Cellular Modem Market Size, Share and Growth Analysis

Updated on : October 22, 2024

Cellular Modem Market Size & Growth

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 cellular modem market.

Cellular Modem Market Forecast to 2028

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Cellular Modem Market Trends:

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 modem 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.

Mobile Broadband Modem Market Insights and Growth Prospects:

The mobile broadband modem market is witnessing significant growth, driven by advancements in 5G technology, increasing adoption of IoT, and rising demand for high-speed internet across industries. These modems enable seamless connectivity for applications in agriculture, healthcare, transportation, and smart cities. Key players like Huawei, Qualcomm, and Samsung are actively innovating to enhance performance, reliability, and integration with emerging technologies like NB-IoT and LTE-M. The market is projected to expand further as demand for efficient, high-speed connectivity grows globally, especially in developing regions.

Cellular Modem Market Ecosystem

The cellular modem market share 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.

Cellular Modem Market Segmentation

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 cellular modem 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.

Cellular Modem Industry Regional Analysis

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 share. 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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Top Cellular Modem Companies - 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);
• Airgain, Inc.(US).

Cellular Modem Market Report Scope

Cellular Modem Market Highlights

The study categorizes the cellular modem market-based type, technology, vertical, and region.

Recent Developments in Cellular Modem Industry

• 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):

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