Counterpoint Research reported a 16 per cent year-on-year rise in cellular IoT module shipments during Q1, citing increased adoption for point-of-sale systems, smart metering and asset tracking applications.
The company stated gains were driven by strong demand in China, Latin America and India, with the latter clocking the highest growth rate at 32 per cent and China continuing to lead the market in terms of volume.
Counterpoint Research principal analyst Tina Lu highlighted India’s growth spurt was partly driven by the rollout of smart meters backed by supportive government policies.
Although pointing to a positive global market overall, she added there were declines in North America and parts of Asia Pacific due to “muted demand and macroeconomic headwinds”.
In terms of connectivity systems, Lu stated 5G was the fastest growing with a 37 per cent rise, attributed to increases in the router/customer premises equipment and automotive segments, especially in China.
For the mass market, she highlighted “4G Cat 1 bis is becoming the de facto standard for mass-market IoT deployments”, with shipments up 35 per cent due to “its optimal balance of performance and cost”.
“4G Cat 1 bis’ affordability, broad network support and design simplicity make it ideal for high-volume, low-complexity applications such as asset tracking and metering, disrupting legacy IoT strategies across multiple verticals,” the analyst added.
Quectel retained its position at the helm of the market with a 37 per cent share, followed by China Mobile (10 per cent) and Fibocom (8 per cent).
Counterpoint Research forecast affordable 5G reduced capability (RedCap) modules would drive “significant growth”, citing high prospects in China given expected increased penetration of standalone 5G in the country and related government initiatives.
Currently, it stated, “key applications for 5G RedCap include surveillance cameras, smart glasses, routers and MiFi devices”.