Cellular IoT’s Top Verticals Reached 2.2 Billion Global Connections in 2025
Transport & Logistics, Energy & Utilities, Smart Cities, Healthcare and Manufacturing Use Cases Made up 55% of the IoT Market in 2025.
January 22nd 2026, London – New research from IoT and connectivity experts Kaleido Intelligence has found that major IoT verticals, including Transport & Logistics, Energy & Utilities, Smart Cities, Healthcare and Manufacturing, reached 2.2 billion cellular connections in 2025. This represents 55% of the total market in terms of connection volume. Kaleido forecasts that, by 2030, these verticals will account for 3.9 billion connections, equivalent to 57% of the global total.
Beneath this expansion lies a critical challenge: the verticals driving IoT adoption demand unprecedented flexibility in connectivity. Regulatory mandates and enterprise needs, such as security, asset visibility and policy requirements, are driving adaptation among connectivity service providers, with eSIM, distributed infrastructure and device context understanding forming essential tools for operations.
eSIM IoT Specification to Dominate from 2029
Kaleido’s latest Connectivity Data Hub, a highly granular historical and forecast database for cellular IoT, predicts that implementation of the eSIM IoT specification (SGP.31/32) will ramp up from 2027. Full commercialisation of certified platforms and eSIMs will commence this year, following deliveries of small volumes largely for testing during 2025. By 2029, nearly a quarter of all eSIMs activated for IoT use cases will be supported by SGP.32 eSIMs and associated architecture. Meanwhile, the new specification will help drive the market to over 1 billion activated eSIMs within IoT in 2028.
Research author Steffen Sorrell commented: “Interest in deploying the new eSIM specification is undeniable, but the industry must ensure that in-field use of enabled devices is not undermined by a lack of industry collaboration in terms of interoperability between solution components and platforms.”
Direct-to-Cell Connections to Reach 146 Million in 2030
Direct-to-cell (satellite connectivity to unmodified cellular devices) will reach 146 smartphone and IoT subscribers by 2030, up from 20 million in 2025. The transient nature of the need for satellite connectivity in conjunction with high airtime pricing will, however, severely constrain potential operator revenues.
About Kaleido Intelligence
Kaleido Intelligence is a specialist consulting and market research firm with a proven track record of delivering telecom research at the highest level. Kaleido Intelligence is the leading research company addressing mobile roaming and connectivity services in its entirety, covering industry-leading market insights, data forecasts, historical viewpoints, competitive intelligence and operator market surveys.
Research is led by expert industry analysts, each with significant experience delivering market research and insights that matter.