Cellular IoT Connections and Connectivity Market Forecast 2035: Global Industry to Reach US 126.7 Billion at 30.7% CAGR

The Cellular IoT Connections and Connectivity Market has entered a phase of exponential expansion, driven by accelerating digitalization across industries and governments worldwide. The global market was valued at US$ 6.7 Bn in 2024 and is projected to surge to US$ 126.7 Bn by 2035, reflecting an impressive compound annual growth rate (CAGR) of 30.7% from 2025 to 2035.

This growth trajectory highlights the increasing dependence of modern economies on scalable, reliable, and secure wide-area connectivity to support billions of connected devices. Cellular IoT has moved beyond pilot deployments and is now becoming a foundational layer for smart infrastructure, real-time monitoring, and autonomous systems.

►Discover Market Opportunities - Request Your Sample Copy Now: https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=77351

►Market Overview

The cellular IoT connections and connectivity market encompasses technologies that enable IoT devices to communicate over licensed cellular networks such as 2G, 3G, 4G/LTE, 5G, NB-IoT, and LTE-M. Unlike short-range connectivity technologies, cellular IoT offers wide geographic coverage, mobility support, strong security, and carrier-grade reliability, making it suitable for mission-critical applications.

Key application domains include smart cities, healthcare, agriculture, logistics, industrial automation, automotive telematics, utilities, and building automation. The market includes hardware components such as modules and sensors, software and connectivity platforms, and managed connectivity services provided by mobile network operators and IoT solution providers.

►Key Market Growth Drivers

1.Rapid Proliferation of IoT Devices Across Industries

The explosion of connected devices across transportation, energy, healthcare, and manufacturing is a fundamental driver. Enterprises increasingly rely on IoT to enable asset tracking, predictive maintenance, remote monitoring, and real-time analytics, all of which require dependable cellular connectivity.

2.Advancements in Cellular Network Technologies

Next-generation technologies such as 5G, 5G RedCap, NB-IoT, LTE-M, and LTE Cat-1 bis are redefining IoT connectivity. In 2024, 5G accounted for 37.5% of total market revenue, underscoring its role as the primary growth engine. These technologies provide higher data rates, ultra-low latency, massive device density, and extended battery life.

3.Expansion of Smart City and Building Automation Projects

Governments and municipalities are investing heavily in smart infrastructure to enhance efficiency, sustainability, and citizen services. Cellular IoT supports applications such as traffic management, smart lighting, waste management, public safety, and energy optimization, driving sustained demand.

►Analysts' Viewpoint

Analysts observe that the cellular IoT connections and connectivity market is being propelled by the need to efficiently connect vast numbers of devices while ensuring security, reliability, and scalability. Technologies such as 5G RedCap, LTE-M, and NB-IoT offer optimized solutions for diverse use cases, from low-power sensors to mid-tier wearable and industrial applications.

However, challenges remain. Cybersecurity risks, high infrastructure deployment costs, and fragmented global standards pose barriers to seamless adoption. Despite these hurdles, opportunities such as hybrid satellite-cellular IoT solutions, flexible API-driven pricing models, and expanding mid-tier 5G applications continue to attract investment and innovation.

►Market Challenges and Opportunities

1.Key Challenges

Cybersecurity vulnerabilities arising from billions of interconnected devices
High initial deployment costs, particularly for SMEs
Complex regulatory frameworks and interoperability issues across regions

2.Emerging Opportunities

Integration of non-terrestrial networks (NTN) to extend coverage to remote areas
Growing adoption of 5G RedCap for wearables, healthcare monitoring, and industrial sensors

Usage-based and API-driven pricing models that lower entry barriers and stimulate innovation

►Explore Strategies & Trends - Request Full Report Access - https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=77351

►5G Segment Driving Market Growth

Among all network types, 5G is poised to witness the highest growth rate during the forecast period. Its ability to support real-time data processing, ultra-reliable low-latency communication, and massive machine-type connectivity makes it ideal for advanced IoT applications such as autonomous vehicles, remote healthcare, and smart manufacturing.

The rollout of 5G standalone (SA) networks further enhances efficiency by enabling uninterrupted machine-to-machine communication without reliance on legacy networks. As industries accelerate digital transformation, 5G is expected to remain the dominant force shaping the future of cellular IoT connectivity.

►Regional Outlook

1.North America

North America dominated the global market in 2024, accounting for 35.8% of total revenue. The region benefits from advanced telecom infrastructure, early adoption of next-generation cellular technologies, and strong presence of leading solution providers. The United States continues to lead due to substantial investments in digital transformation, automation, and smart infrastructure.

2.Europe

Europe is witnessing steady growth driven by smart city initiatives, industrial automation, and stringent energy efficiency regulations. Countries such as Germany, the U.K., and France are at the forefront of cellular IoT deployment.

3.Asia Pacific

Asia Pacific is expected to record the fastest growth over the forecast period, fueled by large-scale IoT adoption in China, India, Japan, and South Korea. Government-backed smart city programs and expanding manufacturing ecosystems are key contributors.

4.Latin America and Middle East & Africa

These regions are emerging markets where increasing investments in logistics, utilities, and smart infrastructure are creating new opportunities for cellular IoT connectivity.

►Analysis of Key Players and Competitive Strategies

The market is moderately consolidated with global telecom operators, technology giants, and specialized IoT module providers competing on innovation, coverage, and pricing. Prominent players include Semtech Corporation, Verizon, Microsoft, Telefonaktiebolaget LM Ericsson, and Huawei Technologies Co., Ltd..

Other influential participants include AT&T Intellectual Property, Tata Communications Limited, Fibocom Wireless Inc., Quectel, Arm Limited, Sierra Wireless, u-blox, ZTE Corporation, and Telit Cinterion.

Key strategies adopted by these players include strategic partnerships, expansion of global roaming agreements, investment in 5G and LPWAN technologies, and development of end-to-end IoT platforms.

►Recent Developments

In August 2025, floLIVE launched a cost-effective high-bandwidth cellular connectivity offering for transportation and logistics monitoring in Sub-Saharan Africa, priced nearly 70% lower than conventional roaming services.

In February 2025, OQ Technology entered a commercial agreement with O2 Telefónica to enable global 5G roaming for NB-IoT solutions, combining terrestrial cellular networks with non-terrestrial connectivity.

►Investment Landscape and ROI Outlook

The cellular IoT market presents a compelling investment opportunity due to its high growth rate and expanding application scope. Investors are increasingly attracted by recurring connectivity revenues, scalable platform models, and long-term enterprise contracts. As deployment costs decline and use cases mature, ROI is expected to improve significantly, particularly in smart infrastructure, healthcare, and industrial automation segments.

►Why Buy This Report?

Gain quantitative insights into market size, growth rates, and forecasts through 2035
Understand key technology trends shaping cellular IoT connectivity
Identify high-growth regions and segments for strategic expansion
Analyze competitive strategies and recent developments of leading players
Support informed investment, product development, and market entry decisions

FAQs

Q.How big was the global cellular IoT connections and connectivity market in 2024?
A.The market was valued at US$ 6.7 Bn in 2024.

Q.What is the projected market size by 2035?
A.It is expected to reach US$ 126.7 Bn by 2035.

Q.What factors are driving market growth?
A.Key drivers include advancements in cellular networks, proliferation of IoT devices, and expansion of smart city and building automation projects.

Q.What is the expected growth rate during the forecast period?
A.The market is anticipated to grow at a CAGR of 30.7% from 2025 to 2035.

Q.Which region will dominate the market?
A.North America is expected to maintain the largest market share throughout the forecast period.

Buy Full Report Now: https://www.transparencymarketresearch.com/checkout.php?rep_id=77351<ype=S

→Explore Latest Research Reports by Transparency Market Research:

E-SIM Card Market Analysis: https://www.transparencymarketresearch.com/e-sim-card-market.html

AI-enabled Biometric Market: https://www.transparencymarketresearch.com/ai-enabled-biometrics-market.html

Digital Asset Management Market: https://www.transparencymarketresearch.com/digital-asset-management-market.html

Contact Us:
Transparency Market Research Inc.
CORPORATE HEADQUARTER DOWNTOWN,
1000 N. West Street,
Suite 1200, Wilmington, Delaware 19801 USA
Tel: +1-518-618-1030
USA - Canada Toll Free: 866-552-3453

About Transparency Market Research

Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insights for thousands of decision makers. Our experienced team of Analysts, Researchers, and Consultants use proprietary data sources and various tools & techniques to gather and analyses information.

Our data repository is continuously updated and revised by a team of research experts, so that it always reflects the latest trends and information. With a broad research and analysis capability, Transparency Market Research employs rigorous primary and secondary research techniques in developing distinctive data sets and research material for business reports.

This release was published on openPR.