The rapid uptake of LTE-M, NB-IoT and 5G RedCap in 2025 shows the growing maturity of cellular IoT as industries adopt scalable, low power and cost-effective connectivity options for digital transformation.
China Mobile led one of the most visible deployments with the launch of a large commercial 5G RedCap network at the Hangzhou Smart Factory. The network is designed for high reliability and low latency to support autonomous guided vehicles, machine tools and automated production workflows. The project demonstrates how 5G RedCap can deliver industrial IoT performance at lower cost compared to full 5G modules.
In Europe, Deutsche Telekom expanded the use of LTE-M and NB-IoT for German Rail. The operator connected cargo units, maintenance tools and infrastructure monitoring equipment to improve real-time visibility and logistics tracking across the railway network. The use of low power wide area (LPWA) cellular technologies provided wider coverage than traditional short-range radio systems.
AT&T in the United States continued to scale LTE-M smart grid deployments with Southern Company. Millions of electric meters now rely on LTE-M for low power, consistent data transmission that enables load balancing, remote diagnostics and outage management across the Southeast US.
Vodafone Group drove further NB-IoT growth through projects in European agriculture. Vineyards in Italy and Spain deployed NB-IoT soil and climate sensors to monitor moisture, temperature and humidity. The solution reduces water usage, improves crop quality and enables long-life battery operation for remote sensors.
In Australia, Ericsson and Telstra advanced NB-IoT use cases in remote farming with cattle tracking projects across the Outback. Smart ear tags use NB-IoT to send location, movement and health data over long distances, improving livestock management and reducing manual field inspections.
Orange Business Services strengthened its LTE-M portfolio with connected retail and point-of-sale deployments across France and Spain. Retailers adopted LTE-M based POS terminals and vending systems for secure, reliable payment transactions with high network uptime.
The automotive sector also shifted toward cost-efficient 5G modules through Qualcomm and global vendors, which introduced 5G RedCap chipsets for telematics. Automakers integrated RedCap modules to support essential connected car functions like navigation, diagnostics, OTA updates and basic infotainment without requiring high-cost full 5G hardware.
The global cellular IoT market is set for strong expansion, with total connections forecast to reach 5.9 billion by 2035, according to new research from Omdia. The study indicates that next-generation 5G technologies will play a central role in accelerating adoption across multiple sectors, particularly through the rise of 5G RedCap, 5G Massive IoT and 4G LTE Cat-1bis modules.
Omdia identifies 5G RedCap as a key mid-tier connectivity solution that will reshape the IoT landscape. RedCap is designed for 5G devices that do not need the high-end performance of ultra-reliable low latency communications or enhanced mobile broadband. It brings the advantage of long-term relevance as operators gradually phase out 4G networks after 2030. Adoption has been slower than expected, but 2025 has shown renewed momentum following the launch of the new Apple Watch range featuring RedCap. This is expected to open the door for wider commercial uptake. The arrival of eRedCap modules in 2026 will further expand connectivity options for OEMs and enterprises, encouraging adoption across a broader spectrum of IoT applications.
Alexander Thompson, Senior Analyst for IoT at Omdia, said the inclusion of RedCap in Apple’s latest watches marks the starting point for widespread RedCap deployment. He noted that enterprises will soon gain access to an expanding mix of connectivity technologies suited for diverse IoT requirements, adding that the introduction of 5G eRedCap modules from 2026 will drive strong connection growth through the next decade.
Automotive IoT is set to become one of the fastest growing segments. The sector is projected to increase its connections from 500 million today to around 1.2 billion by 2035, boosting its share of the global cellular IoT market from 13 percent to 21 percent. Much of this growth will come from Asia and Oceania, where consumer appetite for intelligent, connected vehicles is rising rapidly. The shift toward software-defined vehicles, increasing reliance on over-the-air updates, regulatory requirements and vehicle-to-everything capabilities are key contributors to this expansion.
Andrew Brown, IoT Practice Lead at Omdia, said these trends explain why vehicles are expected to represent one in five cellular IoT connections by 2035. As automotive OEMs accelerate digitalisation and connectivity strategies, the segment will remain one of the most significant drivers of long-term IoT adoption.
Overall, Omdia’s findings show that the cellular IoT ecosystem is entering a phase of sustained growth. With 5G RedCap, Massive IoT and evolving 4G-derived technologies expanding coverage and enabling new applications, the market is positioned for a transformative decade ahead.
Baburajan Kizhakedath
