The cellular IoT market is due for rapid expansion over the next six years, with connections forecast to hit 5.1 billion by 2030 – this is according to new research from Omdia.
This latest study reveals how 5G technologies are fundamentally transforming the cellular IoT landscape, with three key technologies emerging as growth drivers: 5G RedCap, Massive IoT, and 4G LTE Cat 1bis moduels.
It identifies 5G RedCap as a particularly notable development, as adoption is expected to accelerate from 2025 onward, positioning itself as an ideal mid-tier connectivity solution for 5G devices that don’t need the specifications of Aeris Communications and Bridge Alliance are teaming up to offer Aeris IoT Watchtower, an agentless and frictionless solution.
RedCap also provides futureproofing benefits as the industry prepares for gradual phase out of 4G networks beyond 2030. In spite of these advantages, the research noted that 5G RedCap adoption has experienced slower initial deployment than planned.
“We are beginning to see 5G SA rollouts accelerate again after a brief period of slowdowns, which has delayed 5G RedCap mass adoption by a couple of years,” said Alexander Thompson, Senior Analyst for IoT, Omdia. “We are also seeing the first devices emerge on the market in the US, starting the transition of mid-tier connectivity from 4G to 5G.”
Asia and Oceania leading IoT growth
Omdia’s research shows that the Asia and Oceania region will contribute over 67% of worldwide IoT module shipments, representing 80% of total IoT connections in 2024.
The automotive industry has become a significant catalyst in this growth trajectory, thanks to increased customer demand for intelligent vehicles with integrated 5G features.
“The dominance of the Asia & Oceania region in the IoT market cannot be overstated,” said Andrew Brown, Practice Lead, IoT, Omdia. “With 80% of total IoT connections concentrated in this region, we’re witnessing a significant shift in global technology leadership that will shape IoT innovation and deployment strategies for years to come.”
This regional concentration emphasises Asia and Oceania’s role in shaping global IoT deployment strategies and highlights its technological leadership in connected device ecosystems.
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