China dominates the global cellular IoT market

A new report from Berg Insight puts the spotlight on the expansion of the global cellular IoT connectivity market, which is on a trajectory to reach 6.4 billion connections by 2029.

The analysis, presented in the 10th edition of the Global M2M/IoT Communications Market report, notes there was 14 percent growth in 2024 to bring the total number of cellular IoT subscribers to 3.8 billion globally. 

This expansion translates into substantial revenue, with connectivity revenues projected to grow from approximately £12.35 billion in 2024 to around £19.49 billion in 2029. Despite this revenue growth, the average monthly revenue per user (ARPU) is expected to see a slight dip, from approximately £0.29 to £0.26 over the same period.

China solidifies its position as the world’s largest market for cellular IoT, boasting 2.7 billion connections at the close of 2024. This figure accounts for 70 percent of the global total.

Berg Insight’s report suggests that the Chinese government’s proactive role is the primary driver for this dominance. Authorities in the country are actively endorsing large-scale IoT deployments to tackle societal issues such as public safety, energy conservation, and traffic management. 

North America and Western Europe are the second and third largest markets, with 294 million and 279 million connections respectively. In stark contrast to China, the growth in these regions is predominantly fuelled by commercial interests.

The connected car sector is a particularly strong driver in these regions, with over 90 percent of new cars sold featuring embedded cellular connectivity. Other popular applications include commercial vehicle fleet management, smart utility metering, and alarm systems. 

The report identifies China Mobile as the world’s leading provider of cellular IoT connectivity services, with 1.42 billion connections by the end of 2024. Fellow Chinese operators China Telecom and China Unicom hold the second and third spots.

In the Western hemisphere, Vodafone is the top-ranking Western operator, placing fourth overall with 204 million connections, followed by AT&T with 143 million.

While connectivity is the foundation, its revenue growth is being outpaced by the sheer number of new connections. The analysis indicates that IoT connectivity revenues for major mobile operator groups represent about two percent of their total revenues.

In response, service providers are increasingly looking beyond simple connectivity to capture a greater share of the market’s value. The trend is towards offering a broader portfolio of value-added services, such as cloud services, security solutions, and integrated devices. Some companies are pursuing vertical integration by acquiring solution providers in specific application areas like vehicle telematics and asset tracking. 

The ecosystem also includes a segment of IoT managed service providers, who collectively manage over 200 million cellular IoT connections. These providers differentiate themselves by aggregating multiple wide area networks, offering superior coverage and multi-technology connectivity through a single platform. 

As the digital and physical worlds continue to merge, the backbone of this transformation is reliable connectivity. The market is experiencing a surge, driven by both state-led initiatives and commercial enterprise, particularly in sectors like automotive.

While China currently leads in volume, the focus across the industry is clearly shifting. To capture true value, service providers are moving beyond simply connecting devices, instead creating comprehensive ecosystems of software, security, and integrated hardware.

This evolution from cellular IoT connectivity supplier to a full-service partner marks the next phase for a world where billions of devices are online and interoperable.

(Photo by Angie Nixon)

See also: Telco AI shifts from strategy to execution

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Tags: 5G, cellular, china, connectivity, europe, Iot, mobile, networks, report, research, study, telecoms, uk