The mobile IoT module market recorded 23% year-over-year (YoY) development in Q1 2025, in keeping with IoT Analytics’ World Mobile IoT Module and Chipset Market Tracker & Forecast. This development trajectory represents the fifth consecutive quarter of enlargement for the trade, indicating restoration from the stock correction challenges that affected the sector all through 2023.
The expansion figures present how the mobile IoT module market has navigated by way of earlier headwinds. “This marks the fifth straight quarter of cargo development as stock correction drives renewed demand,” the report states.
The restoration builds upon 2024’s momentum, which noticed a 15% YoY enhance in shipments, a turnaround from the difficult 2023 interval that concluded with a 16% market decline.
A senior govt at Telit Cinterion, quoted within the report, emphasised the market’s transformation: “The stock state of affairs cleared up. This marks a return to a development trajectory for the corporate.” This sentiment displays the broader trade expertise, as elevated inventory ranges that had constrained demand all through 2023 have lastly normalised.
To understand the mobile IoT module market’s significance, take into account that in 2024, there have been 18.8 billion IoT connections globally. Of those, roughly 4 billion connections—representing 22%—utilised mobile IoT connectivity.
Amongst these mobile connections, 83% (roughly 3.3 billion) relied on pre-fabricated mobile IoT modules, whereas the remaining 17% built-in mobile connectivity instantly by way of chipsets.
Geopolitical tensions reshape the aggressive panorama
The market’s development story is more and more intertwined with geopolitical developments. Quectel, the clear world chief holding a 40% market share, discovered itself added to the US Division of Protection’s 1260H Checklist in January 2025.
This itemizing identifies “Chinese language navy corporations” working in the USA and has created ripple results all through the provision chain. Regardless of the regulatory scrutiny, Quectel maintained its management place with 31% YoY cargo development in Q1 2025.
Nonetheless, the itemizing has prompted Western gadget producers to reassess their sourcing methods. “Quectel’s itemizing on the 1260H checklist has grow to be a key dialogue level in buyer conferences,” famous a senior govt at a Western IoT module vendor throughout an interview with IoT Analytics. “Many [device manufacturers] aren’t reacting instantly, however they’re actually reviewing their sourcing methods extra severely now.”
Prime gamers and market focus
The mobile IoT module market exhibits vital focus, with the highest 5 corporations accounting for 73% of worldwide shipments in Q1 2025. Following Quectel’s 40% share, China Cellular secured second place with a 15% market share, reaching 100% year-over-year development pushed by LTE CAT 1 bis module deployment.
Fibocom holds an 8% market share with 28% development, whereas Sunsea AIoT instructions 5% with a modest 5% development. Telit Cinterion represents the one Western vendor within the prime 5, sustaining a 4% market share with 10% year-over-year development.
Strategic market shifts and new entrants
The market is witnessing vital strategic realignments past geopolitical pressures. Switzerland-based u-blox unexpectedly introduced its exit from the mobile IoT module enterprise by way of a two-part divestiture accomplished in 2025.
This exit, whereas representing just one.1% of worldwide income, has created alternatives for Western suppliers as former U-blox clients consider options. In the meantime, new market entrants are rising to handle provide chain issues.
Eagle Electronics, an Ohio-based startup backed by licensing agreements with Quectel, launched a manufacturing facility in Solon, Ohio, in December 2024. “Eagle Electronics is a completely impartial firm,” defined CEO TJ Dembinski throughout an interview with IoT Analytics.
“We’ve our personal module manufacturing facility for our model ‘Eagle Electronics.’ We’re centered on 4G modules and at present use Quectel reference designs.”
Regulatory pressures drive innovation
The European Union’s Radio Gear Directive (RED) is introducing new cybersecurity necessities that take impact on August 1, 2025. These rules mandate safe boot, encrypted communications, firmware replace mechanisms, and safety in opposition to unauthorised entry for all radio gear bought within the European Financial Space.
“The up to date RED Directive provides an entire chapter of cybersecurity necessities,” defined a senior govt at Telit Cinterion. “Whereas the top gadgets are the first focus, compliance would require new options on the module stage.”
This regulatory shift is predicted to favour clear, standards-aligned Western suppliers over some Chinese language distributors who could face compliance challenges.
Know-how traits driving development
Two key applied sciences are significantly driving market enlargement, in keeping with IoT Analytics. LTE Cat 1 bis shipments grew 122% year-over-year, gaining traction as a globally suitable, cost-effective different to NB-IoT and LTE-M.
As Abhinand Dinesh, Senior Affiliate for Company Advertising and marketing at Cavli Wi-fi, famous: “LTE CAT 1bis adoption is rising sharply… It provides a cheap, globally suitable different with adequate efficiency for many IoT purposes.”
Concurrently, 5G module shipments elevated 36% YoY, increasing in fastened wi-fi entry, automotive C-V2X, and industrial purposes. The rising 5G RedCap know-how is positioning itself as an answer for mid-tier IoT purposes, balancing value, energy, and efficiency necessities.
Market outlook and implications
IoT Analytics initiatives the mobile IoT module market will proceed rising at 17% year-over-year in 2025. Nonetheless, the trade faces a fancy panorama the place geopolitical tensions, regulatory necessities, and technological evolution intersect.
“2025 is a setup 12 months—full provider transitions and redesigned architectures could observe in 2026,” the report concludes. Whereas Western suppliers are gaining floor on safety and native manufacturing capabilities, value gaps stay a major problem in comparison with Chinese language rivals.
The mobile IoT module market’s 23% development displays the sector’s underlying fundamentals, however success will more and more rely on navigating geopolitical complexities, regulatory compliance, and technological innovation.
As gadget producers reassess their provide chains and new gamers enter the market, the trade seems poised for continued evolution all through 2025 and past.
(Picture credit score: Sahand Babali)
See additionally: Mobile IoT module income sees 8% quarterly rise however small YoY drop, says Counterpoint
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