New examine identifies 5G RedCap and rising automotive demand as major drivers for future connectivity
The mobile IoT market is poised for vital progress within the coming years, with connections anticipated to surge to five.9 billion by 2035, as revealed by new analysis from Omdia.
This in-depth examine highlights the transformative affect of 5G applied sciences on the mobile IoT panorama, figuring out three pivotal applied sciences as major progress drivers:
5G RedCap
5G Large IoT
4G LTE Cat-1bis modules
5G eRedCap: Launch momentum to construct in 2026
The analysis highlights 5G RedCap as a transformative improvement, with adoption projected to achieve momentum beginning in 2025. Positioned because the optimum mid-tier connectivity answer, RedCap caters to 5G units that don’t require the superior specs of Extremely-Dependable Low Latency Communications (uRLLC) or Enhanced Cell Broadband (eMBB). Moreover, RedCap affords essential futureproofing advantages because the trade transitions towards phasing out 4G networks past 2030.
The examine notes that whereas preliminary deployment of RedCap has been slower than anticipated, 2025 has confirmed some promise with the launch of the newest Apple Watch vary that includes RedCap expertise. Complementing this progress, eRedCap module launches are anticipated to start in 2026, additional increasing mid-tier connectivity choices and driving adoption throughout a broader vary of use circumstances.

“The implementation of 5G RedCap in the latest range of Apple Watches has signalled the starting gun for RedCap adoption. Going forward, enterprises will have a wider and wider selection of connectivity technologies to benefit any application. The expected launch of 5G eRedCap modules in 2026 will provide further cellular IoT connection growth over the next decade.”
— Alexander Thompson, Senior Analyst for IoT at Omdia
Automotive will comprise one in 5 mobile IoT connections in 2035
The automotive phase will rise from 500m connections to round 1.2bn over the subsequent ten years, growing its market share from 13% to 21%. Most of this connection progress will originate from Asia & Oceania, which can see its automotive phase rise on account of growing shopper demand for clever autos with 5G connectivity.
“The rapid rise of software-defined vehicles, the fundamental need for over-the-air updates, regulatory mandates and vehicle-to-everything, are all made possible by cellular connected vehicles, which is why we expect to see vehicles represent 1 in 5 cellular connections by 2025.” added Andrew Brown, IoT Observe Lead at Omdia.
In regards to the Report: Omdia’s Mobile IoT Market Tracker 2021-2035 highlights the newest developments within the mobile IoT market, offering key evaluation by area, air interface and software of module shipments, module revenues, connections (put in base) and connectivity revenues.