Globally, mobile Internet of Things (IoT) connections in retail surpass 147.9 million connections.
According to Felix Linderum, IoT analyst at Berg Insight, the multi-space parking meter segment has been an early adopter of cellular IoT connectivity and currently boasts the highest connectivity penetration of 70%. This trend has also extended to the single-space parking meters market, which is now one of the fastest growing segments.
The global retail industry is another sector that is seeing a surge in cellular IoT connectivity. Berg Insight forecasts that the number of cellular IoT connections in this industry will grow at a compound annual growth rate (CAGR) of 10.0% over the next five years, reaching 217.7 million connections by 2028. POS terminals constitute the largest device segment and accounted for 93% of all cellular IoT connections in the retail industry at the end of 2023. In 2023, the number of cellular IoT connections in the retail industry reached 147.9 million worldwide. Shipments of cellular IoT devices for retail applications will increase at a CAGR of 6.2% from 57.9 million units in 2023 to 78.2 million units in 2028.
The vending machine segment, while currently lagging behind, is expected to present a major opportunity for wireless connectivity in the long term. Today, only 6.5 million of the world's 14.8 million vending machines are online. However, solutions for vending telemetry have become more sophisticated and easier to deploy, and the costs for equipment and connectivity services in vending telemetry have significantly decreased.
Despite these advancements, widespread adoption of vending telemetry may still be hindered by organizational challenges. The higher costs associated with cellular communications technology are also a significant factor, particularly in the digital signage industry where cellular communications is expected to remain a niche connectivity option.
Berg Insight expects that the vending machine segment will eventually overcome these hurdles, as it is inevitable that every vending machine will eventually be connected. The market for wirelessly connected POS terminals is relatively mature, and most of the market growth is driven by the increasing use of electronic payments in emerging markets.
It's worth noting that the forecast for the number of cellular IoT connections in the global consumer industry was made by an unnamed market analysis frequently cited in IoT connectivity reports. However, relevant market forecasts related to cellular IoT growth are typically provided by industry analysts such as TechInsights or similar IoT market researchers.
As cellular IoT connectivity continues to penetrate various industries, it's clear that the benefits of improved efficiency, data collection, and remote management are driving its adoption. While there are challenges to overcome, the potential for growth and innovation is undeniable.
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