The Internet of Things (IoT) cellular module market in 2024 experienced stagnant growth, reflecting a period of instability and adjustment among key vendors. Despite the overall market remaining flat, various strategic shifts have emerged as companies navigate increased competition and supply chain challenges. This environment has led to significant changes in market dynamics and vendor strategies.
Unlike previous years where significant growth was observed, the current year shows a plateau in shipments and revenues for IoT cellular modules. Earlier expectations of continued expansion have been tempered by unforeseen market pressures, affecting both established and emerging players differently than historical trends suggested.
What challenges are IoT cellular module vendors facing?
Vendors are contending with intense competition and pricing pressures, prompting strategic divestitures and consolidations. Supply chain disruptions due to earlier overbuying and ongoing chipset shortages have further strained production capabilities.
“Additionally, a critical time-sensitive issue has emerged,”
says Jamie Moss, Research Director, IoT Hardware at ABI Research. These challenges have compelled companies to reassess their operations and market strategies.
Which companies have succeeded or struggled in this market?
Quectel, the market leader for the past five years, stood out by matching its 2023 turnover by the end of the third quarter of 2024.
“Quectel has other lines of business, and although the bulk of its income comes from cellular modules, it also supplies the automotive and mobile broadband markets,”
Moss explains. In contrast, u-blox ceased its cellular operations to focus on other business units, highlighting the uneven impacts on different vendors.
What is the future outlook for the IoT cellular module market?
The IoT cellular module sector is expected to rebalance and return to normal, organic growth once supply chain issues are resolved.
“The practical result of the current climate is that stalwart u-blox has decided to halt its cellular operations altogether to refocus on its other business units,”
Moss notes. However, with increasingly tight margins, some vendors may not survive the transition period.
The current state of the IoT cellular module market shows a significant shift from the robust growth witnessed in previous years. The stabilization of shipments and revenues indicates a maturing market where only resilient and adaptable vendors thrive. Industry stakeholders should focus on strategic diversification and supply chain resilience to navigate future uncertainties effectively.
