Connected IoT device market update – Fall 2025 and 2026 – 2035 outlook
Number of connected IoT devices to grow 14% in 2025 and reach 39 billion in 2030; >50 billion by 2035. The number of connected IoT devices reached 18.5 billion in 2024, representing a 12% growth over 2023, according to IoT Analytics’ ongoing tracking and analysis of IoT connectivity. Based on H1 2025 IoT connection data, the number of connected IoT devices is expected to grow 14% year-over-year to 21.1 billion by the end of 2025. The 2025 forecast is approximately 300 million connections below the forecast issued by IoT Analytics in September 2024, due to ongoing capex deferrals and softer-than-expected demand in China. (Note: The 2025 forecast is approximately 400 million below the IoT Analytics forecast for 2025 made in 2018).
Looking further ahead, the number of connected IoT devices is estimated to reach 39 billion in 2030, reflecting a CAGR of 13.2% from 2025. Artificial intelligence is expected to act as a key growth driver during this period, as the demand for device data rises in line with advances in AI. After 2030, growth is expected to slow as the pool of unconnected devices that can still deliver incremental value from connectivity diminishes. Nonetheless, full market saturation is not expected before well after 2035.
Leading IoT connectivity technologies in 2025: 3 technologies make up nearly 80% of all IoT connections
Wireless IoT connectivity technologies make up the lion’s share of active IoT connections, with 3 technologies in particular standing out:
1. Wi-Fi IoT
Wi-Fi makes up 32% of all IoT connections. Wi-Fi remains the largest technology for IoT connectivity, now accounting for 32% of all connections. Shipments of Wi-Fi IoT chipsets normalized in 2024, setting a stronger base for 2025. Wi-Fi continues to expand its role in IoT, driven by 3 key trends:
- Rise of low-power Wi-Fi for IoT devices: Low-power Wi-Fi adoption is increasing as devices utilize Wi-Fi 6 features, such as Target Wake Time and extended sleep modes, to reduce energy consumption, thereby enabling battery-powered sensors, locks, and appliances.
- Enterprise tech upgrades: Enterprise, customer-premises equipment, and edge upgrades are accelerating as Wi-Fi 6E and Wi-Fi 7 replace older networks, improving throughput, latency, and reliability while broadband and fixed wireless access (FWA) gateway refreshes add momentum.
- Long-distance, broad application connectivity: Wi-Fi HaLow (802.11ah) is gaining traction below 1 GHz, providing long-range, low-power links for industrial and outdoor IoT applications, such as video sensors, AMI 2.0, and precision agriculture. This broadens Wi-Fi’s addressable market and supports new shipment growth from 2026 onward.
2. Bluetooth IoT
24% of connected IoT devices worldwide rely on Bluetooth. Bluetooth remains the second-largest IoT connectivity type. Shipments of Bluetooth IoT chipsets normalized in 2024, setting a solid base for 2025. Bluetooth Low Energy (BLE) continues to lead battery-powered IoT connectivity as devices adopt new SoCs such as Nordic’s nRF54, Silicon Labs’ BG27, and TI’s CC23xx families, which integrate compute, radio, and security while lowering cost and power consumption. Industrial adoption is rising through IO-Link Wireless, which enables reliable wireless communication between sensors, actuators, and controllers using the Bluetooth IEEE 802.15.1 standard. Bluetooth 5.4 is becoming the preferred platform for large-scale electronic shelf labels, with national retail deployments underway in North America and Europe. At the same time, Channel Sounding supports secure fine ranging for access control, RTLS, and automotive digital keys, expanding infrastructure demand across hospitals, factories, and warehouses.
3. Cellular IoT
Cellular IoT (2G, 3G, 4G, 5G, LTE-M, and NB-IoT) makes up 22% of global IoT connections. According to IoT Analytics’ Global Cellular IoT Connectivity Tracker & Forecast (updated September 2025), global cellular IoT connections grew 16% YoY in 2024, outpacing overall IoT growth.
Similarly, IoT Analytics’ Wireless IoT Connectivity Chipset Market Report 2025–2030 (published October 2025) shows that the cellular IoT chipset market reached $4.07B in 2024 (+19% YoY) and is forecast to reach $14.08B by 2030 (23% CAGR). 5G chipsets are expected to be the main contributor of growth, projected at $9.31B by 2030 (34% CAGR), fueled by FWA, video telematics, industrial gateways, and automotive, with scaled private 5G in China proving performance.
In general, the IoT Analytics team expects the following cellular IoT growth in the coming years is driven by 3 clear technology shifts:
- 5G is becoming the standard for high-reliability and low-latency use cases such as FWA, video telematics, industrial gateways, and automotive, with private 5G networks in China proving scalability.
- LTE Cat-1 continues to see steady global adoption as a cost-effective and widely available option for mid-tier IoT devices, particularly in logistics, metering, and smart city deployments.
- LTE Cat-1 bis is emerging as the main high-volume option, replacing 2G and 3G and supporting applications like point-of-sales, asset tracking, and light telematics.
Further, mobile operators worldwide generated $18.4 billion in revenue from 4.1 billion cellular IoT connections in 2024. The top 5 network operators, listed below, managed 83% of all global cellular IoT connections in 2024:
- China Mobile
- China Telecom
- China Unicom
- Vodafone
- AT&T
In terms of IoT revenue, the following top 5 network operators accounted for 59% of the IoT mobile operator market:
- China Mobile
- Verizon
- AT&T
- China Unicom
- Vodafone
Deep-dive: Cellular IoT connections
Although the cellular IoT market never lived up to early expectations of reaching 50 billion devices by 2020, the segment has continuously gained market share over other connectivity technologies over the past 10 years. In 2024, we saw continued vertical integration across the cellular IoT stack with automotive and industrial IoT as key growth engines.
Mobile IoT operators: Key market developments
China Mobile: China Mobile contributed 44% of global cellular IoT connections and 17% of global cellular IoT connectivity revenue in 2024. Its growth came from its one-stop solution across chips, operating systems, modules, and platforms. China Mobile’s IoT platforms (OneLink, OneNET, and OneCyber) have supported video-based IoT, city operations, and industrial assets for years now.
China Telecom: China Telecom contributed 15% of global cellular IoT connections in 2024 and 6% of global cellular IoT connectivity revenue in 2024. Growth stemmed from city programs utilizing the IoT Cognition Cloud Platform, which expanded metering, safety, and video analytics capabilities.
China Unicom: China Unicom contributed 15% of global cellular IoT connections in 2024 and 10% of global cellular IoT connectivity revenue in 2024. Additions came from connected automotive, smart metering, and logistics. Its Gewu industrial-internet and IoT-device management platform was elevated to national Class A “dual-cross” status, meaning it was recognized by China’s Ministry of Industry and Information Technology (MIIT) for its strong cross-industry and cross-domain integration capabilities, such as enabling data and connectivity sharing between manufacturing sites, logistics hubs, and other relevant entities. Further, China Unicom’s “1+1+1+N” modular and AI-enabled design accelerated digital factory rollouts, helping drive strong industrial IoT growth.
Vodafone: Vodafone contributed 5% of global cellular IoT connections in 2024 and 8% of global cellular IoT connectivity revenue in the same year. Automotive remained the largest contributor, with strong growth in IoT project revenue in the UK specifically. NB-IoT and LTE-M deployments in tracking and utilities added breadth.
AT&T: AT&T contributed 4% of global cellular IoT connections in 2024 and 12 % of global cellular IoT connectivity revenue in 2024. Connected automotive led net adds across major OEMs. LTE-M adoption in asset tracking, logistics, and medical peripherals played a key role in AT&T’s IoT connection growth.
Analyst opinion on the cellular IoT market
Satyajit Sinha is a principal analyst in our Hamburg, Germany office. He leads the hardware and connectivity research team, focusing on IoT components, chips, modules, and other hardware, along with IoT connectivity and security.
Cellular IoT split between volume and premium growth. Cellular IoT is diverging along 2 main vectors. On one end, volume growth is increasingly driven by LTE Cat-1 and Cat-1 bis. These 2 standards are becoming the default migration paths as 2G and 3G networks sunset. On the other end, revenue growth is shifting toward premium 5G use cases like those mentioned above. 5G Reduced Capability (RedCap) is emerging as a key transitional technology. It is positioned to replace LTE Cat-4 by offering similar throughput while reducing complexity and power consumption compared to full 5G. This makes it suitable for use cases like smart cameras, wearables, and video-based telemetry that do not require high-bandwidth 5G connectivity.
NB-IoT momentum is fading amid new competition. NB-IoT and LTE-M (the 2 main licensed LPWAN standards) are facing a shift in sentiment. While both enjoyed strong growth in the past 9 years and are now widely deployed, they are increasingly being challenged by Cat-1 bis in metering and similar use cases. The NB-IoT market, in particular, is entering a phase of maturity, and the key question is whether it can sustain momentum or will settle into low single-digit growth after the rapid expansion seen earlier this decade. As noted by IoT Analytics in its IoT 2024 Year in Review, US mobile carrier AT&T shut down its NB-IoT data plans in November 2024.
The positioning of eRedCap raises questions about future cannibalization. As a technology that sits between Cat-1 bis and RedCap, its commercial uptake will likely depend on which segment it disrupts most effectively.
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