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.
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.
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.
