• Global cellular IoT module shipments grew 10% YoY in 2024, rebounding after a decline in 2023.
• China led the market recovery, while India was the only country outside China to record growth driven by smart meters and tracking applications.
• Quectel and Fibocom face geopolitical challenges in international markets, with Quectel being added to the US 1260H list.
• Cat 1 bis emerged as the fastest-growing technology in 2024, surging 100% YoY, whereas NB-IoT and Cat 1 declined sharply by 34% and 51% YoY, respectively.
• Driven by fierce competition, the cellular market has experienced substantial consolidation. Qualcomm's purchase of Sequans' 4G technology and u-blox's complete withdrawal from the cellular market exemplify this trend.

Seoul, Beijing, Buenos Aires, Hong Kong, London, New Delhi, San Diego, Taipei, Tokyo – February 27, 2024

According to Counterpoint’s latest Global Cellular IoT Module Tracker by Application, Q4 2024. The Global cellular IoT module shipments climbed 10% YoY in 2024 as the market rebounded from the downturn seen in 2023. This resurgence was primarily driven by strong demand in China and India, underscoring the resilience and evolving dynamics of the IoT ecosystem.

Commenting on the cellular IoT module market, Principal Analyst Tina Lu said, “China played a pivotal role in the market’s resurgence with a robust 21% YoY growth, primarily driven by the significant expansion in POS, particularly soundbox, as well as automotive and asset-tracking applications. Meanwhile, India rose 31% YoY, emerging as the only country outside China to register growth. India was fueled by rising deployments in smart metering and tracking applications. Government initiatives supporting digitalization, combined with an expanding ecosystem of IoT deployments, contributed to India’s strong performance. In contrast, the rest of the world saw a decline due to inventory corrections.”

Lu added, “The technological landscape of the cellular IoT market saw significant shifts in 2024. Cat 1 bis emerged as the fastest-growing category, recording an impressive 100% YoY growth. This surge was driven by applications such as asset tracking and smart meters. Conversely, NB-IoT and standard Cat 1 experienced sharp declines of 34% YoY and 51% YoY, respectively. In China, application vendors are increasingly favoring Cat 1 bis due to its cost efficiency, improved power consumption, and superior network coverage, making it the preferred connectivity solution across various IoT verticals.”

• Quectel continued to lead the market, followed by China Mobile and Fibocom. These three companies captured more than half of the global market in 2024. In markets outside China, Telit Cinterion maintained its second position behind Quectel.

• Despite the overall market recovery, leading IoT module vendors faced increasing geopolitical challenges. Quectel and Fibocom, two of the largest China-based IoT module suppliers, may face heightened restrictions in international markets. Notably, Quectel was added to the US 1260H list, further complicating its ability to operate in Western markets. These developments have prompted concerns over supply chain stability and vendor diversification strategies among global IoT adopters.

• The competitive landscape of the cellular IoT module industry underwent substantial transformation in 2024. Consolidation trends intensified, with major industry players making strategic acquisitions and restructuring their business portfolios. Qualcomm’s acquisition of Sequans' 4G technology underscored the increasing importance of LTE-based solutions in the IoT market. Meanwhile, u-blox’s complete exit from the cellular module segment highlighted the growing challenges faced by mid-tier players in sustaining profitability amid price pressures and evolving technology demands.

Commenting on the chipset player dynamics, Research Analyst Anish Khajuria said, “Qualcomm remains the leading player, followed by ASR and UNISOC. ASR demonstrated exceptional growth, nearly doubling its market share over the years, driven by its dominant presence in the 4G Cat 1 bis chipset segment, where it accounted for nearly half of the market in 2024.”

China and North America have started commercially deploying 5G RedCap. Several chipset vendors, including Qualcomm, MLink, UNISOC, MediaTek, and HiSilicon, have introduced 5G RedCap chipsets, signaling a growing shift toward next-generation connectivity solutions. The adoption rate of 5G RedCap largely depends on MNOs strategies, including their transition from 4G to 5G and the penetration of standalone (SA) 5G networks, as well as device cost considerations. Key applications for 5G RedCap include MiFi devices, routers, and surveillance cameras, reinforcing its expanding role in the evolving connectivity ecosystem.

For detailed research, refer to the following reports available for subscribers:

• Global Cellular IoT Module and Chipset Tracker, Q4 2024

• Global Cellular IoT Module and Chipset Tracker by Application, Q4 2024

Counterpoint’s ‘Global Cellular IoT Module and Chipset Tracker by Application, Q4 2024’ tracks 1,500+ IoT module SKUs on a quarterly basis and provides forecasts on shipments, revenues and ASP performances for 80+ IoT module vendors, 12+ chipset players and 18+ IoT applications across 10 major geographies.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.