The global low power wide area network (LPWAN) market is expected to record an 84.3% growth between 2021 and 2029 owing to increased adoption of the Internet of Things and M2M applications, according to a study released by Research and Markets.
The application of LWPAN in smart buildings is expected to dominate the market with increased demand and usage in sectors such as transportation, electronics, and automation anticipated to drive the growth.
The smart buildings segment dominated the sector in 2020 by accounting for 28% of the market share. The need to make energy and resource allocation more efficient is expected to drive an increase in the application of LPWAN in the smart buildings sector through 2029, according to the study. Moreover, LPWAN provides an affordable data transmission network for smart buildings operations hence adoption is likely to increase, according to the study.
However, LPWAN applications in the utility sector including smart gas and water metering are expected to be the fastest-growing segment. The utility sector is expected to account for 23.3% of all LPWAN applications through 2029.
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The deployment of smart city technology is also expected to drive the LPWAN market. The Bank of America Merrill Lynch predicts smart city technology and management investment to reach more than $3.48 trillion by 2026 globally.
Other factors including the increasing demand for long-range connectivity between devices, the low power consumption of LPWAN and the rising need for connectivity in large industries are expected to positively impact the LPWAN market, states the study.
Europe is expected to hold a lion’s share of the market with a 34.66% share owing to huge investments in smart cities whilst the Asia Pacific region will be the fastest-growing market.
Other key study findings include:
- Factors such as cybersecurity issues, heavy data traffic, and the lack of governance and standardisation will continue to hinder the LPWAN market.
- Technology companies will work with governments of many countries in developing LPAN solutions. The major companies include Actility, Sigfox, Ingenu and others, whilst the UK Government, Australian Government etc. are also proactively involved in the investments for LPWAN.
- Major players will focus on merger and acquisitions, collaborations, research and development and strategic partnerships to enhance market presence and share.
Find out more about the study.