Cellular IoT module market set to rebound in 2024 after 2023 dip

The latest research on the global cellular IoT module and chipset market has been published by IoT Analytics, a leading market insights and strategic business intelligence provider. Despite shipments of cellular IoT modules and chipsets falling 16% year-over-year in 2023, projections suggest the market will return to near 2022 levels in 2024. The anticipated growth is attributed to recent innovations in smart and AI-enabled cellular IoT modules.

An update to the Global Cellular IoT Module and Chipset Market Tracker and Forecast reveals the rise of smart and AI-enabled cellular IoT modules has played a significant role in driving this projected growth. These modules, capable of processing data and making decisions at, or near, the edge, represent the latest frontier of the cellular IoT technology. However, the capabilities of AI-enabled cellular IoT modules can vary, typically determined by the chipsets used.

Satyajit Sinha, Principal Analyst at IoT Analytics, said, "IoT devices are evolving beyond connecting devices and expanding to analysing the data they produce to make swift, informed choices. As a result, there is a growing need for more computational power and intelligence, especially at the edge closer to the data generated. This trend is also apparent in the cellular IoT field, where integrating AI with cellular IoT modules and chipsets leads to more autonomous decision-making. It also minimises data transmission over cellular networks, reducing bandwidth and costs."

Newly heightened developments in smart and AI-enabled cellular IoT modules are expected to boost the market, with shipments of these advanced modules forecasted to grow at a CAGR of 76% until 2027. Eden Chen, General Manager of MC BU at Fibocom, agreed: "AI-driven productivity is inevitably evolving as an essential to extend the capabilities of IoT devices, significantly improving operational efficiency by enriching the IoT device with edge computing."

Emerging innovations are expected to revolutionise various industries. For instance, the adoption of AI-enabled cellular modules, specifically with 5G connectivity in the automotive sector, is expected to speed up. By 2027, AI-enabled 5G modules for automotive applications are projected to constitute 21% of all AI-enabled cellular module shipments. Nevertheless, recognising the importance of varying technology needs, IoT Analytics identifies low, medium and high capabilities of AI-enabled cellular IoT modules.

The research further suggests that the current evolution of the IoT goes beyond merely connecting devices to understanding the data they produce and making informed decisions based on the analysis. Thus, computing power and intelligence, particularly at the edge where the data is generated, are increasingly becoming essential. It is therefore beneficial to have a dedicated chipset that can be used for AI inference directly on IoT devices.