According to a new report, the global market for IoT modules for cellular networks experienced a 2% decline in Q3 2023. While the market share of 5G surpassed 5%, the adoption of this technology is still hindered by a lack of revolutionary applications and higher prices. Only the segments of smart meters and routers/CPEs saw an increase, while other applications recorded a decline. India stood out as the only region where growth was observed, while the market outside of China and India experienced a larger decline compared to China alone. It is expected that the total number of shipments in 2023 will decrease by 5% due to limited demand. Leading manufacturers in this market, such as Quectel and Telit Cinterion, also reported a decline in shipments.
New opportunities for the development of this market need to be sought in order for organizations to overcome these difficulties.
In Q3 2023, global shipments of IoT modules for cellular networks faced difficulties, recording a 2% decline compared to the previous year. Despite exceeding the 5% market share of 5G, the adoption of this technology is still hindered by a lack of compelling use cases and relatively high prices. This market is still in the early stages of adoption in sectors such as routers/CPEs, PCs, and automotive.
Among the five main applications, namely smart meters, automotive, POS, routers/CPEs, and telematics, only smart meters and routers/CPEs saw an increase in shipments, while the other applications recorded a decline. As stated by Mohit Agrawal, Director of Research at Counterpoint Research, these two segments accounted for over 60% of the total number of shipments of IoT modules for cellular networks.
In terms of regional results, India stood out with growth, while the market outside of China and India leaned towards a larger decline than China alone. Agrawal noted that contrary to industry expectations, the market lacks momentum.
Looking ahead, it is forecasted that total shipments in 2023 will decrease by 5% due to limited demand. Even market leaders like Quectel and Telit Cinterion have reported a decline in shipments, further indicating the challenging conditions in the industry. Despite these difficulties, players in this market continue to invest in innovation and seek new opportunities for development in the segment of IoT modules for cellular networks.
The source of the article is from the blog publicsectortravel.org.uk