- Shipment of 4G IoT modules will peak within three years says the report
- As per the report, in 2023, 5G modules will outdo 4G module
According to a report by Strategy Analytics, sale of internet of things (IoT) cellular devices will approach 350 million per year by 2025 with China continuing to give momentum to the market. The report says that five out of the top 10 IoT module vendors by volume are Chinese but in revenue terms, only one of the top five vendors is Chinese.
The report also claims that shipment of 4G IoT modules will peak within three years. 5G modules will begin its entry slowly this year and reach a critical inflection point in 2023 when it will outdo 4G modules. The report also says that automotive vertical market will be the largest consumer of IoT cellular modules during the forecast period and will increase market share position by 2025.
Domestic preference for Chinese vendors
Andrew Brown, executive director of enterprise and IoT research at Strategy Analytics, said “With a domestic preference for Chinese vendors for large infrastructure projects at a lower price point per module in the domestic market, volumes for Chinese vendors soared globally, although vendors with a higher-end product mix and ASP saw them take a larger share of revenue, a trend we expect to see for the full year 2019 as well.”
Strategy Analytics also says that the top five suppliers of IoT cellular devices accounted for 60 per cent of global cellular IoT module shipments and the top five vendors by revenue captured 71 per cent of the market. Though Chinese vendors comprised of 42 per cent of overall volumes, it made up only 24 per cent of revenue generated says the report.