5G and LTE drive global cellular IoT connections past four billion mark

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5G and LTE drive global cellular IoT connections past four billion mark

Connectivity firms are reaping the rewards from accelerated demand for internet of things (IoT) technologies, according to a study from IoT Analytics, which found that the global cellular IoT market continues to grow, surpassing four billion cellular IoT connections as of late 2024, accounting for approximately 22% of overall global IoT connections.

Key drivers of this growth include the adoption of LTE Cat 1 bis – the 

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variant of LTE developed specifically to support IoT applications – and 5G. Connections are projected to increase at a compound annual growth rate of 15% between 2024 and 2030.

Drilling deeper into the enabling technologies, the report noted that LTE Cat 1 bis has significantly contributed to cellular IoT growth, with connections increasing by 68% year on year (YoY) in the first half of 2024.

Four key factors are fuelling the adoption of LTE Cat 1 bis: market demand; balanced performance; cost-effectiveness and simplified design; and global coverage and futureproofing.

In terms of demand, the study said that in China, the absence of LTE-M networks and the limitations of narrowband IoT (NB-IoT) have accelerated the adoption of LTE Cat 1 bis. The country accounts for 85% of global LTE Cat 1 bis connections and experienced a 56% YoY growth in the first half of 2024.

LTE Cat 1 bis features a single antenna design optimised for low-power applications and is designed to offer balanced high-speed capabilities – up to 10Mbps downlink and 5Mbps uplink – with low power consumption. It supports power management features such as extended discontinuous reception (eDRX) and power-saving mode (PSM) to reduce power usage by allowing devices to sleep when not transmitting or receiving data. This, said the report, makes it suitable for IoT applications requiring long-term operation without frequent battery replacements, such as smart metering, payment solutions, fleet management and healthcare devices.

The single antenna design is also said to reduce hardware complexity and costs, compared with the original LTE Cat 1, making it an attractive option for manufacturers and solution providers. A further advantage is said to be derived from LTE Cat 1 bis operating on existing LTE networks globally, offering extensive coverage. IoT Analytics believes that as 2G and 3G networks are decommissioned, it provides a seamless migration.

Thanks to advancements in the 

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standard and beyond, the study said 5G IoT connections have experienced substantial growth. Such developments are enhancing capabilities for high-speed, low-latency applications critical for modern IoT solutions.

Among the leading reasons for market demand is China’s significant investment in 5G infrastructure, which has created a ecosystem supporting widespread adoption. The availability of affordable 5G-compatible devices and modules has also lowered barriers for industries to implement 5G IoT solutions. China was found to hold approximately 80% of global 5G IoT connections and experienced 79% YoY growth in the first half of 2024.

5G IoT also offers enhanced performance and capabilities with latency as low as 1ms and high data rates up to 20Gbps, essential for applications requiring immediate responsiveness and high throughput. Given 5G’s ability to support up to a million devices per square kilometre, the analyst said the standard can accommodate the escalating number of IoT devices.

Two key applications were found to be driving 5G IoT growth: fixed wireless access (FWA) and the automotive sector. The report calculated that FWA contributed 45% of global 5G IoT connections in the first half of 2024 by using 5G networks to deliver high-speed internet access to homes and businesses, particularly in areas lacking fibre infrastructure.

The automotive sector has been a, if not the, leading sector for IoT in 2024. IoT Analytics calculated that the sector – including transportation, supply chain and logistics – accounted for 26% of global 5G IoT connections during the *******, propelled by connected vehicles. The industry is integrating 5G IoT to enhance real-time navigation, telematics and infotainment. Additionally, 5G supports future technologies like Cellular Vehicle-to-Everything (C-V2X), enabling communication between vehicles, infrastructure and other road users.

Looking ahead, the report suggests 2025 will mark the first commercialisation of 5G RedCap connections. This technology is designed to bridge the gap between full-scale 5G and existing LTE categories, like LTE Cat-4, enhancing device efficiency and cost-effectiveness. This, IoT Analytics predicts, will facilitate a smoother transition to next-generation connectivity and support a wide range of IoT applications, including mid-speed use cases such as wearables and smart cameras.

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