A recent research report from IoT analyst firm Berg Insight reveals that annual shipments of cellular IoT modules reached 423 million units in 2023, marking a 3% decline from the previous year.
Annual sales decreased by 9% to US$5.4 billion, largely attributed to elevated inventory levels among customers, driven by shifts in purchasing behaviour during component shortages. The five leading cellular module vendors collectively dominated the market with a 72% revenue share. Forecasted data anticipates that shipments of cellular IoT modules will grow at a compound annual growth rate (CAGR) of 13% until 2028, reaching 786 million units.
The most notable current trend in the market is the rapid expansion of LTE Cat-1 bis module shipments. Since UNISOC introduced the first LTE Cat-1 bis chipset in 2019, these modules now constitute over 100 million units annually and are expected to maintain their leading position throughout the projected period. With nearly 10 suppliers primarily based in China, LTE Cat-1 bis module prices have dropped below $5 per unit in large volumes on the Chinese market. They are widely adopted across various product segments such as POS terminals, asset trackers, vehicle telematics devices, and smart meters.
LTE Cat-1 bis is gaining traction in other markets as well, particularly in regions where 4G LTE networks will remain operational for the foreseeable future. Despite this, LTE-M modules continue to dominate LTE Cat-1 bis modules in terms of pricing and popularity for IoT devices that demand stringent power consumption and extended lifecycle requirements. LTE-M’s readiness for 5G makes it suitable for IoT devices expected to remain in operation for over a decade, a crucial consideration as mobile operators in developed markets plan to phase out their 4G LTE networks by the end of the decade.
In the high-speed segment, 5G technology is progressively replacing high-speed 4G LTE variants across product categories such as connected cars, FWA CPEs, and IoT routers. 5G RedCap modules are increasingly available and are set to supplant LTE Cat-4 and LTE Cat-6 modules. Adoption of 5G is projected to accelerate in 2026–2027 as pricing improves and 5G SA network coverage expands. Berg Insight identifies 10 cellular chipset suppliers that have already launched or are planning to launch 5G RedCap chipsets, contributing to a healthy device ecosystem over time.
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