Automotive Sector Leads IoT Data Growth
Omdia’s latest research, released on April 28, projects that cellular IoT data traffic will reach 218.6 exabytes by 2035. This surge is attributed to various factors, with the automotive sector playing a pivotal role. Automotive industry data traffic is expected to escalate from 30.7 exabytes in 2025 to a substantial 135.4 exabytes by 2035. The increase is primarily driven by the integration of advanced infotainment systems in new vehicles and the growing consumer adoption of these technologies.
According to Alexander Thompson, Senior Analyst for IoT at Omdia, “The rising number of vehicles with smart features, particularly infotainment, will cause cellular IoT data traffic to boom over the next decade.” Infotainment services, such as video and audio streaming, along with firmware over-the-air updates, are key use cases contributing to this growth.
Emerging Trends Fuel Data Traffic
Transport and logistics are set to become major contributors to cellular IoT data traffic. New trends like remote vision and agentic AI are anticipated to elevate the demand for edge processing power and speed up 5G adoption. Remote vision enables cameras in various devices, from delivery robots to industrial machinery, while agentic AI drives peer-to-peer machine traffic.
Andrew Brown, Practice Lead for IoT at Omdia, stated, “Trends like remote vision and agentic AI are creating additional data traffic demand that did not exist several years ago.” These innovations are accelerating the demand for greater edge processing power.
Asia and Oceania regions are forecasted to generate the highest level of cellular IoT data traffic. By 2025, these regions are expected to account for 50.6% of the global share. Their early adoption of technology and the high number of video cameras installed contribute to this growth. The report highlights that these regions are pivotal in driving traffic growth due to their technological advancements.
Omdia’s study also emphasises that other sectors, when combined, will contribute less than 29% of the total IoT data traffic beyond 2025. This underscores the dominance of automotive and logistics sectors in shaping the future of cellular IoT data usage. The integration of 5G technology in these sectors is set to further increase data traffic as more smart features become standard in vehicles and logistics operations.
As cellular IoT data traffic continues to grow, businesses are looking to improve operational efficiency and create new revenue opportunities. The demand for data analysis is a driving force behind this trend, enabling businesses to harness the power of IoT to optimise operations and offer enhanced services.
