The wireless telecommunications industry has undergone significant expansion, driven by the continued growth of the Internet of Things (IoT) ecosystem.
According to data from 5G Americas and Omdia, global IoT subscriptions have reached 3.4 billion, alongside 6.7 billion smartphone subscriptions. As IoT devices transition from 4G LTE to more versatile 5G technologies—such as 5G RedCap—network operators are benefiting from enhanced energy efficiency and improved network performance.
Hence, projections suggest that by 2029, IoT subscriptions will reach 5.2 billion, while smartphone subscriptions are set to hit 8.2 billion. As mobile operators’ IoT revenue growth outpaces other tech sectors, the industry remains poised for tremendous opportunity, with cellular IoT set to drive secure, scalable connectivity across increasingly digital industries.
The Rise of Cellular IoT
As more 5G networks are being deployed, the recognition that 5G serves more than just smartphones is becoming evident. In fact, 5G has proven to be increasingly valuable for enterprises seeking powerful connectivity for IoT applications.
From agriculture to healthcare and manufacturing, cellular IoT solutions powered by 5G are enabling new levels of connectivity, offering more than simple data transfer. With 5G and private networks, enterprises gain access to a wide range of IoT capabilities such as sensors, cameras, and other data-driven devices that improve productivity, security, and operational efficiency.
Global IoT subscriptions have reached an impressive 3.4 billion, and the demand for cellular IoT is rising. An industry report unveiled that five network operators – China Mobile, China Telecom, China Unicom, Vodafone, and AT&T – managed 83% of all global cellular IoT connections in 2023.
In line with this, Telit Cinterion’s ME310M1-W1 Low Power Wide Area (LPWA) module received approval for use on the AT&T LTE-M network this year.
"Whether it is precision agriculture, asset trackers or smart meters, many IoT applications have business models that require zero touch after installation. The ME310M1 meets that requirement and does so while minimizing power usage," said Cameron Coursey, Vice President, AT&T Connected Solutions.
5G is quickly becoming the dominant cellular standard for IoT applications, with more than 300 commercial 5G networks operating globally. The deployment of 5G networks has surpassed the pace of 4G LTE adoption, marking a tipping point where enterprises recognize the business benefits of high-performance, low-latency cellular connectivity.
As cellular technology advances, IoT applications are moving from Local Area Networks (LAN) to Wide Area Networks (WAN), creating a strong demand for lower latency and enhanced connectivity that are not only for expanding access but refining connectivity for a wider variety of enterprise applications. Many of these applications are resource-intensive, such as real-time data monitoring, security, and automated industrial systems.
5G is quickly becoming the dominant cellular standard for IoT applications, with more than 300 commercial 5G networks operating globally.
The Benefits of Cellular IoT for Enterprises
Cellular IoT offers substantial advantages over traditional connectivity options like Wi-Fi, particularly for enterprises operating across wide or geographically diverse areas. Here’s how cellular IoT meets the needs of enterprises:
- Wide-Area Coverage: Unlike Wi-Fi, cellular networks can cover vast areas, making them ideal for industries like agriculture, where devices need connectivity across large, remote fields.
- Mobility and Scalability: Cellular IoT offers seamless connectivity across borders and diverse environments, whether devices are stationary or in motion. This is crucial for tracking logistics in supply chain management, where goods and assets need to stay connected.
- Enhanced Security: Cellular IoT provides encrypted, carrier-managed infrastructure that meets the security standards of even the most sensitive industries, including healthcare and critical infrastructure.
- Low Latency and High Throughput: 5G’s low-latency capabilities allow enterprises to deploy applications requiring real-time data, such as medical equipment, manufacturing robots, and surveillance cameras.
The shift to cellular networks is heavily reflected in enterprise adoption trends. According to a report by Vecna Robotics, 5G ranks high on the list of priority technologies for enterprises, with 41% of surveyed supply chain professionals planning to implement 5G to connect IoT devices such as autonomous mobile robots, security cameras, and tablets.
Given this, cellular IoT solutions ensure continuous operation even in challenging environments where traditional connectivity options like Wi-Fi may fall short.
Launched in 2022, Sparkle IoT Global is a managed IoT connectivity service allowing companies to control their assets across multiple countries and with a seamless user experience, particularly suitable for applications requiring real-time control.
5G RedCap
Introduced in 2024, 5G RedCap is poised to transform the IoT ecosystem, making advanced 5G features more accessible across mid-speed applications such as wearables and smart cameras. Its streamlined design, including optimized channel bandwidth and capped modulation, allows for greater efficiency and extended battery life.
Having said that, 5G and 5G RedCap are set to propel the global cellular IoT market’s projected 18% compound annual growth rate (CAGR) between 2024 and 2030. Offering flexibility and cost-effectiveness, 5G RedCap is gaining traction for IoT devices that don’t require the ultra-low latency needed for time-sensitive applications.
RedCap modules deliver download speeds up to 150 Mbps, upload speeds of 50 Mbps, and latency under 100 ms. These specifications are sufficient for a range of consumer, enterprise, and industrial devices while reducing device complexity and cost.
As a result, this has led to a surge in IoT applications using 5G RedCap, especially in video surveillance, where the module’s uplink capacity supports high-quality video transmission without the expense of full 5G capabilities.
Offering flexibility and cost-effectiveness, 5G RedCap is gaining traction for IoT devices that don’t require the ultra-low latency needed for time-sensitive applications.
Industry Outlook
Ultimately, IoT's integration into cellular technology supports technological advancements as well as economic growth, as it bridges the gap between digital connectivity and critical applications across diverse industries.
Moving forward, IoT’s integration with cellular networks will drive new revenue streams and foster the expansion of private 5G networks for operators, particularly in sectors like manufacturing and supply chains.
Frost & Sullivan also highlight that leaders in telecom are focusing on strategic partnerships and adopting emerging cellular IoT technologies like Narrowband IoT (NB-IoT) to address a range of industrial needs and meet the demands of smart cities, fleet management, and remote monitoring. These partnerships and technologies are critical to supporting advanced IoT capabilities across various industries, with the ultimate goal of creating more resilient, flexible, and scalable IoT ecosystems.
IoT’s integration with cellular networks will drive new revenue streams and foster the expansion of private 5G networks for operators.
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