Cellular IoT Market Size, Share & Trends Analysis Report By Component (Hardware, Software), 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) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

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).

Devices connected to cellular networks are referred to as cellular IoT devices. IoT devices are created with built-in connection capabilities to expand their availability, lower the cost of supplementary infrastructure, and enable long-distance communications. Applications for Low-Power, Wide-Area Networks (LPWAN) can also be made possible by cellular IoT.

Since these are business-related applications, cellular IoT can handle the highly delicate and specific requirements of complex applications and environments and the more fundamental needs of the enormous IoT market. Long Term Evolution for Machines (LTE-M) and Narrowband-Internet of Things (NB-IoT) are the two main types of cellular IoT. Smart cities, precision agriculture, vending machines, fleet monitoring, and other application areas are examples of NB-IoT and LTE-M, which present significant opportunities for cellular IoT market share. These application areas need to communicate reliably and securely over long distances.

Market Dynamics

Market Driving Factors

• Implementation of Cellular IoT Modules in Smart City Infrastructure and Building Automation

Smart city infrastructure and building automation are the two most crucial vertical deployments of cellular IoT modules, which are responsible for most of the cellular IoT market's revenue. Battery-operated devices can now access the internet thanks to new cellular IoT technologies like NB-LTE-M, NB-IoT, and 5G. These technologies connect devices more effectively than the current 2G and 3G technologies, from smart parking to smart street lighting. 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).

• Growth in the Telecommunications Industry and Digitalization

The telecommunications sector's explosive global growth is one of the main factors boosting the market's outlook. Additionally, quick digitization and increased automation across industries boost market expansion. Solutions for the Narrowband Internet of Things (NB-IoT) and Long-Term Evolution for Machines (LTE-M) are widely adopted by medium and large-scale organizations. In order to provide improved end-to-end security, device-level access and authentication, and encrypted data transfer, these technologies can be integrated with the current mobile networks. The IoT's integration with embedded sensors, Wi-Fi, and Bluetooth in automotive systems are additional growth-promoting elements.

Market Restraining Factors

• Increasing Risk of Cyber Attacks

A connectivity ecosystem contains the modules and equipment needed for the cellular IoT function. They help simplify applications for many essential industries but are vulnerable to cyberattacks. The proliferation of IoT devices on cellular networks has made it easier for cybercriminals to launch cyberattacks using cellular and IoT vulnerabilities. The majority of cellular IoT devices rely on cloud networks for proper operation. Insecure cloud infrastructure can result in data theft or device hijacking, making cloud-based security a crucial component of cellular IoT security policy. A surveillance or delivery drone, a cloud-dependent IoT device, can independently process information such as navigation instructions and image data. Still, it may transmit captured videos or logs to a cloud server. The network or other devices may be in danger if the device is compromised and the breach is not immediately stopped.

Market Opportunities

• Growing Applications in Vehicle Telematics and Fleet Management

One of the significant emerging use cases for cellular IoT is vehicle telematics, which improves performance and connectivity while maximizing an organization's assets. The trend of implementing telematics solutions in off-highway and highway vehicles is anticipated to present high growth opportunities. Time is considered a crucial factor when it comes to off-highway vehicles, like cranes and excavators, with a limited number of technicians. Monitoring equipment and on-road assets require the implementation of IoT and telematics solutions. As a result, cellular IoT modules are being incorporated by telematics solution providers into their product offerings, making it simple for fleet managers and OEMs of off-highway vehicles to collect and analyze data, trends and problems in the field.

Regional Analysis

The global cellular IoT market is segmented into North America, Europe, Asia Pacific, and LAMEA.

North America is the largest global cellular IoT market shareholder as solution vendors and component manufacturers aggressively pursue IoT implementation projects. 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 during the forecast period. Asia-Pacific is expected to have the most significant growth due to the massive deployments that cellular connectivity in IoT applications enables in industries like fleet tracking and management, capillary networks, and smart buildings.

Segmental Analysis

The global cellular IoT market is segmented by component, type, and end-user.

By Components

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. The foundation of the entire cellular IoT ecosystem is made up of hardware elements like chipsets and cellular IoT modules. The growth is anticipated to be fueled by the expanding use of cellular IoT modules in wearables, connected healthcare devices, smart city infrastructure, and building automation projects.

By Type

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. Even though standards and technologies for machine-to-machine and Internet of Things connections are rapidly evolving and offering state-of-the-art and efficient cellular services, 3G is predicted to lose market share. The commercialization and rapid growth of technologies like LTE-M, NB-LTE-M, and NB-IoT are anticipated in industrial applications.

By End-User

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 and is expected to grow during the forecast period. Cellular technologies are anticipated to gain traction in applications requiring massive deployments and high-density endpoint connections. As a result, energy, utilities, and manufacturing industries stand to gain the most. A growing number of smart city applications are utilizing the technology boosting the market.

Impact of covid-19

COVID-19 has positive and negative market consequences, as carbon emissions have decreased globally due to the lockout. COVID-19's reduction in emissions is a short-term benefit. Still, when industries and enterprises attempt to recoup some of their financial losses in the first quarter of the year, carbon emissions will rise dramatically. COVID-19 had a negative impact on global recycling efforts. Countries, notably the United States, have halted or decreased recycling programs to focus on collecting additional domestic waste or because services have been disrupted by the virus.

Also, with industries slowly returning to normalcy following the COVID-19 outbreak, this shift in workplace health and safety is expected to increase due to mandatory social distancing and continuous personal care through sanitization to eliminate even the tiniest possibility of COVID-19 spread. COVID-19 has impacted various companies' revenues, and if the lockdown is lifted, companies will turn their attention to operations to make up for their losses.

Recent Developments

• July 2022- ZTE Corporation (0763. HK / 000063.SZ), a primary international provider of telecommunications, enterprise, and consumer technology solutions for the mobile internet, signed a cooperation agreement on the 2.3 GHz spectrum with Banglalink, a leading private operator in Bangladesh. Under the agreement, Banglalink will adopt ZTE's advanced products and technological solutions to enrich its customer experiences further. With the 2.3 GHz spectrum, Banglalink will continuously improve network speed and coverage across the country.
• May 2022- Qualcomm Unveiled Next Generation Powerline Communication Device to Support Expanding Industry Need for Vehicle to Charging Station Smart-Grid Communications. Qualcomm Technologies, Inc. announced a next-generation powerline communication (PLC) device, the QCA7006AQ, designed to address the needs for electric vehicle (EV) charging station communications – also known as electric vehicle supply equipment (EVSE).
• April 2022- Sierra Wireless (NASDAQ: SWIR) (TSX: SW), a world-leading IoT solutions provider, announced the availability of its next-generation 5G mobile broadband embedded modules, the Radio Frequency (RF) optimized EM92 Series. This latest edition to the Sierra Wireless line-up will enable the most demanding, business-critical, industrial, and networking use cases.