The cellular Internet of Things (IoT) market will grow sharply over the next 10 years, with connections to reach 5.9 billion by 2035, analyst firm Omdia predicted in a recent report.

“The implementation of 5G RedCap in the latest range of Apple Watches has signaled the starting gun for RedCap adoption,” Alexander Thompson, Omdia senior analyst for IoT, said in a prepared statement about the cellular IoT report.

As Thompson’s statement noted, 5G RedCap is seen as a major driver of the growth in the cellular IoT market. The technology communicates through 5G NR — just like standard 5G — but 5G RedCap offers better power optimization, which is becoming more important as the demand for power increases.

The report goes on to say that 20% of cellular IoT connections by 2035 will be from the automotive segment. Asia and Oceania will dominate the growth.

“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 one in five cellular connections by 2025,” Andrew Brown, Omdia IoT practice lead, said in a prepared statement.

5G RedCap — short for “reduced capability” — also offers a simplified technology that is less costly and comes with fewer resources to manage. 5G RedCap, therefore, involves less energy demand. The technology also offers superior battery life, meaning that batteries need to be changed less frequently, so 5G RedCap is a better option for remote locations.

5G RedCap devices use a discontinuous reception mechanism and resource radio management (RRM) measurement relaxation. The mid-tier connectivity solution is expected to build momentum in 2026.