Cellular IoT Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 7.63 Billion |
| Market Size (2030) | USD 21.66 Billion |
| Growth Rate (2025 - 2030) | 23.20% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
|
Cellular IoT Market Analysis by Mordor Intelligence
The cellular IoT market stood at USD 7.63 billion in 2025 and is forecast to advance to USD 21.66 billion by 2030, translating to a 23.20% CAGR. Demand scales on the back of 5G RedCap commercialization, smart-city funding mandates, and precision-agriculture roll-outs that extend connectivity beyond factory floors. Asia Pacific remains the epicenter of scale manufacturing, allowing module average selling prices to drop below USD 4 and accelerating the shift from sunset 2G/3G networks to 4G Cat-1bis and 5G RedCap-enabled devices. Operators in North America, Europe, and China continue to migrate toward standalone 5G core deployments, creating headroom for ultra-reliable low-latency services in industrial automation and connected mobility. Services outpace hardware growth as enterprises depend on global connectivity management platforms and managed security to mitigate fragmented regulations. Meanwhile, semiconductor capacity at ≥65 nm nodes stays tight, keeping cost discipline front-of-mind for device makers even as chipset performance improves.
Key Report Takeaways
- By component, hardware accounted for 64% of revenue in 2024 while services are projected to post a 24.50% CAGR through 2030.
- By technology, 4G LTE Cat-1 commanded 57% revenue share in 2024; 5G RedCap is on course to grow at 28% CAGR to 2030.
- By end-user industry, automotive and transportation held 28% revenue share in 2024; agriculture is forecast to expand at 24.30% CAGR through 2030.
- By application, asset tracking led with 30% revenue share in 2024; wearables and personal devices are projected to register a 28.56% CAGR to 2030.
- By geography, Asia Pacific captured 70% of the cellular IoT market share in 2024 and is set to grow at 29.15% CAGR to 2030.
Global Cellular IoT Market Trends and Insights
Drivers Impact Analysis
| Driver | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| 5G SA roll-out enabling URLLC IoT | +4.2% | Global, led by China and North America | Medium term (2-4 years) |
| Module ASPs below USD 4 for Cat-1bis | +3.8% | Asia Pacific core, spill-over to global | Short term (≤ 2 years) |
| Government-funded NB-IoT smart-city mandates | +3.5% | China, EU, India | Medium term (2-4 years) |
| 5G RedCap modules unlock mid-tier devices | +4.5% | North America and EU early adoption | Long term (≥ 4 years) |
| Sustainability-linked asset-tracking demand | +2.9% | Global with EU leadership | Medium term (2-4 years) |
| Mass certification of eSIM/iSIM | +3.1% | Global deployment, Asia Pacific manufacturing | Short term (≤ 2 years) |
| Source: Mordor Intelligence | |||
5G SA roll-out enabling URLLC IoT
Commercial standalone 5G networks deliver sub-5 ms latency that industrial firms require for closed-loop automation. AT&T’s June 2024 RedCap launch in Dallas allowed chipset vendors to certify devices on a live 5G SA network and confirmed power-consumption cuts of 65% against LTE Cat-4 modules.[1]AT&T, “AT&T Leads with First 5G RedCap Launch,” att.comTelefonica’s German trials and Samsung–Hyundai manufacturing lines underline readiness, yet true scale hinges on national 5G SA coverage and affordable module supply.
Module ASPs below USD 4 for Cat-1bis
Large 2024 tenders in China pushed Cat-1bis modules under USD 4, widening 4G’s addressable base before older networks shut down. Quectel and Fibocom together captured two-thirds of module revenue, but heavy reliance on a single manufacturing region has triggered supply-security reviews in Europe and the United States. Non-Chinese suppliers face margin compression; u-blox exited the segment in January 2025 after sustained losses.
Government-funded NB-IoT smart-city mandates
China’s National Development and Reform Commission issued guidelines in May 2024 requiring NB-IoT deployments in metering and environmental monitoring for 100 smart cities by 2027. India’s Smart Cities Mission and South Korea’s National Strategic Smart City Program mirror the trend, collectively channeling billions of dollars into cellular IoT infrastructure. The policies guarantee device volume, stabilize operator ROI, and spur international adoption of standardized LPWA frameworks.
5G RedCap modules unlock mid-tier devices
3GPP Release 18 introduced enhanced RedCap with 5 MHz bandwidth while sustaining 10 Mbps peak rates. Ericsson, Optus, and Qualcomm have demonstrated RedCap-connected AI cameras that improve worker safety. T-Mobile’s 2025 5G Advanced launch has already positioned RedCap as a default option for wearables and smart infrastructure, reinforcing mid-tier device migration away from LTE-only platforms.
Restraints Impact Analysis
| Restraint | ( ~ ) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High power draw of 5G modules in battery devices | -2.8% | Global, remote deployments | Short term (≤ 2 years) |
| 2G/3G sunsets causing retrofit costs | -3.2% | North America and Europe | Medium term (2-4 years) |
| Cat-1bis chipset supply volatility | -2.1% | Global supply chains | Short term (≤ 2 years) |
| Fragmented IoT security standards | -1.9% | Worldwide | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High power draw of 5G modules in battery devices
Even after RedCap efficiency gains, absolute power remains a challenge for sensors targeting 10-year field life. Nordic Semiconductor’s nRF9151 module introduced Power Class 5 output to extend battery cycles and accommodate satellite fallback links essential for remote agriculture. Device makers are integrating energy-harvest options but must trade cost and size against performance.
2G/3G sunsets causing retrofit costs
AT&T discontinued NB-IoT service while European carriers phase out 2G and 3G through 2027, forcing upgrades of long-lifecycle meters and industrial controllers. Retrofit expenses deter immediate replacements, prompting some utility customers to delay expansion until RedCap ecosystems fully mature. Inventory-optimization software helps minimize write-offs by staging module swaps in step with service wind-down schedules.
Segment Analysis
By Component: Hardware Dominance Shifts to Service Innovation
Hardware contributed 64% of 2024 revenue as manufacturers rushed to replace legacy units ahead of network sunsets. Qualcomm posted 27% year-over-year IoT revenue growth to USD 1.58 billion in Q2 2025 on the back of robust chipset demand. The cellular IoT market size attributed to services is expected to outpace hardware with a 24.50% CAGR through 2030, reflecting climbing subscriptions for global connectivity management, firmware-over-air updates, and zero-touch security patches.
Global enterprises now insist on unified dashboards that orchestrate multi-carrier, multi-technology fleets. KORE Wireless already manages 19 million active lines across 200 countries through AI-driven fault detection. Professional services teams fill knowledge gaps in radio-planning, certification, and regulatory compliance. Managed-service contracts ensure recurring revenue that cushions hardware price erosion, aligning vendor incentives with customer uptime and security objectives.
Note: Segment shares of all individual segments available upon report purchase
By Technology: 4G LTE Maintains Leadership as 5G RedCap Emerges
4G LTE Cat-1 secured 57% revenue share in 2024 after Chinese OEMs slashed module prices below USD 4. Complementary LPWA modes such as LTE-M and NB-IoT serve ultra-low-throughput use cases including metering and leak detection. Legacy 2G/3G connections decline faster than previously forecast because operators are reallocating spectrum to 5G SA. The cellular IoT market size for 4G will taper as customers migrate to RedCap, but it remains a high-volume option where coverage and cost trump bandwidth.
5G RedCap is registering a 28% CAGR and is viewed as the bridge between LPWA and full-spec 5G. Samsung and Hyundai validated RedCap in a February 2025 factory trial, showing deterministic latency and 40% energy savings compared with LTE-M. Non-terrestrial networks that complement terrestrial 5G are gaining momentum; Viasat and Myriota launched the first 5G NTN service for environmental sensing in March 2025, opening pathways for global coverage on a single module SKU.
By End-User Industry: Automotive Leadership Challenged by Agricultural Surge
Automotive and transportation captured 28% revenue share in 2024 on the strength of mandated emergency-call modules and fleet telematics. Vehicle-to-everything applications are driving automakers to embed multiple antennas, and Lear Corporation forecasts a USD 5 billion automotive 5G opportunity by 2030. Software updates delivered over cellular links reduce recall expenses and improve safety features, further rooting connectivity into vehicle architectures.
Agriculture’s 24.30% CAGR ranks highest among verticals as growers digitize irrigation, soil monitoring, and livestock management. China’s irrigation project with 1,614 controllers resulted in 40% water savings and 80% labor reduction. 1NCE reports more than 7% of its active clients now hail from the farming sector, signaling structurally higher demand for rugged, low-maintenance modules. Remote assets often require satellite back-up links, making dual-mode cellular-sat combinations attractive for harsh or isolated locales.
By Application: Asset Tracking Dominance Faces Wearables Disruption
Asset tracking delivered 30% revenue share in 2024, fueled by supply-chain visibility mandates. TOPFLYtech’s freight-monitoring deployment for U.S. transport fleets underscores scale potential as enterprises prioritize condition-based monitoring to cut spoilage and CO₂ emissions. Advanced cold-chain trackers integrate humidity and shock sensors, feeding real-time data to compliance dashboards.
Wearables and personal devices are rising at 28.56% CAGR, buoyed by health-monitoring rules that require seamless emergency connectivity. RedCap modules lower battery draw, encouraging OEMs to embed cellular links in smartwatches and medical wearables. eSIM and iSIM simplify activation, and 5G’s network slicing supports quality-of-service tiers indispensable for critical alerts. Adoption will vary by region, but premium consumer and enterprise segments provide a deep upgrade runway.
Geography Analysis
Asia Pacific secured 70% of 2024 revenue and is set to advance at 29.15% CAGR through 2030 on the back of national digital-transformation plans. China expects 4.1 billion licensed cellular connections by 2030, representing 70% of global totals. The cellular IoT market size attached to Chinese deployments alone is poised to dwarf every other region combined as 5G-Advanced coverage blankets additional provinces.
Regional manufacturing concentration cuts module costs but introduces dependency risk that Western regulators now scrutinize. India’s USD 5.76 billion Smart Cities Mission and Indonesia’s upcoming RedCap spectrum auctions add incremental volume outside China. Emerging markets across Southeast Asia adopt turnkey cloud-managed private-network packages that offset limited local telecom expertise, ensuring that connectivity gaps shrink quickly.
North America positions itself as the premium application hub, with AT&T and T-Mobile focusing on low-latency industrial deployments. Europe places compliance and sustainability at the center of IoT spending, with Telefonica testing RedCap in Germany and Ericsson rolling out private 5G in French municipalities. The cellular IoT market share of Asia Pacific is unlikely to erode before 2030, but revenue mix will swing toward managed services in all three regions as device counts grow.
Competitive Landscape
Two Chinese suppliers-Quectel and Fibocom-soak up 64% of global module revenue, giving them disproportionate influence over pricing and component roadmaps. Their volume leverage compresses margins for competitors and creates a single-region sourcing risk that has moved up the agenda of Western policymakers. Qualcomm’s February 2025 purchase of Sequans’ 4G IoT assets for USD 200 million broadened its mid-tier portfolio and secured experienced engineering talent for upcoming RedCap silicon. Sequans now concentrates on 5G RedCap design, clarifying its niche in the value chain.
Strategic partnerships differentiate solution providers. Telit Cinterion’s alliance with floLIVE and Skylo couples terrestrial and satellite coverage for seamless global asset tracking, a capability critical for maritime and mining customers. T-Mobile’s tie-up with Thales and SIMPL offers a turnkey eSIM-based connectivity kit that reduces onboarding time for device makers. Smaller specialists carve out white-space opportunities in regulated sectors-medical wearables, intrinsically safe sensors, or devices rated for -40 °C-that demand certifications often missing in low-cost offerings.
Semiconductor tightness at mature process nodes persists through 2027, challenging volume forecasts. Vendors hedge by dual-sourcing or transitioning to more advanced nodes where capacity exists, albeit at higher wafer costs. Security remains a differentiator; module makers that integrate hardware-rooted secure elements and align with IEC 62443 see stronger uptake in industrial accounts that face cyber-liability legislation.
Cellular IoT Industry Leaders
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Qualcomm Technologies Inc.
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AT&T
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Ericsson
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Huawei Technologies
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Fibocom Wireless
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- February 2025: Qualcomm completed the USD 200 million acquisition of Sequans Communications’ 4G IoT portfolio, onboarding 74 engineers to accelerate industrial IoT chipset development
- February 2025: Samsung and Hyundai showcased private 5G RedCap use in smart factories, enabling AI-driven automation with lower power draw.
- January 2025: Semtech earned AT&T certification for its Snapdragon X35-based EM8695 RedCap module, delivering 65% energy savings over LTE predecessors
- December 2024: Ericsson deployed a private 5G network in Istres, France, cutting camera-installation costs five-fold versus fiber connections
Research Methodology Framework and Report Scope
Market Definitions and Key Coverage
Mordor Intelligence defines the cellular IoT market as the annual revenue generated worldwide from hardware, software, and connectivity services that use licensed-spectrum cellular networks (2G, 3G, 4G LTE groups, LTE-M, NB-IoT, 5G including RedCap) to connect machines, sensors, and other non-handset devices.
Scope exclusions include one-directional RFID/NFC links, unlicensed LPWAN such as LoRa and Sigfox, satellite-only IoT, and consumer handsets, which are outside this study.
Segmentation Overview
- By Component
- Hardware
- Modules / Chipsets
- Antennas
- Gateways and Routers
- Software
- Connectivity Management Platform
- Device Management
- Security Platform
- Data Analytics Platform
- Services
- Professional Services
- Managed Services
- Hardware
- By Technology
- 2G
- 3G
- 4G LTE (Cat-1/Cat-4)
- LTE-M
- NB-IoT
- 5G NR (eMBB and RedCap)
- Non-Terrestrial (Satellite NTN)
- By End-User Industry
- Automotive and Transportation
- Energy and Utilities
- Manufacturing and Industrial
- Healthcare
- Retail
- Consumer Electronics
- Agriculture
- Logistics and Supply Chain
- Smart Cities / Public Infrastructure
- By Application
- Asset Tracking
- Smart Metering
- Industrial Automation
- Remote Monitoring and Control
- Wearables and Personal Devices
- Smart Home Devices
- By Geography
- North America
- United States
- Canada
- Mexico
- South America
- Brazil
- Argentina
- Chile
- Rest of South America
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Netherlands
- Russia
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- South Korea
- ASEAN
- Rest of Asia Pacific
- Middle East and Africa
- Middle East
- GCC (Saudi Arabia, UAE, Qatar, etc.)
- Turkey
- Rest of Middle East
- Africa
- South Africa
- Nigeria
- Kenya
- Rest of Africa
- Middle East
- North America
Detailed Research Methodology and Data Validation
Primary Research
We interviewed mobile-network planners, IoT module makers, systems integrators, and large fleet operators across Asia-Pacific, Europe, North America, and the Gulf. These conversations validated tariff levels, migration timelines away from 2G/3G, and typical module margins, letting us adjust secondary assumptions and stress-test preliminary growth rates.
Desk Research
Our analysts first assembled historical demand signals from tier-1 public sources such as the International Telecommunication Union, GSMA Intelligence, national telecom regulators, and the World Bank, which reveal subscriber counts, spectrum refarming schedules, and macro-economic markers. Industry association data from 3GPP releases, Broadband Forum, and the Smart Metering Alliance clarified technology lifecycles and mandated roll-outs. Corporate disclosures (10-Ks, annual reports, investor days) enriched hardware supply views, while shipments and ASP trends were gathered from customs records and import trackers. Paid databases including D&B Hoovers and Dow Jones Factiva provided company financials and deal flow that sharpen hardware revenue estimates. The sources listed are illustrative; many additional outlets were reviewed to cross-check and contextualize findings.
Market-Sizing & Forecasting
The base year value was constructed with a top-down model that reconciles active SIM connections, blended IoT ARPU, and country-level currency effects, which are then benchmarked against selective bottom-up checks such as sampled module ASP multiplied by shipments and operator IoT revenue disclosures. Key market fingerprints, including LTE-M and NB-IoT penetration, 5G RedCap launch cadence, smart-meter mandates, spectrum release calendars, module ASP erosion curves, and macro GDP growth, drive both the sizing and scenario bounds.
For outlook, a multivariate regression plus ARIMA overlay forecasts each driver to 2030; expert panels fine-tune breakpoints like 3G sunsets. Gaps in bottom-up evidence, for example from private deployments, are bridged by applying conservative penetration ceilings sourced from primary interviews.
Data Validation & Update Cycle
Outputs move through variance checks against connection trackers; anomalies trigger re-contact with subject experts, and every figure receives peer review before sign-off. Reports refresh annually, and material events, such as network sunsets and major spectrum auctions, prompt interim updates. A final analyst sweep occurs just prior to client delivery.
Why Mordor's Cellular IoT Baseline Earns Trust
Published estimates often differ because research firms adopt distinct scopes, cost bases, and refresh cadences.
Benchmark comparison
| Market Size | Anonymized source | Primary gap driver |
|---|---|---|
| USD 7.63 B (2025) | Mordor Intelligence | - |
| USD 7.53 B (2024) | Global Consultancy A | counts only hardware, omits NB-IoT service revenue |
| USD 5.27 B (2023) | Industry Association B | folds satellite and unlicensed LPWAN into one line, then applies aggressive price deflation |
The comparison shows that diverging base years and inconsistent inclusion of connectivity or unlicensed alternatives skew results. By tracking every licensed-cellular technology, applying transparent cost assumptions, and refreshing the model each year, Mordor delivers a dependable, decision-ready baseline stakeholders can replicate and audit.
Key Questions Answered in the Report
What is the current size of the cellular IoT market?
The cellular IoT market reached USD 7.63 billion in 2025 and is projected to climb to USD 21.66 billion by 2030.
Which region leads the cellular IoT market?
Asia Pacific holds 70% revenue share and is predicted to grow at 29.15% CAGR through 2030, driven by large-scale smart-city and manufacturing initiatives.
Why is 5G RedCap important for cellular IoT?
5G RedCap balances higher data rates with lower power and cost, enabling mid-tier devices such as industrial sensors and wearables to migrate from LTE without the complexity of full 5G.
Which application segment is growing fastest?
Wearables and personal devices are forecast to expand at a 28.56% CAGR thanks to health-monitoring adoption and power-efficient RedCap modules.
How are module prices affecting adoption?
Sub-USD 4 Cat-1bis modules from Asia Pacific suppliers lower the cost barrier, accelerating the replacement of 2G/3G devices before network sunsets.
What challenges could slow cellular IoT deployment?
High 5G module power draw for battery devices, retrofit costs from legacy network shutdowns, and fragmented security standards are key restraints highlighted in the forecast period.
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