Next site of the Internet of Things: Current status and trends of NB-IoT industry development

NB-IoT (Narrowband Internet of Things) is an emerging technology in the IoT area that supports the cellular data connection of low-power devices over the WAN, also known as Low Power Wide Area Network (LPWA). NB-IoT support for long standby time, higher requirements for network connection equipment, efficient connection is an important direction for the development of the future things.

NB-IoT refers to the technology of Narrow Band-Internet of Things. Its core is for low-end IoT terminals (low current consumption) and is suitable for deployment in a wide range of fields such as smart home, smart city and smart production. Low rate, low power consumption, multi-terminal IoT applications have greater advantages. On June 16, 2016, the NB-IoT technology protocol was adopted by the 3GPP radio access network (RAN) technical specifications group meeting. NB-IoT will be in commercial phase until the completion of performance standards in September and the completion of conformance testing in December. Huawei, Ericsson, ZTE and other technology companies, global telecom operators have already begun layout NB-IoT technology.

Internet of Things Industry has great potential and bright future

Under the trend of "Internet of Everything", the Internet of Things (IoT), as a market for emerging application industries in the telecommunications industry, has been expanding in size and Internet of Things technology has immeasurable commercial value. Eric Schmidt, Google's executive chairman, once claimed that the Internet is about to become history and that the Internet of Things will take its place as an important part of life. According to the number of terminals on the Internet of Things, Gartner, a US IT research and consultancy firm, estimates that the global number of IoT devices will reach 20.8 billion by 2020, more than tripling 2016 (see Figure 1). In terms of market size, technology research institute IDC said that the market scale of Internet of Things in 2015 is estimated to be 6,986 billion U.S. dollars. By 2015, the market scale will reach 1.7 trillion U.S. dollars. In 2016, the total global IT spending will only reach 3.8 trillion U.S. dollars, The Internet of Things market accounts for about 18% of the total IT market. McKinsey, a well-known management consulting firm, has long been optimistic about the Internet of Things industry, and they expect the manufacturing IoT output to reach 2.5 trillion U.S. dollars in 2025.

China's technology research in the Internet of Things is almost in sync with the developed countries, and the basic standards of the Internet of Things take the lead in the world. Huawei, ZTE and other domestic technology companies in technology research and development and application of active input in the development of technical standards industry play an important role, and has the core technology of intellectual property. In the rapid development of the Internet of things in the future, if China's enterprises can take the initiative in technology development and strengthen the development and expansion of the application market, there will be ample opportunities in the development of the Internet of Things.

NB-IoT technology breakthroughs, rapid establishment of technical standards

NB-IoT technology is a major breakthrough in IoT technology that has filled the gap that could not be achieved in the long-term, large-scale and widespread deployment. The rapid establishment of technical standards laid the foundation for its entry into the commercial phase.

NB-IoT technology has a breakthrough advantage. NB-IoT is the Internet of Things (IoT) technology proposed by the 3rd Generation Partnership Project (3GPP) for long distance, low rate, low power consumption and multi-terminal services. It uses licensed spectrum and is ahead of competing technologies such as LoRa and has four major advantages: First, low power consumption, NB-IoT terminal module standby time up to 10 years; second, low cost, the module is expected to price no more than 5 US dollars; Third, high coverage, indoor coverage, higher than the existing network gain of 20dB, equivalent to an increase of 100 times the coverage area capacity; Fourth, strong connection, NB-IoT a sector can support 100,000 connections, support low Latency sensitivity, ultra-low device cost, low device power consumption and optimized network architecture. Overall, NB-IoT fully outperforms other technologies and becomes the communications technology best suited for long-haul, low-rate, low-power, multi-terminal IoT services.

NB-IoT technical standards that Chinese enterprises participate in quickly established. The NB-IoT technology agreement was adopted by 3GPP RAN specifications group meeting on June 16 this year and is one of the three technical standards proposed by 3GPP in 2016. The protocol was frozen in less than eight months from the protocol to the protocol, making it one of the fastest-established 3GPP standards in the history. The high efficiency established by the standard reflects the urgent need of the market for the implementation of this technology. NB-IoT was developed by the joint NB-Clot technology proposed by Huawei, Vodafone and Qualcomm, and NB-LTE technology proposed by Ericsson. China's Huawei and ZTE have made significant contributions. By participating in the formulation of technical standards, enterprises have not only promoted technological development, led the industrial progress, but more importantly, they have mastered the core technologies of the industry and obtained the initiative in development.

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