LONDON, June 24, 2026: The cellular Internet of Things (IoT) market is
set for strong growth over the next decade, with connectivity projected
to reach 5.9 billion connections by 2035, as revealed by new research
from Omdia [1].
This comprehensive analysis examines how 5G technologies are reshaping
the cellular IoT ecosystem, pinpointing three key innovations driving
market expansion: 5G RedCap/eRedCap, 5G Massive IoT, and 4G LTE Cat-1bis
modules.
NB-IoT, mMTC and eRedCap to dominate cellular IoT modules and
connections in 2035
The research highlights NB-IoT, mMTC and eRedCap as key growth drivers
for the cellular IoT market over the next decade. Combined, these
technologies will comprise 65% of cellular IoT connections by 2035.
Omdia expects eRedCap to be more successful than RedCap, whose adoption
has been limited by high module prices and slower 5G Standalone (SA)
rollouts. The world’s first eRedCap module launches have already taken
place in 2026 and the technology is expected to benefit from the growing
availability of 5G SA networks.
The study notes that while initial deployment of RedCap has been slower
than expected, the past 12 months have shown some promise following the
launch of the latest Apple Watch range that incorporates RedCap
technology.
NB-IoT remains dominant in Asia & Oceania, which accounted for 86% of
global module shipments in 2025. LTE-M is also expanding globally, with
Asia & Oceania projected to capture a 58% module market share by 2035.
REGULATORY AND GEOPOLITICAL IMPACTS
EUROPE’S CYBER RESILIENCE ACT DRIVES TRANSFORMATION
The European market is undergoing structural transformation driven by
the Cyber Resilience Act, which mandates secure-by-design products with
five-year vulnerability patching. This is accelerating adoption of
eSIM/eUICC and resilient SIM architectures.
NORTH AMERICAN INFRASTRUCTURE INVESTMENT SUPPORTS IOT GROWTH
The US Infrastructure Investment and Jobs Act and Inflation Reduction
Act are fuelling large-scale deployments in smart grids, utilities, and
EV charging infrastructure, creating immediate high-growth markets for
ruggedized 4G and 5G modules.
“With 5G SA networks now widely deployed and module pricing expected to
be significantly lower from launch, eRedCap will avoid the
infrastructure and cost barriers that initially hindered RedCap
adoption. The result is a rich technology ecosystem where IoT companies
can choose from NB-IoT, LTE-M, Cat-1bis, RedCap, and eRedCap—each
optimized for different performance and cost requirements.” explains
Alexander Thompson, Senior Analyst for IoT at Omdia [2].
AUTOMOTIVE SECTOR POISED FOR MARKET LEADERSHIP
The automotive vertical is experiencing rapid growth, with connections
forecast to exceed 1 billion connections by 2035.
Key automotive trends include:
- 5G Dominance: 89% of automotive modules will utilize 5G technologies by 2035
- Connected Vehicle Proliferation: Both Chinese and international automakers standardizing cellular connectivity
- V2X Communications: Vehicle-to-everything applications driving advanced connectivity requirements
Omdia’s Cellular IoT Market Tracker 2023-2035 highlights the latest
trends in the cellular IoT market, providing key analysis by region, air
interface and application of module shipments, module revenues,
connections (installed base) and connectivity revenues.
