In the ever-evolving realm of the Internet of Things (IoT), the cellular IoT module market has experienced a noticeable dip. The most recent data reveals that, in 2023, there was a 3 percent dip in shipments, falling to 423 million units. Simultaneously, revenues saw a 9 percent decline, settling at $5.9 billion. Amidst this contraction, a quintet of vendors — Quectel, Fibocom, Telit, Cinterion, Semtech, and u-blox — have maintained a strong hold on the market, accounting for a commanding 72 percent share. Dominance in the chipset sector is apparent as well, with companies like Qualcomm, UNISOC, and ASR Microelectronics leading the charge.
Shifting Technology Trends
The landscape of IoT communication technologies is witnessing a shift, with 4G LTE modules — including LTE Cat-1, NB-IoT, and LTE-M — becoming the go-to standards, supplanting the older 2G and 3G technologies. While these remain dominant, there’s an upsurge in interest for 5G-powered IoT, especially in Fixed Wireless Access (FWA) Customer Premises Equipment (CPEs), IoT routers, and cutting-edge automotive applications. With the spotlight on 5G RedCap modules, indicators point to an expansion into an array of 5G IoT applications, albeit the transition may be measured due to prevalent cost and network readiness hurdles.Despite these current market changes, the forecast for the cellular IoT module market is optimistic. Berg Insight projects a compound annual growth rate (CAGR) of 13.2 percent over the next five years, envisioning a surge to 786 million units by 2028. Such projections suggest that the current downturn might just be a temporary hiccup in an overall upward trajectory.Emerging Opportunities and Competitors
The dynamic world of the Internet of Things (IoT) has witnessed a slight downturn in its cellular IoT module sector. The latest figures indicate a 3% reduction in shipments for 2023, with numbers falling to 423 million units. Concurrently, there was a notable 9% drop in revenue, which amounted to $5.9 billion. Despite this market shrinkage, five key players — Quectel, Fibocom, Telit, Cinterion, Semtech, and u-blox — have successfully sustained a dominant market presence, with a robust 72% share between them. Moreover, the chipset domain is witnessing clear leadership, predominantly by industry giants such as Qualcomm, UNISOC, and ASR Microelectronics. These companies remain at the forefront, demonstrating the competitive nature of the technological race within the IoT landscape. This sector’s evolution highlights the changing dynamics of demand and innovation, even as key players work to navigate through market fluctuations and maintain their supremacy.
