The cellular IoT market is set to expand dramatically over the next six years, with connections projected to reach 5.1 billion by 2030.
The Omdia study highlights the transformative role of 5G technologies, with 5G RedCap (also known as 5G NR-Light), 5G Massive IoT, and 4G LTE Cat-1bis modules emerging as primary growth drivers.
Omdia identifies 5G RedCap as a particularly significant development, with adoption expected to accelerate from 2025 onward.
RedCap is positioning itself as the ideal mid-tier connectivity solution for 5G devices that don't require the premium specifications of Ultra-Reliable Low Latency Communications (uRLLC) or Enhanced Mobile Broadband (eMBB).
Alexander Thompson, Omdia's senior analyst for IoT notes that 5G SA rollouts are accelerating again after a period of slowdowns, which had delayed 5G RedCap mass adoption
Omdia's research also reveals that the Asia & Oceania region will contribute over 67% of worldwide IoT module shipments, representing approximately 80% of total IoT connections in 2024.
The automotive industry has emerged as a significant catalyst in this growth, primarily driven by increasing consumer demand for intelligent vehicles with integrated 5G connectivity features.
Andrew Brown, practice lead, IoT at Omdia, emphasises the region's pivotal role in shaping global IoT deployment strategies.
While 5G RedCap adoption experienced slower initial deployment than anticipated, the market outlook remains strong. Factors influencing its pace include the expansion of 5G SA network deployments, anticipated reductions in hardware costs, and the maturation of the RedCap and IoT ecosystem.
Despite these challenges, 5G RedCap and eRedCap technologies are expected to bridge the gap between high-performance 5G and low-power IoT applications, potentially reaching over 700 million global connections by 2030.
