According to IoT Analytics, the global cellular IoT connectivity market reached a significant milestone, with mobile operators worldwide earning a combined $15 billion from 3.6 billion cellular IoT connections in 2023. This 23% year-on-year growth rate surpassed that of IoT software companies and hyperscalers in the same period.
The market is highly consolidated, with the top five mobile IoT network operators managing 83% of all global cellular IoT connections, and the top five by revenue receiving 64% of the combined income.
Looking ahead, the introduction of 5G and 5G Redcap technologies is expected to further stimulate growth in the global cellular IoT market. These advancements are forecast to drive the market at a compound annual growth rate (CAGR) of 18% between 2024 and 2030.
In summary, IoT Analytics’ Global Cellular IoT Connectivity Tracker & Forecast (updated June 2024) and IoT Mobile Operator Pricing & Market Report 2024–2030 (released July 2024) highlight several key points:
- Mobile operators’ IoT revenue growth rate of 23% year-on-year in 2023 outpaced that of IoT software companies and hyperscalers
- Cellular IoT connections increased despite a global decline in shipments and revenue for cellular IoT modules in 2023
- The top five mobile IoT network operators managed 83% of all global cellular IoT connections, while the top five by revenue accounted for 64% of the total revenue
- The anticipated impact of 5G and 5G Redcap technologies is expected to drive an 18% CAGR in the global cellular IoT market from 2024 to 2030
“5G RedCap is set to transform the IoT landscape by making 5G features more accessible and supporting numerous applications, from industrial IoT to Consumer IoT. Its design optimisations, such as reduced channel bandwidth and capped
modulation order, enhance device efficiency and cost-effectiveness,” said Satyajit Sinha, Principal Analyst at IoT Analytics. “Riding on existing 5G infrastructure, RedCap ensures the longevity of current deployments and eases the transition to next-generation connectivity. It outperforms LTE Cat 1 and Cat-4, with better uplink performance and extended battery life, meeting the critical needs of mid-speed use cases like wearables and smart cameras.”
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