Global cellular IoT module shipments rise 16% YoY in Q1 2025

Global shipments of cellular IoT modules continued to increase in the first quarter of 2025, growing by 16% year-on-year (YoY), according to Counterpoint Research’s Global Cellular IoT Module and Chipset Tracker by Application, Q1 2025. This growth was largely driven by strong demand in India, China, and Latin America, particularly across smart metering, point-of-sale (POS), and asset-tracking applications.

Counterpoint’s ‘Global Cellular IoT Module and Chipset Tracker by Application’ monitors more than 1,500 IoT module SKUs on a quarterly basis. The tracker provides detailed forecasts on shipments, revenue, and average selling price (ASP) performance for over 80 IoT module vendors, more than 12 chipset manufacturers, and upwards of 18 IoT application areas across 10 key geographical regions.

Commenting on the market trends, Principal Analyst Tina Lu stated,“China reinforced its position as the global leader in the cellular IoT module market, with 19% YoY growth, driven by increased adoption of 5G and Cat 1 bis technologies across POS, asset tracking, industrial, and automotive sectors. India and Latin America are also seeing rapid growth, leveraging cost-effective connectivity to digitise utilities and tracking use cases. India recorded the highest growth globally in Q1 2025, at 32% YoY, fuelled by large-scale smart meter deployments supported by favourable government policies. By contrast, North America and parts of the Asia-Pacific region experienced declines, affected by weaker demand and ongoing macroeconomic challenges.”

Lu further observed, “5G was the fastest-growing cellular IoT technology in Q1 2025, with shipments rising 37% YoY, driven primarily by adoption in the router/CPE and automotive segments, especially in China. Meanwhile, 4G Cat 1 bis is rapidly becoming the standard for mass-market IoT deployments. Shipments of Cat 1 bis modules increased 35% YoY, reflecting its ideal balance of performance and cost. Its affordability, widespread network support, and simplified design make it well-suited for high-volume, low-complexity applications such as metering and asset tracking,effectively disrupting legacy IoT strategies across multiple industry verticals.”

Vendor Performance

Quectel maintained its position as the leading global supplier of cellular IoT modules in Q1 2025, with China Mobile and Fibocom closely following. Collectively, the top three vendors accounted for over half of global module shipments.

China Mobile achieved a double-digit share of the global market, supported by strong domestic demand for 4G Cat 1 bis modules in point-of-sale (POS), asset tracking, and industrial applications. Outside China, Telit Cinterion retained its second position globally behind Quectel.

Declining average selling prices (ASPs) for both modules and chipsets have placed increasing price pressure on vendors, particularly from Chinese competitors. This has led to shrinking margins and a strategic shift among some vendors towards more profitable segments. For example, u-blox recently exited the cellular IoT module business to focus on its core strengths in GNSS and short-range connectivity.

Commenting on chipset trends, Research Analyst Hanumant Pawar noted,“Qualcomm retained its top position, followed by ASR and UNISOC. ASR has nearly doubled its market share in recent years, largely due to its strong performance in the 4G Cat 1 bis chipset segment.”

Initial deployments of 5G RedCap (Reduced Capability) technology have commenced in regions such as China and North America. Early applications include surveillance cameras, smart glasses, routers, and MiFi devices. Over the next few years, more affordable RedCap modules are expected to drive adoption, particularly in China, supported by the country's growing standalone (SA) 5G network coverage and proactive government initiatives.

Market Outlook

The cellular IoT module market is projected to grow steadily through the remainder of 2025, driven by increasing demand for smart connected devices, asset tracking, and automotive applications, especially across emerging markets. However, this growth will likely be moderated by factors such as geopolitical tensions, ongoing vendor repositioning, and supply chain challenges, all of which continue to influence regional strategies.

Chinese vendors are expected to retain their global leadership as the market rebounds in the second half of 2025. At the same time, Western vendors may experience a recovery in shipments, supported by stabilising geopolitical conditions and improving demand across key markets.