According to the most recent Ericsson Mobility Report*, the Internet of Things (IoT) is poised to become the biggest category of connected devices, surpassing mobile phones by 2018.

The number of IoT connected devices is projected to rise by 23% annually from 2015 to 2021, with cellular IoT predicted to experience the fastest growth. By 2021, nearly 16 billion of the anticipated 28 billion connected devices will be IoT devices.

Rima Qureshi, Senior Vice President & Chief Strategy Officer of Ericsson, stated that the falling cost of devices and the emergence of new applications are accelerating the growth of the IoT. Commercial rollout of 5G networks starting in 2020 will offer crucial features for IoT, including network slicing and the capacity to connect significantly more devices than is currently feasible.

Source: Ericsson. New mobile subscriptions in India
equalled the number of new mobile subscriptions in
Asia Pacific excluding China and India. China rated
a negative number after China Unicom removed
inactive subscriptions.

Smartphone subscriptions are steadily increasing and are expected to outnumber basic phone subscriptions in the third quarter of this year. By 2021, smartphone subscriptions will nearly double from 3.4 billion to 6.3 billion. The report also reveals that there are currently 5 billion unique mobile subscribers worldwide.

The report details a significant change in the viewing patterns of teenagers, with cellular data usage for smartphone video increasing by 127% in just 15 months (2014 to 2015). Over four years (2011 to 2015), there has been a 50% decrease in the time teenagers spend watching TV/video on a TV screen, contrasted with an 85% surge in those watching on smartphones. This trend, along with the fact that the next generation of mobile users consumes the most data for streaming video on smartphones (both Wi-Fi and cellular), positions them as the most crucial demographic for cellular operators to observe.

A significant milestone was reached in 2016: commercial LTE networks were measured to support downlink peak data speeds of 1 Gbps. Devices with 1 Gbps support are anticipated in the latter half of 2016, initially in markets like Japan, the US, South Korea, and China, but quickly expanding to other areas.

This improved technology will allow users to access content considerably faster, with download speeds up to two-thirds faster than currently available technologies.

Additional highlights from the Ericsson Mobility Report include:

• Mobile broadband subscriptions in the Middle East and Africa are expected to quadruple between 2015 and 2021, while mobile data traffic in India is projected to increase fifteen-fold by 2021.
• Between Q1 2015 and Q1 2016, global mobile data traffic surged by 60% due to an increase in smartphone subscriptions and individual data use. Smartphones will account for roughly 90% of mobile data traffic by the end of 2021.
• During Q1 2016, LTE subscriptions expanded rapidly, with 150 million new subscriptions driven by demand for enhanced user experiences and quicker networks, bringing the total to 1.2 billion globally.
• Commercial availability of LTE peak data speeds of 1 Gbps is expected in 2016.
• 5G deployment is predicted to begin sooner than expected, but increased spectrum harmonisation is required between countries planning early 5G rollout. This is in addition to the current WRC-19 process, which is focused on spectrum for commercial 5G deployments beyond 2020.
• Singapore is the Southeast Asian leader in both smartphone and mobile broadband subscription penetration, exceeding 100% and 140%, respectively.
• The Asia Pacific region is expected to drive growth, with 1.7 billion new smartphone subscriptions recorded, exceeding the combined total from the rest of the world.
• By 2018, IoT is expected to overtake mobile phones as the largest category of connected devices.

The Ericsson Mobility Report also highlights the leading positions of Singapore and the Asia Pacific region in smartphone adoption, mobile broadband usage, and IoT growth.

Singapore maintains its lead in Southeast Asia for both smartphone and mobile broadband subscription penetration, exceeding 100% and 140%, respectively, compared to Southeast Asia’s overall penetration levels of approximately 40% and 60%, respectively, in 2015.

Source: Ericsson. India added the most number of
mobile subscriptions in the quarter, followed by
Indonesia and Myanmar.

Globally, mobile subscriptions are increasing at a rate of about 3% year-over-year, reaching 7.4 billion in Q1 2016. In Southeast Asia, Indonesia and Myanmar are considered key growth markets, with each country adding 5 million subscribers in Q1 2016.

Across the Asia Pacific region, smartphone subscriptions are predicted to hit 1.7 billion by 2021. By the end of 2015, Singapore was the only country in Southeast Asia with a smartphone subscription penetration rate exceeding 100%. Additionally, Singapore has the highest cell-edge downlink speed and lowest latency in Southeast Asia. By 2021, Singapore’s smartphone subscription penetration is projected to approach 130%.

This expansion has resulted in a massive increase in demand for rich content among subscribers, with YouTube now ranking as the second most popular app in Singapore, trailing only WhatsApp, and claiming the top spot in Indonesia.

Prior to the smartphone era, mobile network operations were primarily focused on managing voice coverage. However, voice now accounts for less than 5% of mobile traffic. While users still anticipate reliable voice coverage, they also demand a positive user experience when accessing the internet through apps on their smart devices.

The report also underscores the anticipated surge in IoT connected devices in the Asia Pacific region, which is projected to surpass mobile phone subscriptions globally by 2018. This growth will be driven by new applications, business models, and decreasing device costs. By 2021, the number of IoT connected devices worldwide is projected to reach nearly 16 billion. The Asia Pacific region is expected to have the highest adoption rate, accounting for approximately 5 billion IoT connections.

Singapore’s innovative Smart Nation vision incorporates IoT as a fundamental element, focusing on two primary segments: massive and critical connections. Massive IoT connections are characterized by high connection volumes, low costs, low energy demands, and minimal data traffic. Examples include smart buildings, transportation logistics, smart meters, and agriculture. Critical IoT connections, on the other hand, necessitate ultra-reliability, high availability, and extremely low latency. Examples include traffic safety, autonomous vehicles, industrial applications, remote manufacturing, and healthcare, including remote surgery.

Martin Wiktorin, Country Head for Singapore & Brunei at Ericsson, emphasized the extraordinary expansion of mobile broadband and smartphone technology in Singapore and throughout the region. He also highlighted the transformative potential of IoT in the coming years. According to a recent IDC study, global investment in IoT technology is predicted to reach US$1.3 trillion by 2019, driving the digital transformation of our lives and accelerating our transition to a genuinely networked society.

Intrigued?

The Traffic Exploration Tool, accompanying the report, allows users to generate personalized graphs and tables. Information can be filtered by region, subscription, technology, traffic, and device type.

Download the Ericsson Mobility Report, Traffic Exploration Tool, and regional reports for Southeast Asia & Oceania, North East Asia, North America, and India.

*The Ericsson Mobility Report is a prominent analysis of mobile data traffic, presenting in-depth measurements from active networks globally. The report leverages these measurements and analysis, combined with internal projections and other pertinent studies, to deliver insights into prevailing traffic and market patterns within the networked society. A connected device, as defined by the report, is a tangible object equipped with an IP stack, facilitating two-way communication over a network interface.