The landscape of cellular Internet of Things (IoT) is forecasting unprecedented growth, positioning connectivity providers for a dramatic surge in global revenue. Enterprises are moving towards higher operational efficiency and automation, creating new demands from network operators. Usage-based billing models and developer-friendly tools are rising as enterprises require greater flexibility than traditional subscription-based offerings provide. Juniper Research’s latest analysis indicates that this deepening demand signals a noteworthy shift in business and technology strategies among cellular connectivity stakeholders, who are now seeking more agile ways to profit from IoT networks.
Recent similar predictions around cellular IoT revenue have often cited incremental, rather than expansive, growth. Earlier industry assessments projected cautious increases and focused heavily on challenges in market monetisation and enterprise adoption. Compared to those estimates, the latest forecast highlights a much greater emphasis on APIs and modular billing as key drivers, which reflects evolving priorities within the sector and a recognition of shifting enterprise requirements. This study, unlike prior ones, underscores the urgency for operators to adopt new, flexible business models to keep pace with more dynamic, data-heavy applications in connected devices globally.
How Will Usage-Based Models Alter Cellular IoT?
Expectations are shifting, with network operators being pushed to move away from their reliance on monthly subscription models. Enterprises deploying IoT systems increasingly require billing structures linked to actual data use, which can align costs with variable application demand. This transformation offers operators an opportunity to introduce modular, on-demand network access—facilitated by APIs—that better serves emerging use cases and diverse business sizes.
What Role Do APIs Play for Operators?
Network application programming interfaces (APIs) have emerged as an important enabler for operators seeking to monetise connectivity in new ways. APIs can standardise enterprise access to advanced cellular network features and allow for usage-driven billing rather than fixed recurring charges. Juniper Research highlights that adopting APIs not only creates alternative sources of revenue but also simplifies integration of complex network capabilities into enterprise operations. As a result, APIs are being positioned at the center of cellular IoT’s monetisation strategy.
“Operators will find far more success in the IoT space through usage-based billing,” said Alex Webb, Senior Research Analyst at Juniper Research.
Can Operators Simplify Access for Enterprises?
To guarantee wider adoption, operators are urged to implement clear and accessible developer portals that reduce the technical burden for enterprise clients. By delivering standards-based APIs and focusing on user experience, a broader range of industries can utilise advanced cellular IoT functions without specialized telecom knowledge. This approach broadens the market for cellular connectivity, reaching customers who previously found entry barriers too high.
“Connectivity alone is not enough. Operators must leverage software-defined networks to increase revenue through billing mechanisms that align with high data usage,” Webb added.
The cellular IoT market’s direction appears to be moving rapidly towards usage-based models and developer empowerment, with standards-based APIs likely to play a central role. Companies that can quickly adjust their business models to focus on flexibility and ease of use may gain a competitive edge. Operators are expected to face challenges in shifting away from legacy subscription structures, yet those that address the market’s appetite for granular, data-driven billing could not only increase revenues but also cater to a wider enterprise user base. For enterprises, the shift could mean lower upfront costs, better alignment with operational cycles, and easier integration of IoT into evolving processes. Decision-makers exploring cellular IoT adoption should consider prioritising operators who offer robust API portals and transparent usage-based pricing to stay competitive and agile in a data-driven economy.
