Expanding Global Cellular IoT Connectivity Market – Berg Insight Report
A recent report by Berg Insight sheds light on the growth of the global cellular IoT connectivity market, set to reach 6.4 billion connections by 2029. The 10th edition of the Global M2M/IoT Communications Market report reveals a 14% increase in 2024, bringing the total global cellular IoT subscribers to 3.8 billion.
This expansion is expected to drive substantial revenue growth, with connectivity revenues forecasted to rise from around £12.35 billion in 2024 to £19.49 billion by 2029. However, the average monthly revenue per user (ARPU) is anticipated to slightly decrease from £0.29 to £0.26 over the same period.
China remains the largest market for cellular IoT, boasting 2.7 billion connections by the end of 2024, representing 70% of the global total. The report attributes this dominance to the proactive role of the Chinese government, which is promoting large-scale IoT implementations to address societal issues.
North America and Western Europe follow as the second and third largest markets with 294 million and 279 million connections, respectively. Growth in these regions is mainly driven by commercial pursuits.
The automotive sector, particularly the connected car segment, is a key driver in these markets, with over 90% of new cars equipped with embedded cellular connectivity. Other popular applications include commercial vehicle fleet management, smart utility metering, and alarm systems.
China Mobile leads as the top provider of cellular IoT connectivity services with 1.42 billion connections in 2024. In the Western hemisphere, Vodafone ranks as the top Western operator, followed by AT&T.
As the market expands, service providers are diversifying beyond pure connectivity to offer enhanced services like cloud solutions, security offerings, and integrated devices. Some firms are engaging in vertical integration by acquiring specialized solution providers.
The evolution of the market sees IoT managed service providers managing over 200 million cellular IoT connections through aggregating multiple wide area networks, offering comprehensive coverage and connectivity.
This growth is fueled by state-led initiatives and commercial activities, notably in automotive sectors. Service providers are shifting focus towards creating comprehensive ecosystems of software, security, and hardware to capture greater market value.
This transition from a connectivity supplier to a full-service partner marks the next phase where billions of devices are interconnected online, reflecting the evolving landscape of IoT.
To learn more about IoT trends from industry experts, attend the upcoming IoT Tech Expo held in Amsterdam, California, and London. This event is co-located with Cyber Security & Cloud Expo, AI & Big Data Expo, Intelligent Automation Conference, Edge Computing Expo, and Digital Transformation Week.
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