Updated: March 2024
Cellular IoT links devices to the internet via cellular networks, ensuring connectivity even where Wi-Fi is unavailable. This broad coverage is perfect for IoT applications, especially when devices are on the move or in remote areas, for example, fleet trackers or smart farming sensors. With the rise of 5G, cellular IoT's importance will only grow, offering significant benefits to businesses of any size.
Click the links below to jump to what you need to know:
How Does 5G Impact Cellular IoT?
What Are The Business Benefits of Cellular IoT?
What Industries Can Benefit From Cellular IoT?
How Does Cellular Compare With Other Connectivity Options?
How Does Cellular IoT Actually Work?
Which Mobile Networks Does Cellular IoT Use?
How Do I Find The Right-Fit Cellular IoT Provider?
Cellular IoT simply means connecting IoT devices using a cellular network rather than Wi-Fi, Bluetooth, or a wired internet connection. In the past, many IoT businesses defaulted to Wi-Fi or Bluetooth for device connectivity because they can handle higher bandwidths and could be less expensive. But technology is changing, and cellular now offers more flexibility and coverage, making cellular IoT a more practical option.
5G technology offers faster data throughput and support for numerous connected devices simultaneously. The rapid progress of 5G, alongside the increasing adoption of NB-IoT (Narrowband-IoT) and LTE-M technologies, is fueling the expansion of the massive IoT market – in which IoT has grown beyond homes or offices into areas like like manufacturing facilities, transportation, agriculture, and public infrastructure. Valued at $71.1 billion in 2021, the global market for massive IoT is forecasted to reach $521.2 billion by 2031.
(If your device has high-performance connectivity needs, take a look at our e-book on challenges (and solves!) of high-data IoT.)
Cellular IoT holds many benefits for businesses considering an IoT deployment, particularly if the devices will be mobile or positioned in remote areas where Wi-Fi coverage may not be dependable. Let’s drill down on a few of those benefits.
Because cellular IoT uses existing cell networks, devices are not tied to any particular location. Instead of limiting devices to the range of a Wi-Fi signal, Cellular IoT allows for device deployment even in remote locations, if there is cell coverage. As of September 2023, 254 operators are offering cellular LPWAN coverage, deploying NB-IoT or LTE-M networks in 80+ countries.
Cellular IoT streamlines the authentication process, allowing users to sign in one time for their network rather than for every new device. If the device contains an eUICC-enabled SIM card, it can also be provisioned and authenticated remotely, allowing operators to swap out subscriber profiles over the air (OTA) using a method called Remote SIM Provisioning (RSP) . There are several business benefits to building with eUICC — for example, it enables a single SKU to work for multiple deployments around the world and gives you the ability to update SIM profiles after devices are deployed.
Cellular IoT removes a business’s dependence on a stable internet connection at the location of the device. This can define the success or failure of an IoT deployment, offering uninterrupted data transmission and operations, even in areas with limited or unreliable internet access.
While cellular networks can experience outages, new technologies (like Hologram’s Dual-Core SIMs) offer redundant connectivity that can keep you up and running, no matter what.
(Read more about the cause of outages and how to avoid them in Up & Running: our Guide to Eliminating Downtime.)
IoT devices vary in needs – some many require long-range communications while others may need high-data transmission. Cellular IoT offers many different technologies and configurations to support your team – NB-IoT is suitable for low-power, low-bandwidth applications, while 4G, 5G, or LTE-M is ideal for higher bandwidth IoT applications.
Data sent via cellular network is encrypted, offering a much higher level of security than Wi-Fi. (While secured Wi-Fi access points can use encryption, it’s not as reliable, so there’s a higher chance data could be vulnerable to cyberattacks.) In cellular IoT networks, information is encrypted by default, meaning that businesses don’t have to take extra steps to protect data.
With the reliable connectivity of cellular IoT, devices are better able to collect and transmit data in real time, allowing businesses to make best use of analytics. For example, a company can track how and when its health monitor is used, tailoring future product updates and features to suit the needs of end users. In a smart factory, the flow of real-time cellular data from machines on the floor can power AI, predictive maintenance, reporting, and other functions.
Regular upkeep of physical devices is critical for IoT businesses. With cellular IoT and over-the-air updates provided by some eUICC SIMs, you can oversee and troubleshoot your connected devices from anywhere.
Many industries can benefit from incorporating cellular connectivity in their IoT deployments. Let’s take a closer look at some examples and what cellular technology brings to the table.
IoT offers key benefits to retail operations , including improved supply chain management and inventory tracking, and cellular IoT allows for great flexibility and customizability, such as:
Connected sensors and wearable IoT devices are improving patient care and helping facilities improve operations. Cellular connectivity is ideal for wearable devices because it offers the broad coverage needed to ensure patients stay connected when they’re on the go. Let’s take a look at a few interesting applications of cellular IoT in healthcare.
IoT plays a pivotal role in realizing Industry 4.0 . Connected sensors are placed on factory floor machinery and the data they yield can be used to predict maintenance needs, monitor workflows, drive productivity, and feed into larger company databases to run analytics reports. Choosing cellular connectivity as a primary or backup link to the cloud helps to minimize downtime and ensure stable connection even in more remote locations. Here are a few applications for cellular IoT in this field:
IoT logistics applications can help companies connect global supply chains and keep track of the movement of goods and vehicles in real time. Cellular technology is a huge component in the success of IoT solutions in this space. Let’s take a look at some relevant applications.
By leveraging cellular connectivity, farmers and agribusinesses can harness real-time data, automate processes, and enhance productivity while minimizing environmental impact. Here are some compelling use cases of Cellular IoT in agriculture:
Choosing the right IoT connectivity boils down to what your devices need. Cellular IoT offers a versatile solution with wide coverage, decent speeds, and manageable costs. Here’s a quick guide to some of the other connectivity types in the market today.
Wi-Fi is great for fast connections over short distances. But if your devices need to roam or operate in remote spots, cellular IoT has the edge with its wide coverage.
Bluetooth is perfect for close-range connections, like in your smart home gadgets. But for broader coverage and faster data transfer rates, especially for things like fleet management or industrial monitoring, cellular IoT wins out.
LPWANs like LoRaWAN are energy-efficient and cost-effective, but they sacrifice speed. Cellular IoT strikes a balance, offering decent speeds and broader coverage while still being power-efficient.
Satellite connections cover the globe, making them ideal for remote areas. But they come with higher costs and delays. Cellular IoT is faster and more cost-effective, though it may not match satellite coverage in the most remote spots.
When data is transmitted from a cellular device, it takes up a certain bandwidth of the electromagnetic spectrum — in much the same way as a radio station. And just like radio stations, when a cellular network shares the same frequency as another, the two can interfere with one another. This is why the FCC closely monitors cell networks and why they have developed a series of towers that all operate on slightly different frequencies but connect to the same network.
A cell includes a tower that uses a different frequency than surrounding cell towers. The size of each cell varies based on its number of users. Densely populated areas might have cells of a few blocks, while rural areas might have cells of up to several miles in radius. As users move from cell to cell, their calls and data are switched from tower to tower. This is commonly referred to as a “handoff.”
This system is the core of both cellular networks and cellular IoT. Let’s look at some of the components of cellular IoT.
Similar to consumer mobile devices, cellular IoT depends on 2G, 3G, 4G, 5G, and low power wide area networks (LPWAN) to operate. A cellular device may be designed to operate on different network technologies depending on its data bandwidth needs and other requirements. Let’s take a look at each cellular IoT network type.
While you have some measure of control over your network choice, it’s often managed through a relationship with a connectivity partner. The huge proliferation of providers today can make it difficult to know what’s right for you. Here’s a few criteria to look for to find the best match:
Hologram's SIM provides connectivity coverage in 200 countries and territories with more than 500 carriers. Hologram delivers unparalleled performance by connecting your devices natively to premier, Tier-1 operators to deliver low latency and robust throughput that is 25-75% faster than roaming connections. We’re constantly expanding our native connectivity footprint to deliver the most performant global cellular connectivity network.