The Cellular IoT Ecosystem is set for remarkable growth driven by 5G technology, as per the latest research findings by Omdia. This transformation promises a significant increase in shipments and an estimated 5.4 billion cellular IoT connections by 2030. Let’s dive into the details.
A Transformative Shift
Omdia’s study, which focuses on 5G RedCap, 5G Massive IoT, and 4G LTE Cat-1bis modules, predicts substantial growth in the cellular IoT ecosystem over the next seven years. This surge signifies the evolving landscape and the growing importance of advanced cellular connectivity solutions.
5G RedCap Takes the Lead
The research highlights the imminent mass adoption of 5G RedCap, projected to commence from 2024 onwards. Positioned as a mid-tier connectivity solution for 5G devices not requiring specifications as high as Ultra-Reliable Low Latency Communications (uRLLC) and Enhanced Mobile Broadband (eMBB), 5G RedCap is expected to play a crucial role in future-proofing devices amid the anticipated phase-out of 4G beyond 2030.
China Leads the Way
Alexander Thompson, Senior Analyst for IoT at Omdia, predicts, “2024 will be a pivotal year for 5G RedCap growth. This will begin in China, where most volume is expected, and in due course, subsidies will bring the module Average Selling Price (ASP) down to similar pricing as LTE Cat-1.”
Asia & Oceania Dominance
The forecast indicates that over 60 percent of IoT module shipments will originate from the Asian & Oceania region, constituting around 80 percent of IoT connections in 2023. The automotive sector emerges as a key driver, poised to witness the largest number of module shipments due to the escalating demand for smart vehicles integrating 5G connectivity.
AEPs: The Revenue Generators
Andrew Brown, Practice Lead for Omdia’s IoT group, emphasizes, “Across the IoT value chain, Application Enablement Platforms (AEPs) continue to be the leading revenue generator. There remains a role for industry-specific/pure-play AEPs despite the exponential growth of hyperscaler offerings and financial constraints for startups in the current economy.”
In conclusion, Omdia’s forecast paints a bright picture of the Cellular IoT Ecosystem, driven by the unstoppable force of 5G technology. As businesses and industries embrace this transformation, opportunities abound in this ever-evolving landscape.