The cellular Internet of Things (IoT) market value is projected to reach USD 28.7 billion by 2028, climbing from the recorded USD 16.4 billion in 2024 at a compound annual growth rate (CAGR) of 15%, according to Juniper Research’s Global Cellular IoT Market Outlook. This robust increase indicates a growing demand for advanced connectivity and digital interconnectedness.
The IoT ecosystem plays a substantial role in supporting daily lives and business operations. As 5G network technology continues to rise, the significance of IoT applications will continue to grow exponentially, delivering enhanced services, particularly in less densely populated areas.
Cellular networks are primarily situated in areas with high-density rates. However, the need for ubiquitous and extended connectivity transcends beyond the capabilities of mobile phones, resulting in the increased demand for data sharing between devices to enhance efficiency and communication.
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Advancing the Global IoT Ecosystem
Driven by advancements in 5G and cellular Low-Power Wide Area (LPWA) technologies, the cellular IoT market will grow exponentially, transforming various industries and enterprises. As the market continues to demand improved network technologies, 5G is poised to generate USD 9 billion in revenue for the 5G IoT services market by 2026, according to a study conducted by Juniper Research.
Despite widespread connectivity coverage, terrestrial mobile networks cover only 20% of the Earth's surface, according to satellite communication service provider, Sateliot. This stems from the poor cellular technology coverage in areas with low population densities, such as the mountains or remote regions.
Integrating 5G with satellite is set to revolutionize connectivity in IoT applications, further connecting the unconnected. In 2023, Sateliot launched the first satellite under the 3GPP 5G Narrowband (NB)-IoT NTN Release-17 standard, offering IoT connectivity in remote areas via a small constellation of low Earth orbit (LEO) satellites. This strategic initiative enables extended and reliable coverage for devices on the move, particularly those without access to a fiber network, primarily benefitting other verticals such as transportation, logistics, agriculture, and maritime.
5G Reduced Capability (RedCap) is poised to lead the cellular IoT market in the coming years, with Omdia projecting 963.5 million connections by 2030 and an impressive CAGR of 66%.
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Emerging Challenges in Cellular IoT
Despite major advancements in cellular IoT, challenges persist. Cyberattacks or extreme weather conditions can affect connection reliability in cellular IoT connectivity. Enterprises operating in areas with poor cellular reception often face limitations in network connection, thus, affecting IoT connectivity.
The rise of wireless connections brings enhanced accessibility and convenience for businesses and users alike. However, it also amplifies the security risks associated with connected devices within the network. Attackers can compromise identities, leading to the theft of sensitive data. Attackers may also gain control of devices to exploit data, causing system failures and altering data, compromising the credibility of interconnected devices. Denial-of-Service (DoS) attacks may also be triggered, interrupting connectivity services by taking devices offline.
Furthermore, battery life remains a critical concern as many IoT devices rely on battery power. The longevity of battery life is paramount for successful cellular deployments to support connections in rural settings, particularly agriculture and maritime. Moreover, concerns regarding battery drainage pose substantial operational risks, leading to data gaps or system failures.
The complexities of cellular IoT deployments present significant hurdles for organizations. Upgrading, deploying, and maintaining existing infrastructure requires extensive assistance from service providers. Expanding on this need for specificity during the 18th edition of the Telecom Review Leaders’ Summit, Hasan Alshemeili, Head of Technology Planning, du, highlighted infrastructure’s potential in tailoring services, such as gaming or streaming, to specific customer needs while maintaining efficiency, noting that, "One size doesn't fit all. Organizations must adapt their systems to meet diverse user expectations.”
Additionally, the IoT sector faces a skills gap and a shortage of qualified IoT experts capable of navigating the intricacies of the IoT’s complex landscape. During the same panel, Rashid Al Ahmadi, COO, InfraX, proposed establishing specialized focus groups under regulatory bodies to bridge these gaps. "Technology will always be there," Al Ahmadi noted, "But success hinges on creating win-win partnerships between technology providers, operators, and end-users."
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Trailblazing Breakthroughs in Cellular IoT
The massive rollout of 5G networks presents a substantial potential for the wide adoption of cellular IoT connectivity. Consequently, major telecom companies are investing heavily in 5G infrastructure to deliver unprecedented speeds and lower latency, supporting digital interconnectedness.
Notably, the cellular IoT market is predicted to transform the industrial sector, enabling interconnectivity between ‘things’ and people.
Telecom vendor, Ericsson, has categorized IoT connectivity into four segments to address industrial connectivity needs: massive IoT, broadband IoT, critical IoT, and industrial automation IoT. These cellular IoT use cases are supported by network slicing, which facilitates a cost-efficient, scalable, and flexible network.
In 2019, du, commercially rebranded from Emirates Integrated Telecommunications Company (EITC), launched the next-generation NB-IoT network alongside Nokia in the United Arab Emirates, enabling connections for smart city applications.
In 2020, Qualcomm introduced its 212 LTE IoT modem (dubbed the world’s most power-efficient, single-mode NB2 IoT chipset), delivering enhanced performance in low-power and long-life IoT applications.
In 2023, Saudi Arabia’s telecom operator, Zain KSA, launched passive IoT technology, powered by ambient energy sources.
In 2024, Qualcomm launched its Snapdragon X80 5G modem with NB-NTN satellite connectivity designed for smartphones, laptops, and industrial IoT, while Chinese technology vendor, Huawei, granted a cellular IoT Standard Essential Patents (SEPs) license, including NB-IoT, LTE-M, and LTE Cat. 1 to EDMI. Moreover, in the same year, stc Group signed a collaboration with communications solutions provider, iBASIS, to enhance global communication through IoT technology.
Meanwhile, the Middle East’s cellular IoT market is set to experience exponential growth, as the region leads the early adoption of modern technologies. Major contributors to this massive growth include the UAE’s Vision 2021 and Saudi Arabia’s Vision 2030, which focus on integrating IoT solutions.
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Final Thoughts
Cellular IoT transpires to be a significant driver in shaping the future of the digital landscape. This technology’s transformative potential is bound to deliver new possibilities for innovation, revenue generation, and operational efficiency, elevating quality of life and improving business operations.
As the demand for seamless connectivity surges, technological advancements are rapidly expanding. The ongoing deployment of 5G networks will continue to support enhanced connectivity and address critical concerns in digital transformation.
The synergy of 5G and IoT promise to crystalize an intelligent and hyper-connected digital future. Looking ahead, the IoT ecosystem has the potential to surpass expectations, bringing advanced, connected technologies once confined to science fiction into everyday reality.
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