Narrowband IoT Market By Component (Software, Services), By Deployment Type (Standalone, In-Band), By Device (Smart Appliances, Smart Meters, Trackers), By End-User Industry (Agriculture, Automotive & Transportation), & Region For 2024-2031

Narrowband IoT Market Valuation – 2024-2031

The Narrowband IoT Market is experiencing an increase in demand, with analysts anticipating rapid expansion in the coming years. This cellular-based technology, developed for low-power, wide-area connectivity, is ideal for a wide range of applications that do not require large bandwidth but do require a consistent connection for small data transfers. The market size surpass USD 7.77 Billion valued in 2023 to reach a valuation of around USD 114.1 Billion by 2031.

Rising smart city initiatives, expanding acceptance of connected devices, and increased government support for IoT development are driving market growth, notably in Asia Pacific. This trend is projected to continue as NB-IoT chipsets become more affordable and network coverage expands, ushering in a future of efficient and networked devices. The rising demand for cost-effective and efficient narrowband IoT is enabling the market grow at a CAGR of 46.60% from 2024 to 2031.

Narrowband IoT MarketDefinition/ Overview

Narrowband IoT (NB-IoT) is a wireless communication technology developed specifically for Internet of Things (IoT) devices. It has a limited bandwidth of approximately 200 kHz and provides efficient, low-power wide-area network (LPWAN) connectivity. NB-IoT is ideal for applications that require long-range communication with low energy consumption, such as smart metering, environmental monitoring, and asset tracking. It allows devices to connect to existing cellular networks, making it an affordable choice for mass deployment of IoT applications.

NB-IoT’s future looks hopeful as network infrastructure and technologies progress. With rising demand for smart cities, agricultural, and industrial IoT applications, NB-IoT is projected to play an important role in supporting these industries. The technology’s capacity to deliver dependable connectivity in remote or demanding areas, together with continual advances in data rates and energy efficiency, positions it as a critical enabler for the next generation of IoT systems. As 5G networks expand, NB-IoT’s integration with them will improve its capabilities and broaden its applications.

How Does the Growing Demand for Smart City Drive the Growth of the Narrowband IoT Market?

The increasing need for smart city applications is expected to boost the growth of the Narrowband IoT (NB-IoT) market. As urbanization continues, the United Nations predicts that 68% of the world’s population will live in cities by 2050, and there is a growing demand for smart city management systems. The International Data Corporation (IDC) predicts that global spending on smart city efforts would total $189.5 billion by 2023. NB-IoT is critical in this environment, providing efficient, low-power connectivity for a wide range of smart city applications. Its function in linking diverse devices and systems will be critical in managing the complexities of modern urban environments, boosting the NB-IoT market.

The rising deployment of Narrowband IoT (NB-IoT) in agriculture and environmental monitoring is expected to drive the NB-IoT market. Precision agriculture and good environmental management will become increasingly important as global food production must rise by 70% by 2050 to meet the demands of a growing population. NB-IoT offers the dependable, low-power connectivity needed for enhanced farming and environmental monitoring. Its capacity to assist in effective data gathering and analysis in remote places boosts agricultural productivity and environmental sustainability, accelerating the growth of the NB-IoT market.

How will the Limited Data Speed Impact the Growth of the Narrowband IoT Market?

The restricted data speed of Narrowband IoT (NB-IoT) could influence market growth, particularly in applications that need high-speed data transfer. NB-IoT is designed for low-power, long-range connectivity, making it appropriate for applications such as smart metering, asset tracking, and environmental monitoring that do not require high data throughput. However, for use cases that require real-time data processing and larger bandwidth, such as advanced industrial automation or some smart city operations, slower data speeds may be a constraint. This constraint may drive some companies to pursue other IoT technologies that provide greater data rates, thus impacting the overall growth trajectory of the NB-IoT market.

The lack of defined IoT laws may impede the growth of the Narrowband IoT (NB-IoT) market. Without comparable regulatory frameworks, it might be difficult to ensure device interoperability, security, and reliable network deployments across multiple locations. This fragmentation may hinder the adoption of NB-IoT technology, as businesses and governments may be hesitant to invest in systems that may encounter compliance challenges or require costly revisions to fulfill differing regulatory standards. Establishing clear and standardized regulations is critical to enabling widespread and seamless implementation of NB-IoT systems.

Category-Wise Acumens

Will the High Demand for Devices Propel the Hardware Segment for the Narrowband IoT Market?

The hardware segment now dominates the Narrowband IoT Market. This covers both the NB-IoT modules, which are built into devices, and the network infrastructure needed to allow NB-IoT communication. The narrowband IoT (NB-IoT) market’s hardware industry will be driven by increased device demand. As more industries use NB-IoT for applications such as smart metering, agriculture, and environmental monitoring, there will be an increased demand for compatible sensors, modules, and other hardware components. This rising demand will drive hardware manufacturing and innovation, accelerating the overall growth of the NB-IoT market.

Early adoption will fuel the hardware segment of the narrowband IoT (NB-IoT) market. As NB-IoT technology is still in its early stages of general adoption, there is a strong push to create and deploy the requisite hardware infrastructure, such as sensors, modules, and communication devices. This early adoption period increases demand for creative and cost-effective hardware solutions, propelling growth in the NB-IoT hardware market.

Will the Large-Scale Deployments Fuel the Smart Meters Segment for the Narrowband IoT Market?

In the narrowband IoT (NB-IoT) market, smart meters currently hold the dominant position. Large-scale deployments will propel the smart meter component of the Narrowband IoT (NB-IoT) market. As utilities and municipalities implement smart metering for better resource management and billing, the demand for NB-IoT-enabled smart meters will increase. These large-scale installations provide essential connectivity and scalability, transforming NB-IoT into a suitable solution for broad smart metering networks, hence driving the growth of this category within the NB-IoT market.

Government initiatives will propel the smart meter component of the Narrowband IoT (NB-IoT) market. Many governments are enacting regulations and allocating funds to support smart city initiatives and enhance utility management. These programs frequently include the implementation of smart meters to improve energy efficiency, water management, and billing accuracy. Such government backing hastens the implementation of NB-IoT-enabled smart meters, significantly contributing to the growth of this market segment.

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Country/Region-wise Acumens

Will the Established Infrastructure Expand the North American Region for the Narrowband IoT Market?

North America currently holds the dominant position in the Narrowband-IoT (NB-IoT) market. The established infrastructure will fuel the North American Narrowband IoT (NB-IoT) market. According to the Federal Communications Commission (FCC), 4G LTE networks will cover 99.9% of the US population by 2021, and North America is leading the world in 5G adoption, with 5G connections estimated to exceed 400 million by 2025, the region is well-positioned for NB-IoT integration. This modern telecom infrastructure significantly eliminates the hurdles to NB-IoT implementation.

Furthermore, IoT Analytics forecasts that the number of IoT devices in North America will increase from 3 billion in 2020 to 5.4 billion in 2025, illustrating a 12% compound annual growth rate (CAGR). This substantial and expanding network coverage serves as a solid foundation for NB-IoT technology, allowing widespread adoption across multiple sectors and driving market growth in North America.

Early adoption will fuel the North American Narrowband IoT (NB-IoT) market. North America’s proactive approach, with major carriers making large early investments, has accelerated market growth and created a mature environment for NB-IoT solutions. T-Mobile USA’s statewide NB-IoT coverage was announced in 2018, including 2.1 million square miles and about 320 million people.

Furthermore, Berg Insight predicts that the installed base of cellular IoT devices in North America will increase from 82.4 million in 2018 to 185.3 million by 2023, with NB-IoT and LTE-M technologies playing vital functions. Early acceptance and ongoing investment by major carriers have laid a solid basis for NB-IoT applications, leading to innovation and market growth across North America.

Will the Government Support Lead the Asian Pacific Region for the Narrowband IoT Market?

The Asia-Pacific region is projected to be the fastest-growing market for narrowband-IoT. Government support will drive the market in Asia-Pacific. In China and India, substantial government support for smart city programs is propelling NB-IoT growth. China’s 14th Five-Year Plan aims for over 600 million NB-IoT connections by 2025, with major infrastructure already in place. Meanwhile, India’s Smart Cities Mission, which has a considerable budget, wants to promote growth in urban IoT applications. This robust backing is hastening NB-IoT adoption and propelling market expansion throughout the region.

The rapidly developing economies of Asia-Pacific will fuel the Narrowband IoT (NB-IoT) market. With developing Asia’s economies expected to grow by 4.8% in 2023 and 4.9% in 2024, the spike in demand for connected devices and industrial automation solutions is laying a solid basis for NB-IoT adoption. The International Data Corporation (IDC) predicts that Asia-Pacific will dominate worldwide IoT investment, reaching USD 436 Billion by 2026 at an 11.8% CAGR. Furthermore, with China’s industrial internet market expected to reach 1.1 trillion yuan (USD 153.5 Billion) in 2022 and India’s “Make in India” push promoting industrial IoT, GSMA Intelligence predicts that the area will have 3.9 billion cellular IoT connections by 2025.

This economic motivation, along with an increasing demand for economical, wide-area connectivity solutions, is driving widespread adoption of NB-IoT technology across Asia-Pacific.

Competitive Landscape

The Narrowband IoT Market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the Narrowband IoT Market include

Huawei Technologies Co. Ltd., Qualcomm Incorporated, Intel Corporation, Nordic Semiconductor, Sanechips Co. Ltd., Samsung Group, MediaTek, Inc., Sercomm Corporation, u-blox Holding AG, Sequans Communications S.A.

Latest Developments

• In March 2023, Monogoto, a cloud-based cellular network provider, signed a new roaming agreement with Skylo Technologies, a Non-Terrestrial Network (NTN) service operator. This new collaboration reduces the barrier for developers to add satellite connectivity to existing public and/or private networks on Monogoto Cloud, providing the world’s most cost-effective and accessible solution for NB-IoT Satellite connectivity for asset monitoring applications. SODAQ, a producer of low-power tracking and sensing systems, will also introduce a new asset-tracking trial kit that makes use of the Monogoto connection and network.
• In January 2023, Airgain teamed with Deutsche Telekom to provide long-lasting (up to 14 years) asset trackers that employ cutting-edge cellular technology (NB-IoT) and are compatible with any business software. This combines Airgain’s tracking devices with Europe’s most advanced IoT network.

Report Scope

Narrowband IoT Market, By Category

Component

• Software
• Services
• Hardware

Deployment Type

• Standalone
• In-Band
• Guard Band

Device

• Smart Appliances
• Smart Meters
• Trackers
• Alarms & Detectors
• Wearable Devices

End-User Industry

• Agriculture
• Automotive & Transportation
• Energy
• Healthcare
• Manufacturing
• Retail
• Safety & Security
• Infrastructure & Building Automation

Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Research Methodology of Market Research

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