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The cellular IoT market size is estimated to grow at a CAGR of 23% between 2022 and 2027. The market size is forecast to increase by USD 8,073.13 million. The growth of the market depends on several factors, including the implementation of cellular IoT modules in smart city infrastructure and building automation, growth in the telecommunications industry and digitalization, and increasing use of cellular IoT in the healthcare sector. Cellular Internet of things (IoT) is the integration of communication devices with the Internet. It utilizes advanced technologies such as 3G, 4G, 5G, and low power wide area (LPWA) to establish reliable connections via different hardware devices and sensors.
This cellular IoT market report extensively covers market segmentation by Component (hardware and software), Type (3g, 2g, 4g, and others), and Geography (North America, APAC, Europe, South America, and Middle East and Africa. It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Implementation of cellular IoT modules in smart city infrastructure and building automation is a primary factor propelling the market growth. The deployment of cellular IoT modules in smart city infrastructure and building automation is a major driver of revenue in the cellular IoT market. With advancements in technologies like NB-LTE-M, NB-IoT, and 5G, battery-powered devices can now connect to the internet more efficiently than previous 2G and 3G technologies. This enables various applications in smart cities, such as smart parking, smart street lighting, streetlights, traffic sensing and control devices, waste management devices, and parking management devices. Governments worldwide are focusing on modern infrastructure reforms, leading to numerous pilot projects and public-private partnerships in North America and Eastern Europe. The increasing development of smart city infrastructure and building automation will fuel the demand for cellular IoT, driving the growth of the global cellular IoT market in the forecast period.
Growing applications in vehicle telematics and fleet management is a key cellular IoT market trend. Cellular IoT is finding a significant application in-vehicle telematics, enhancing performance and connectivity while optimizing asset utilization. Off-highway vehicles like cranes and excavators are particularly time-sensitive, with limited technician availability. To monitor equipment and on-road assets efficiently, IoT and telematics solutions are being implemented. Telematics solution providers are integrating cellular IoT into their offerings, simplifying data collection and analysis for fleet managers and original equipment manufacturers (OEMs). This trend presents high growth opportunities, contributing to the expansion of the global cellular IoT market in the forecast period.
The increasing number of cyber attacks is a major challenge restraining the market growth. The connectivity ecosystem plays a vital role in enabling cellular IoT functionality across various industries. However, it also presents vulnerabilities to cyberattacks. The increasing number of IoT devices connected to cellular networks has made it easier for cybercriminals to exploit weaknesses in cellular and IoT systems. Cloud networks are crucial for the operation of most cellular IoT devices, and insecure cloud infrastructure can lead to data theft and device takeover. Cloud-based security is therefore essential for ensuring the security of cellular IoT deployments. For example, surveillance or delivery drones, which rely on cloud-based IoT functionality, can process information independently but may transmit data to a cloud server. If these devices are compromised, it can pose a risk to the network and other connected devices. These challenges are expected to hinder the growth of the market in focus during the forecast period.
The market share growth by the hardware segment will be significant during the forecast period. Due to the growing demand for hardware devices such as sensors, actuators, gadgets, devices, and machines that are programmed for specific applications and capable of transmitting data over the internet and other networks, the rise of cellular IoT in the hardware segment is increasing. Essentially, a system of linked devices that provide real-time analytical data is created using hardware devices that transmit information over the same network. Improving machine-to-machine (M2M) communication increases the reliability and effectiveness of hardware devices. These hardware devices provide real-time data from various devices and sensors and are used in decision-making processes. Hence, due to the steady growth of the segment, the focused market is expected to witness growth during the forecast period.
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The hardware segment was valued at USD 1,364.76 million in 2017 and continued to grow until 2021. Demand for 3G is expected to increase during the forecast period due to more stable connectivity and comparability with IoT devices. They provide increased data transfer speeds. Due to the high data transmission speed of 3G networks, enterprises can use 3G connectivity M2M modules in various applications. Therefore, the above factors are expected to propel the growth of the 3G segment in the global cellular IoT market during the forecast period.
The type segment is classified into 3g, 2g, 4g segments, and others among which the 3G segment holds the largest market share. The demand for 3G is projected to increase in the forecast period due to its stable connections and compatibility with IoT devices. 3G networks offer higher data transmission speeds, enabling enterprises to utilize 3G-connected M2M modules in various applications such as inventory management and self-checkout kiosks. The bitrate generated by M2M applications using 3G networks is an important factor for consumers. However, there are some challenges associated with the bitrate that may impact the cellular IoT market. The price of 3G modules is rising rapidly, and global 3G traffic is asymmetric with higher uplink traffic than downlink traffic. Several WCDMA M2M solutions are available for 3G technology, including Gemalto's Thales Group Cinterion PCS3 wireless M2M module and Telit's CDMA product line supported by Sprint. For many M2M applications, replacing devices with WCDMA devices is a cost-effective and reliable option that offers future-proofing for at least ten years. These factors are expected to drive the growth of the 3G segment in the global cellular IoT market in the forecast period.
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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growth of the North American cellular IoT market is propelled by the rapid expansion of the industrial, automotive, and healthcare sectors. These industries are embracing IoT technology to enhance operational efficiency and gain a competitive edge. The advantages of cellular IoT solutions, such as low power consumption and fast data transfer speeds, are driving their adoption across a wide range of IoT devices. This increased usage will lead to a higher demand for cellular IoT solutions in the region. The United States, in particular, plays a significant role in the growth of the North American cellular IoT market. Technological advancements and evolving consumer preferences regarding IoT devices are key factors fueling market growth. The deployment of cellular network infrastructure and the adoption of cloud computing are also driving factors in the region. Organizations are actively investing in IoT, forging partnerships, and integrating IoT solutions to stay ahead in the competition. The energy and utilities sector is expected to play a prominent role in the North American market, especially with the planned installation of smart meters. Furthermore, advancements in nanotechnology have led to affordable and energy-efficient sensors, expanding their use in industries like military, telecommunications, and more.
The industrial sector has been significantly impacted by COVID-19 lockdowns in 2020, particularly in the manufacturing industry. Factory closures were mandated by governments in response to the pandemic, causing disruptions. However, IoT technology has played a crucial role in helping organizations maintain their operations during these challenging times. As COVID-19 cases decline and vaccination efforts progress, the industrial sector is gradually recovering in the first half of 2021. The rise of new technologies, such as cloud computing and IoT, along with the increasing focus on digital transformation, has heightened the importance of cybersecurity. These market trends are expected to drive the growth of the IoT cellular market in the region during the forecast period.
The Cellular IoT Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cellular IoT Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The cellular iot market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Cellular IoT Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23% |
Market growth 2023-2027 |
USD 8,073.13 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
22.05 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 35% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Thales, AT and T Inc., Celplan, ETM Matteknik AB, Fibocom Wireless Inc., floLIVE, Huawei Technologies Co. Ltd., Intel Corp., MediaTek Inc., Nordic Semiconductor ASA, Qorvo Inc., Qualcomm Inc., Quectel Wireless Solutions Co. Ltd., Semtech Corp., Shield IoT, Skyworks Solutions Inc., Sony Group Corp., Telit IoT Platforms LLC, Texas Instruments Inc., u blox AG, UNISOC Shanghai Technologies Co. Ltd., and ZTE Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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