The global cellular IoT market is on track for expansive growth, with connections projected to reach 5.9 billion by 2035, according to new research from Omdia. The study underlines how advancements in 5G are reshaping the IoT ecosystem, with 5G RedCap, 5G Massive IoT, and 4G LTE Cat‑1bis modules emerging as the key technologies behind this acceleration.
Omdia’s latest data points to a decade of transformation, where cellular IoT connectivity will scale across diverse industries, from wearables and industrial IoT to transportation and smart cities. The adoption curve reflects an expanding reliance on 5G’s efficiency, flexibility, and scalability—offering a pathway for industries to deploy connected solutions beyond the limitations of legacy networks.
A pivotal element of this growth is 5G RedCap, short for “Reduced Capability,” designed as a streamlined, cost-effective connectivity option for 5G devices that do not require the capabilities of advanced 5G tiers, such as Ultra-Reliable Low Latency Communications or Enhanced Mobile Broadband. Although the technology’s rollout was initially slower than anticipated, 2025 marked a turning point, with RedCap technology debuting in Apple’s latest smartwatch series. Omdia anticipates that momentum will further accelerate in 2026, as eRedCap module launches expand availability and drive adoption across mid‑tier IoT applications, bridging the gap between 4G and advanced 5G networks.
“The implementation of 5G RedCap in the latest range of Apple Watches has signalled the starting gun for RedCap adoption,” said Alexander Thompson, Senior Analyst for IoT at Omdia. “As eRedCap modules launch next year, enterprises will have access to a wider connectivity toolkit, enabling more tailored IoT deployments.”
The research also identifies the automotive industry as a major growth engine within cellular IoT. Omdia forecasts the number of cellular‑connected vehicles to rise from 500 million today to approximately 1.2 billion by 2035, expanding the sector’s share of total connections from 13% to 21%. Asia and Oceania are expected to lead this surge, driven by mounting consumer demand for intelligent vehicles equipped with 5G capabilities.
Andrew Brown, IoT Practice Lead at Omdia, noted that the shift toward software‑defined vehicles and the growing need for over‑the‑air updates are fuelling this trend. “Vehicle‑to‑everything communication and regulatory frameworks are reinforcing cellular connectivity as a cornerstone of automotive innovation,” he added.
