China drives recovery in global cellular IoT module market

The cellular IoT module market has exhibited signs of recovery, according to the latest reports by IoT Analytics. The Global Cellular IoT Module and Chipset Market Tracker & Forecast, updated in early June 2024, shows a 7% year-over-year (YoY) growth in Q1 2024. This uptick has been primarily driven by an increase in module demand within China.

Key insights from the update highlight that the growth comes despite ongoing inventory and demand issues in several other regions globally. Technologies like 5G and LTE Cat-1 bis have seen a combined market growth of 67% year-over-year, signifying their substantial contribution to the cellular IoT module market's overall growth. The most significant growth in cellular IoT modules has been observed in the embedded automotive sector and both fixed and mobile access points sectors.

The competitive landscape indicates that the top five companies by module shipments—Quectel, Fibocom, Telit Cinterion, China Mobile, and LG Innotek—accounted for 60% of the global market in 2023.

Satyajit Sinha, Principal Analyst at IoT Analytics, commented on the market's current state, observing, "The cellular IoT module market is recovering, driven by demand from China. Despite this, the overall market stability remains weak, with continued declines in other regions. Our analysis suggests that the cellular IoT module market will experience a broader recovery outside of China in the latter half of 2024. Additionally, 5G and LTE-Cat 1 bis will play a key role in the global recovery of the cellular IoT module market in 2024."

This recovery, particularly driven by Chinese demand, serves as a counterbalance to the existing challenges faced by other regions. The reliance on advanced connectivity technologies like 5G and LTE Cat-1 bis reflects a strategic pivot towards more innovative and high-speed solutions that are expected to bolster the market further.

The mention of the top-performing companies signals a strongly competitive environment, with these major players occupying a substantial share of the market. This dominance by a few key companies could influence market trends and competitive strategies moving forward.

As the cellular IoT module market moves through this period of recovery, industry stakeholders will be keen to observe how the trends in China might translate globally, particularly in regions that are currently facing growth challenges. The role of 5G and LTE Cat-1 bis will also be closely monitored, given their significant impact on market growth.