eRedCap is gaining momentum following the launch of the world’s first commercial eRedCap modules in 2026
The global cellular Internet of Things (IoT) market is ready for major expansion growth. The total cellular IoT connections are expected to reach 5.9 billion by 2035, fueled by advances in 5G connectivity technologies, says a research report by Omdia.
The report identifies 5G RedCap/eRedCap, 5G Massive IoT (mMTC), and 4G LTE Cat-1bis as the three major technologies reshaping the cellular IoT ecosystem over the coming decade. Among these, NB-IoT, mMTC, and eRedCap are expected to emerge as the primary growth engines, collectively accounting for 65% of all cellular IoT connections by 2035.
Omdia expects eRedCap to outperform RedCap, citing lower device complexity and improved affordability. While RedCap adoption has been constrained by relatively high module prices and the slower rollout of 5G Standalone (SA) networks, eRedCap is gaining momentum following the launch of the world’s first commercial eRedCap modules in 2026. The technology is also expected to benefit from the expanding availability of 5G SA infrastructure worldwide.
The report notes that RedCap has nevertheless shown signs of progress over the past year, supported by the launch of the latest Apple Watch models incorporating RedCap technology, demonstrating growing interest in reduced-capability 5G devices for wearables and other connected applications.
On the regional front, NB-IoT continues to dominate the market in Asia & Oceania, accounting for 86% of global module shipments in 2025. Meanwhile, LTE-M is also gaining traction, with Asia & Oceania projected to capture 58% of the global LTE-M module market by 2035, reinforcing the region’s leadership in cellular IoT deployment.
According to Omdia, the transition of cost-efficient connectivity technologies, coupled with broader 5G network availability, will accelerate the adoption across various sectors such as smart cities, industrial automation, logistics, healthcare, and asset tracking, creating the foundation for the next phase of global IoT growth.
