Data traffic from cellular Internet of Things (IoT) connections is expected to explode by the middle of the next decade, according to Omdia. The growing number of connected vehicles will help drive the IoT cellular data growth, according to the research firm. The automotive sector will be using more video and audio streaming, as well as firmware over-the-air updates.

Omdia forecasts that IoT cellular data traffic will be 218.6 exabytes (EB) by 2035. In the next decade, IoT data traffic from vehicles will grow from 30.7 EB to 135.4 EB, thanks to the increased integration of infotainment systems in newer vehicles and rising consumer adoption of these services, many of which will rely on 5G connectivity.

According to Omdia, transport and logistics are poised to become the next major sector for cellular IoT data traffic, while all other sectors combined will contribute less than one-third (29%) of the total traffic beyond 2025.

However, the biggest sector of the market is and will continue to be energy and utilities. Smart meters installed by energy companies and utility providers mean that meter readers no longer need to come to the residence. All pertinent information for billing, uptime, and so on is collected wirelessly, which is more efficient and more accurate than the old method. There is also no issue with not being able to gain access to the meter, as there was with the former way of reading meters.

“The rising number of vehicles with smart features, particularly infotainment, will cause cellular IoT data traffic to boom over the next decade,” Alexander Thompson, senior analyst, said in a prepared statement.

Asia & Oceania will produce the highest amount of cellular IoT data traffic, comprising more than half (50.6%) of global cellular IoT data traffic in 2025.