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The cellular IoT market size is estimated to grow by USD 16.45 billion at a CAGR of 32.14% between 2024 and 2028. Market growth hinges on several factors, including the integration of cellular IoT modules in smart city infrastructure and building automation, the expansion of the telecommunications industry through digitalization, and the growing adoption of cellular IoT in healthcare. Cellular Internet of Things (IoT) involves the amalgamation of communication devices with the Internet, leveraging advanced technologies like 3G, 4G, 5G services, and low-power wide-area (LPWA) networks to establish dependable connections across various hardware devices and sensors. However, challenges such as stringent regulatory requirements, the high cost associated with pediatric medical devices, and limitations in device functionality leading to product recalls, hinder market progress. Overcoming these hurdles will be crucial for unlocking the full potential and driving further innovation in the industry.
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The adoption of NB-IoT and LTE networks enables real-time monitoring across various sectors, from smart city infrastructure and building automation to agricultural and environmental monitoring. With LPWAN technologies like LTE-M, energy-efficient connectivity supports data-driven decisions, while smart grids and industrial automation benefit from real-time communication. Connected cars leverage cellular networks for V2X communication, enhancing safety and efficiency on the road. The emergence of 5G further revolutionizes these capabilities, enabling faster data rates and lower latency for applications such as vehicle telematics, fleet management, and consumer electronics, contributing to the advancement of intelligent transportation systems and IoT solutions. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
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 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 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 it 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 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 market forecast period.
The market forecasting 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 market growth analysis strategies.
Customer Landscape
Companies 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 market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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 1.63 billion in 2018. 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 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 market in the forecast period.
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North America is estimated to contribute 33% 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 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 the 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 in the region. The United States, in particular, plays a significant role in the growth of the North American 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 the military, telecommunications, and more.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing robust growth, fueled by diverse applications across various sectors such as agricultural automation, environmental monitoring, and medical wearables. Key drivers include the proliferation of connected healthcare devices, infrastructure monitoring, and the rise of surveillance drones. However, challenges like battery drain attacks, data channel rerouting, and Denial of Service attacks pose threats to security. Interoperability issues and concerns regarding data integrity and regulatory compliance also need addressing. Technologies like Low Power Wide Area Networks (LPWAN) and LTE-M enable energy-efficient connectivity and real-time communication, supporting applications like industrial automation, smart grids, and connected cars. With a focus on precision farming, smart healthcare, and transportation optimization, Cellular IoT promises transformative solutions for various industries, enhancing efficiency and customer experiences while ensuring end-to-end security. Chipsets and low power sensors enable infrastructure monitoring and surveillance drones, ensuring real-time data-driven decisions. LPWAN technologies facilitate faster data rates and lower latency, crucial for applications like smart metering, smart street lights, and autonomous vehicles. Wearable devices and AR/VR enhance surveillance and monitoring capabilities.
Market Scope |
|
Report Coverage |
Details |
Page number |
180 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 32.14% |
Market growth 2024-2028 |
USD 16.44 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
24.42 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 33% |
Key countries |
US, China, Germany, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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, Texas Instruments Inc., Thales Group, 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. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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