Growth in the IoT market will be sizeable, but challenges remain for operators

The total number of IoT connections worldwide will grow sevenfold between 2018 and 2028 to reach 5.3 billion. This represents a CAGR of 22%, which is significantly higher than the growth rate for the number of smartphones (the total number of handsets worldwide is predicted to grow at a CAGR of just 2% between 2018 and 20241). However, only a handful of operators are pursuing the IoT revenue growth opportunity by investing in developing new services to serve new sectors that match their IoT ambitions. Those that are acknowledge that IoT is a long-term initiative. Our recent forecast update reflects some of the challenges that IoT network operators encounter regarding LPWA network deployment, the role of 5G in supporting IoT applications and the increasing erosion of connectivity revenue. This article examines these trends and explains their impact on the IoT landscape.