Cellular Modem Market Size was estimated at 4.8 (USD Billion) in 2023. The Cellular Modem Market industry is expected to grow from 4.92 (USD Billion) in 2024 to 28.3 (USD Billion) by 2032. The Cellular Modem Market CAGR (growth rate) is expected to be around 21% during the forecast period (2024-2032).
Key market drivers for cellular modems include: the proliferation of Internet of Things (IoT) devices, the transition to 5G networks, and government mandates for connected vehicles. As IoT devices become more prevalent in industries such as manufacturing, healthcare, and transportation, the demand for cellular modems to facilitate wireless connectivity increases.
Opportunities for exploration in the cellular modem market lie in the adoption of Narrowband-IoT (NB-IoT) and LTE-M technologies. These technologies offer low-power consumption and wide-area coverage, making them suitable for applications such as smart metering and asset tracking.
Recent trends in the cellular modem market include the integration of artificial intelligence (AI) and machine learning (ML) algorithms. These algorithms enable modems to optimize network performance, detect and mitigate security threats, and improve power efficiency. Additionally, the emergence of embedded SIM (eSIM) technology provides greater flexibility for device manufacturers and mobile network operators.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The increasing adoption of IoT devices across various industries is driving the demand for cellular modems, which enable these devices to connect to the internet and transmit data. Cellular modems provide reliable and secure connectivity, making them an essential component for IoT applications in sectors such as manufacturing, healthcare, transportation, and smart cities. The rising popularity of smart homes and connected cars is further fueling the demand for cellular modems, as these devices require seamless and efficient wireless connectivity to operate effectively.
The rollout of 5G networks across the globe is creating new opportunities for the cellular modem market. 5G offers significantly faster speeds, lower latency, and increased capacity compared to previous generations of cellular technology. These advancements are enabling new applications and use cases that require high-bandwidth and real-time data transmission, such as autonomous vehicles, remote surgery, and industrial automation. Cellular modems are essential for accessing 5G networks and unlocking the benefits of this transformative technology.
Governments worldwide are recognizing the importance of cellular connectivity for economic development and social progress. Many countries are implementing policies and initiatives to encourage the adoption of cellular technologies and infrastructure. These initiatives include subsidies for cellular modem deployment, support for research and development, and the establishment of dedicated spectrum bands for cellular communication. Government support is playing a crucial role in expanding the reach and accessibility of cellular modems, particularly in underserved and rural areas.
The Cellular Modem Market is segmented by Device Type into Embedded and Removable. The Embedded segment is expected to account for a larger market share in 2023, owing to the growing adoption of embedded cellular modems in various IoT devices. Embedded cellular modems are integrated into the device's hardware, providing seamless connectivity without the need for external peripherals. The Removable segment, on the other hand, is expected to witness significant growth in the coming years, driven by the increasing popularity of removable cellular modems in laptops, tablets, and other mobile devices.Removable cellular modems offer flexibility and convenience, allowing users to switch between different cellular networks or replace the modem if necessary. The Cellular Modem Market for Embedded devices is projected to reach a valuation of 8.23 Billion USD by 2032, exhibiting a CAGR of 7.8% during the forecast period. The increasing adoption of IoT devices across industries such as healthcare, manufacturing, and transportation is fueling the growth of the Embedded segment. Embedded cellular modems enable these devices to connect to cellular networks, facilitating remote monitoring, data collection, and control.The Removable Cellular Modem Market is anticipated to grow at a CAGR of 6.9% over the next decade, reaching a market size of 6.07 Billion USD by 2032. The rising demand for removable cellular modems in mobile devices is driving the growth of this segment. Removable cellular modems provide users with the flexibility to connect to different cellular networks or swap out the modem if needed. This is particularly beneficial for users who travel frequently or require connectivity in multiple locations. 
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Cellular Modem Market is segmented by Frequency band into Sub-6 GHz, mmWave, and LTE/NR. In 2023, the Sub-6 GHz segment held the largest market share, accounting for over 80% of the Cellular Modem Market revenue. The mmWave segment is expected to grow at the highest CAGR during the forecast period, driven by the increasing demand for high-speed data services. The LTE/NR segment is also expected to grow at a significant rate, driven by the increasing adoption of LTE and NR technologies. The mmWave band offers significantly higher bandwidth and speeds, enabling applications such as ultra-high-definition video streaming and virtual reality.The LTE/NR band provides a balance between coverage and speed, making it suitable for a variety of applications, including mobile broadband, IoT devices, and fixed wireless access.
The Cellular Modem Market segmentation by Application offers valuable insights into the performance and potential of different end-use industries. Key segments such as Automotive, Industrial, Consumer Electronics, and Healthcare contribute significantly to the overall market revenue. The Automotive segment holds a substantial market share due to the increasing adoption of cellular modems in connected cars, autonomous vehicles, and telematics systems. The Industrial segment is driven by the growing demand for cellular modems in remote monitoring, asset tracking, and industrial automation applications.Consumer Electronics, including smartphones, tablets, and laptops, represent a large market for cellular modems as they provide connectivity for internet access, data sharing, and various online services. The Healthcare segment is expected to witness significant growth in the coming years, driven by the adoption of cellular modems in telemedicine, remote patient monitoring, and medical device connectivity.
The Cellular Modem Market is segmented by Form Factor into M.2, PCIe, and USB. The M.2 segment is expected to hold the largest market share in 2023 due to its compact size and high performance. The PCIe segment is expected to grow at the highest CAGR during the forecast period due to its increasing adoption in high-end devices. The USB segment is expected to account for a significant market share due to its ease of use and affordability. In 2023, the Cellular Modem Market revenue for the Form Factor segment is expected to be around USD 14.32 billion.The M.2 segment is expected to account for around 40% of the market share, followed by the PCIe segment with around 30% market share. The USB segment is expected to account for around 25% of the market share. The market growth for the Form Factor segment is expected to be driven by the increasing adoption of cellular modems in various industries, such as automotive, healthcare, and manufacturing.
The technology segment of the Cellular Modem Market is categorized into 4G LTE, 5G NR, and 5G NR+. 4G LTE technology currently holds the largest market share, driven by its wide adoption in smartphones and other mobile devices. However, 5G NR is expected to witness significant growth in the coming years, owing to its superior speed and performance capabilities. 5G NR+ is a newer technology that offers even higher speeds and lower latency than 5G NR, and is expected to gain traction in the market in the long term. The Cellular Modem Market for 4G LTE technology is valued at USD 8.34 billion in 2023 and is expected to reach USD 12.23 billion by 2032, exhibiting a CAGR of 4.7% during the forecast period.The 5G NR technology segment is anticipated to grow at a CAGR of 22.6%, reaching a valuation of USD 10.87 billion by 2032 from USD 2.96 billion in 2023. 5G NR+ technology is projected to have a CAGR of 30.2%, reaching a market value of USD 4.12 billion by 2032 from USD 0.95 billion in 2023. These growth projections indicate the increasing adoption of advanced cellular modem technologies in various industries, such as telecommunications, automotive, and healthcare.
Major players are continuously developing and launching advanced cellular modems to cater to the evolving needs of various end-use industries. For instance, in 2023, Qualcomm Technologies, Inc. announced the launch of its Snapdragon X75 modem-RF system, which offers support for 5G Advanced and Wi-Fi 7 technologies.
Leading players are also engaging in strategic partnerships and collaborations to expand their market reach and strengthen their product offerings. Recent examples include the partnership between Thales and Qualcomm Technologies, Inc. to develop and deploy cellular modems for the automotive industry. Furthermore, the Cellular Modem Market is witnessing a trend towards the adoption of embedded cellular modems. This is driven by the increasing demand for connected devices and the need for seamless connectivity in various applications such as IoT, automotive, and healthcare.
Qualcomm Technologies, Inc. is a leading player in the Cellular Modem Market development. The company offers a wide range of cellular modems that support various connectivity standards, including 5G, LTE, and 3G. Qualcomm Technologies, Inc.'s modems are widely used in smartphones, tablets, and other mobile devices. The company also provides cellular modems for industrial applications, such as IoT devices and automotive systems.
Sierra Wireless, Inc. is another major player in the Cellular Modem Market Competitive Landscape. The company offers a range of cellular modems that are designed for use in a variety of applications, including IoT, automotive, and healthcare. Sierra Wireless, Inc.'s modems are known for their reliability, performance, and ease of use. The company also provides a range of software and services to support its cellular modems.
DLink Corporation
Huawei Technologies Co. Ltd.
SIMCom Wireless Solutions Co. Ltd.
Qualcomm Technologies Inc.
Quectel Wireless Solutions Co. Ltd.
Sierra Wireless
Gemalto NV
Thales Group
Fibocom Wireless Inc.
Broadcom Inc.
ublox AG
Ericsson AB
Telit Communications
The Cellular Modem Market is projected to grow from USD 14.32 billion in 2023 to USD 27.22 billion by 2032, exhibiting a CAGR of 7.39% during the forecast period. The market growth is attributed to the increasing demand for cellular connectivity in various applications, such as automotive, healthcare, and industrial automation. Additionally, the rollout of 5G networks and the growing adoption of Internet of Things (IoT) devices are expected to fuel market expansion.
Recent news developments in the cellular modem market include:
In February 2023, Qualcomm Technologies, Inc. announced the launch of its Snapdragon X75 modem-RF system, which supports 5G Advanced and Wi-Fi 7 technologies.
In March 2023, MediaTek Inc. unveiled its Dimensity 9200 chipset, which integrates a 5G modem with support for mmWave and sub-6 GHz frequencies.
In April 2023, Ericsson and Qualcomm Technologies collaborated to develop and deploy 5G solutions for industrial IoT applications.
These developments indicate the ongoing advancements and competitive landscape in the cellular modem market, shaping the future growth trajectory.
| Report Attribute/Metric | Details |
| Market Size 2023 | 4.8 (USD Billion) |
| Market Size 2024 | 4.92 (USD Billion) |
| Market Size 2032 | 28.3 (USD Billion) |
| Compound Annual Growth Rate (CAGR) | 21% (2024-2032) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019-2023 |
| Market Forecast Units | USD Billion |
| Key Companies Profiled | DLink Corporation, Huawei Technologies Co., Ltd., MediaTek Inc., SIMCom Wireless Solutions Co., Ltd., Qualcomm Technologies, Inc., Quectel Wireless Solutions Co., Ltd., Sierra Wireless, Gemalto NV, Thales Group, Fibocom Wireless Inc., Broadcom Inc., ublox AG, Ericsson AB, Telit Communications |
| Segments Covered | Device Type, Frequency band, Application, Form Factor, Technology, Region |
| Key Market Opportunities | 5G network expansion IoT device proliferation Smart cities development Remote Monitoring amp Control Industrial Automation |
| Key Market Dynamics | 5G network expansion IoT device proliferation smart cities development rising demand for lowlatency connectivity automotive cellular connectivity initiatives |
| Countries Covered | North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Cellular Modem Market is anticipated to be valued at approximately USD 4.92 Billion in 2024.
The Cellular Modem Market is projected to witness a CAGR of approximately 21% from 2023 to 2032.
The Cellular Modem Market is anticipated to reach a valuation of approximately USD 28.3 Billion by 2032.
The Asia Pacific region is projected to dominate the Cellular Modem Market by 2032.
Cellular Modems are primarily utilized in applications such as mobile broadband, M2M communication, automotive telematics, and industrial automation.
Major competitors in the Cellular Modem Market include Qualcomm, Thales, Sierra Wireless, Huawei, and Ericsson.
Factors driving the growth of the Cellular Modem Market include the increasing adoption of IoT devices, the growing demand for mobile broadband connectivity, and the advancements in cellular technologies.
Challenges faced by the Cellular Modem Market include the high cost of cellular modems, the limited availability of spectrum, and the security concerns associated with cellular networks.
Opportunities for growth in the Cellular Modem Market lie in the expansion of 5G networks, the development of new cellular applications, and the increasing adoption of cellular modems in emerging markets.
Recent trends in the Cellular Modem Market include the integration of AI and machine learning into cellular modems, the development of low-power cellular modems, and the growing demand for cellular modems in autonomous vehicles.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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