NEW DELHI: The global cellular IoT market is set to maintain its strong expansion, with connections projected to exceed 6.2 billion by 2030, growing at a CAGR of 10 per cent.
Counterpoint Research expects global cellular IoT revenues to surpass $26 billion by 2030, as average revenue per user (ARPU) are expected to stabilise in the latter part of the decade.
In 2023, the global cellular IoT connections surged 24 per cent to surpass 3.3 billion, despite challenges in the cellular IoT module sector.
Global cellular IoT connectivity revenues also saw a 17 per cent YoY increase, reaching $13.7 billion, even as ARPU continued to decline.
“Looking ahead, we expect ARPUs to stabilize, particularly with the advent of 5G and growth of 4G Cat-1 bis solutions as China will continue to expand its connections into the automotive, smart meters and smart retail sectors,” said Mohit Agrawal, Research Director at Counterpoint.
With over 2.3 billion connections, China continues to dominate the global cellular IoT market with a near 70 per cent global share in 2023, up 26 per cent YoY.
Connected cars, smart meters and smart retail will continue to dominate the cellular IoT landscape and collectively account for more than 60 per cent of the cellular IoT market by the end of 2030.
Connected Cars will enhance vehicle automation and safety, while Smart Meters will optimize energy usage and utility management.
Smart Retail will improve customer experiences with data-driven insights and more security.
As per the report, these sectors will drive the growth of IoT, transforming industries with real-time connectivity and efficiency.
Siddhant Cally, research analyst at Counterpoint said many emerging nations are implementing digital transformation plans that prioritise the deployment of public service solutions.
“The advent of 5G will play a crucial role in driving connectivity-based revenues, as operators capitalize on the vast potential of massive Machine-type Communications (mMTC) offered by 5G, particularly as 2G and 3G technologies are phased out,” Cally added.
By 2030, 5G may account for nearly 50 per cent of Global Cellular IoT revenues as it will cater to high-demand applications like autonomous vehicles, industrial automation, and immersive smart cities.