR of 25.4% in the period 2021-2026. LTE-M stands for Long-Term Evolution for Machines is the Mobile IoT technology that denotes benefits such as enhanced security features and extended coverage to low-cost devices. The rapid emergence of cellular IoT technologies, increasing demand for the wireless secure communications across diversified industry-verticals, for compelling solutions, such as long battery life, carrier-grade security and low data needs, are some of the notable factors that accelerate the market growth. In fact, the growing popularity of cellular technology and the widespread adoption of advanced IoT solutions, such as asset trackers, alarm systems, smart city controllers, smart metering, wearable, and other latest IoT-optimized wireless technologies are estimated to drive the LTE-M Devices Industry. Therefore, the augmentation of smart devices and other real time monitoring solution are estimated to boost the LTE-M Devices Market growth.
- The growing demand for Smart Agriculture solution to carry out various agricultural activities with maximum utilization of the resources is projected to contribute the growth.
- The growing use of wireless technologies across the vehicle telematics market for safety towards automation, navigation and system diagnosis are creating abundant demand.
- Europe region is analyzed to dominate the global LTE-M Devices Market in 2020 with a share of 38.5%, as it is the major hub for Industrial automation.
LTE-M Devices Market Share, By Region 2020
LTE-M Devices Market Segment Analysis - By Offerings
By offerings, the LTE-M Devices Market is segmented into Hardware, Software and Services. The Hardware segment is analyzed to hold a significant LTE-M Devices market share at 51.2% in 2020 owing to the large scale adoption of IoT technology hardware components such as chipset and modules to drive the power-saving benefits. In July 2020, Deutsche Telekom launched LTE-M in Germany, and offers a great variety of LTE-M modules and chipsets for enabling quality connectivity and faster user time-to-market. Furthermore, multitude of end-users are upgrading or opting to new low power WAN technologies including LTE-m to drive innovation, specifically, the areas such as, smart city, smart tracking and e-health, thereby driving the LTE-M Devices market growth.
LTE-M Devices Market Segment Analysis - By End-Use Industry
By End-Use Industry, the LTE-M Devices Market is segmented into Agriculture, Food and beverage, Aerospace and Defense, Healthcare, Utilities, Transportation & Logistics, General Manufacturing, Consumer Electronics, Automotive, and others. The Utility sector is estimated to witness significant growth of 34.2% during 2021-2026 in the LTE-M Devices market, owing to considerable demand of IoT technology solutions to support low cost devices, seamless connectivity and power saving capabilities. In November 2020, Tele2 launched new LTE-M network, designed specifically for massive IoT applications, as LTE- M is a pivotal technology to deliver versatile applications across several industries. Thus, the growing introduction of IoT - connectivity offerings to serve huge demand for high-quality secure communication and versatile processes are likely to drive the growth of LTE-M Devices Market.
LTE-M Devices Market Segment Analysis – By Geography
Europe region is analyzed to dominate the global LTE-M Devices Market in 2020 with a share of 38.5%, as it is the major hub for Industrial automation. The significant demand for Cellular connectivity in IoT applications and potential investment to design enhanced manufacturing operations are estimated to drive the growth in the region. In July 2020, Deutsche Telekom completed the rollout of its 5G-ready LTE -M network across Germany. The LTE-M deployment of Deutsche Telekom enables faster user time-to-market and connectivity quality, which is commercially available in both post-paid and pre-paid IoT offerings, including its Business Smart Connect LPWA and M2M tariffs. North America is estimated to be the fastest growing region owing to the government initiative for smart city projects. In February 2020, U.S. Cellular, the fifth-largest full-service wireless carrier in the United States announced the launch of LTE-M network to some selective sites as the LTE-M network enables business organization in both urban and rural areas with more capabilities due to reliable, secure and cost-effective way to connect huge volume of Internet of Things (IoT) devices. Thus, the growing leveraging of LPWAN solutions as well as cellular wireless technologies to connect as well as enhance the infrastructure are some of the pertinent factors that accelerate the growth of the LTE-M Devices market in this region.
LTE-M Devices Market Drivers
Growing demand for Smart Agriculture solution
Increasing demand for commercial vehicle telematics
The commercial vehicle telematics offer improved transportation infrastructure and other Fleet management programs, such as remote communication, optimum vehicle performance and asset tracking, thereby influencing the growth of the market. The growing use of wireless technologies across the vehicle telematics market for safety towards automation, navigation and system diagnosis are creating abundant demand for connectivity solutions. In March 2020, AWS Marketplace launched LTE-M Asset Tracking Solutions, cellular-based Asset Tracking Solutions, which provide condition monitoring needs of critical remote assets. Therefore, the growing demand for Real Time Location Systems, Critical communication systems and dedicated short-range communications devices are some of the factors that are driving the growth of the LTE-M Devices Market.
LTE-M Devices Market Challenges
High bandwidth consumption
LTE-M Devices are primarily designed to support several IoT applications, which require minimum amount of data transfer with low bandwidth. Moreover, the LTE-M Devices are not made to provide high speed data transfer and always reliant on network loading. It is commercially developed for low power usage, and thus, during heavy network traffic, the chances of tracking through LTE-M enabled Devices may fail, which is considered as a huge drawback feature that can hamper the growth of the LTE-M Devices Industry outlook.
LTE-M Devices Market Industry Outlook
Product Launches, Merger & Acquisition, joint ventures and R&D activities are key strategies adopted by the players in the LTE-M Devices Market. LTE-M Devices Market Top 10 companies include Qualcomm Incorporated, Telstra Corporation Limited, Sierra Wireless, Sequans Communications, MediaTek Inc, HiSilicon Semiconductor company, Nordic Semiconductor, Thales Group and among others.
- In October 2020, Qualcomm collaborated with Telit, a global enabler of the Internet of Things (IoT). With the Qualcomm® 9205 LTE modems, the latest advancement in LTE-M platform by Qualcomm, Telit can offer affordable, ultra-compact and power-efficient LTE-M and NB-IoT solutions.
- In June 2020, UK mobile operator O2 expanded 5G network along with LTE- M networks across the UK, which proves to be the significant milestone for the company to denote economic support by building national digital infrastructure.