China Mobile Become the Third Largest Player in the Global Cellular IoT Module Market
Global cellular IoT module shipments saw a 3% YoY decline in Q2 2023, according to Counterpoint's latest Global Cellular IoT Module and Chipset Tracker by Application report. The decline was driven by factors such as lower demand and weaker economic sentiments. Barring the top three applications – smart meters, point of sale (POS) devices, and automotive, most segments experienced a sharp drop in shipments. The top three applications – smart meters, POS devices, and automotive – accounted for about 51% of the market in Q2 2023. India was the only market to register positive shipment growth for the quarter.
China Mobile, with strong performance in smart meter, POS and asset tracker applications, overtook Telit Cinterion to become the third largest player in the global cellular IoT module market. Quectel, the leading China module vendor, experienced a decline in its market share due to weakened demand. Telit Cinterion faced challenges due to the market downturn. With India expected to be the fastest-growing market by 2030, Telit recently partnered with VVDN to produce IoT modules in the country and increase its presence there.
Commenting on the market dynamics, Counterpoint Associate Director Mohit Agrawal said, “In Q2 2023, many of the module players experienced shipment declines as the market shrunk for the first time since the start of COVID-19. The pandemic-induced demand for connected devices is wearing off while the digital transformation efforts in industrial and other key verticals are yet to translate into shipments. ”
The adoption of 5G technology has been slower than expected, primarily due to its higher costs, coverage issues and maturity of the 5G device ecosystem. The forthcoming 5G RedCap has the potential to become the industry’s game changer by offering a more affordable solution. Early adoption of 5G RedCap is expected in POS and router/CPE applications.