Mission-critical use cases are driving private IoT connection growth in key industrial markets like manufacturing, logistics and transportation. Industrial IoT (IIoT) customers are eager to digitalise critical use cases with high-powered, dedicated networks, making these industries leaders in private 4G and 5G adoption. According to a new report from global technology intelligence firm ABI Research, the manufacturing and transportation industries will have the most private cellular IoT connections in the future, with 108 and 71 million connections, respectively, predicted in 2030.
“Mission-critical use cases require ultra-reliable connectivity,” said Lizzie Stokes, IoT networks and services analyst at ABI Research. “Any interruption in these operations could lead to significant revenue loss or threaten human life. Given these consequences, most mission-critical IIoT customers upgrading to wireless connectivity will choose a private cellular network.”
Dominant mission-critical IIoT use cases include automating heavy machinery in mining and manufacturing, replacing legacy networks in oil and gas, and tracking containers in ports. Each of these use cases requires an ultra-reliable network. According to Stokes, “Heavy machinery automation, in particular, calls for the performance and low latency of a private 5G network. Industrial customers often initially invest in a private cellular network to connect employees’ communication devices, such as smartphones or tablets, but eventually realise the value these networks can provide in more critical IoT applications.”
Private wireless vendors like Ericsson and Nokia have been laser-focused on the needs of these industrial customers, given the criticality of their use cases. However, despite their relevance, mission-critical IIoT applications account for only a portion of total IoT use cases. Most IoT use cases do not require ultra-low-latency networks and instead support disparate devices that send infrequent, low-payload communications. These non-mission critical IoT use cases are better suited for non-cellular private network technologies, like Wi-Fi, private LoRaWAN, or DECT-2020 NR.
Connected sensors in commercial buildings, hospitals, and hotels, for example, do not require a high-performing cellular network and are much more likely to benefit from a long-range and low-power option like private LoRaWAN. Wi-Fi’s recent iterations, like Wi-Fi 6E and Wi-Fi HaLow, have made the technology more relevant to the non-mission-critical needs of large, complex campuses like universities and entertainment venues. DECT-2020 NR, the first non-cellular 5G standard, can support large device densities, making the technology highly applicable in smart metering use cases. When considering non-mission-critical applications, the competitive landscape of the private wireless industry expands to include non-cellular technologies that might not receive as much industry attention as private cellular networks. Important non-cellular private wireless market players include Wirepas, Semtech, the LoRa Alliance and Wi-Fi HaLow, and Wi-Fi 6E suppliers like NEWRACOM, Qualcomm and Cisco.
“The ideal private network connectivity technology for any IoT use case will largely depend on its criticality,” said Stokes. “However, all important IoT verticals, from healthcare to manufacturing, will experience healthy growth in private cellular IoT connections from 2025 to 2030, underscoring this relatively new technology’s influence even in applications that heavily rely on non-cellular technologies.”
These findings are from ABI Research’s Use Cases for Private Wireless Networks in IoT application analysis report. This report is part of the company’s IoT Networks and Services research service, which includes research, data and ABI Insights. Based on extensive primary interviews, Application Analysis reports present an in-depth analysis of key market trends and factors for a specific technology.
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