A report by Counterpoint said that the growing trends in the market are being driven by increasing demand in China and India.
The global market for cellular IoT modules and chipset trackers grew 7% year-over-year in the first quarter of this year. Counterpoint’s report, ‘Global Cellular IoT Module and Chipset Tracker by Application,’ acknowledged China as a driving force behind this growth, followed by India.
According to experts, both countries experienced growth driven by robust performances in the smart meters, POS systems, asset trackers, and router/CPE segments. However, excluding China, other markets grappled with inventory and demand issues. It saw a 2% year-over-year decline attributed to weak demand and accumulated inventory at customer sites.
The experts at Counterpoint also hope that the global cellular IoT module market will recover partially by the latter half of this year as inventory levels stabilise amid improving demand.
They have emphasised that full market recovery is anticipated by 2025, boosted by the increasing adoption of cost-effective 5G RedCap modules, particularly in China. Government subsidies in China are expected to accelerate the adoption of 5G within the IoT module sector.
The report highlighted market trends worldwide, concluding Quectel, Fibocom, and China Mobile dominated, collectively holding 50% of the global market in Q1 2024. Telit Cinterion rose to second place outside China, while Quectel maintained a substantial lead.
The brand Fibocom achieved substantial quarterly shipments due to solid performance in router/CPE and telematics, securing a top-three position internationally. China Mobile experienced a double-digit YoY growth fuelled by smart meters, asset trackers, and POS applications.
Chinese vendors like Neoway, Lierda, and Unionman expanded in crucial sectors like smart meters, asset tracking, and POS systems.
Associate Director of Counterpoint Mohit Agrawal commented on the market’s dynamics, noting that 4G Cat 1 bis maintained momentum, securing one-third of the market. He observed a technology shift in China where Cat 1 bis is gaining ground from NB-IoT and Cat 1, driven by narrowing price differentials between Cat 1 bis and NB-IoT.
Agrawal further mentioned that demand for cellular IoT remained strong in sectors such as smart utilities, router/CPE, automotive, and asset tracking. However, demand for cellular modules in retail, healthcare, and industrial verticals remained sluggish during the quarter.
Research Analyst Hanumant Pawar remarked on the market prospects, “It is projected that IoT module shipments will grow at a compound annual growth rate (CAGR) of 9% between 2023 and 2030.”
