Global Cellular IoT Market Grows at a Staggering CAGR of 24.6%

IoT devices, such as smartphones, are designed with built-in connection capabilities to increase availability, reduce additional infrastructure costs, and facilitate long-distance communications. It may contain scanners, smartphones, sensors, and other Internet of Things devices. The two most prevalent types of cellular IoT are Long Term Evolution for Machines (LTE-M) and Narrowband-Internet of Things. (NB-IOT). NB-IoT and LTE-M present substantial opportunities for cellular IoT market share in smart cities, precision agriculture, vending machines, fleet monitoring, and others. These application domains require reliable and secure long-distance communication.

Market Dynamics 

Growing Smart City Infrastructure and Building Automation and the Rapid Expansion of the Telecommunication Industry and Digitalization Drives the Global Market

Streetlights, traffic sensing and control devices, waste management devices, and parking management devices are some of the significant applications of cellular IoT in smart cities. Modern infrastructure reforms are a particular area of focus for governments worldwide, and numerous pilot projects are being established to accomplish this. Additionally, the governments of North America and Eastern Europe are encouraging such initiatives and creating public-private partnerships (PPPs).

The telecommunications sector's explosive global growth is one of the main factors boosting the market's outlook. These technologies can be integrated with the current mobile networks to provide improved end-to-end security, device-level access and authentication, and encrypted data transfer. The IoT's integration with embedded sensors, Wi-Fi, and Bluetooth in automotive systems are additional growth-promoting elements.

Applications for Cellular IoT Modules in Vehicle Telematics and Fleet Management Creates Tremendous Opportunities

Vehicle telematics is one of the significant emerging use cases for cellular IoT, as it improves performance and connectivity while maximizing an organization's assets. The trend of implementing telematics solutions in off-highway and on-highway vehicles is anticipated to present significant growth opportunities for cellular IoT solution providers. With a limited number of technicians and off-road vehicles such as cranes and excavators, time is considered a crucial factor. Implementing IoT and telematics solutions is necessary to monitor equipment and on-road assets.

Regional Analysis

North America is the highest revenue holder in the global cellular IoT market. The rapidly changing technology landscape and the ability of industries to adopt smart and connected products at the outset are crucial growth factors for the region. Likewise, the European region is anticipated to generate substantial revenue and experience healthy growth. Asia-Pacific is anticipated to experience the most significant growth during the forecast period.

Key Highlights

· The global cellular IoT market was valued at USD 3.7 billion in 2021. It is projected to reach USD 26.78 billion by 2030, growing at a CAGR of 24.6% during the forecast period (2022–2030).

· Based on components, the market is bifurcated into hardware, software, device management, and signal processing. The hardware segment owns the highest share of the global cellular IoT market

·  Based on type, the market is divided into 2G, 3G, 4G, LTE-M, NB-LTE-M, NB-IoT, and 5G. 3G held the largest market share in revenue because it offers low-cost modem options and certifications and has the most users worldwide.

· Based on end-user, the market is divided into agriculture, automotive and transportation, consumer electronics, energy, environment monitoring, healthcare, retail, smart cities, and others. The energy sector held the highest market share.

· North America is the largest global cellular IoT market shareholder as solution vendors and component manufacturers aggressively pursue IoT implementation projects.

Market Segments

Global Cellular IoT Market: Segmentation

By Component

·       Hardware

• Software
• Device Management
• Signal Processing

By Type

·       2G

• 3G
• 4G
• LTE-M
• NB-LTE-M
• NB-IoT
• 5G

By End-User

• Agriculture
• Automotive and Transportation
• Consumer Electronics
• Energy
• Environment Monitoring
• Healthcare
• Retail
• Smart Cities
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA