China will drive global IoT growth: Ericsson report

PUBLISHED BY
Anna Domanska



TAGS:


3 years ago




Ericsson has doubled its forecast for the connected cellular Internet of Things (IoT) in 2023 to 3.5 billion, Swedish telecom gear maker said on Tuesday.

The figure is up from a November forecast of 1.8 billion connected cellular IoT devices.

“The forecast for cellular IoT connections has almost doubled, due to ongoing large-scale deployments in China,” Ericsson said in its semi-annual mobility report.

Internet of Things is becoming an increasingly growing topic of conversation at business lunches. IoT gives billions of devices such as a coffee pot or an alarm clock the capability to communicate with other household devices and make life easier. It is expected to give telecom operators something to latch onto for revenue growth.

China becomes a growth engine for IoT

China, in particular, is expected to account for 2.2 billion of the IoT devices in 2023, Ericsson said.

China is emerging as an IoT juggernaut. It is integrating advanced technologies in an innovative way, making urban life smarter, more accessible and efficient.

China’s shift towards the Internet of Things adoption hasn’t happened overnight. Internet giants such as Alibaba, Tencent, and Baidu have inspired numerous IoT startups to provide innovation in low-value segments that were once largely constrained by weak innovation capacity.

According to a report by ABI Research, major cities are China are leveraging IoT to accelerate smart city services including public safety, lighting, energy, transportation, and more.

Ericsson-headquarters

Ericsson’s headquarters in Kista, Sweden.

The growth of IoT in China has been profound due to immense support from regulators, agenda setters, and technology adopters.

By comparison, the Swedish telecom gear maker sees other connected devices such as mobile phones at 8.6 billion by 2023 versus 7.5 billion in 2017. The number of PC/laptop/tablet will rise to 1.7 billion.

Patrik Cerwall, who heads industry marketing at Ericsson says 5G wireless networks will fuel IoT growth. Nearly 1 billion devices will feature a 5G connection, he said.

“We have been reporting on mobile industry development for a number of years,” Cerwall said in a statement. “However, this report is probably one of the more exciting ones because we are at the start of a big change in the industry.”

The question remains whether the IoT growth will translate into sales for telecoms.

The report also forecasts the launch of 5G commercial networks later this year. The launches will occur in North America, Japan, China and South Korea. By 2023, the company expects 20 percent of all mobile data traffic globally to come from 5G networks.

5G, also known as fifth-generation network technology, is ten times faster than 4G and seen as a reliable platform for new technologies.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

America is Losing its Appetite for Plant-Based Meat

America is Losing its Appetite for Plant-Based Meat

Most meat in 2040 will not come from animals, says report. However, the recent decline in sales of plant-based meat fell by 1.8 percent compared to the year before, taking declines
1 hour ago
Fusion startup raises $1.8 billion to give us unlimited clean energy

Fusion startup raises $1.8 billion to give us unlimited clean energy

Commonwealth Fusion Systems secures more than $1.8 billion in Series B funding to commercialize fusion energy. The funding round was led by Tiger Global Management with participati
21 hours ago
Omicron might push inflation, says OECD

Omicron might push inflation, says OECD

The latest Coronavirus variant, Omicron, which is believed to be more transmissible and severe, might derail growth and recovery and raise costs, according to the Organization for
1 day ago
Who is Parag Agrawal, Twitter’s new CEO?

Who is Parag Agrawal, Twitter’s new CEO?

Indian-born Parag Agrawal took over as the CEO of Twitter as co-founder Jack Dorsey stepped down for the second time in his career. Agrawal is the fourth person to take the reins a
2 days ago
Goldman Sachs rolls out paid leave for pregnancy loss

Goldman Sachs rolls out paid leave for pregnancy loss

Goldman employees are now eligible for 20 days of paid leave for a miscarriage or stillbirth. The investment banking giant is also increasing its retirement fund matching contribut
2 days ago
Boom in Tech IPOs in 2021

Boom in Tech IPOs in 2021

The big tech cloud-based software companies such as Zoom, Snowflake, Asana, Airbnb, Amazon, Salesforce and Palantir have all witnessed a rise in stock prices as work from home and
3 days ago