Cellular IoT Market Size & Share 2024 - 2032
Market Size by Component (Hardware, Software, Services), by Type (MNO Connectivity, LPWA Network Connectivity, Others), by Application.
Report ID: GMI9041
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Published Date: April 2024
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Report Format: PDF
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Authors:
Suraj Gujar, Sandeep Ugale
Cellular IoT Market Size
Cellular IoT Market size was valued at USD 6.2 billion in 2023 and is estimated to grow at a CAGR of over 26% between 2024 and 2032. Cellular IoT, a subset of the Internet of Things (IoT), utilizes cellular networks to connect and manage devices remotely. It enables seamless communication and data exchange between devices, facilitating applications such as smart cities, industrial monitoring, and environmental sensing. Cellular IoT leverages cellular technologies like LTE, 5G, and NB-IoT to provide reliable connectivity and support a wide range of IoT use cases.
Cellular IoT Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The rising demand for secure and dependable connectivity is a major growth driver for the cellular IoT market. Organizations across industries seek robust solutions to protect data transmission and ensure continuous connectivity. This demand stems from the need to protect sensitive information while maintaining operational continuity. As the reliance on IoT applications grows, the importance of secure and dependable cellular connectivity rises, driving investment in advanced technologies and solutions to meet these demands.
For instance, in February 2024, Fibocom announced its 5G RedCap (Reduced Capability) modules for 5G IoT scenarios. This move is in collaboration with renowned customers such as Askey, Quanta Computer, and PLANET, who hold substantial influence in their respective vertical markets. This development will enable ultra-reliable data transmission and efficient network utilization under the 5G network, catering to diverse application scenarios such as in-home connectivity, enterprise-level connectivity, and industrial-grade connectivity.
Organizations across industries are increasingly relying on timely insights to make decisions, improve operational efficiency, and perform predictive maintenance. Cellular IoT allows for the seamless transmission of data from connected devices, enabling real-time monitoring and analysis. This demand is expected to rise further as businesses recognize the importance of using actionable insights to drive innovation and competitive advantage.
Security vulnerabilities hinder the growth of the cellular IoT market. Concerns about data breaches, unauthorized access, and device manipulation prevent organizations from fully embracing IoT solutions. Inadequate security measures can result in reputational damage, financial losses, and regulatory noncompliance. Addressing these vulnerabilities is critical to increasing user trust and promoting widespread adoption of cellular IoT technologies across industries.
Cellular IoT Market Trends
The growing use of 5G technology, which lends cellular Internet of Things applications faster data transmission, reduced latency, and increased network capacity, is a notable trend. Furthermore, edge computing is gaining popularity since it enables data processing near Internet of Things devices, cutting down on latency and increasing productivity. The industry has witnessed a rise of integrated IoT platforms, which simplify deployment and operation by streamlining device management, data analytics, and connectivity.
For instance, in June 2022, Renesas Electronics Corporation announced two new cloud development kits, CK-RA6M5 and CK-RX65N, providing a complete connectivity solution for the RA and RX Families of 32-bit microcontrollers (MCUs). The cloud kits are the first to be equipped with Renesas’ RYZ014A Cat-M1 module, a certified LTE cellular module that offers the ability to establish wireless connection between MCUs and cloud services quickly and securely without a gateway.
There is a growing need for Internet of Things solutions that are secure by design, with strong authentication and encryption features to allay concerns about safety. In addition, vertically specific IoT solutions are becoming increasingly popular, meeting the particular needs of sectors like manufacturing, healthcare, and agriculture. Finally, alliances and cooperative efforts amongst IoT suppliers and network operators are becoming more prevalent, driving innovation and expanding market reach.
Cellular IoT Market Analysis
Based on type, the market is segmented into Mobile Network Operator (MNO) connectivity, Low-Power Wide-Area (LPWA) network connectivity and others. The Mobile Network Operator (MNO) connectivity segment accounted for a market share of over 55% in 2023.
Based on the component, the cellular IoT market is segmented into hardware, software, and services. The services segment is estimated to register a significant CAGR of over 25% during the forecast period.
North America held a significant share of over 35% in the global cellular IoT market in 2023. The region's advanced infrastructure and widespread connectivity support the deployment of cellular IoT solutions across various industries. The increasing adoption of smart devices and connected technologies in sectors such as healthcare, automotive, and manufacturing is also expected to drive demand for cellular IoT solutions. Additionally, favorable government initiatives and policies promoting IoT innovation and investment further accelerate market growth. Collaborations between key industry players and technology advancements are also enhancing the scalability and efficiency of cellular IoT deployments, fueling market expansion in North America.
Cellular IoT Market Share
Verizon and China Mobile held a significant share of over 11.5% in the cellular IoT industry. With its cutting-edge technology and wide coverage, Verizon, a well-known US telecom, is appealing to IoT deployments. With an extensive IoT infrastructure and a large subscriber base, China Mobile leads the Chinese market. Both companies play a key role in determining the global cellular IoT landscape by providing a range of connected device solutions and spearheading industry innovation.
Major players, such as AT&T, Verizon, China Mobile, Vodafone, are constantly implementing strategic measures, such as geographical expansion, acquisitions, mergers, collaborations, partnerships, and product or service launches, to gain market share.
Cellular IoT Market Companies
Major companies operating in the cellular IoT industry are:
Cellular IoT Industry News
The cellular IoT market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:
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Market, By Component
Market, By Type
Market, By Application
Market, By End-use Industry
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
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Our 6-step research process
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