Industry Insights 03 Jan 2026 views ( )

Omdia: Cellular IoT Connections to Reach 5.9 Billion by 2035

Omdia's latest research shows the cellular IoT market will experience significant growth in the coming years, with connections expected to surge to 5.9 billion by 2035.

This in-depth study highlights that 5G technology is transforming the cellular IoT landscape, with three key technologies emerging as primary growth drivers: 5G RedCap, 5G Massive IoT, and 4G LTE Cat-1bis modules.

5G eRedCap: Entering accelerated deployment phase from 2026

The research indicates that 5G RedCap is a disruptive development, with adoption expected to gradually accelerate starting in 2025. Positioned as an ideal mid-tier connectivity solution, RedCap serves 5G devices that do not require high-end specifications such as ultra-reliable low-latency communication (uRLLC) or enhanced mobile broadband (eMBB). Additionally, as industries begin phasing out 4G networks after 2030, RedCap offers critical future-proofing capabilities.

Initial RedCap deployment has progressed slower than expected, but positive signals emerged in 2025, such as the latest Apple Watch incorporating RedCap technology. Building on this momentum, eRedCap modules are expected to launch in 2026, further expanding mid-tier cellular connectivity options and driving broader adoption across diverse applications.

Alexander Thompson, Senior IoT Analyst at Omdia, said: "The introduction of 5G RedCap in the latest Apple Watch marks the official start of large-scale RedCap adoption. In the future, enterprises will have increasingly diverse connectivity options, capable of meeting nearly any application need. The 5G eRedCap modules expected in 2026 will further drive cellular IoT connection growth over the next decade."

By 2035, automotive will account for one-fifth of cellular IoT connections

Automotive connections will grow from 500 million to approximately 1.2 billion over the next decade, increasing its market share from 13% to 21%. This growth is primarily driven by Asia and Oceania, fueled by rising consumer demand for smart vehicles equipped with 5G connectivity.

Andrew Brown, Head of IoT at Omdia, added: "Software-defined vehicles, the fundamental need for over-the-air (OTA) updates, regulatory requirements, and vehicle-to-everything (V2X) communications all rely on cellular-connected vehicles. This is why we expect that by 2035, one in every five cellular connections will be in the automotive sector."

Omdia's Cellular IoT Market Tracker Report (2021–2035) systematically outlines the latest trends in the cellular IoT market, providing detailed analysis of module shipments, module revenue, connections (installed base), and connectivity service revenue by region, air interface technology, and application scenario.

About Omdia

Omdia is part of Informa TechTarget, Inc. (Nasdaq: TTGT) and is a leading global technology research and advisory firm. Leveraging deep market insights, extensive dialogue with industry leaders, and vast data resources, Omdia helps clients identify trends, seize opportunities, and gain competitive advantage. From R&D to return on investment, we pinpoint the most promising opportunities to drive sustained growth in the technology industry.