New Omdia research states that cellular IoT data traffic will comprise 4.2% of total cellular data traffic in 2028

Data traffic from cellular IoT connections is expected to rise to 110.8 exabytes (EB) by 2028, according to Omdia’s latest research.

This surge is driven by heightened demand for data that can be analyzed, aimed at enhancing operational efficiency to generate new revenue streams for companies.

The research uncovered that most cellular IoT data traffic will originate from the automotive vertical, with the largest use cases being infotainment such as streaming video and audio, and firmware over-the-air updates. Over the period between 2023 to 2028, automotive data traffic is forecast to rise from 18.6 EB to 59.4 EB, fueled by the integration of infotainment systems in newer vehicles with greater numbers of consumers taking up these services expected to utilize 5G connectivity. Transport and logistics emerge as the next significant vertical for cellular IoT data traffic, while all other verticals collectively account for less than 25% of the total traffic after 2024 according to the report.

Alexander Thompson, Senior Analyst for IoT at Omdia stated:

“A small number of use cases are responsible for the majority of cellular IoT data traffic. It is evident that video use cases, particularly those with mobility, such as video screens in cities and retail settings, will generate the highest data traffic.”

“The exponential growth in cellular IoT data traffic is being driven both by specific use cases and the growth in hyperscale IoT, characterized by the increasing connections of vast numbers of low power devices. Despite this, cellular IoT data traffic remains only a modest portion of the overall cellular data traffic landscape,” added Andrew Brown, Practice Lead for IoT at Omdia.

Furthermore, the research highlights Asia & Oceania will be the largest region for data traffic, comprising 60.6% of the global figure in 2023. This trend is attributed to the high number of video cameras installed, particularly within smart cities initiatives across the region.

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