Cellular IoT Market Size, Share, Opportunities, And Trends By Technology (2G, 3G, LTE- M, Others), By Component (Hardware, Software), By End–Users (Agriculture, Automotive And Telecommunication, Consumer Electronics, Energy, Retail, Others), And By Geography - Forecasts From 2024 To 2029

The cellular IoT market was evaluated at US$4.264 billion in 2022, growing at a CAGR of 19.69%, reaching a market size of US$ 15.006 billion by 2029.

The cellular IoT (Internet of Things) market is anticipated to grow significantly during the forecast period. Cellular networks are the mode of connection that can be utilized by the internet and connected over various devices. Devices like mobile use the network to connect to the internet. The evolution in the field of telecommunications and upgradation in technologies like 5G IoT solutions are reliable and adoptable in various modes of connectivity. These upgraded technologies establish a connection through satellite and can be used in the form of Wi-Fi and Bluetooth for connecting various devices.

This technology is capable of remote sensing and data collection for a variety of applications, including industrial devices, smart meters, and wearables. Industries such as manufacturing, logistics, and healthcare rely on these technologies to increase process efficiency, track assets, and detect problems remotely. For power solutions, options such as NB-IoT are available. Increasing adoption of IoT, advancements in cellular technology, and demand for IoT solutions in the automotive industry are fueling the cellular IoT market growth. Increased adoption of IoT, growing progress in cellular technology, and increased demand for IoT solutions in the automotive sector are driving the cellular IoT market Growth.

Cellular IoT Market Drivers

• Increased adoption of IoT propels the cellular IoT market growth.

The expansion of Internet of Things devices over the different industries is the driving factor behind the cellular IoT market growth.  With more interconnected devices, which include sensors in factories that track the containers, there will be an increased demand for these types of devices for their connectivity to the internet. Cellular IoT is an electronic solution that offers safe and assured connections for the devices to transfer data from one end to the other. This further helps industries for the automation purpose where one can collect and analyze the data fed by these sensors for future endeavors.

For instance, in March 2024, Eclipse published an article on IoT Edge Landscape, which states that there is an increased demand for IoT adoption in 2023, which is 11 %, where 64% of individuals are presently using IoT solutions. These growing data say that there is a growing demand and significant growth for IoT technologies will be seen in various sectors in upcoming years

• Growing progress in cellular technology drives cellular IoT market growth

The technological advancement in the cellular field is driving the market by offering various alternatives to connect plenty of devices using the internet. One of the technologies called Narrow Band IoT (NB – IoT) and long-term evolution for machines (LTE- M) are changing the landscape of the industry. Narrow Band IoTs and LTE-Machines have unique features when compared with one another. Where NB- IoT is energy efficient and has less data transfer capacity, which is a preferable option for small amounts of data, such as devices for tracking assets and sensors that can be operated from a distance. As LTE offers rapid data transfer this technology is helpful in industry machinery. These are the advancements driving the unique technology and propelling the cellular IoT market growth.

For instance, in January 2024 Ericsson stated that there is an upgradation of 5G network with wireless technology in collaboration with 3rd generation partnership project which is called (3GPP). As this emerging technology offers speed and improved dependability.

• Increased demand for IoT solutions in the automotive sector boosts the cellular IoT market growth.

Growing demand for IoT in the automobile sector increases the demand for IoT solutions, with the output result of interacting and operative devices which can offer the feature to over watch the car environment. As the demand is attached to various factors. People are more aware of the safety features of cars these days, and advanced features like driver assistance are propelling IoT solutions in the market. As these solutions are capable of collecting real time data from the installed sensors around the cars, systems that alert the driver when changing lanes are the innovative and emerging technologies where IoT solutions help them to operate.

Furthermore, the advanced features like tracking the car that is stolen and providing the exact location where the driver is heading or leading are propelling the IoT solutions market.

For instance, General Motors and Google partnered to establish an operating system that is specifically operated for automobiles in future General Motors vehicles. This will enhance the level of connectivity towards the cars and propels the IoT market.

Cellular IoT Market – Geographical Outlook

• Asia Pacific is anticipated to grow significantly.

The Asia Pacific is anticipated to grow in the upcoming days significantly due to favorable factors like growing demand for digitalization, smart city development projects, and strong automobile manufacturing hubs over the region which enhances the implementations and usage of IoT solutions. The region has seen a favorable amount of investment with respective 5G technology, and the development of infrastructure will drive the cellular IoT market growth.

For instance, in 2023, GSMA published an article stating that China presently has 2.3 million 5G stations by the end of 2022, of which 887,000 stations were constructed in 2022. It is anticipated that China will be a 1 billion 5G connectivity country by 2025. These remarkable developments are driving the cellular IoT market growth.

Cellular IoT Market Restraints

• Safety issues with a vast amount of connections curb the cellular IoT market growth.

Numerous devices connected over the Internet make them vulnerable to security flaws. Taking advantage of vulnerabilities in cellular networks or device firmware may compromise the security of data, interfere with operations, or even lead to physical damage (such as manipulating industrial controls).

• Integration complexity hinders the cellular IoT market growth.

The complexity of integrating cellular IoT solutions with existing infrastructure and data management systems can pose challenges, requiring specialized technical expertise and potentially causing disruptions to daily operations. It is crucial to have efficient integration tools and procedures in place.

Cellular IoT Market Key Industry Developments

• February 2024: the product called Digi IX40, offered by Digi, is a cellular router that is specifically designed for Industry 4.0. The product is prebuilt with 5G technology, which gives real-time data after processing the information, which can be used in industrial equipment. The device is capable of holding harsh environments, where this system acts as a remote controller and management tool to solve the issues with a designated location
• January 2024:   Telit Cinterion partnered with FloLive and Skylo to provide cellular IoT connections throughout the globe. As both companies use cellular as well as satellite networks to provide seamless connections to devices, they can be reached over the globe.
• June 2023: Gorilla Technology Group, a company that has expertise in the field of artificial intelligence, acquired Bacom, a company from Thailand that is a well-known smart city infrastructure builder.  

Cellular IoT Market Major Players and Products

• OPTIGA™ Connect IoT: the product offered by Infineon, eSIM Solution, is fully designed for embedded SIM cards. As this innovative product enables the devices to connect with cellular based networks around the globe. Its pre-installed and pre-assembled features provide a broader range of network connectivity that can be used for various applications.

Cellular IoT Market Scope:

Cellular IoT market is segmented and analyzed as below:

• By Type
  • 2G
  • 3G
  • LTE - M
  • Others 
• By Component 
  • Hardware 
  • Software 
• By End – Users 
  • Agriculture 
  • Automotive and Telecommunication 
  • Consumer Electronics
  • Energy 
  • Retail 
  • Others 
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Taiwan
    • Thailand
    • Indonesia
    • Others