The mobile IoT module market recorded 23% year-over-year (YoY) progress in Q1 2025, in accordance with IoT Analytics’ World Mobile IoT Module and Chipset Market Tracker & Forecast. This progress 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 via earlier headwinds. “This marks the fifth straight quarter of cargo progress as stock correction drives renewed demand,” the report states.
The restoration builds upon 2024’s momentum, which noticed a 15% YoY improve in shipments, a turnaround from the difficult 2023 interval that concluded with a 16% market decline.
A senior government at Telit Cinterion, quoted within the report, emphasised the market’s transformation: “The stock scenario cleared up. This marks a return to a progress 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 immediately via chipsets.
Geopolitical tensions reshape the aggressive panorama
The market’s progress 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 Listing in January 2025.
This itemizing identifies “Chinese language navy firms” working in the US and has created ripple results all through the provision chain. Regardless of the regulatory scrutiny, Quectel maintained its management place with 31% YoY cargo progress in Q1 2025.
Nevertheless, the itemizing has prompted Western system producers to reassess their sourcing methods. “Quectel’s itemizing on the 1260H listing has develop into a key dialogue level in buyer conferences,” famous a senior government at a Western IoT module vendor throughout an interview with IoT Analytics. “Many [device manufacturers] aren’t reacting instantly, however they’re definitely reviewing their sourcing methods extra significantly now.”
High gamers and market focus
The mobile IoT module market reveals important focus, with the highest 5 firms accounting for 73% of worldwide shipments in Q1 2025. Following Quectel’s 40% share, China Cell secured second place with a 15% market share, attaining 100% year-over-year progress pushed by LTE CAT 1 bis module deployment.
Fibocom holds an 8% market share with 28% progress, whereas Sunsea AIoT instructions 5% with a modest 5% progress. Telit Cinterion represents the one Western vendor within the prime 5, sustaining a 4% market share with 10% year-over-year progress.
Strategic market shifts and new entrants
The market is witnessing important strategic realignments past geopolitical pressures. Switzerland-based u-blox unexpectedly introduced its exit from the mobile IoT module enterprise via a two-part divestiture accomplished in 2025.
This exit, whereas representing only one.1% of worldwide income, has created alternatives for Western suppliers as former U-blox prospects consider alternate options. In the meantime, new market entrants are rising to deal with provide chain considerations.
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 unbiased firm,” defined CEO TJ Dembinski throughout an interview with IoT Analytics.
“We’ve got our personal module manufacturing facility for our model ‘Eagle Electronics.’ We’re targeted on 4G modules and at the moment 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 laws mandate safe boot, encrypted communications, firmware replace mechanisms, and safety towards unauthorised entry for all radio tools offered within the European Financial Space.
“The up to date RED Directive provides a complete chapter of cybersecurity necessities,” defined a senior government at Telit Cinterion. “Whereas the top units are the first focus, compliance would require new options on the module degree.”
This regulatory shift is predicted to favour clear, standards-aligned Western suppliers over some Chinese language distributors who might face compliance challenges.
Expertise developments driving progress
Two key applied sciences are notably driving market enlargement, in accordance 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 gives a cheap, globally suitable different with enough efficiency for many IoT functions.”
Concurrently, 5G module shipments elevated 36% YoY, increasing in mounted wi-fi entry, automotive C-V2X, and industrial functions. The rising 5G RedCap know-how is positioning itself as an answer for mid-tier IoT functions, balancing value, energy, and efficiency necessities.
Market outlook and implications
IoT Analytics tasks the mobile IoT module market will proceed rising at 17% year-over-year in 2025. Nevertheless, the trade faces a fancy panorama the place geopolitical tensions, regulatory necessities, and technological evolution intersect.
“2025 is a setup yr—full provider transitions and redesigned architectures might comply with in 2026,” the report concludes. Whereas Western suppliers are gaining floor on safety and native manufacturing capabilities, worth gaps stay a big problem in comparison with Chinese language rivals.
The mobile IoT module market’s 23% progress displays the sector’s underlying fundamentals, however success will more and more depend upon navigating geopolitical complexities, regulatory compliance, and technological innovation.
As system 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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