Emerging Markets and Technology Evolution Drive Industry Transformation
According to a report released by Counterpoint Research, global cellular IoT module shipments grew by 15% year-over-year in 2025, maintaining a steady growth trajectory. Technologies such as UWB also play a role in this expansion, which was primarily driven by sustained demand from key application areas such as smart meters, POS terminals, and automotive solutions.
Regional Market Divergence
China Maintains Dominance While Emerging Markets Accelerate
The report highlights that China remains the largest source of global cellular IoT module shipments. Driven by applications such as POS systems, asset tracking, and video surveillance, the Chinese market recorded a 15% year-over-year growth, in line with the global average.
Meanwhile, emerging markets demonstrated strong momentum:
- India recorded a significant 33% year-over-year growth
- The Middle East and Latin America both outpaced the global average
These regions are increasingly becoming key growth engines for global IoT deployments.
Technology Trends
Cat-1 bis Becomes Mainstream as 5G and RedCap Gain Traction
Tina Lu noted that one of the most important technology trends in 2025 is the rapid rise of 4G Cat-1 bis. Thanks to its cost efficiency, reliable performance, and simplified system design, Cat-1 bis has emerged as the de facto standard for large-scale IoT deployments, widely used in smart meters, tracking devices, and POS terminals.
At the same time, 5G technologies continue to advance:
- 5G module shipments grew at nearly three times the industry average
- Key applications include automotive, routers/CPE, and PCs
- The segment maintained double-digit growth throughout the year
In addition, 5G RedCap (Reduced Capability) reached an important milestone in early commercialization in 2025. Although its shipment volume remains smaller than traditional 4G technologies, RedCap is expected to bridge the gap between low-power IoT and high-performance 5G applications, offering strong future potential.
AI-Driven Transformation
From Connectivity to Intelligent Edge Devices
The IoT industry is rapidly evolving toward AI-enabled solutions. Vendors are increasingly integrating:
- Edge AI accelerators
- Enhanced computing power
- Advanced security software platforms
This shift is transforming cellular IoT modules from simple connectivity hardware into intelligent edge devices, unlocking new value across industries.
Competitive Landscape
Chinese Vendors Lead While Global Players Focus on High-Value Segments
In terms of vendor performance, Chinese companies continue to dominate the global market:
- Quectel remains the global leader
- China Mobile strengthened its position through connected two-wheelers, asset trackers, and AI toy projects
- Sunsea AIoT ranked third globally
Other notable developments include:
- Lierda achieved 69% year-over-year shipment growth, becoming one of the fastest-growing vendors
- Telit Cinterion maintained leadership in Europe and North America, with 13% growth in automotive, healthcare, and energy sectors
- Zhongyun Xinan emerged as a key player in the Cat-1 bis segment
Rising Cost Pressures
Memory Price Increases Impact High-End Modules
Mohit Agrawal pointed out that despite shipment growth, average selling prices (ASP) of cellular IoT modules remain under pressure due to intense competition, particularly from Chinese vendors.
At the same time, rising demand from AI servers, smartphones, and PCs has tightened DRAM and NAND supply, leading to:
- Increased memory prices in Q4 2025
- Higher bill-of-material costs for 5G and smart modules
To mitigate these pressures, vendors have adopted several strategies:
- Prioritizing high-margin products
- Strengthening inventory management
- Implementing selective price increases
- Encouraging early customer orders to hedge against price fluctuations
Outlook for 2026
Emerging Markets and 5G RedCap to Drive Future Growth
Looking ahead to 2026, the market is expected to maintain steady growth:
- Emerging markets such as India, Latin America, and the Middle East will remain key drivers
- Memory supply constraints may persist, with continued price volatility
- High-end module growth could be constrained by cost pressures
- Demand for cost-sensitive segments like Cat-1 bis will remain resilient
With the expansion of standalone (SA) 5G networks and declining module prices, the commercialization of 5G RedCap is expected to accelerate across China, North America, and Europe.
Conclusion
In 2025, the global cellular IoT module market achieved steady growth driven by expanding demand and ongoing technological evolution. As AI integration deepens and 5G technologies mature, competition is expected to shift from scale-driven expansion toward a new phase focused on performance and intelligence.
About the Exhibition
This development highlights the growing convergence of IoT, smart home technologies, and digital identity solutions—key themes at IOTE – The International Internet of Things Exhibition, a leading global platform for RFID, nfc, and IoT innovation.
The upcoming IOTE 2026 International Internet of Things Exhibition Shenzhen will take place in Shenzhen, bringing together industry leaders, technology providers, and solution innovators to showcase the latest advancements in smart homes, connected devices, and secure access technologies .