IoT Analytics forecasts continued global growth of cellular IoT
IoT Analytics has published the latest Q2/2022 update of their Global Cellular IoT module and chipset market tracker and forecast.
Taking data from 1.7 million data points, the research found that the global cellular IoT module market has grown from two to 10 key technologies. At the same time, the market was also found to have grown 15 times since 2010.
Approximately 2.5 billion modules are forecasted to be shipped by the end of 2022, and wholesale prices are also increasing with the average cellular IoT chipset wholesale selling price growing to 16 % in 1H 2022.
Global cellular IoT module shipments and revenue grew 22% and 38% YoY, respectively. At the same time, global cellular IoT chipset revenue grew by 42% year-on-year. The growth outperformance of chips vs. modules was found to be due to higher adoption of more expensive integrated chipsets.
There were many changes to market positions in the IoT sector found through the research, with various acquisitions taking place and companies across the globe developing new technology across many verticals.
"Module companies have also expanded their portfolios from hardware-only to bundling hardware, software, connectivity solutions, and services to provide end-to-end solutions.
"The market for cellular IoT continues to be in a long-term cyclical uptrend with smart meter, Transportation, Supply Chain and Logistics, and Automotive and Telematics industries at the forefront of module consumption," says Knud Lasse Lueth, CEO of IoT Analytics.
"From a competitive perspective, we expect to continue to see fierce competition between Western and Chinese module companies."
Both LTE Cat 1 and LTE-Cat 1 bis shipments also grew in 1H 2022 by 37% and 41% YoY, respectively, signalling diverse technology uptake.
There was also a slow takeoff of 5G reported. The COVID-19 pandemic, the chip shortage, and increased prices and inflation led to 5G only standing with a 2% market share of global cellular IoT module shipments (1H 2022).
IoT Analytics says that it expects that after the 3GPP release 17, there will start to be a higher 5G adoption rate. They also expect the first 5G red cap modules to be released in 2024.
"In the digital supply chain age, end-to-end tracking demands multiple connectivity modes. Hence, the collaboration of cellular and LoRa technology is expected to be beneficial for end-to-end tracking," says Satyajit Sinha, Principal Analyst at IoT Analytics when reflecting on the findings.
"Cellular components had been missing from the Semtech portfolio prior to the acquisition. For example, if chipsets such as the Lora Edge LR1120 get embedded into a combined module with LTE-M or Cat 1, the resulting module covers almost all major wireless types of connectivity, including Sub-GHz LoRa, SATCOM S-band, 2.4 GHz Lora, and Cellular IoT."
IoT Analytics says that with 6 billion cellular IoT connections expected by 2026, the market for cellular IoT continues to be in a long-term cyclical uptrend with smart meter, Transportation, Supply Chain and Logistics, and Automotive and Telematics industries at the forefront of module consumption.