The number of IoT devices, which connect things to the Internet, is increasing more sharply compared to smartphones, and is expected to reach 30 billion units by 2020.

☐ As a communication technology to connect these devices, Low Power Wide Area (LPWA) networks are attracting attention, in addition to 5G.

World market size and market growth rate

Trend in the Number of IoT devices and shipments of smartphones in the world including estimates

LPWA - Communication technology that supports IoT

Exhibition of IoT devices

Exhibition by the LoRa Alliance at the Mobile World Congress (MWC) 2017

Examples of the use of LPWA networks

Examples	Participants
Japan	Practical use	Fukuoka-shi commenced a demonstration experiment concerning the collection of gas and water meter data this July, with the aim of clarifying problems for the commercial use of LPWA networks. (L)	7 companies including Azbil and IBM Japan
Overseas	Industry	A delivery pizza company has introduced a system to remotely control temperature in the refrigerators to store pizza dough. (S)	Kyocera Communication Systems
Consumers	The company provides monitoring services using LPWA networks to check deterioration in water infrastructure. (L)	Senet (US)
The company develops a device to enable consumers to place delivery orders only by pushing a button on the device. (S)	La Poste (France)
L: LoRaWAN 5: Sigfox

○ In order to have IoT and AI surely bring about economic growth, corporate reform is indispensable in addition to the development of IoT through making relevant investment and inputting services.

○ If the development of IoT and corporate reform both progress steadily, IoT and AI are expected to create new demand and increase real GDP by 132 trillion yen to 725 trillion yen in 2030.

Economic growth up to 2030

Impact of the development of IoT [Reference] Verification of the 3rd Industrial Revolution (1990 -)

*1 Development of IoT• Introduction of IoT and AI	*2 Corporate reform• Internal and external operational reform• Human resources-related measures and investment• IP-related investment• Overseas investment• M&A

Corporate classification under two scenarios

The 3rd Industrial Revolution (ICT Revolution) has brought about economic growth with accumulated information capital in Japan, but the growth was more significant in the United States.

Estimates by the Cabinet Office

The Cabinet Office submits the Economic and Fiscal Projections for Medium to Long Term Analysis to the Council on Economic and Fiscal Policy twice a year. For a period up to 2025, two scenarios (economic revitalization scenario and baseline scenario) are created.

- Economic revitalization scenario: Assuming a real growth rate of 2% and a nominal growth rate of 3% or more over the medium and long term

Items	2016	2020	2025	2030
Economic growth scenario	Real GDP	100	109	122	139
Real ICT investment	100	139	197	285
Baseline scenario	Real GDP	100	105	109	114
Real ICT investment	100	114	129	146

Contribution of TFP and information capital to real growth rate in Japan and the United States

* Total factor productivity (TFP): The part other than production factors (capital and labor) that contributes to increasing added value; Representing technological advancement, accumulation of intangible capital, enhancement of workers' skills, and improvement of management efficiency, etc.