Global mobile IoT connectivity market hit US$15bn in 2023

IoT Analytics has revealed that mobile operators across the world earned a total US$15bn in 2023, from 3.6bn cellular IoT connections. Results showed that the growth rate of 23% YoY beat that of IoT software companies and hyperscalers. 

5G and 5G Redcap (Reduced Capability) technologies are also expected to drive increased growth across the global cellular IoT market, with these technologies expected to push the market at a CAGR of 18% between 2024 and 2030.

Revolutionising IoT connectivity with 5G RedCap

IoT Analytics is a research company based in Hamburg, which strives to help IoT decision makers reach their goals. The company shares data about connections, revenue and ARPU across all IoT connectivity types. 

According to Satyajit Sinha, Principal Analyst at IoT Analytics, 5G RedCap is set to transform the IoT landscape by making 5G features more accessible and supporting numerous applications, from industrial IoT to Consumer IoT. 

“Its design optimisations, such as reduced channel bandwidth and capped modulation order, enhance device efficiency and cost-effectiveness,” said Satyajit. “Riding on existing 5G infrastructure, RedCap ensures the longevity of current deployments and eases the transition to next-generation connectivity. It outperforms LTE Cat-1 and Cat-4, with better uplink performance and extended battery life, meeting the critical needs of mid-speed use cases like wearables and smart cameras.”

However, in regards to IoT revenue, the top five network operators made up 64% of the IoT mobile operator market. China Mobile, Verizon, AT&T, China Unicom and Deutsche Telekom (including T-Mobile) led the market.

5G RedCap adoption is being driven by consumer desire for flexibility and cost-effectiveness. IoT devices which are embedded with the RedCap module don’t need tight or deterministic latency, as in time-critical communications applications. 

These devices require a data rate of less than 150 Mbps for download and less than 50 Mbps for upload, which reduces the complexity of the devices and reduces costs.

Outside of the mobile sector, 5G RedCap is rising in popularity in an unexpected zone: video surveillance. In this case, it offers sufficient uplink data rates required for video cameras to transmit high-quality video streams without requiring the full capabilities (and costs) of standard 5G.

Top 5 mobile operators by connections and revenue

Key insights on 2023 market developments of leading mobile IoT operators:

China Mobile

China Mobile contributed 46% of global cellular IoT connections and 20% of global cellular IoT connectivity revenue in 2023. China Mobile’s cellular IoT connections grew by 20% YoY due to its one-stop solution strategy, moving focus from total connectivity to comprehensive solutions. 

China Telecom

China Telecom contributed 15% of global cellular IoT connections and 7% of global cellular IoT connectivity revenue. China Telecom’s cellular IoT connection grew by 28% YoY due to a focus on urban management solutions leveraging the IoT Cognition Cloud Platform, supporting more than 100 use cases for urban management. 

China Unicom

China Unicom contributed 14% of global cellular IoT connections and 10% of global cellular IoT connectivity revenue. China Unicom’s cellular IoT connection grew by 28% YoY due to the adoption of 4G and 5G high-speed technologies. 

Vodafone

Vodafone contributed 5% of global cellular IoT connections and 9% of global cellular IoT connectivity revenue. Vodafone’s cellular IoT connection grew by 15% YoY due to strong demand from the automotive sector.

AT&T

AT&T contributed 4% of global cellular IoT connections and 12% of global cellular IoT connectivity revenue. AT&T’s cellular IoT connection grew by 19% YoY due to strong demand from the automotive sector.

5G and 5G Redcap to drive IoT connectivity market growth over 2024 and beyond

By 2030, 5G and 5G RedCap are expected to contribute close to 50% of mobile operator IoT connectivity revenue. IoT Analytics suggests 5G and 5G RedCap will both advance the global cellular IoT connectivity market, as they increase their combined market revenue share to a near majority by the end of this timeframe. 

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