The cellular IoT market surged in 2023, earning $15 billion from 3.56 billion connections. According to IoT Analytics, mobile operator IoT revenue has grown at a 16% CAGR since 2010, with a projected increase to over 18% through 2030.
Revenue Outpaces Other Sectors
Mobile operators' IoT revenue growth outpaced software vendors and hyperscalers in 2023. Despite a 10% decline in IoT module vendor revenue due to inventory management, demand remains strong.
Market Leaders
- China Mobile: 46% of global connections, 20% revenue.
- China Telecom: 15% connections, 7% revenue.
- China Unicom: 14% connections, 10% revenue.
- Vodafone: 5% connections, 9% revenue.
- AT&T: 4% connections, 12% revenue.
Geographic Pricing Differences
Western operators like AT&T and Verizon charge higher premiums on data plans but maintain double-digit revenue growth.
Future with 5G and 5G RedCap
5G and 5G RedCap technologies are expected to constitute nearly half of IoT connectivity revenue by 2030, with connections growing at 44% CAGR from 2024 to 2030. These technologies will enable high-quality video surveillance and other applications at lower costs.
Conclusion
The cellular IoT market will continue to expand with technological advancements and increasing demand, particularly driven by 5G and RedCap technologies.
