Major Global Survey: Cellular Tech Key to Coming IoT Wave, North America to Lead
September 18 2018 - 3:00AM
As the hype cycle in IoT begins to yield to more realistic
expectations, a new study by the GSMA’s Mobile World Live and
commissioned by mobile technology R&D firm InterDigital
(NASDAQ: IDCC), highlights some important transitions in market
perception. Among them: the key role to be played by 3GPP
standards-based technology in the IoT, the expectation that North
America will lead the world in adoption, and the current small
scale of IoT revenue… amid hopes for rapid growth.
According to the report, titled ‘Mobile and the Internet of
Things: Unanimity around fragmentation, surprises in connectivity
and geography’, the successful deployment of the IoT will be
heavily reliant on cellular technologies, such as 5G, LTE, NB-IoT
and GSM. Of the connectivity technologies listed as key to IoT, six
of the top seven emerged from 3GPP standards. One third of
respondents agreed that by 2023 5G would likely become the most
important connectivity technology for the IoT. In a surprising
twist, the report revealed that only 4% of respondents considered
Wi-Fi as the most important connectivity option for the IoT.
The report also revealed the potential revenue opportunity
possible from the IoT. According to almost half of respondents, IoT
accounts for less than 1% of their current revenues; however the
survey revealed that respondents expect the IoT could account for
20% of operator revenues by 2023. The consumer, smart home and
smart cities segments are set to benefit significantly from the
IoT, with 66% of respondents naming these as their top choice for
revenue generation.
Yet, despite the IoT’s revenue potential, the report reveals
significant challenges facing the IoT. Half the respondents
identified the development of sustainable business models as the
first or second biggest challenges, while the availability of
connectivity (42%), security fears (30%), and technical
incompatibility (30%) were also highlighted as significant
challenges. Technical incompatibility or interoperability is a
clear concern for the mobile industry – 92% of respondents
identified fragmentation as a major or moderate issue. Respondents
identified connectivity technologies and connectivity management as
the areas in greatest need of standardization.
“There’s no doubt that the IoT will play a significant role in
society over the next 10 years, and the expectations for IoT
revenue support that,” said Jim Nolan, EVP Products at
InterDigital. “And while this research revealed a few surprises, it
also confirmed things we knew already – namely, the importance of
standardization for the future of the IoT. With such a high
proportion of respondents seeing fragmentation as a significant
challenge, it’s important that the mobile industry come together to
make standardization a reality.”
Additional findings from the report include:
- North America is set to lead the adoption of the IoT with 73%
of respondents identifying the region as the most likely early
adopter of large-scale IoT.
- 59% of respondents believe the growth of the IoT will be driven
by demand for data to develop machine learning and artificial
intelligence.
- 42% of operator respondents expect mobile operators to drive
the adoption of the IoT, compared to only 29% of non-operator
respondents. Non-operator respondents also view System Integrators
(SIs) and application developers as key players in IoT
adoption.
- Interestingly, the survey revealed that the future of the IoT
could be in the hands of new companies, with 64% of respondents
believing that new players (39%) and yet-to-emerge companies (25%)
will have the most influence over the development of IoT in the
next 10 years.
The report references an online survey of 393 global respondents
in the mobile industry. 34% of respondents were from mobile
operator companies, including Mobile Virtual Network Operators
(MVNOs), 24% were from software developers and 14% were from
hardware vendors. The remaining respondents were made up of players
within the mobile ecosystem, including SIs, testing providers,
industry bodies and consultants.
The Mobile World Live report, ‘Mobile and the Internet of
Things: Unanimity around fragmentation, surprises in connectivity
and geography’, is available to download here.
About InterDigital®
InterDigital develops mobile technologies that
are at the core of devices, networks, and services worldwide. We
solve many of the industry's most critical and complex technical
challenges, inventing solutions for more efficient broadband
networks and a richer multimedia experience years ahead of market
deployment. InterDigital has licenses and strategic relationships
with many of the world's leading wireless companies. Founded in
1972, InterDigital is listed on NASDAQ and is included in the
S&P MidCap 400® index.
InterDigital is a registered trademark of
InterDigital, Inc.
For more information, visit:
www.interdigital.com.
|
|
InterDigital
Contact:Patrick Van de WilleEmail:
patrick.vandewille@interdigital.com +1 (858) 210-4814 |
|
InterDigital (NASDAQ:IDCC)
Historical Stock Chart
From Aug 2024 to Sep 2024
InterDigital (NASDAQ:IDCC)
Historical Stock Chart
From Sep 2023 to Sep 2024