According to Omdia’s latest research, data traffic from cellular IoT connections is expected to reach 110.8 exabytes (EB) by 2028. This increase is driven by the growing demand for data analysis aimed at improving operational efficiency and generating new revenue streams for companies.
The research indicates that the majority of cellular IoT data traffic will come from the automotive sector, with key use cases being infotainment, such as streaming video and audio, and firmware over-the-air updates. From 2023 to 2028, automotive data traffic is projected to grow from 18.6 EB to 59.4 EB, driven by the incorporation of infotainment systems in newer vehicles and the anticipated uptake of 5G connectivity by a larger number of consumers.
Transport and logistics are identified as the next major contributors to cellular IoT data traffic, while other sectors combined are expected to account for less than 25% of the total traffic after 2024.
Alexander Thompson, Senior Analyst for IoT at Omdia stated, “A small number of use cases are responsible for the majority of cellular IoT data traffic. It is evident that video use cases, particularly those with mobility, such as video screens in cities and retail settings, will generate the highest data traffic.”
“The exponential growth in cellular IoT data traffic is being driven both by specific use cases and the growth in hyperscale IoT, characterised by the increasing connections of vast numbers of low power devices. Despite this, cellular IoT data traffic remains only a modest portion of the overall cellular data traffic landscape,” added Andrew Brown, Practice Lead for IoT at Omdia.
The research also highlights that Asia & Oceania will be the largest region for data traffic, accounting for 60.6% of the global figure in 2023. This trend is attributed to the high number of video cameras installed, particularly within smart city initiatives across the region.
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