Cellular IoT Market Analysis Report By Component, By Type, By End-Use, By Region And Segment Forecasts From 2018 To 2025

Industry Insights

The global cellular IoT market size was accounted for USD 1,788.5 million, in 2016. Factors such as robust security, resilient network, and ubiquitous mobility are expected to fuel the market growth over the forecast years. IoT is a major facilitator of machine-to-person and machine-to-machine communication across various industries. The growing demand for high-density and low-power devices at a cost-effective scale is predicted to bode well for the market growth from 2017 to 2025.

Many solutions that use broadband for machine-to-machine data transfer have been employed in the market, using LTE technology. This has resulted in development in the “widespread adoption” of LTE and advancements in IoT technology are the leading factors for proliferating these solutions demand. Additionally, these networks are capable of operating with local networks such as Bluetooth and Wi-Fi. This feature is predicted to augment the use of IoT across various segments in the coming years.

Increasing IoT applications such as fleet management, automotive connectivity, wearables, and healthcare device connectivity are projected to propel cellular network growth from 2017 to 2025. Further, IoT devices are also used in other applications such as weather monitoring, flood management, traffic monitoring, smart metering, agricultural management, and infrastructure security and surveillance systems.

Several industry players are engaged in promoting cellular technology as a competent connectivity standard. These undertakings have been attracting the interest of various other participants of the value chain such as module and chipset manufacturers, IoT solution providers, carriers, and infrastructure providers. These strategic alliances are likely to accelerate the use of broadband technology over the estimated period.

Fragmentation and heavy competition from LPWAN technologies, such as SigFox and LoRA, may restrain the growth of the market; however, various efforts undertaken to standardize the market and new opportunities for cellular IoT are predicted to boost the product demand over the estimated period. 

Components Insights

The hardware category occupied a major market share owing to the large number of smart devices that are incorporated. Further, cellular technology is highly effective in addressing IoT cases that have a huge deployment of nodes and sensors and can be expanded with local connectivity. The hardware segment occupied over 65% market share in 2016.

The software category has further segregated into signal processing and device management in which device management is predicted to proliferate considerably over the forecast years. The signal processing division is projected to witness substantial growth owing to updates for LTE and developing network infrastructure for cellular connectivity. The software segment is predicted to exhibit a healthy CAGR of 23.3% from 2017 to 2025.

Type Insights

Depending on the type, the cellular IoT market is segregated into 2G, 3G, 4G, 5G, NB-LTE, LTE-M, and NB-IoT.2G held the major revenue share in 2016 as it satisfies modern options and low-cost certification and has a large customers base worldwide. However, 2G is expected to foresee plummeting in the upcoming years owing to the arrival of innovative technologies for IoT and machine-to-machine connections offering enhanced cellular services.

Technologies such as NB-IoT, LTE-M, and NB-LTE-M are anticipated to commercialize by 2017. These technologies are further predicted to grow at a faster rate from 2017 to 2025. NB-LTE-M is projected to ascend with a CAGR of 42.3% from 2017 to 2025 owing to growing preference in industrial applications. The 5G technology is expected to expand rapidly as it will be preferred for its high speed and enhanced bandwidth.

End-use Insights

The penetration of cellular technologies is predicted to be widely used in applications that involve high-density end-to-end connections and require substantial deployments. These applications are anticipated to be used in industries such as manufacturing, energy, and utilities. The energy segment occupied a major share of 21.0% in 2016 and is predicted to grow considerably over the forecast duration.

The requirement for the latest technologies such as big data, ML, AI, IoT, cloud, and economical sensor networks is necessary for industry growth. These technologies can be materialized using machine-to-machine connectivity. These applications have resulted in surging the latest technology demand in smart cities. This application is expected to grow by 23.8% from 2017 to 2025.

Regional Insights

North America is predicted to maintain its dominance in revenue terms over the forecast duration owing to extensive pursuing IoT projects by various components manufacturers and solution vendors. Factors such as increasing adoption of connected products since companies’ inception and changing technology are projected to boost the market growth in the upcoming years. The region is expected to ascend with a CAGR of 18.8% and touch USD 3.28 billion by the end of 2025.

Europe is also anticipated to foresee substantial growth in the coming years. Cellular network in IoT applications ensures widespread usage in various sectors such as smart buildings, fleet tracking, and management capillary. These applications are anticipated to augment the market growth in the Asia Pacific from 2017 to 2025. Other factors such as the development of disruptive technologies and increasing consumer goods demand are projected to further fuel the growth of the market over the estimated period.

Competitive Insights

The key players of the cellular IoT market are ZTE Corporation, Telit Communications PLC, Gemalto NV, Texas Instruments, Commsolid GmbH, Sequans Communications, MediaTek Inc., Mistbase Communication System, Sierra Wireless, and Qualcomm Inc.

The key players emphasize standardizing and increasing the usage of cellular IoT for novel applications. Several collaborations and working bodies were also promoting the use of machine-to-machine technologies, particularly 5G, NB-IoT, and LTE-M. The market participants comprised of service providers to component manufacturers to boost the use of these technologies.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Million Insights has segmented the global cellular IoT market based on components, types, end uses, and regions:

• Component Outlook (Revenue, USD Million, 2014 - 2025)
    • Hardware
    • Software
        • Device Management
        • Signal Processing

• Type Outlook (Revenue, USD Million, 2014 - 2025)
    • 2G
    • 3G
    • 4G
    • LTE-M
    • NB-LTE-M
    • NB-IoT
    • 5G

• End-use Outlook (Revenue, USD Million, 2014 - 2025)
    • Agriculture
    • Automotive & Transportation
    • Consumer Electronics
    • Energy
    • Environment Monitoring
    • Healthcare
    • Retail
    • Smart Cities
    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • the Asia Pacific
        • China
        • India
        • Japan
    • Latin America
        • Brazil
    • Middle East & Africa (MEA)