- Over 60% of IoT module shipments will originate from the Asian & Oceania region.
- Automotive sector is expected to be a significant driver.
The cellular IoT ecosystem is expected to undergo significant transformation over the next seven years, with the advent of 5G technologies playing a crucial role. The focus will primarily be on 5G RedCap, 5G Massive IoT, and 4G LTE Cat-1bis modules, leading to an estimated 5.4 billion cellular IoT connections by 2030.
According to Omdia research, mass adoption of 5G RedCap is predicted to start in 2024, serving as a mid-tier connectivity solution for 5G devices that do not require the high specifications of ultra reliable low latency communications (uRLLC) and enhanced mobile broadband (eMBB). This technology is expected to future proof devices as the industry moves towards phasing out 4G beyond 2030.
This year (2024) will be an important year for 5G RedCap growth, particularly in China, where the majority of the volume is expected. Subsidies in the region are anticipated to lower the average selling price (ASP) of modules to levels similar to long-term evolution or LTE Cat-1.
The forecast also indicates that over 60% of IoT module shipments will originate from the Asian & Oceania region, accounting for approximately 80% of IoT connections in 2023. The automotive sector is expected to be a significant driver, with an increasing demand for smart vehicles that integrate 5G connectivity.
Application Enablement Platforms (AEPs) continue to be the leading revenue generator across the IoT value chain. Despite the growth of hyperscaler offerings and financial constraints faced by startups, there remains a role for industry-specific and pure-play AEPs.
