Emerging Shift: Private Networks Leading Future of Low-Power IoT

December 26, 2024

The landscape of low-power wide-area networks (LPWAN) is undergoing a significant transformation. By 2025, the focus will shift from wide-area to localized, private networks for low-power IoT applications. This change is driven by the need for better performance, energy efficiency, and control over IoT deployments. For over a decade, LPWAN technologies like Sigfox, LoRaWAN, and NB-IoT have aimed to provide extensive connectivity for low-power devices across nations or worldwide. However, recent developments have demonstrated the limitations of operator-led LPWAN initiatives, prompting a shift towards private IoT network deployments.

The Rise of Private Networks

Enhanced Performance and Control

Private networks offer enterprises the ability to optimize network performance without being hindered by competing network priorities. This control allows devices to maintain their low-power performance without compromises due to external factors such as latency or congestion. Unlike LPWANs managed by operators, private networks support rapid deployment and can be tailored to specific environments, ensuring reliability and security.

The importance of optimal performance and control becomes evident when considering mission-critical IoT applications. In scenarios such as healthcare monitoring or emergency response systems, any latency or interference caused by shared network resources could lead to significant issues. By implementing private networks, organizations can prioritize their specific data streams, ensuring real-time communication and decision-making. Furthermore, private networks’ customizable nature allows them to be adapted to the unique requirements of differing environments, whether urban centers or remote agricultural areas.

Use Cases of Private Networks

Private networks have proven to be advantageous in several use cases. In smart metering, private networks support millions of devices, enhancing energy management by providing accurate, real-time data. Building management systems benefit from private networks by connecting smart systems that manage heating, cooling, and other essential operations to improve building efficiency. In retail and logistics, private networks enable real-time inventory tracking, predictive maintenance, and better customer interactions through digital twins.

Effective use of private networks in industrial IoT applications showcases their potential. Machinery and processes can be monitored and optimized to reduce downtime and improve operational efficiency. For example, predictive maintenance systems can identify potential failures before they occur, enabling timely interventions that save costs and prevent unexpected halts. Additionally, in retail environments, private networks facilitate seamless integration of multifaceted systems, ensuring smooth customer experiences through digital interactions and increasing operational transparency.

Evolution of Traditional LPWAN Technologies

Redefining Roles of LPWAN Operators

The transition towards private networks underscores the limitations and evolution of traditional LPWAN technologies. Companies like Sigfox and LoRaWAN operators are redefining their roles from large-scale network operators to solutions and platform providers that support localized deployments. This shift allows them to focus on providing tailored solutions that meet the specific needs of enterprises.

As LPWAN operators pivot their strategies towards localized solutions, they are better positioned to address niche demands more effectively. This evolution is critical in sectors with high-stakes dependencies on continuous data streams, for instance, agriculture or public infrastructure. The redefined roles enable operators to harness their expertise not just in broad connectivity but also in developing platforms that offer robust, secure, and efficient data transmissions over limited distances, thereby delivering more value to end-users.

The Decline of NB-IoT

NB-IoT is facing a phase-out in certain regions, with operators now prioritizing different connectivity solutions in the 5G era. It has become more evident that low-power technologies are underrepresented in the 3GPP roadmap, with emerging options like RedCap and eRedCap not meeting the true low-power criteria. This decline highlights the need for more efficient and scalable low-power IoT solutions.

The gradual phasing out of NB-IoT reflects an industry-wide recognition that emerging low-power solutions must evolve beyond traditional capabilities. In the 5G era, connectivity solutions are expected to be faster, more scalable, and highly adaptable to various operational frameworks. As a result, significant investments and innovations are being redirected towards identifying and refining technologies that better align with the low-power IoT ecosystem’s demands, ensuring more sustainable deployment options for enterprises.

Speculative Low-Power IoT Solutions

Ambient IoT

Ambient IoT is an early-stage discussion that holds potential but lacks concrete development and remains mostly speculative. While it offers intriguing possibilities, it has yet to demonstrate practical applications and scalability. This emerging technology promises an inclusive IoT ecosystem driven by ultra-low-power communication without relying on traditional battery-powered devices.

Despite its conceptual appeal, Ambient IoT technology faces numerous hurdles before reaching substantive implementation. Challenges include ensuring consistent power sources, real-time data accuracy, and scalable deployment. These issues mean Ambient IoT remains largely theoretical, with a need for more extensive research and development to address these technical gaps and meet market readiness.

Satellite IoT and Starlink’s Adaptation

Satellite IoT and similar initiatives have faced difficulties due to technological scalability issues, lack of proper channels, and unfeasible business models. These challenges impact not only NB-IoT but also related solutions relying on this technology. Starlink’s adaptation by using LTE-based technologies such as Cat-1bis further illustrates the industry’s move away from true low-power IoT solutions.

The adaptation seen in Starlink underscores a broader industry trend prioritizing more established, scalable technologies over experimental ones. Satellite IoT, while theoretically capable of broad-area coverage, struggles with the practicalities of maintaining dependable, low-power connections across vast and often inhospitable terrains. Such technological barriers highlight the necessity for alternative solutions that promise greater reliability, efficiency, and cost-effectiveness.

Tangible Results of Private Networks

Improved Enterprise Efficiencies

The current shift to private networks is well underway with tangible results, including improved enterprise efficiencies and more sustainable operations. The existing LPWAN ecosystem has set a robust foundation, making it easier for businesses to adopt private LPLAN (Low-Power Local-Area Networks) deployments. The modularity and affordability of these private networks not only appeal to various business sizes but also enable deployment across diverse environments, from smart urban infrastructure to rural farming setups.

One key outcome of this shift to private networks is seen in operational sustainability. By ensuring more controlled and energy-efficient networks, enterprises can significantly reduce energy consumption and operational costs. This shift also leads to enhanced data security, as businesses retain full control over their data flow, minimizing risks associated with shared network vulnerabilities. These factors collectively result in a significant upswing in overall enterprise efficiencies.

Future of Low-Power IoT

The world of low-power wide-area networks (LPWAN) is experiencing a major shift. By 2025, the focus will transition from large-scale, wide-area networks to smaller, localized private networks tailored for low-power IoT (Internet of Things) applications. This transformation is motivated by the demand for superior performance, enhanced energy efficiency, and greater control over IoT implementations. For more than ten years, LPWAN technologies such as Sigfox, LoRaWAN, and NB-IoT have strived to offer broad connectivity for low-power devices on a national or global scale. However, recent advancements have highlighted the shortcomings of operator-led LPWAN initiatives. These limitations have spurred a move toward private IoT network deployments. By taking control of their own networks, organizations can better manage their IoT solutions, ensuring optimal operation and addressing specific needs without relying on external operators. This shift represents a significant evolution in the approach to low-power networking.

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