According to a new report from MarketsandMarkets’, the global Narrowband IoT (NB-IoT) Chipset market is expected to grow from USD 461 Million in 2020 to USD 2.484 Billion by 2025 at a CAGR of 40.0%. In terms of unit shipments, the NB-IoT chipset market is estimated to stand at 140 million units by 2020 and is projected to register 1.233 Billion units by 2025 at a CAGR of 54.5%.
The NB-IoT chipset market has huge potential for growth across various verticals, such as energy, infrastructure, safety and security, automotive and transportation, and healthcare. Growing adoption of IoT especially by energy & utilities and widening applications of NB-IoT especially in infrastructure and building automation verticals are driving the growth of this market. Growing demand for wearable devices due to COVID-19 outbreak and increasing participation of industry players in the development of NB-IoT technology is another key factor driving the NB-IoT chipset market.
Guard Band Deployment to Hold Largest Size of NB-IoT Chipset Market During Forecast Period
The guard band segment is expected to hold the largest size of the NB-IoT chipset market from 2020 to 2025. Various benefits such as no additional spectrum cost, reuse of antenna and RF modules of existing infrastructure, and no need for frequency planning are the prime factors resulting in the adoption of guard-band deployment model. Moreover, certain limitations of in-band deployment, such as interference, restrict its coverage area as compared with guard-band deployment is further supporting the growth of guard band type.
Wearables Devices to Witness Highest CAGR in NB-IoT Chipset Market from 2020 to 2025
The wearable devices segment is expected to foresee the highest CAGR in the overall market throughout the forecast period. The M2M and IoT market for wearable devices is expected to grow at a high rate with the development of new products and greater customer engagement. The growing market for wearable devices across healthcare, entertainment, sports and fitness, and other sectors is driving the demand for low-power and highly secure cellular networks. The pandemic has expanded the role of wearable technologies in the healthcare industry. Several companies operating in the wearables space across other domains are eager to enter the landscape of wearables for use as early warning systems for the virus infection.
APAC Leads NB-IoT Chipset Market in Terms of Value and Volume
APAC is projected to account for the largest size of the NB-IoT chipset market throughout the forecast period. The increased adoption of new technologies and advancements in organizations across various industries are among the key factors driving the market growth in this region. China is leading the NB-IoT chipset market with the lions share of ~87% in APAC in 2018 and is expected to continue its dominance during the forecast period. In China, the leading mobile operators such as China Mobile and China Unicom are using NB-IoT technologies to connect millions of devices across the country.
Moreover, strong federal support is further fueling the growth of the NB-IoT chipset market in the country. For instance, the Ministry of Industry and Information Technology (MIIT) of China intends to develop large number of million NB-IoT connections across the country by 2020. Furthermore, with development of new NB-IoT-based use cases - such as smart parking, smart waste management, and environmental monitoring - and introduction of dual-mode NB-IoT/LTE-M chipset, the NB-IoT chipset market in western world, especially in the UK, the US, and France, is also set to grow in the coming years.
The major companies profiled in this report are Qualcomm Incorporated (US), Huawei Technologies Co. Ltd. (China), Samsung Group (South Korea), Intel Corporation (US), u-blox Holding AG (Switzerland), Nordic Semiconductor (Norway), MediaTek Inc. (Taiwan), Sanechips Co. Ltd. (China), Sercomm Corporation (Taiwan), Sequans Communications S.A.(France), Xiamen Cheerzing IOT Technology Co. Ltd. (China), Telit Communications PLC (UK), and Quectel Wireless Solutions Co., Ltd (China) among others.
Click here to read/download the full report, Narrowband IoT (NB-IoT) Chipset Market with COVID-19 impact, by Device (Smart Meters, Smart Parking), Deployment (Guard, In-Band, Stand-Alone), Vertical (Energy & Utilities, Infrastructure, Building Automation), and Region - Global Forecast to 2025