5G IoT Modules Rise Amid Global Shipment Decline in Q3 2023 – BNN Breaking

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5G-Enabled IoT Modules Gain Market Share Amid Overall Shipment Decline

The global cellular Internet of Things (IoT) module market experienced a 2% year-on-year decline in shipments in the third quarter of 2023, despite this, the market share of 5G-enabled cellular IoT modules surpassed the 5% mark for the first time. This milestone signifies a budding interest in 5G technology, albeit limited by the lack of compelling use cases and the steep cost of 5G devices. Presently, 5G usage is primarily seen among early adopters in industries such as routers/customer premises equipment (CPE), personal computers (PCs), and automotive.

Driving Forces and Impediments in the Market

The report by Counterpoint Research identified the five leading applications driving the market: smart meters, automotive, point of sale (POS) systems, routers/CPE, and telematics. These segments collectively account for over 60% of total cellular IoT module shipments. However, only smart meters and router/CPE segments exhibited shipment growth, while the others experienced declines, thus contributing to the overall market slump.

Regional Trends and Market Leaders

Regionally, India emerged as the sole bright spot with positive shipment growth, while other regions, excluding China and India, faced steeper declines. Market leader Quectel, along with Telit Cinterion, a prominent international vendor, also reported reduced shipment volumes in the face of muted demand.

Outlook for 2023

Looking ahead, the report anticipates a 5% decline in full-year shipments for 2023, reflecting a subdued demand in the global cellular IoT module market. The broader adoption of 5G, while promising, remains challenged by the absence of strong use cases and premium pricing of devices.

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