Cellular Modem Market by Type (Embedded Cellular Modem, and Box Portable Cellular Modem), Technology (2G,3G,4G,5G, NB-IoT, and LTE-M), Vertical (Agriculture, Automotive & Transportation, Smart Cities, and Healthcare), Region - Global Forecast to 2028
[242 Pages Report] The cellular modem market size is projected to grow from USD 4.8 billion in 2023 and is anticipated to be USD 12.4 billion by 2028, growing at a CAGR of 20.6% from 2023 to 2028. Rapid evolution and adoption of advanced wireless technologies, and increased need for advanced connectivity solutions in Industry 4.0 era drives market growth during the forecast period. Factors such as growing trend of digital payments in FinTech sector, and increasing adoption of telemedicine and remote healthcare services provide market growth opportunities for the market.
Cellular Modem Market Forecast to 2028
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Cellular modem Market Dynamics
Driver: Rapid evolution and adoption of advanced wireless technologies
Wireless technologies have significantly impacted the growth of IoT (Internet of Things) devices. These devices rely on diverse wireless technologies, each offering unique benefits and applications. The increasing adoption of low-power wide-area networks (LPWAN), 5G, wireless sensor networks, and Internet Protocol version 6 (IPv6) is expected to drive the demand for IoT devices, necessitating various wireless technologies in the next couple of years.
With the rising volume of data exchange among numerous connected devices, there is a growing need for increased capacity, higher data rates, and enhanced connectivity. This has made 5G wireless networks a pivotal driver for IoT. 5G technology supports low-latency use cases at the network edge, enabling Communication Service Providers (CSPs) and enterprises to connect mobile and IoT devices, data centers, and both public and private cloud platforms. The evolution from Long-Term Evolution (LTE) to 5G is set to accelerate to meet the requirements of emerging IoT applications, which can be categorized as massive machine-type communication and mission-critical applications. According to the Ericsson Mobility report from June 2023, broadband IoT connections are projected to represent nearly 60% of cellular IoT connections by the end of 2028. This includes the deployment of Narrowband IoT (NB-IoT) networks by 125 service providers and the launch of Category M (Cat-M) by 56 service providers, with 40 deploying both technologies. Key cellular IoT connectivity modes include 2G, 3G, 4G, and 5G services. The report also highlights the introduction of critical IoT within 5G networks, utilizing advanced time-critical communication capabilities offered by 5G New Radio (NR).
The rapid evolution and adoption of advanced wireless technologies, particularly the widespread deployment of 5G networks and emerging IoT connectivity standards like NB-IoT and Cat-M, are poised to fuel significant growth in the cellular modem market. With 5G supporting low-latency applications and enabling seamless connectivity for a vast array of devices, including those in the IoT ecosystem, there is an increasing demand for cellular modems capable of harnessing these capabilities. These modems serve as the essential interface between devices and the high-speed, low-latency 5G networks, ensuring reliable and fast wireless connectivity. As more industries integrate IoT devices, smart technologies, and connected solutions into their operations, the need for cellular modems that can leverage the power of 5G and other advanced wireless standards becomes paramount. This growing demand is expected to drive innovation and investment in cellular modem technologies, propelling the market forward in the coming years.
Restraint: Interoperability issues within cellular networks
Interoperability issues within cellular networks present a significant challenge in technology integration. Different cellular networks, like 4G or 5G, often operate on varying frequencies and protocols, even within the same generation. This diversity can lead to compatibility problems, especially when devices from different manufacturers need to communicate or when attempting to integrate older technologies with newer ones. For instance, a device designed for 4G might not seamlessly interact with a network optimized for 5G, causing disruptions in data transmission or, in worst-case scenarios, rendering the device non-functional.
Addressing these interoperability issues requires meticulous planning and a deep understanding of the nuances of each cellular technology. Manufacturers and developers must invest in research and development to create cellular modems that can seamlessly bridge the gap between different networks. Standardization efforts play a crucial role here, ensuring that devices adhere to universally accepted protocols. Additionally, ongoing collaborations between cellular network providers and device manufacturers are essential to streamline compatibility between various generations of cellular technologies. Overcoming these interoperability hurdles is vital for the widespread adoption of cellular modems, especially in applications that rely on diverse networks, such as the Internet of Things (IoT) and smart cities, where different devices need to communicate seamlessly for efficient operations.
Opportunity: Increasing adoption of telemedicine and remote healthcare services
The increasing adoption of telemedicine and remote healthcare services has revolutionized the healthcare industry, offering patients access to medical consultations and monitoring without needing physical visits to healthcare facilities. One of the critical enablers of this transformative shift is robust cellular connectivity facilitated by cellular modems. These modems ensure that remote patient monitoring devices, such as wearable health trackers and IoT-enabled medical equipment, can seamlessly transmit real-time health data to healthcare providers. This continuous flow of information allows healthcare professionals to monitor patients' vital signs, track medication adherence, and detect potential health issues remotely. Virtual consultations, enabled by cellular modems, facilitate secure video calls between patients and doctors, ensuring timely medical advice and reducing the burden on physical healthcare facilities.
Furthermore, cellular connectivity plays a pivotal role in data exchange between medical devices and centralized healthcare systems. In real-time, medical devices embedded with cellular modems, such as glucose, blood pressure, and cardiac monitors, can securely transmit patient data to electronic health records (EHR) systems. This real-time data exchange enhances healthcare providers' ability to make informed decisions, personalize treatment plans, and respond promptly to emergencies. With the global demand for telehealth solutions rising, cellular modems are integral in ensuring reliable, secure, and high-speed connectivity, thereby creating significant growth opportunities in the cellular market, particularly within the healthcare sector.
Challenge: Limited coverage of cellular networks in remote or rural areas
The limited coverage of cellular networks in remote or rural areas presents a considerable challenge for businesses and organizations deploying IoT devices. In these areas, where the population density is low, and the geographical terrain might be challenging, cellular network infrastructure deployment becomes economically unfeasible for telecommunication companies. Consequently, businesses operating in agriculture, environmental monitoring, or energy production, which often require IoT devices for data collection and analysis, face significant hurdles. Without reliable cellular connectivity, these IoT devices cannot transmit data, making monitoring equipment, collecting vital environmental data, or executing automated processes difficult. This limitation impedes the adoption of advanced technologies in these sectors, hindering efficiency improvements and data-driven decision-making in remote or underserved regions.
Moreover, limited coverage adversely affects essential services in remote areas, such as emergency response systems and public safety networks. During emergencies or natural disasters, when communication is crucial for coordinating rescue efforts and providing aid, the absence of cellular coverage severely hampers response capabilities. This situation not only endangers lives but also exacerbates the challenges faced by first responders. Businesses and organizations seeking to deploy IoT solutions in such areas must explore alternative connectivity options, such as satellite-based or Low Power Wide Area Network (LPWAN) technologies, to ensure uninterrupted communication and data transmission even in regions lacking reliable cellular network coverage.
Cellular Modem Market Ecosystem
The cellular modem market is consolidated. It is marked by the presence of a few tier-1 companies, such as Digi International Inc. (US), Sierra Wireless (Canada), Qualcomm Technologies, Inc. (US), D-Link Corporation (Taiwan); and Huawei Device Co., Ltd. (China). These companies have created a competitive ecosystem by investing in research and development activities to launch highly efficient and reliable cellular modems.
Box portable cellular modem segment to hold the second largest share of market during the forecast period
The box portable cellular modem market is experiencing significant growth driven by several key factors. Firstly, the increasing demand for high-speed and reliable internet connectivity across various applications and industries fuels the adoption of box portable cellular modems. These modems provide a convenient solution for businesses and consumers seeking robust internet connectivity without complex installations or extensive wiring. The growing trend of remote work, online education, and telemedicine services has amplified the need for efficient and stable Internet connections. Box portable cellular modems offer a plug-and-play solution, making them particularly attractive for temporary setups, remote locations, and businesses looking for quick and easy internet access solutions.
5G cellular modem segment to display highest CAGR during forecast period
The latest advancement in cellular technology, 5G, introduced a new era of connectivity characterized by ultra-fast data rates, low latency, and massive device connectivity. 5G cellular modems are at the forefront of this revolution, enabling groundbreaking applications such as augmented reality, autonomous vehicles, and IoT devices on an unprecedented scale. These modems harness the power of fifth-generation networks, facilitating rapid and stable data transmission even in densely populated areas. 5G cellular modems are instrumental in realizing the full potential of the Internet of Things and other cutting-edge technologies.
Energy & Utilities segment to hold the largest share of market between 2023 and 2028.
Cellular modems play a critical role in the energy and utilities sector, transforming traditional infrastructure into smart and efficient systems. These modems provide reliable and secure communication solutions, enabling real-time data transmission, remote monitoring, and control in various aspects of the energy and utilities industry. One of the key applications of cellular modems in this sector is smart metering. Smart meters equipped with cellular modems to collect and transmit real-time energy consumption data from households and businesses. This data is then used for accurate billing, demand forecasting, and load management. Cellular modems ensure continuous communication between smart meters and utility servers, improving operational efficiency and customer service, even in remote or challenging environments.
Asia Pacific to grow at the fastest CAGR during the forecast period.
During the forecast period, Asia Pacific is expected to grow at the highest rate in the global cellular modem market. A number of significant factors are driving the considerable expansion of the market in the Asia Pacific region. The need for cellular modems is rising in this region due to rapid urbanization and increasing internet penetration, especially in places with limited access to wired broadband connections. The demand for smooth and dependable internet connectivity is driving the adoption of cellular modems due to the expansion of smartphones and loT devices and government initiatives supporting digitalization and smart city projects. Businesses and individuals are being encouraged to invest in cutting-edge cellular modem solutions by the ongoing rollout of 4G and 5G networks in several Asian nations, which are improving network capabilities and providing faster data speeds.
Cellular Modem Market by Region
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Key Market Players
The cellular modem companies is dominated by globally established players such as Digi International Inc. (US), Sierra Wireless (Canada), Qualcomm Technologies, Inc. (US), D-Link Corporation (Taiwan); Huawei Device Co., Ltd. (China); TP-Link Corporation Limited. (China); Xiamen Baima Technology Co., Ltd (China); NETGEAR (US); Advantech Co., Ltd. (Taiwan); Cisco Systems, Inc. (US); Moxa Inc. (Taiwan); Multi-Tech Systems, Inc. (US); Belkin (US); Peplink (US); Robustel (China); LANTRONIX, INC. (US); InHand Networks (US); Motorola Mobility LLC (US); Bentek Systems (Canada); Campbell Scientific, Inc.(US); Red Lion (US); Shenzhen Wlink Technology Co., LTD. (China); Jinan USR IOT Technology Limited (China); Bivocom (China); and Airgain, Inc.(US). These players have adopted product launches/developments, contracts, collaborations, agreements, and acquisitions for growth in the market.
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Report Metric |
Details |
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Estimated Value |
USD 4.8 billion |
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Expected Value |
USD 12.4 billion |
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Growth Rate |
CAGR of 20.6% |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Million/Billion) and Volume (Million) |
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Segments Covered |
By Type, By Technology, By Vertical, and By Region |
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Region covered |
North America, Europe, Asia Pacific, and the Rest of the World |
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Companies covered |
The key players in the cellular modem market are Digi International Inc. (US), Sierra Wireless (Canada), Qualcomm Technologies, Inc. (US), D-Link Corporation (Taiwan); Huawei Device Co., Ltd. (China); TP-Link Corporation Limited. (China); Xiamen Baima Technology Co., Ltd (China); NETGEAR (US); Advantech Co., Ltd. (Taiwan); Cisco Systems, Inc. (US); Moxa Inc. (Taiwan); Multi-Tech Systems, Inc. (US); Belkin (US); Peplink (US); Robustel (China); LANTRONIX, INC. (US); InHand Networks (US); Motorola Mobility LLC (US); Bentek Systems (Canada); Campbell Scientific, Inc.(US); Red Lion (US); Shenzhen Wlink Technology Co., LTD. (China); Jinan USR IOT Technology Limited (China); Bivocom (China); and Airgain, Inc.(US) |
Cellular Modem Market Highlights
The study categorizes the cellular modem market-based type, technology, vertical, and region.
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Segment |
Subsegment |
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By Type |
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By Technology |
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By Vertical |
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By Region |
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Recent Developments
- In March 2023, Digi International Inc. (US) expanded its Digi XBee 3 Global Cellular product family by launching Digi XBee 3 Cellular LTE Cat 1 and Digi XBee 3 Cellular LTE-M/NB-IoT smart modems. These compact and pre-certified modems offer secure and programmable cellular connectivity for IoT devices and gateways, reducing development costs and time. They support LTE Cat 1, LTE-M, and NB-IoT networks with 2G/3G fallback.
- In February 2023, Qualcomm Technologies (US) introduced the Snapdragon X35 5G Modem-RF System. It bridges the gap between high-speed mobile broadband devices and low-bandwidth NB-IoT devices, enabling smaller, more cost-efficient, and longer battery-life devices. The Snapdragon X35 offers a streamlined architecture with superior power and thermal efficiency, allowing for a small form factor design tailored to compact devices.
- In November 2022, Qualcomm Technologies (US) and Siemens Smart Infrastructure (Switzerland) collaborated to develop new smart building automation systems using 5G private networks. They implemented Qualcomm's Snapdragon X55 5G Modem-RF System to create a more efficient, secure, and cost-effective system.
Frequently Asked Questions (FAQ’s):
Which are the major companies in the cellular modem market? What are their major strategies to strengthen their market presence?
Digi International Inc. (US), Sierra Wireless (Canada), Qualcomm Technologies, Inc. (US), D-Link Corporation (Taiwan); and Huawei Device Co., Ltd. (China) are some of the major companies operating in the cellular modem market. Partnerships, and product launches were the key strategies these companies adopted to strengthen their cellular modem market presence
What are the drivers for the cellular modem market?
Drivers for the cellular modem market are:
- Rapid evolution and adoption of advanced wireless technologies
- High demand for smart home devices
- Increased need for advanced connectivity solutions in Industry 4.0 era
- Indispensable need for edge computing in IoT
- Strong preference for e-learning and online education
What are the challenges in the cellular modem market?
Limited coverage of cellular networks in remote or rural areas, and hampered performance in adverse weather conditions are among the challenges faced by the cellular modem market.
What are the technological trends in the cellular modem market?
Massive MIMO, Beamforming, and Carrier aggregation are a few of the key technology trends in the cellular modem market.
What is the total CAGR expected to be recorded for the cellular modem market from 2023 to 2028?
The CAGR is expected to record a CAGR of 20.6% from 2023-2028.
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The study involved four major activities in estimating the size of the cellular modem market. Exhaustive secondary research has been done to collect information on the market, peer market, and parent market. Validation of these findings, assumptions, and sizing with industry experts across the value chain through primary research has been the next step. Both top-down and bottom-up approaches have been employed to estimate the global market size. After that, market breakdown and data triangulation have been used to estimate the market sizes of segments and subsegments.
Secondary Research
Revenues of companies offering cellular modems worldwide have been obtained based on the secondary data accessed through paid and unpaid sources. They have also been derived by analyzing the product portfolios of key companies, rated according to the performance and quality of their products.
In the secondary research process, various secondary sources have been referred to for identifying and collecting information related to this study. The secondary sources include annual reports, press releases, and investor presentations of companies; white papers, certified publications, and articles by recognized authors; directories; and databases. Secondary research has been mainly carried out to obtain key information about the supply chain of the cellular modem ecosystem, the value chain of the market, the total pool of the key players, market classification, and segmentation according to the industry trends to the bottom-most level, geographic markets, and key developments from both markets- and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information important for this report. Primary sources from the supply side included industry experts such as chief executive officers (CEOs), vice presidents, marketing directors, technology and innovation directors, and related executives from various key companies and organizations operating in the cellular modem market. After the complete market engineering (including calculations for the market statistics, market breakdown, data triangulation, market estimation, and market forecasting), extensive primary research was conducted to gather information and verify and validate the critical numbers obtained.
Primary research was also conducted to identify the segmentation, industry trends, key players and to analyze the competitive landscape and key market dynamics such as drivers, restraints, opportunities, challenges, and Porter’s five forces analysis, as well as growth strategies adopted by various key market players. Approximately 45% and 55% of primary interviews were conducted for the demand and supply sides.
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Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the total size of the cellular modem market. These methods have also been extensively used to estimate the sizes of various market subsegments. The research methodology used to estimate the market sizes includes the following:
- Identifying verticals that are either using or are expected to use cellular modem products and solutions.
- Tracking leading companies and system integrators operating across various verticals.
- Deriving the size of the cellular modem market through the data sanity method, analyzing revenues of more than 25 key providers through their annual reports and press releases, and summing them up to estimate the overall market size.
- Carrying out the market trend analysis to obtain the CAGR of the cellular modem market by understanding the penetration rate and analyzing the demand and supply of cellular modem products and solutions in different verticals.
- Assigning a percentage to the overall revenue or, in a few cases, to segmental revenues of each company to derive their revenues from the sales of cellular modem products and solutions. This percentage for each company has been assigned based on their product portfolios and the range of their cellular modem offerings.
- Verifying and crosschecking estimates at every level through discussions with the key opinion leaders, including CXOs, directors, and operation managers, and with domain experts at MarketsandMarkets.
- Studying various paid and unpaid information sources such as annual reports, press releases, white papers, and databases.
- Tracking companies' ongoing and upcoming cellular modem implementation projects and forecasting the market size based on these developments and other critical parameters.
Market Size Estimation Methodology-Bottom-up Approach
Market Size Estimation Methodology-Top-Down Approach
Data Triangulation
After arriving at the overall market size from the market size estimation process explained above, the total market was split into several segments and subsegments. The market breakdown and data triangulation procedures were employed wherever applicable to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market size was validated using both top-down and bottom-up approaches.
Market Definition
Cellular modems are devices that connect to the internet network through SIM cards or Ethernet cables, extending network capabilities to devices like laptops and desktops. Cellular modems play a crucial role in providing internet connectivity in areas where wired broadband connections are not feasible or available. It relies on 2G, 3G, 4G, 5G, and LPWAN technologies, such as LTE-M and NB-IoT, for the transmission and reception of data. The 3rd Generation Partnership Project (3GPP) maintains the standards for cellular network technology which is responsible for developing the protocols for each next-generation cellular network. These modems have become essential in modern applications, providing reliable connectivity and enabling efficient data management.
Key Stakeholders
- Semiconductor component manufacturers and distributors
- Cellular modem and chipset manufacturers
- Networking component providers
- Companies providing wired and wireless connectivity services
- Software platform providers
- Original equipment manufacturers (OEMs)
- Research organizations and consulting companies
- Government bodies such as regulating authorities and policymakers
- Venture capitalists and private equity firms
- Associations, organizations, and alliances related to the cellular modem ecosystem
- End users of cellular modem devices and solutions across various verticals, such as agriculture, automotive & transportation, building automation, consumer electronics, energy & utility, healthcare, industrial/manufacturing, retail, and smart cities.
Research Objectives
- To define and forecast the cellular modem market based on type, technology, vertical, and region in terms of volume and value
- To describe and forecast the cellular modem market based on four key regions, namely, North America, Europe, Asia Pacific, and RoW, along with their respective countries
- To provide detailed information regarding drivers, restraints, opportunities, and challenges influencing the growth of the market
- To strategically analyze micromarkets1 with respect to individual growth trends, prospects, and contributions to the overall market size
- To study the complete value chain of the cellular modem market
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the cellular modem ecosystem
- To strategically profile the key players and comprehensively analyze their market positions in terms of their ranking and core competencies2, and provide a detailed competitive landscape
- To analyze competitive developments, such as product launches and developments, acquisitions, collaborations, agreements, and partnerships, in the cellular modem market
Available Customizations:
MarketsandMarkets offers the following customizations for this market report:
- Further breakdown of the market in different regions at the country-level
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Cellular Modem Market