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Semtech (SMTC) LoRa Technology Tracks Luggage Trolleys at Airport

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Semtech Corporation (SMTC - Free Report) recently announced that the company’s Low power, high Range (LoRa) devices and LoRaWAN protocol have been deployed by DevApp Tech Solutions Pvt Ltd. (DevAppSol) into its smart asset tracking solutions to identify luggage trolleys at Hyderabad International Airport.

The technology allows users to oversee a trolley’s current location, thereby enabling accurate management of the trolleys as they move throughout the airport grounds. These solutions help in efficient inventory management, thereby reducing costs by less reliance on costly, ineffective manual processes.

Notably, the management team of Hyderabad International Airport has seen direct cost savings of 30-40% and an indirect savings up to 60% as a result of effective monitoring of these trolleys.

DevAppSol is a provider of Internet of Things (IoT) and low power wide area network (LPWAN) solutions.

The LoRa Technology enables long-range connectivity of IoT devices and aids in connecting sensors to the cloud. Its long range performance and low power consumption requirement enhance the overall performance of smart meters. Moreover, this technology helps in real-time communication of data and analytics to enhance efficiency and productivity.

The latest deal helps track luggage trolleys in real time to enhance efficiency and save costs. Consequently, the move is likely to boost the adoption rate of the company’s LoRa technology in the smart asset tracking market, which in turn will drive the top line.

Partnerships Play Key Role

Semtech is witnessing growing strategic alliance and contracts, thanks to cost-efficient abilities of LoRa technology in creating and deploying IoT solutions.

In addition to the current deal, the company recently joined forces with Yabby Edge to develop a battery-powered tracking device. This will help customers deploy low power and cost-effective solutions in a variety of industry verticals, thereby increasing the adoption rate of LoRa-enabled devices.

Additionally, Ripl Networks’ asset tracking solution — which has been paired with Semtech’s LoRa devices — will be deployed at naval ports. The solution will help DOD keep a complete check on critical American assets by accurately monitoring them.

We believe Semtech is well poised to rapidly penetrate into the expanding IoT market, aided by the highly popular LoRa technology.

IoT Market Prospects

IoT devices have been gaining significant traction in recent times. These devices have been successful in making an impact across all end markets served by the company.

Per IOT Analytics, the number of active IoT devices is expected to grow from 7 billion in 2018 to 10 billion and 22 billion by 2020 and 2025, respectively, including devices on the consumer and enterprise side.

Presently, LoRaWAN networks are operating in many countries. It expects the LoRaWAN open protocol to reach more countries in the near term. Industry experts expect four out of every 10 long-range IoT connections to be powered by LPWAN, with LoRaWAN being the dominant player.

We believe Semtech is well poised to rapidly penetrate into the expanding IoT market, aided by the highly popular LoRa technology.

Zacks Rank & Stocks to Consider

Currently, Semtech carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Analog Devices, Inc. (ADI - Free Report) , NXP Semiconductors N.V. (NXPI - Free Report) and ON Semiconductor Corporation (ON - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Analog Devices, NXP Semiconductors, and ON Semiconductor is currently projected at 12.3%, 10% and 41.5%, respectively.

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