By the end of 2023, China still accounts for nearly 90% of global NB-IoT connections.

Omdia's latest research finds that the Low Power Wide Area Network (LPWAN) Internet of Things (IoT) connection field is dominated by NB-IoT and LoRa, with these two technologies together accounting for 87% of total connections in 2023. This dominance is expected to continue, with these two technologies projected to account for 86% of all LPWAN connections by 2030.

While the significant growth of NB-IoT is driven by its popularity in China, LoRaWAN leads in most other regions. Both technologies are well-suited for the currently in-demand mid-tier IoT applications, ensuring their continued leadership in the LPWAN market. LoRa is expected to remain the preferred choice for private IoT connections, while NB-IoT will expand through cost-effective implementation, and both technologies are expected to continue to achieve success by 2030.

Omdia Senior Principal Analyst Shobhit Srivastava commented on the growth of LPWAN connections, saying: "Although NB-IoT is the leading LPWAN technology, more than 90% of its connections are in China. Outside of China, LoRaWAN, with its undisputed growth momentum over the years, remains the leading LPWAN connection technology."

LoRaWAN adopts an alliance-driven approach with a mature ecosystem, where customers can choose from a range of partners and application-specific experts. Its differentiated products ensure its future success. Newer LPWAN technologies such as Wi-SUN and Mioty are also continuously evolving, following the successful alliance model of developing an ecosystem initially advocated by LoRa.

Although LoRaWAN and NB-IoT may compete fiercely in today's market (and within the forecast period), both protocols have ample room for success. LoRaWAN is now focusing on high-growth areas such as smart buildings, smart homes, and asset tracking.Srivastava further points out: "With multiple service providers deploying satellite-based NB-IoT connectivity to address coverage gaps in remote areas, NB-IoT will gain momentum in Europe starting from 2023. Coupled with certain government regulations, this will promote the growth of NB-IoT in the region. By the end of 2023, China still accounts for nearly 90% of global NB-IoT connections. The Chinese government and three national mobile operators continue to advocate for the widespread adoption of NB-IoT, supported by Chinese chipset suppliers. As Chinese suppliers launch affordable modules in Europe and South America, the technology will further grow. NB-IoT use cases are still mainly limited to fixed applications, with the most popular being smart meters and utilities (water/gas/electricity) as well as interconnected spaces (smart cities)."

LoRaWAN vs. NB-IoT: What Are Their Comparisons and Differences?

The Internet of Things (IoT) is booming, and LoRaWAN and NB-IoT are the two leading Low-Power Wide-Area Networks (LPWAN) that are driving the trend. These long-range, low-bandwidth wireless languages may sound confusing now, but they are the key to unlocking excellent IoT capabilities.

Whether it's trying to track assets in a large warehouse, monitoring environmental conditions on a farm, or building a large smart city network, both LoRaWAN and NB-IoT can meet the needs. Of course, there are other wireless options, such as Zigbee and Bluetooth, but their range and battery life cannot be compared with LoRaWAN. What is being talked about here is the ability to operate for many years on a single charge.

So, whether you choose LoRaWAN's open standard or NB-IoT's cellular technology, you will be amazed by their excellent performance.

LoRaWAN and NB-IoT are both LPWAN technologies, but they operate in completely different ways. LoRaWAN uses unlicensed spectrum and proprietary spread spectrum modulation, while NB-IoT utilizes licensed LTE bands and narrowband 4G cellular. To truly understand the comparison between these two options, it is necessary to define how LoRaWAN and NB-IoT work.

What is LoRaWAN?

LoRaWAN is a Low-Power Wide-Area Network (LPWAN) protocol designed by the LoRa Alliance for low-power, battery-powered IoT devices. It utilizes the LoRa physical layer, which is a proprietary spread spectrum modulation technology derived from Semtech's patented Chirp Spread Spectrum (CSS) technology.

The LoRaWAN specification defines a secure two-way communication protocol with features such as end-to-end encryption, data authentication, and mobility support. LoRaWAN networks require gateways to connect end devices to the internet, with each device incurring a small fee for the LoRa chipset.LoRaWAN is designed to provide a simple method for connecting Internet of Things (IoT) "things" to regional, national, or global networks, while meeting key IoT requirements such as low power consumption, long range, localized services, and secure communication.

What is NB-IoT?

NB-IoT (Narrowband Internet of Things) is a cellular standard developed by 3GPP, designed to provide low power, wide area network connectivity for IoT devices. It is optimized to provide extensive coverage and enhanced indoor penetration for fixed IoT sensors and meters.

Unlike the unlicensed LoRaWAN protocol, NB-IoT operates in licensed cellular spectrum owned by mobile operators. This licensed approach aims to provide a more reliable and interoperable user experience, although with higher long-term costs compared to unlicensed LPWAN technologies.

NB-IoT was completed in 3GPP Release 13 and can be deployed in in-band, guard-band, or standalone mode, without the need for gateways like LoRaWAN. NB-IoT devices connect directly to cellular base stations.

There is a growing trend towards the adoption of embedded SIM (eSIM) in NB-IoT, with 83% of organizations considering it crucial for IoT, according to GSMA Intelligence. eSIM allows for the configuration of IoT devices that support "blank" SIMs to simplify global connectivity.

LoRaWAN vs. NB-IoT: Feature-by-Feature Comparison

 

LoRa and NB-IoT stand out as leading LPWA protocols with various common attributes, such as long battery life, extensive coverage, and cost-effectiveness. Despite the striking similarities between the NB-IoT and LoRa standards, there are significant differences:

Range and Coverage: LoRaWAN utilizes gateways to provide remote coverage with a radius of 5-15 kilometers per gateway, making it suitable for rural/remote areas and tracking mobile assets. Its geographic location is not GPS-based.NB-IoT operates within the cellular network architecture, with each cell site having a radius of 2-3 kilometers. It requires dense cell deployment to achieve wide-area coverage but performs better in indoor/urban areas with existing 4G infrastructure. NB-IoT uses GPS to provide geolocation services.

Bandwidth and Data Rate: NB-IoT has a distinct advantage, offering a bandwidth of 180 kHz on LTE (higher on 4G) and a data rate of up to 200 kbps, thanks to its advanced design. In comparison, LoRaWAN has bandwidth limitations of 125 kHz, 250 kHz, and 500 kHz, with a maximum rate of 50 kbps. The licensed spectrum of NB-IoT and its robust MAC layer can also provide better noise and interference protection.

Latency: LoRaWAN prioritizes extending the battery life of IoT devices at the expense of high latency. In contrast, NB-IoT, as a cellular technology, offers lower latency by frequently "checking" the network. This makes NB-IoT a better choice for IoT use cases that require more responsive communication.

Network Topology: LoRaWAN uses a star topology where end devices communicate directly with the gateway, which then relays the data to a central network server. In contrast, NB-IoT follows the cellular network topology, with devices directly connecting to the base station, leveraging the mesh network architecture of the existing cellular infrastructure. Although the basic network architecture is similar, the main difference is that LoRaWAN uses a gateway as a mediator, compared to the direct device-to-base station connection model of NB-IoT.

Cost and Quality of Service (QoS): LoRaWAN operates in the unlicensed ISM spectrum, which reduces deployment and device costs. NB-IoT operates in licensed cellular bands, requiring operators to pay high licensing fees to improve spectrum efficiency. This privileged access ensures superior quality and security, but at a high cost, requiring the expansion of LTE infrastructure to support IoT. LoRaWAN meets the needs of localized, low-power deployments at a low cost, while NB-IoT offers seamless reliability and coverage, provided by the exclusive domain of cellular operators.

Deployment Status: As of 2024, LoRaWAN has a global footprint, with more than 170 operators in 181 countries/regions. According to the GSMA, NB-IoT has gained attention in more regions, with 124 operators deployed in 64 countries, mainly in Asia and Europe.