Cellular Iot Module IC Market

Key data points: Market size in 2027 = $12.1 billion and 2035 = $37.1 billion, growth forecast = 15.0% annually for the next 8 years. Scroll below to get more insights. This market report covers trends, opportunities and forecasts in cellular IoT module IC market to 2035 by type (4G IC, 5G IC, NB-IOT IC, and others), product (processor, sensor, and others), application (consumer electronics, industrial control, automobile, medical care, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World) Cellular Iot Module IC Market The future of the global cellular iot module ic market looks promising with opportunities in the consumer electronics, industrial control, automobile, and medical care markets. The global cellular iot module ic market is expected to reach an estimated $37.1 billion by 2035 from $12.1 billion in 2027 with a CAGR of 15.0% from 2027 to 2035. The major drivers for this market are the increasing demand for continuous moisture monitoring, the rising adoption in industrial automation systems, and the growing focus on process efficiency optimization. • Lucintel forecasts that, within the type category, NB-IOT IC is expected to witness the highest growth over the forecast period due to the rising trend of connected and automated devices in industries. • Within the application category, industrial control is expected to witness the highest growth over the forecast period due to the fast industrial automation in that region. • In terms of regions, APAC is expected to witness the highest growth over the forecast period due to wide coverage and low power consumption for connecting IoT devices. Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below. Emerging Trends in Cellular Iot Module IC Market Cellular IoT Module IC Market is Moving Away from Connectivity Hardware Towards Integrated and Software Managed Edge Platforms. Market Demand Between 2025 and 2027 Will Prefer Lower Power Consumption Modules, Wider Industrial Deployment, and Faster Certifications. Lucintel’s Market Perspective Correlates with GSMA, 3GPP Releases, Semiconductor Filings and Supplier Strategies: Market volume will continue to grow, while value will move to differentiated modules. • RedCap Adoption with 5G: 3GPP Release 17 RedCap modules will be used to build industrial gateways and routers along with surveillance devices during 2025-2027. This segment will grow as operators will shift away from legacy networks and customers will buy cost effective 5G hardware. • Edge Intelligence: Module vendors will integrate GNSS, secure elements and AI-based processors in the modules. With the 2025 roadmaps, many vendors will integrate cellular connectivity in modules with microcontrollers and software support for container. In the next 3-5 years local analytics will decrease response time and improve system performances in the utility, vehicle, and asset monitoring. • Power-efficient Connectivity: NB-IoT and LTE-M will continue to dominate battery-powered deployments, where most of the deployments are targeted for outdoor metering and tracking devices with about 5 years of operating life; 2025-2027 designs will add eSIM, power-management ICs, and enable connected devices in places where maintenance visits are very expensive.” • Supply Chain Diversification: Module creators are qualifying secondary-source chipsets and regional manufacturing as customers of automotive and critical infrastructure request supply chain continuity. Additionally, the European Union Chips Act provides €43 billion in policy support to fund exclusive capacity investments until 2027, reducing the risk posed by overly concentrated semiconductor supply. • Lifecycle Security: Regulators and enterprise customers are mandating signed firmware, device identity, remote patching, and other similar requirements that are anticipated to be corresponding procurement requirements by 2025 and additional cybersecurity safeguards. Module selection will be governed by security considerations over the next five years since uncontrolled endpoints will increase cost, operational risk, and expose vendors to potential reputational loss. Cellular IoT module market growth will increasingly depend on the value of systems rather than the volume of modules shipped. The market for industrial modules based on low power and heavily embedded interfaces is expected to grow. Suppliers providing certification, extended software support, and diverse sourcing are expected to gain market share over those selling only the components. Although tight competition will continue to exist, high demand for customized modules will allow providers to sustain good profitability margins. Recent Developments in the Cellular Iot Module IC Market Demand for cellular IoT module ICs is expected to undergo a selective expansion as 5G RedCap, the eSIM technology, and satellite connectivity move beyond the trial stage and initiate volume deployment. The period up to 2027 is expected to be a phase of intense activity. Price competition will, however, continue to be severe. Lucintel believes that going forward, IC suppliers will need to offer power efficient integrated solutions that incorporate certifications, lifecycle support, and security. • Commercialization of RedCap: Interoperability of 5G RedCap demonstrated by Qualcomm and Ericsson in February 2025, proved that there is a low cost alternate to the full 5G path, LTE-M and LTE-M. With IC demand expected till 2029, RedCap will enable cellular connectivity to industrial sensors, wearables, and cameras, at a lower cost without the complexity of 5G. • Satellite-cellular Integration: Direct-to-device testing by Skylo and MediaTek using NTN chipsets for messaging and asset tracking, as well as other hybrid terrestrial-satellite modules, will increase new silicon demand. This will be especially the case for logistics operators who need cover beyond cellular networks. • Expansion of ESIM Architecture: SGP.32, the GSMA specification for eSIM and iSIM, started market implementation in 2025, while other IC module vendors designed platforms for low-power embedded devices. It will decrease friction in deployment and support international deployments. This will drive demand for secure elements and controllers, along with certified modem platforms. • Module Supplier Consolidation: In March 2025, Quectel reported that it expects consolidation for 2024 with revenues in the range of RMB18.8 billion. This illustrates scale advantage for prominent vendors. Further consolidation will impact pricing for smaller IC suppliers, but should lead to accelerated reference designs and standardized procurement for automotive and enterprise projects. • Production of Vehicles at Scale: In January 2025, Fibocom announced its plans for higher volume production of 5G and C-V2X module connectivity units for the automotive segment. There will be increased demand for qualified cellular IoT module ICs from longer production cycles. Long-term supply contracts will be awarded to vendors that can provide software support for a period of at least 10 years. IBSAT modems will continue to see declining prices. Margins for all applications, including industrial, automotive, and NTN, will remain safe from price competition. For the upcoming three years, the market will reward suppliers that offer a combination of low-power design, global certificates, secure management, and a ready solution-based service for satellite post elevation over modular design. Strategic Growth Opportunities in the Cellular Iot Module IC Market Cellular IoT Module IC Market is in the beginning of a broad commercial cycle as 5G, private networks, satellite connectivity and 5G RC add new addressable segments. Declining chipset prices along with longer support from operators is driving improvements. Lucintel expects an increase in investments into industrial, automotive, and utility segments between 2024 and 2026. However, power consumption and certification remain the main barriers to buying. • 5G RC Modules: 5G RC targets devices that require higher throughput than LTE-M, but lower throughput than full 5G. In June 2025, over 20 commercial operator programs supporting enterprise adoption of 3GPP Release 17 RedCap ecosystems were announced. Within the next 3-5 years connected cameras, asset trackers, and industrial gateways are anticipated to create the main demand for 5G Module ICs. • Automotive Telematics: Separating basic connectivity from premium infotainment has created a high-volume market opportunity for module ICs that support eCall, diagnostics, and fleet services. In January 2025, globally, connected-vehicle subscriptions passed the 500 million marks. The installed base will create sustained demand as software-defined vehicles will require longer lived, upgradeable cellular hardware. • All-in-one Satellite and Cellular Services: Merging terrestrial and satellite systems can offer more flexible coverage for emergency services, agriculture, and logistics. Analysts estimate that by March 2026, 3GPP will have 30 partnering operators offering direct-to-device satellite services. With more operators using satellite services, customers will be able to choose a vendor offering the one-stop solution for flexible communication service outside of terrestrial service coverage. • Utility Services: The design for smart meters and grids is shifting from a gateway-centric model to a cellular model. By September of 2025, it was predicted that shipments of smart meters worldwide would go beyond 150 million units. Customers will purchase modules for utility services that will add longevity and security in a business-value proposition. • Low-power-alternative Designs: Ultra-low-power cellular ICs and energy-harvesting systems help lower the cost of remote sensor maintenance alongside extending battery life. By February of 2025, there were over 1 billion NB IoT connections deployed globally. Within the next 3-5 years there will be significant demand for both remote monitoring of the environment and supply-chain tracking as suppliers continue to create more efficient modules. Module performance is only half of the solution to a successful business model. Vendors that focus on an integrated solution with long product availability and offer remote system management and certification solutions will gain design-ins quicker. Though predictable, demand will vary across different regions, but the automotive and industrial sectors will offer consistent design-ins. It will be imperative that customers see a better security and power efficiency trade-off with the multi-network modules. Cellular Iot Module IC Market Drivers and Challenges The cellular IoT module integration circuits market is being disrupted by shifts in technology, the economy, customer requirements, sustainability, and regulation. There are opportunities for the module as demand for connected devices increases in transport, healthcare, utilities, agriculture, and industrial automation. At the same time, there are uncertainties in the market with increasing semiconductor costs, concerns of cybersecurity, supply chain, and the dynamics of networks. According to Lucintel, opportunities in the long run will be available if there are affordable connectivity, creative IC chip design, reliable infrastructure, and standards that are flexible and adaptable to diverse deployment situations around the world. The factors responsible for driving this market include: • Customer Requirement: Technological advancements have led to upsurge in demand for smart metering, track and trace solutions, and industrial automation. By early 2025, GSMA estimated over 29 billion IoT connections, showing expanding connectivity. Over the next three to five years, customers will be more interested in products that are highly reliable, remotely controlled and provide full control over devices to manage real-time operation with predictive maintenance at minimum energy consumption. • Technology Boosts: The progression of 5G, LTE-M, NB-IoT, satellite, edge and AI processing technologies are improving modules to become more efficient and more effective. With the 3GPP Release 18 in March 2025, the advancements of 5G-Advanced continued. These developments will affect the market in a variety of ways in which smaller, faster and more capable modules will be able to process data locally, latency will be significantly reduced, and modules will be able to last longer on battery while supporting more intensive industrial and mobility applications. • Regulation Support: The development of smart infrastructure and connected transportation by the government continues to create positive changes in the adoption of cellular IoT. In February 2025, the European Union continued to implement its Cyber Resilience Act which establishes obligations for connected products to have certain cybersecurity measures in place. It is expected that in the next 3 to 5 years, advancements in security and interoperability will lead to confidence for industries to adopt services and solutions, while increased demand for modules with certified ICs will occur. • Sustainability: Goals for decreased energy consumption and greenhouse gas emissions are pushing organizations to implement connected systems that consume less energy and produce less waste while optimizing resources. In April 2025, the International Energy Agency announced that renewable energy additions are anticipated to stay above 5,000 gigawatts by 2030, making the additional need for connected systems for monitoring regarding energy and resources. This will create demand for modules to provide low power connectivity. • Increasing Efficiency in Manufacturing: The European Chips Act targets increasing semiconductor manufacturing in Europe to 20% by 2030 and supports the production of electronic modules. In the next few years, manufacturing efficiency will result in modules becoming less costly and more abundant. This is expected to improve component supply and make cellular connectivity modules viable for mass applications, like logistics, metering, and devices. The challenges facing this market include: • Volatility in Semiconductor Supply: Semiconductors used in cellular IoT modules remain vulnerable to supply shortages of advanced chips, memory, substrates, and RF components. In January 2025, the Semiconductor Industry Association reported that 2024 sales of semiconductors reached approximately $627 billion, illustrating high demand across varied market segments. Over the next 3 to 5 years, capacity shortages, geopolitical restraints, and sudden shifts in demand will increase the lead times, prices, and planning challenges for module manufacturers. • Increased Cybersecurity and Privacy Concerns: The use of connected modules puts vehicles, industrial and medical equipment, and critical infrastructure at risk, including the violation of data privacy and system control. In April 2025, the European Union Agency for Cybersecurity included supply chain and connected device vulnerabilities in its annual supply chain threat assessments. These risks may create barriers to market entry as customers may demand that modules comply with these standards for secure boot, end-to-end data encryption, and identity management, at increased costs and with slower deployments. • Network Transition and Fragmentation: Operators are removing older networks while adding services on 4G, 5G, LTE-M, NB-IoT, and satellite networks. GSMA Intelligence reported in March 2025 that multiple markets were showing progress on their 2G and 3G shutdown plans. It is likely that, in the next 3-5 years, fragmented and inconsistent sunset schedules will require product redesigns, increase the cost of certifications, shorten the length of time products are sold, and cause other issues for customers needing connectivity that spans over ten years. Higher demand for more efficient communications as a result of greater adoption of connected assets and smart infrastructure as well as industrial automation and sustainability programs will drive growth for cellular IoT modules. Many opportunities will arise from the combination of advancements in technology, new regulations, and more demanding customers. Market growth, however, may be inhibited by unpredictable supply, new cybersecurity regulations, and fragmented network transitions. There will be strong competition from other markets to develop secure communications, support multiple standards, be energy efficient, and stable while sourcing components from a variety of suppliers. List of Cellular Iot Module IC Market Companies Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies cellular iot module ic market companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the cellular iot module ic market companies profiled in this report include- • Qualcomm • UNISOC • ASR • MediaTek • Shanghai Eigencomm • Xinyi Information Technology • Sequans Cellular Iot Module IC Market by Segment The study includes a forecast for the global cellular iot module ic market by type, product, application, and region. Cellular Iot Module IC Market by Type [Value ($B) from 2019 to 2035]: • 4G IC • 5G IC • NB-IOT IC • Others Cellular Iot Module IC Market by Product [Value ($B) from 2019 to 2035]: • Processor • Sensor • Others Cellular Iot Module IC Market by Application [Value ($B) from 2019 to 2035]: • Consumer Electronics • Industrial Control • Automobile • Medical Care • Others Cellular Iot Module IC Market by Region [Value ($B) from 2019 to 2035]: • North America • Europe • Asia Pacific • The Rest of the World Country Wise Outlook for the Cellular Iot Module IC Market The semiconductor localization trend along with the deployment of 5G Advanced and public funding for resilient supply chains is redefining the cellular iot module ic market. Between 2025 and 2027, manufacturers combine lower-power ICs with RedCap and satellite-based platforms. Investments concentrated in Asia, North America and Europe will continue to dominate, according to the latest analysis from Lucintel. • United States: GlobalFoundries received direct funding of $1.5 billion from the CHIPS Program Office (February 2024) for their 3 sites in New York and Vermont. In March 2025, Qualcomm announced their Dragonwing Q-6690 platform for the Industrial Internet of Things (IIoT). These commitments will provide module supply vendors the capacity and manufacturing capabilities for RF, modems, and packaging over the next 3 to 5 years. • China: 5G China Mobile and their partners have completed 5G-Advanced in more than 50 use cases (April 2025). Meanwhile, the Ministry of Industry and Information Technology reaffirmed their commitment for nationwide 5G-Advanced. There will be demand for locally designed cellular modem ICs and modules from both procurement from operators and substitution of domestic chips. • Germany: Infineon began volume production of 300 mm power semiconductors at its Smart Power Fab in Dresden (August 2024). Infineon’s €5 billion investment, focused on power devices, will help Europe build its semiconductor ecosystem. It will assist in the manufacturing of automotive and industrial cellular-based Internet of Things (IoT) modules. • India: Tata Electronics’ semiconductor assembly and testing plant in Assam has received government approval for a planned investment of ₹27,000 crore (February 2024). Construction started in 2025. This is an important step to build domestic packaging for connectivity ICs and reduce the need for an assembly service for an extended period of time. • Japan: Rapidus started the construction of its two-nanometer semiconductor fab in Hokkaido (September 2023) and aims to have pilot-line operations in April 2025 with the government’s ¥920 billion support. Japanese automotive and industrial customers will have an opportunity to source advanced connectivity silicon domestically from 2027. Features of the Global Cellular Iot Module IC Market Market Size Estimates: cellular iot module ic market size estimation in terms of value ($B). Trend and Forecast Analysis: Market trends (2019 to 2026) and forecast (2027 to 2035) by various segments and regions. Segmentation Analysis: cellular iot module ic market size by type, product, application, and region in terms of value ($B). Regional Analysis: cellular iot module ic market breakdown by North America, Europe, Asia Pacific, and Rest of the World. Growth Opportunities: Analysis of growth opportunities in different types, products, applications, and regions for the cellular iot module ic market. Strategic Analysis: This includes M&A, new product development, and competitive landscape of the cellular iot module ic market. Analysis of competitive intensity of the industry based on Porter’s Five Forces model. If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more. This report answers following 11 key questions: Q.1. What are some of the most promising, high-growth opportunities for the cellular iot module ic market by type (4G IC, 5G IC, NB-IOT IC, and others), product (processor, sensor, and others), application (consumer electronics, industrial control, automobile, medical care, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)? Q.2. Which segments will grow at a faster pace and why? Q.3. Which region will grow at a faster pace and why? Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market? Q.5. What are the business risks and competitive threats in this market? Q.6. What are the emerging trends in this market and the reasons behind them? Q.7. What are some of the changing demands of customers in the market? Q.8. What are the new developments in the market? Which companies are leading these developments? Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth? Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution? Q.11. What M&A activity has occurred in the last 7 years and what has its impact been on the industry?