Cellular IoT shipments up 23% amid vendor challenges
Global shipments of cellular IoT modules grew by 23% year-on-year in the first quarter of 2025, marking the fifth consecutive quarter of increasing demand amid an evolving vendor landscape influenced by geopolitical developments.
These findings come from new research published by IoT Analytics, which tracks the cellular IoT module and chipset market worldwide. The report highlights how the market is recovering from an extended period of inventory correction, signalling renewed demand across various industries adopting IoT technologies.
Vendor shifts
The research reveals that the top five vendors—Quectel, China Mobile, Fibocom, Sunsea AIoT, and Telit Cinterion—together accounted for 73% of all module shipments in the first quarter of 2025. This concentration reflects a market dynamic where both established and emerging companies vie for dominance in regions facing regulatory and supply chain uncertainty.
A significant change in the vendor landscape has come in the form of u-blox's departure from the cellular IoT module business. This exit, along with ongoing regulatory and trade pressures, is reshaping strategies within the sector as companies assess new routes for growth and stability.
Geopolitical impact
The interplay between market forces and political developments, particularly regarding US–China relations, is having a marked influence on both business operations and supplier strategies. One example cited in the report is Quectel, which was added to the US 1260H list. In response, Quectel entered a partnership with Eagle Electronics, reflecting an approach focused on contingency planning in light of ongoing trade tensions between major markets.
Satyajit Sinha, Principal Analyst at IoT Analytics, elaborated on the current situation, stating:
"The cellular IoT module market is at a crossroads, characterized by recovering demand amidst significant geopolitical uncertainties and shifting vendor strategies. Quectel's addition to the US 1260H list and its subsequent partnership with Eagle Electronics illustrate proactive contingency planning by suppliers in anticipation of worsening geopolitical conditions. The next 18 months are particularly crucial for Western IoT module suppliers, who must capitalize on their distinct advantages in compliance, transparency, cybersecurity, and reliable supply chain management. While pricing competition between Western and Chinese vendors will persist, manufacturers will increasingly seek value through integrated solutions combining hardware, software, connectivity, security, and ODM services."
Future outlook
The report from IoT Analytics suggests that the cellular IoT module industry remains poised for further changes as suppliers respond to recovering demand, regulatory shifts, and continuing geopolitical uncertainty. The focus for Western firms is expected to intensify around operational strengths, including supply chain reliability and security compliance, while price competition with Chinese vendors is expected to continue.
The research outlines that manufacturers are likely to place greater emphasis on integrated offerings that span not only hardware, but also software, connectivity, cybersecurity, and original design manufacturing (ODM) capabilities. This approach would respond to a broader trend among IoT adopters seeking more comprehensive and secure solutions from their technology partners.
IoT Analytics' Global Cellular IoT Module and Chipset Market Tracker & Forecast provides market participants with data on shipment volumes, vendor performance, and key events shaping the industry since 2019, spotlighting the factors influencing supplier performance and strategic direction.
With the next 18 months considered critical for reshaping the balance between Western and Chinese IoT module suppliers, the report suggests that market participants will need to monitor both regulatory shifts and technological developments to maintain competitiveness in a rapidly evolving segment.
