IoT to Connect 500 Million Things by 2023

LPWA networks are set to unleash the next wave of growth for asset tracking solutions, according to a new report from ABI Research.

Reaching 500 million tracked things by 2023, low-cost, battery-powered tracker devices that are integrated with connectivity, cloud storage, and software platforms will provide seamless visibility of assets to multiple stakeholders across a supply chain.

“Simple low-cost LPWA enabled asset tracking solutions will transform the supply chain and logistics industry the way smart meters are transforming the energy and water distribution industry,” said  Adarsh Krishnan, Principal Analyst at ABI Research.

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Logistics companies have been early adopters of asset tracking solutions driven by life-sciences and healthcare customers due to strict regulations and to mitigate supply chain risks, especially in the transportation of sensitive and high-value biomedical assets.

Intermodal refrigerators containers have already witnessed connectivity adoption, but with LPWA network technologies we are now witnessing connectivity adoption in dry containers which accounts for nearly 90% of total container fleet in the world.

Asset tracking solutions will have the most impact on tool and heavy equipment rental companies with over 45% penetration of rental inventory by 2023.

Device OEMs such as Calamp, Xirgo, and Roambee have been early to develop solutions using cellular LPWA network technologies.

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Non-cellular solutions using SIGFOX and LoRa technologies from Ticatag, Sensolous, Tracknet, and Viloc have also been making significant inroads through partnerships with system integrators and communication service providers.

Non-cellular LPWA solutions may have been early to market, but cellular LPWA networks combined with horizontal platforms will drive much wider adoption and will account for three-quarters of the installed base of asset trackers in 2023.

LTE-M will be more successful in IoT applications that require more continuous tracking capabilities with a low-latency threshold, whereas NB-IoT will address use cases that require periodic tracking of assets across multiple regions due to its energy efficiency and lower cost.

As the technology matures and the market witnesses wider adoption, more value in asset tracking services will be realized through the integration of Artificial Intelligence (AI) and blockchain technologies.

Krishnan added: “AI will provide valuable insights from analysis of the location data gathered by the asset tracker, and blockchain will allow for decentralized control and provide greater transparency across supply chain processes.”

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