According to a report by IoT market research firm Berg Insight, global IoT connectivity revenues are continuing to surge.

The researchers note that revenues increased by 24 percent in 2022 to reach $13.9B (£9.37B) in 2022. The decline in global Average Revenue Per User (ARPU) also decelerated and dropped by just one percent to €0.49 (£0.33).

IoT connectivity revenues typically account for around two percent of the total revenues for the largest mobile operator groups, demonstrating the potential for further growth in this sector.

Berg Insight’s projections for the future are equally promising, with an estimated 5.3 billion IoT devices expected to be connected to cellular networks worldwide by 2027, generating annual connectivity revenues of $27.6B (£18.57B).

One of the key highlights of the report was the significant presence of the top ten mobile operators in the cellular IoT market. At the end of 2022, they reported a combined active base of 2.3 billion cellular IoT connections, constituting a staggering 87 percent of the total 2.7 billion connections globally.

China Mobile emerged as the leading provider of cellular IoT connectivity services with a whopping 1.06 billion cellular IoT connections. China Telecom and China Unicom secured second and third positions, with 407 million and 390 million connections, respectively.

Vodafone ranked fourth with 160 million connections and was first among Western operators. AT&T closely followed in fifth place with 107 million connections. Verizon, Deutsche Telekom, and Telefónica, were reported as providing in the range of 36-57 million cellular IoT connections. Rounding out the top ten were KDDI and Orange, each with approximately 30 million connections.

Year-on-year growth rates for these leading operators ranged from 1-37 percent.

In Western markets, IoT managed service providers played a pivotal role in the ecosystem. Most of these providers operate as full Mobile Virtual Network Operators (MVNOs), offering IoT connectivity services based on a combination of roaming and local access agreements, and often providing value-added services targeted at specific vertical segments.

Notable examples include Velos IoT, Aeris, KORE Wireless, 1NCE, and Wireless Logic. These IoT managed service providers managed more than 150 million cellular IoT connections by the end of 2022, with a total annual revenue of approximately $1.93B (£1.3B).

With the global IoT ecosystem showing no signs of slowing down, it’s safe to say that the journey of digital transformation has only just begun.

(Photo by Jungwoo Hong on Unsplash)

See also: Global 5G IoT roaming connections to hit 142M by 2027

Want to learn about the IoT from industry leaders? Check out IoT Tech Expo taking place in Amsterdam, California, and London. The event is co-located with Digital Transformation Week.

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Tags: berg insight, cellular iot, connectivity, IoT, report, research, study