Cellular IoT module shipments increase by 23% in Q1 2025

The first quarter of 2025 saw a 23% increase in shipments of cellular IoT modules and chipsets, marking the fifth consecutive quarter of growth. This surge in shipments can be attributed to the resolution of inventory issues, which had been a significant barrier to market demand in previous years. Data from IoT Analytics’ Global Cellular IoT Module and Chipset Market Tracker & Forecast revealed a positive trend in shipment volumes, highlighting a rebound in market activity.

A notable development in the market landscape is the impact of geopolitical tensions and regulatory changes on key players. Notably, u-blox made the decision to exit the cellular IoT module business, indicating a significant shift in the competitive dynamics of the market. Despite these challenges, the top 5 companies in the market—Quectel, China Mobile, Fibocom, Sunsea AIoT, and Telit Cinterion—continue to dominate, accounting for 73% of shipments in Q1 2025.

The rise in demand for cellular IoT modules and chipsets has implications for various stakeholders in the industry. Cellular network operators, device manufacturers, module and chipset suppliers, and other component players must adapt to changing market conditions influenced by geopolitical tensions, new regulations, and ongoing market disruptions. Understanding market projections and observing how competitors navigate these challenges is crucial for staying competitive in this dynamic environment.

Looking at the broader context, the cellular IoT module market plays a significant role in the global IoT ecosystem. In 2024, there were 18.8 billion IoT connections worldwide, with approximately 4 billion utilizing cellular IoT connectivity. Among these connections, 83% relied on pre-fabricated cellular IoT modules. The remaining 17% integrated cellular connectivity directly via chipsets mounted on custom PCBs, showcasing the diverse approaches to IoT device connectivity.

The evolving landscape of the cellular IoT module market is characterized by company actions and regional regulations that shape market dynamics. Strategic realignments and consolidation have been prevalent in recent years, reshaping the competitive landscape. Key developments include divestitures, acquisitions, and partnerships among industry players, highlighting the dynamic nature of the market.

Looking ahead, the market is set to witness continued shifts in vendor positioning and market dynamics. The inclusion of Quectel on the US’s 1260H list raises compliance risks and prompts reevaluation among Western device manufacturers. This listing underscores the impact of geopolitical tensions on the market, signaling potential challenges for companies operating in this space. As the cellular IoT module market continues to evolve, stakeholders must stay vigilant and adaptive to navigate the complexities of this dynamic landscape.