IoT data traffic “per node”: the new critical metric for IoT system designers

All Messages are Important; Just Some Messages are More Important Than Others

Oyster Bay, New York - 27 Dec 2017

The best IoT message bandwidth planning may not survive the first contact with real-world data as IoT System Integrators (SIs) and network planners face the challenge of developing a project concept while at the same time anticipating the data traffic use case requirements. The latest report from ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies, explores the growth factors driving the IoT data traffic per node, including bandwidth requirements in 23 key market segments. Analysis of the IoT data provides valuable insights and is the foundation of new business opportunities and services, which in turn is driving the future requirements of IoT Data Traffic across multiple markets and applications.

“IoT system design needs to consider multiple factors around the critical communication links including messaging size, frequency, and data types. However, by anticipating the detailed use case scenarios including data bandwidth growth, the uncertainty between design expectations and real-world experiences can be minimized,” said Kevin McDermott, Principle Analyst ABI Research.

While requirements and use case factors are application dependent, all share the common goal of interpreting raw sensor data and deriving value-added information. The fastest growing segment for data traffic per node is OEM telematics, which is forecasted to grow at over 540% CAGR over the next 5 years. This market will drive the highest IoT solution revenues per connected vehicle - partly driven by the additional security and integrity measures needed to protect the vast amounts of data exchanged.

While many standards and technologies are developing protocols for IoT networks, the essential message structure and information flow depend on the use-case around the data traffic of the target application. With IoT adoption across wide-ranging applications and market segments, the use case scenarios are driving IoT data traffic growth.

“Urgent messages, alerts and alarm indicators may require both priority attention and assured bandwidth allocation, but planning also needs to consider peak demand and exception utilization. SIs, IoT system designers, and network planners can utilize the data traffic per node approach to anticipate the use case and application factors that are expected to drive growth over the next 5 years,” concludes McDermott.

These findings are from ABI Research’s Iot Data Traffic: Application and Market Analysis report. This report is part of the company’s M2M, IoT & IoE research service, which includes research, data, and analyst insights.