A new research team from Berg Insights reveals that the number of cellular IoT connections in the retail industry has faced an explosive growth trajectory, reaching 147.9 million worldwide in 2023. The Berg Insights predictions include a lot of innovations that will lead to a hike of 217.7 million by 2028.
This technology enables devices like POS terminals, ATMs, and ticketing machines to operate efficiently in areas without the requirement for any fixed-line connectivity. This cellular technology displays considerable impact on different markets like vending and parking, where real-time information enables machine operators to reorganize operations and increase efficiency.
Berg Insight predicts a compound annual growth rate (CAGR) of 10.05 over the next connections by 2028. Cellular IoT device shipments for retail applications will increase this compound annual growth rate of 6.2% from 57.9 million units in 2023 to 78.2 million units in 2028. POS terminals dominate the market and account for 93% of cellular IoT connections.
The growth of new markets is mainly due to the increase in electronic payments. The multi-space parking meter segment has adopted cellular IoT connectivity extensively, with 70% penetration. Single-space parking meters have become one of the fastest-growing segments.
Berg Insights expects vending machines to present a major opportunity for wireless connectivity. Only 6.5 million of the world’s 14.8 million vending machines are online. However, industry experts predict that this number will eventually increase.
Felix Linderum, the IoT analyst at Berg Insights, notes that organizational changes remain a major barrier to adoption. He says that the cost required for equipment and connectivity services has significantly decreased, but the organizational change needed to maximize benefits from this vending telemetry will remain the largest barrier between them. According to Berg’s insights, cellular communication will remain the niche option in digital signage due to higher costs.
Linderum also claims that the retail industry is transformed by cellular IoT technologies. According to him, the cost of equipment and connectivity costs have dropped significantly, with solutions becoming more advanced and user-friendly. He also added that the main challenge that you have to face while adopting vending telemetry lies in implementing organizational changes.
He ended the discussion with the fact that many coming technologies are being launched and already launched, like 5G. An increasing number of media players now come equipped with SIM slots and cellular technologies of 5G, which might increase the relevance for meeting broadband data demands for applications such as 3D, AI, and analytics.
The Berg Insight is a renowned independent industry analyst and consulting firm, specializing in IoT and digital technologies. With a team of expert analysts, the company provides comprehensive research, in-depth analysis, and strategic consulting services to clients all over the world.
Berg Insights was founded in 2004 and operates globally from its headquarters in Sweden, delivering actionable insights and guidance to clients. It has many segments, including fleet management, automotive telematics, smart homes, smart metering, connected industry, and mHealth.
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