According to a report by Counterpoint Research, global cellular internet of things (IoT) module shipments grew 20 per cent year-on-year (y-o-y) in the second quarter (Q2) of 2022. The global cellular IoT module market continued to recover despite a tighter supply chain, Covid-19 lockdowns in China and macroeconomic headwinds.
As per the report, the growth was driven by the ongoing digital transformation involving potential applications around critical infrastructure and logistics catered by some key fast-growing low-tier cellular technologies such as Cat-1 and NarrowBand-IoT (NB-IoT). Further, module players modified their product offerings, striking partnerships across the value chain, from newer connectivity solution providers to acquiring some key competitors, as the IoT industry enters a very exciting growth phase.
Further, the report notes that China retained its position as the world’s largest IoT market, contributing to more than half of the demand despite the lockdowns. The country’s cellular IoT module market recovered slightly from previous months this year, driven by lockdown-triggered applications like smart locks, surveillance systems and routers. The North American and western European markets grew steadily and held their second and third positions respectively in the global cellular IoT module market. Again, India was the fastest growing IoT module market (+264 per cent y-o-y), albeit growing on a lower base, driven by smart meter, telematics, point-of-sale (POS) and automotive applications.
Commenting on the report, Soumen Mandal, senior research analyst, Counterpoint Technology Market Research, said, “The IoT module market is going through a critical phase where the Chinese brands have become bigger, making it very difficult for international brands to grow in silos. With six out of the top 10 IoT module vendors being from China and with the rising geopolitical competition and data privacy concerns, international players see an opportunity to consolidate and carve out a dichotomy in this segment. Further, having a robust portfolio and post-sales support is the key.”
