The latest report from IoT analyst firm Transforma Insights shows, among other key findings, the top 10 leaders in IoT connectivity alongside the trends and themes shaping the connectivity market including challenges in creating multi-country connectivity and the SGP.32 standard representing a positive change.
The findings from the ‘Communications Service Provider (CSP) IoT Peer Benchmarking Report’, are based on comprehensive discussions with 25 prominent global cellular connectivity providers, accompanied by a thorough analysis of their capabilities and strategies. The CSPs evaluated in the report include: 1NCE, AT&T, BICS, Deutsche Telekom IoT, Emnify, Eseye, floLIVE, KORE, KPN, NTT, Ooredoo, Pelion, Semtech, Singtel, Soracom, T-Mobile US, Tele2, Telefónica, Telenor, Telia, Telit Cinterion, Velos IoT, Verizon, Vodafone, and Wireless Logic.
The top 10 leaders in IoT connectivity named are; Vodafone, Telenor, floLIVE, Wireless Logic, 1NCE, DT IoT, emnify, NTT, Eseye, and Telefonica. Additionally, the top 10 leaders in IoT services are; Telefonica, AT&T, NTT, Vodafone, DT IoT, KORE, Verizon, Telit Cinterion, Eseye, and Wireless Logic, with an honourable mention for Soracom which Transforma had a “strong proposition” for both.
“There are three main categories of leading CSPs for IoT. At the very apex of the diamond are the major mobile network operators, led by Vodafone and followed closely by DT IoT, NTT, Telefónica, AT&T and Verizon,” explained Matt Hatton, report author. “The second category of market leaders are those that have focused exclusively on providing excellence in a narrow element of pure cellular connectivity, largely ignoring devices or much in terms of customisation for the enterprise client. This group includes 1NCE, emnify and floLIVE. Finally there is a group of CSPs that straddles the two camps, in some cases with equally capable connectivity offerings, but typically married with a more complete set of capabilities around ‘IoT services’. This group comprises Eseye, KORE, Soracom, Telenor, Telit Cinterion and Wireless Logic.”
In light of extensive analysis and ongoing research into IoT trends, several conclusions have been drawn regarding the evolution of the IoT connectivity market, particularly in relation to cellular connectivity, since the previous report in February 2023. The key themes are as follows:
- The rate of change remains brisk, with new technologies, commercial models, and market approaches emerging continually. Further disruption is anticipated in the coming year
- Devices and device-to-cloud solutions, which often incorporate sensors and data management, are becoming essential components of IoT connectivity offerings
- There is a continuous search for additional chargeable services and new revenue streams, including premium support, network attach fees, value-added services (VAS), fixed wireless access, devices, and consulting
- Customisation and contextualisation are crucial, requiring a modular and composable set of services with some degree of consulting
- Compliance presents both challenges and opportunities. While issues with permanent roaming are mostly resolved, new regulations concerning data sovereignty and national resilience are emerging
- The Connectivity Management Platform (CMP) landscape is evolving, though at a relatively slow pace. There is a demand for change, both in CMP selection (often dual-sourcing) and for overlay abstraction platforms
- Creating a multi-country connectivity solution, particularly involving LTE-M/NB-IoT, remains difficult. Reliance on non-IoT networks persists, and there is growing interest in LTE Cat 1bis
- Despite the shortcomings of connectivity provision using Low Power Wide Area (LPWA) technologies, CSPs are searching for the ‘next big thing’, with satellite Non-Terrestrial Networks (NTN) currently fulfilling that role. 5G has yet to deliver significant benefits, although some forward-thinking CSPs are preparing for it
- The SGP.32 standard is promising, significantly reducing the complexity of supporting localised connectivity and driving new business models and approaches
- Innovative efforts are being made to simplify the adoption of IoT connectivity, particularly by aligning telecoms with the IT domain to ‘meet developers where they are’
Analysis drawn from the report shows there is no one CSP best for IoT. This depends on the customer’s needs such as the location of devices, preferred commercial models or even which Cloud provider is used.
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