Cellular IoT Module Market Recovery and Trends

The cellular IoT module market is showing signs of recovery, with a 7% year-over-year growth in Q1 2024, driven by increased demand in China. This growth is attributed to the upswing in module demand in China, which helped counterbalance inventory and demand issues in other parts of the world. Technologies like 5G and LTE Cat-1 bis played a significant role in the market growth, with a combined 67% increase in market growth year-over-year.

The top 5 companies by module shipments, including Quectel, Fibocom, Telit Cinterion, China Mobile, and LG Innotek, account for 60% of the global market in 2023. The market is heavily influenced by developments in China, which accounts for 54% of the market and experienced a 23% revenue growth in Q1 2024.

The market outside of China saw a decline in revenue in Q1 2024, with North America and Europe being the only regions to experience growth. However, there are positive signs for these regions, with expectations set for a broader recovery in demand for cellular IoT modules in the upcoming quarters.

5G technology is expected to see the highest revenue gain in 2024, with a forecasted 61% growth in revenue. LTE Cat-1 bis, while only representing 6% of the market in Q1 2024, is the best-selling cellular IoT module type in China and is expected to see a 14% revenue growth in 2024.

The embedded automotive market segment leads in the use of cellular IoT modules, with applications in telematics, vehicle tracking, V2X communication, ADAS, and in-vehicle infotainment systems. The access points segment, including fixed and mobile access points, is also expected to contribute significantly to cellular IoT module revenue growth.

Overall, the market outlook is positive, with renewed demand expected outside of China and the introduction of RedCap technology set to enhance existing use cases. The recovery of the cellular IoT module market highlights the dynamic nature of the industry and the potential for growth in the coming quarters.