Cellular IoT Set to Reach 5.9 Billion Connections by 2035
The cellular IoT market is expected to enter a phase of rapid expansion, with the number of connections projected to reach 5.9 billion by 2035, driven by the continued maturation and adoption of 5G technologies. Key growth momentum will come from 5G RedCap, 5G Massive IoT, and 4G LTE Cat-1bis modules, which together are reshaping the connectivity landscape across a wide range of applications. Among these, 5G RedCap is positioned as a mid-tier connectivity solution, addressing the needs of devices that do not require the high performance of eMBB or uRLLC, while also providing future-proofing as 4G networks begin to phase out after 2030. Although early adoption of RedCap progressed more slowly than expected, momentum emerged in 2025 with its integration into new smartwatch products, and the launch of eRedCap modules from 2026 is expected to further broaden use cases and accelerate uptake.
The automotive sector is set to become one of the most significant contributors to cellular IoT growth, with connections forecast to increase from around 500 million to approximately 1.2 billion over the next decade, raising its share of total connections to about 21%. Much of this growth will be concentrated in Asia and Oceania, reflecting rising consumer demand for intelligent vehicles equipped with 5G connectivity. Overall, the cellular IoT market is entering a new growth cycle led by 5G, marked by structural shifts across technologies, applications, and regions.
