IoT Analytics asserted mobile operators booked greater revenue gains from IoT in 2023 than software and so-called hyperscale companies, with cellular connections up despite a drop in shipments of compatible modules.

The research company placed mobile operators’ cellular IoT revenue at $15 billion, up 23 per cent year-on-year, with 3.6 billion connections. It stated the figure meant revenue grew at a CAGR of 16 per cent since 2010 and predicted this would increase to 18 per cent from this year until 2030, fuelled by 5G and RedCap.

IoT Analytics stated mobile operators dominated the cellular IoT market in 2023, managing 83 per cent of all connections and taking 63 per cent of revenue.

It ranked China Mobile top by revenue, followed by China Telecom, China Unicom, Vodafone Group and AT&T.

China Mobile also led in connections, accounting for 46 per cent of the total, followed by Verizon, AT&T, China Unicom and Deutsche Telekom, the figure for which IoT Analytics noted includes its T-Mobile US unit.

IoT Analytics pointed to separate research it published this month which showed the cost of connectivity varies by region, with operators in the west offering “cellular IoT data plans at relatively higher price points than the global average”, delivering greater revenue despite having fewer connections.

Principal analyst Satyajit Sinha predicted the market would be transformed by 5G RedCap, which he expects to make more features compatible with the next-generation mobile technology available, in turn enabling services spanning industrial and consumer IoT.

Sinha said 5G RedCap “ensures the longevity of current deployments” and “outperforms LTE Cat-1 and Cat-4 with better uplink performance and extended battery life”.