Berg Insight estimates that cellular IoT connectivity revenues reached €14.5 billion in 2025, while the number of cellular IoT connections grew to 4.2 billion globally. These figures highlight a market that continues to expand in terms of volume, even as revenue per connection comes under increasing pressure.
The cellular IoT sector has evolved into a scale-driven industry, though it has not necessarily become known for high average revenue per user (ARPU). With an increasing array of devices—including meters, vehicles, payment terminals, and industrial units—connecting via mobile networks, the market’s financial landscape is increasingly defined by vast installed bases, automated lifecycle management, and narrow recurring connectivity margins.
Recent data from Berg Insight reveals that global IoT connectivity revenues grew by 5 percent in 2025, reaching €14.5 billion. During the same period, cellular IoT connections surged by 11 percent, totaling 4.2 billion by year-end, which now represents approximately 32 percent of all mobile subscriptions. However, the monthly ARPU declined by 7 percent to €0.31.
This distinction is significant. An expanding market can put more pressure on operators and IoT connectivity providers commercially. The observed gap between connection growth and revenue growth suggests that newer devices contribute less revenue per month compared to the existing installed base. For IoT buyers, this trend could lead to reduced connectivity costs at scale. Conversely, connectivity providers are urged to compete not solely on the volume of SIM cards but on their platform capabilities, coverage, integration tools, and operational efficiencies.
China’s Operators Lead the Connection Rankings
Berg Insight’s rankings reveal the concentrated nature of cellular IoT scale in China, with China Mobile recognized as the world’s largest cellular IoT connectivity provider, boasting 1.48 billion connections at the end of 2025 and a 5 percent year-on-year growth rate. Following closely, China Telecom had 746 million connections, while China Unicom reported 723 million.
These three Chinese operators collectively amplify their dominance, influencing how global cellular IoT statistics are interpreted. The connection growth observed worldwide is heavily impacted by the dynamics of the Chinese market, where leading mobile operators operate at a scale that surpasses Western carriers in terms of IoT connection numbers.
Vodafone emerged as the largest Western operator and ranked fourth overall, with 234 million connections, followed by AT&T with 160 million. Notably, Airtel in India exhibited remarkable growth, with IoT connections increasing by 115 percent to reach 69 million. Verizon and Deutsche Telekom each reported between 62 and 69 million connections, while Telefónica and KDDI Orange rounded out the top ten with approximately 59 million and 58 million connections, respectively.
Growing Interplay Between Managed Service Providers and Operators
The report underscores the increasing prominence of IoT managed service providers. Berg Insight notes that these providers managed over 250 million cellular IoT connections by the end of 2025, generating approximately €1.9 billion in annual revenues.
This category includes firms such as 1GLOBAL, 1NCE, Aeris, BICS, and KORE, among others, which differ fundamentally from traditional mobile network operators. By leveraging network-agnostic models through roaming agreements and eSIM profiles, these providers can aggregate multiple mobile networks for clients operating internationally.
The practical implications of this development are crucial for OEMs and enterprises marketing products across multiple national borders. For instance, manufacturers embedding cellular connectivity into their equipment may prefer not to negotiate with each local carrier separately or redesign provisioning processes for different countries. Managed service providers streamline this process, although they introduce another layer that system integrators must consider regarding coverage, policy control, and lifecycle management.
For mobile operators, the insights provided by the report highlight both opportunities and challenges. While cellular IoT is projected to grow into a multi-billion-euro market—expected to reach 6.5 billion devices and €21.5 billion in annual connectivity revenues by 2030—the low ARPU makes it imperative to manage large device populations effectively. Elements such as billing, remote SIM provisioning, and integration with enterprise systems are essential for achieving profitability.
For industrial enterprises and utility companies, the findings illustrate that cellular IoT procurement now involves more than just radio access. The connectivity layer is integrated within a broader operating framework that includes eSIM management, multinational coverage, and long service lifecycles. As the market matures, it seems that those providers who simplify the deployment and management of extensive IoT ecosystems will emerge as the winners, rather than merely those with the highest number of active connections.
