India’s cellular IoT connections are set for substantial growth, expected to reach 400 million by 2030, an increase of more than seven times from current levels. In the year leading up to July 2024, cellular IoT connections in India grew by 34 per cent, as reported by Counterpoint Research. The Telecom Regulatory Authority of India provided figures showing that by the end of July, the country had 53.7 million M2M connections. Bharti Airtel led with 28.5 million connections, followed by Vodafone Idea with 14.7 million, Reliance Jio with 5.9 million, and BSNL with 2.9 million.
Even with this expected surge, Mohit Agrawal, a research director at Counterpoint, indicated that China would maintain its dominance in the sector due to its massive installed base of 2.3 billion connections. China represented almost 70 per cent of global cellular IoT connections in 2023, which highlights the significant lead it has in this field. According to Agrawal, while there are subtle distinctions between M2M and IoT connections, for practical applications, they are largely similar.
India began its digital transformation significantly later than China. Currently, the country is focusing on aligning IoT module supply, enterprise adoption, and network support. Key markets, including the power sector, smart metering, and agriculture, remain highly cost-sensitive. Meanwhile, the connected car market in India is only just beginning to gain momentum. Agrawal stated that India’s growth could follow a path similar to China’s, contingent on the effective implementation of relevant policies and robust support from key ecosystem stakeholders. He also noted that power distribution companies in India have already started deploying smart meters, and there is growing interest from start-ups in the areas of fleet management and telematics.
Bharti Airtel has been particularly active in this space, building partnerships within the energy sector. Over the past year and a half, Airtel’s enterprise unit has established collaborations with companies like Adani Energy Solutions, IntelliSmart, and Secure Meters from the UK to roll out smart meters supported by its NB-IoT and 4G networks. The Indian government aims to replace 250 million traditional meters with smart meters over the next five years, a plan that could drive significant growth in this sector.
Explaining the considerable gap between China and India, Agrawal pointed out that China has a larger base for numerous IoT applications and accounts for around 65 per cent of shipments of cellular IoT modules globally. China also leads significantly in the deployment of smart meters, point-of-sales terminals, and connected vehicles, reflecting its more advanced state in digital transformation. According to Agrawal, the widespread adoption of cellular IoT in China is the outcome of a coordinated effort by the government, regulatory bodies, IoT manufacturers, and enterprises keen on embracing digital transformation. This development is underpinned by solid network infrastructure and close cooperation with equipment vendors.
TechSci Research recently published a report highlighting that India’s IoT growth is largely driven by more affordable IoT devices and connectivity options. The rollout of 5G infrastructure is further boosting this growth by providing faster data transmission speeds and reduced latency, both of which are essential for real-time IoT applications. However, there remain challenges, particularly the shortage of skilled workers and expertise in IoT technologies, which acts as a hindrance to faster adoption.
Counterpoint Research data showed an 11 per cent year-on-year rise in global cellular IoT module shipments in the second quarter, mainly propelled by the growth in China and India. Although China still has the largest share of IoT connections, its contribution to global IoT revenue remains at just 36 per cent.
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