From smart meters to connected cars, cellular IoT shipments surged 15% in 2025, powered by Cat‑1 bis dominance, rapid 5G adoption and emerging market demand.
Global shipments of cellular IoT modules increased by 15% year-on-year (YoY) in 2025, driven by strong demand across applications such as smart metering, asset tracking, point-of-sale (POS) systems and automotive connectivity, according to a report by Counterpoint Research.
China remained the largest market, accounting for significant volumes in POS, surveillance and tracking, while India recorded the fastest growth at 33% YoY. Other emerging markets, including Latin America and the Middle East, also expanded above the global average.
As per the report, key development was the rise of 4G Cat-1 bis, which accounted for half of all shipments and has become the preferred choice for large-scale IoT deployments due to its balance of cost and performance.
At the same time, 5G module shipments grew at nearly three times the industry average, particularly in high-bandwidth segments such as automotive, routers and PCs.
The year also saw the early commercialisation of 5G RedCap in China, expected to bridge the gap between low-power IoT and full-scale 5G in future deployments.
Vendors increasingly shifted towards AI-enabled IoT modules, integrating edge processing and secure platforms to support real-time analytics. However, average selling prices remained under pressure due to intense competition, particularly from Chinese suppliers. Rising memory costs in late 2025 further impacted bill of materials for 5G and smart modules, prompting vendors to adjust production strategies and prioritise higher-margin products.
Quectel maintained its global lead, with shipments rising 11% YoY and a 36% market share. China Mobile followed with an 11% share and a 45% surge in shipments, while Sunsea, at 8% market share, reported a 37% increase.
Lierda emerged as one of the fastest-growing vendors with a 69% increase in shipments. Outside China, Telit Cinterion led international markets, supported by strong demand in telematics, healthcare and energy. ZXinfoTek also strengthened its position in the Cat-1 bis segment, particularly in POS and IP cameras.
Looking ahead, analysts expect continued growth in 2026, supported by infrastructure digitisation in emerging markets and wider adoption of 5G RedCap as coverage expands and module pricing becomes more competitive.
