Cellular IoT Market Analysis | 2023-2029

“The Cellular IoT Market was estimated at US$ 5.34 billion in 2022 and is expected to grow at an impressive CAGR of 24.7% during 2023-2029 to reach US$ 25.05 billion by 2029.”

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Market Highlights

Introduction

Cellular IoT can be described as the ability to utilize of cellular network to allow connectivity as well as communication of the devices in an IoT environment. It employs cellular technology like 4G LTE or 5G in transferring data through the wireless medium existing between IoT devices and the cloud or other IoT devices.

Cellular IoT ensures that devices can connect and send large amounts of data over a long distance and is also more secure than Wi-Fi. It is widely used in many fields such as smart cities, agriculture, health care, and logistics for IoT to support smooth data communication for IoT applications. Due to the ability to transmit data through cellular networks, the level of protection and stability is higher than through a Wi-Fi connection. It also gets wider coverage making IoT devices possible to be placed in large areas. Furthermore, the cellular IoT application consumes low power, which makes it suitable for battery-operated devices such as Wearables, Sensors, trackers, and others that do not need frequent charging.

It has been implemented in various sectors such as farming, medical, carriage, and production. In the agriculture sector, for instance, cellular IoT devices can be installed in fields to real-time, measure the moisture and temperature of the soil for better production.

Market Dynamics

Driver: Growing deployment of cellular IoT modules in smart city projects and building automation applications

The major verticals deploying cellular IoT modules are smart city infrastructure and building automation, with nearly 30% of the market's revenue generated from these sectors. Advanced cellular IoT technologies like NB-LTE-M, NB-IoT, and 5G offer an efficient and cost-effective solution for connecting battery-powered devices to the internet, providing better connectivity than 2G and 3G technologies.

Cellular IoT has various applications in smart cities such as street lighting, traffic management, infrastructure monitoring, waste management, and parking management. Governments globally are emphasizing modern infrastructure improvements and implementing pilot projects, with North American and Eastern European governments providing incentives and establishing public-private partnerships.

Restraint: Vulnerability to cyberattacks

Cellular IoT devices and modules operate within a connectivity ecosystem. While they simplify various applications across major verticals, they are also susceptible to cyberattacks. With the growing number of IoT devices on cellular networks, cybercriminals are exploiting cellular and IoT vulnerabilities to launch more effective attacks. Many cellular IoT devices rely on cloud networks for proper functioning, making cloud security an essential part of cellular IoT security measures. An insecure cloud infrastructure can result in data theft or device hijacking.

For example, a drone used for surveillance or delivery is a cloud-dependent IoT device that can process information such as navigation instructions and images locally but sends captured videos or logs to a cloud-based server. If the device is compromised, it can potentially put other devices and the entire network at risk unless the breach is quickly contained. Some common cyberattacks related to cellular IoT devices include battery drain attacks, data channel rerouting attacks, and Denial of Service (DoS) attacks.

Opportunity: Growing applications for cellular IoT modules in-vehicle telematics and fleet management

Vehicle telematics to improve performance and connectivity, which enhances an organization's assets, is one of the important emerging use cases of cellular IoT. Apart from highway vehicles, the implementing trend of telematics solutions in off-highway vehicles is anticipated to present high growth opportunities for cellular IoT solution vendors.

In the case of off-highway vehicles, such as cranes and excavators, time is considered to be a crucial aspect with a limited number of skilled technicians. This creates the need for deploying IoT and telematics solutions to monitor both equipment and on-road assets. Thus, telematics solution vendors are implementing cellular IoT modules in their respective product offerings, which makes it easy for off-highway vehicle fleet managers and OEMs to collect and analyze data to understand heavy equipment usage trends and field-based problems.

Challenge: Advancements in common protocols and standards across IoT platform

Currently, in the technical market scenario, IoT does not seem to give an effective architectural solution or a universal standard to solve the interoperability problem. Therefore, there is an urgent need to make universal standards for cellular IoT to remove interoperability problems. Any universal standard looking to encompass such diverse IoT applications would need to be scalable.

To achieve this, businesses, agencies, and developers need to make efforts to develop a universal standard consisting of all diverse IoT applications, devices, platforms, and software, which seems to be challenging to achieve in the next few years. The need for devices would vary according to their applications. For instance, low-power sensors are needed for security cameras and streaming video signals. The complexity of creating a unified set of standards is high in the case of IoT; therefore, organizations that make standards for wired and wireless IoT connectivity should come together to develop effective solutions.

Segments Analysis

By Component Type

“The hardware segment accounts for the largest share of the market over the forecast period.”

Hardware components such as cellular IoT modules and chipsets form the foundation of the complete cellular IoT ecosystem. The growing deployment of cellular IoT modules in wearables and connected healthcare devices, smart city infrastructure, and building automation projects are expected to boost the growth of the hardware segment over the forecast period.

Regional Analysis

“Asia-Pacific region is expected to grow at the highest CAGR during the forecast period.”

China, Japan, South Korea, and India are the major countries contributing to the growth of the cellular IoT market in the APAC region. Rapid deployment of smart city projects and growing demand for connected health wearable devices during the COVID-19 pandemic are boosting the growth of the regional market.

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Key Players

The market is highly populated, with the presence of several local, regional, and global players. Most of the major players compete on some of the governing factors, including price, product offerings, regional presence, etc.

The following are the key players in the global cellular IoT market are as follows (arranged alphabetically):

• Altair Semiconductor
• Analog Devices
• AT&T
• Fibocom Wireless
• Gosuncnwelink Corporation
• Intel
• Mediatek
• Murata Manufacturing
• Nordic Semiconductor
• Qorvo
• Qualcomm
• Quectel
• Sequans Communication
• Sierra Wireless
• Telit Communications
• Thales Group
• U-Blox Holding
• Unisoc Technologies

Note: The above list does not necessarily include all the top players in the market.

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Report Features

This report provides market intelligence most comprehensively. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

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Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

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Recent Market News & Developments

• In October 2022, AT&T announced the launching of dozens of 5G edge zones across the US to deliver next-generation network services and enable startups to innovate on the new and faster cellular network.

• In October 2022, Vodafone designed a Software-Defined Wide Area Network (SD-WAN) for McDonald’s 640 Italian restaurants using two types of network technology: 4G/5G and fiber.

• In September 2022, AT&T announced its collaboration with Ford in bringing 5G connectivity to the 2023 Ford Super Duty. Ford Super Duty owners will be able to get a free trial of the AT&T Connected Car data plan and enjoy various entertainment experiences.