Cellular Modem Market - By Type (Embedded Modems, USB Modems/Dongles, Wireless Hotspots/Routers, Peripheral Component Interconnect Express (PCIe) Modems), By Technology (2G, 3G, 4G LTE, 5G, NB-IoT), By Application, By Vertical & Forecast, 2023 - 2032

Cellular Modem Market Size

Cellular Modem Market was valued at over USD 4.5 billion in 2022 and is estimated to register a CAGR of over 12.5% between 2023 and 2032. The robust market growth is credited to several key factors. Firstly, the global proliferation of 5G technology continues to stimulate demand for high-speed and low-latency connectivity, propelling the adoption of 5G cellular modems. Additionally, the increasing integration of cellular connectivity in a myriad of tools including IoT devices, smart home gadgets, and industrial equipment contributes significantly to market expansion.
 

For instance, in February 2021, MediaTek announced the M80 5G Modem, a new generation of 5G modems that are designed for mid-range and high-end smartphones. The M80 supports both 5G sub-6GHz and mmWave bands, and it is capable of downlink speeds of up to 7.5Gbps. The surging demand for reliable and fast data connectivity in automotive applications, such as connected cars and telematics, acts as another growth aspect. Advancements in semiconductor technology, facilitating the development of energy-efficient and compact modems, are also fostering market growth. Lastly, the rising consumer preference for mobile broadband services and the ongoing digital transformation across industries are creating a conducive environment for the market's sustained growth.
 

Despite the optimistic outlook, the cellular modem industry faces certain constraints. First, regulatory challenges and spectrum allocation issues can impede the seamless deployment of advanced cellular technologies. Regulatory complexities may vary across regions, affecting the pace of network expansion and technology adoption. Second, concerns related to cybersecurity and privacy issues associated with the increasing connectivity of devices through cellular networks pose a potential hurdle. As the number of connected devices grows, the need for robust security measures becomes paramount to mitigate potential threats, impacting the pace of adoption in certain sectors.
 

COVID-19 Impact

The COVID-19 pandemic presented mixed impacts on the cellular modem market. While the initial disruptions in the supply chain and manufacturing processes affected the production and availability of cellular modem components, the subsequent surge in remote work, online learning, and increased reliance on digital communication during lockdowns bolstered the demand for cellular connectivity solutions. The pandemic accelerated the adoption of IoT devices and remote monitoring systems, fueling the need for reliable and high-speed cellular modems. However, uncertainties in global economic conditions may influence investment decisions, potentially impacting the market growth trajectory in the post-pandemic recovery phase.
 

Cellular Modem Market Trends

Key business trends in the market include a growing focus on edge computing capabilities as cellular modems are increasingly integrated into edge devices to process data locally and reduce latency. Another trend is the emphasis on energy efficiency and sustainability with manufacturers developing modems that consume less power and adhere to environmental standards. Furthermore, partnerships and collaborations between cellular modem manufacturers and telecom operators are on the rise to optimize network compatibility and enhance the overall user experience. The market is also witnessing the development of modems supporting multiple connectivity standards, catering to diverse applications and ensuring compatibility with various networks. As the market evolves, a shift toward software-defined modems is becoming prominent, offering flexibility and adaptability to changing network requirements.
 

Cellular Modem Market Analysis

Based on type, the market is categorized into embedded modems, USB modems/dongles, wireless hotspots/routers, and peripheral component interconnect express (PCIe) modems. The embedded modems segment dominated the market with a share of over 45% in 2022 and is estimated to reach over USD 7 million in revenue by 2032. Embedded modems play a pivotal role in the cellular modem industry, serving as integral components within various electronic devices to enable seamless connectivity to cellular networks. The adoption of embedded modems has witnessed significant growth across diverse industries owing to their compact design, energy efficiency, and the increasing demand for connected devices. Embedded modems are commonly integrated into consumer electronics such as smartphones, tablets, and laptops. This integration allows these devices to connect to cellular networks, providing users with access to high-speed data, voice communication, and messaging services.
 

Based on the application, the market is divided into smartphones, tablets & laptops, IoT devices, wearables, smart devices, and others. The smartphones segment dominated the global market with a share of over 19% in 2022 and is estimated to reach over USD 3 million in revenue by 2032. Smartphones represent a substantial portion of the global market's overall size and revenue. The wide adoption of smartphones globally has consistently heightened the demand for cellular modems. As smartphones evolve, incorporating advanced features and technologies, the demand for more capable and efficient modems increases, boosting innovation in the market. Smartphones utilize a variety of connectivity technologies including 4G LTE and, increasingly, 5G. The demand for faster and more reliable data connectivity in smartphones has been a key factor in the development and deployment of advanced cellular modems. The transition from 4G to 5G networks in smartphones has been a significant catalyst for market growth, enabling higher data speeds and low latency communication.
 

Asia Pacific dominated the global cellular modem market with a share of over 34% in 2022. The region is home to a substantial portion of the world's population with countries including China and India accounting for an exceptionally large share. The high population density, coupled with the increasing smartphone penetration and mobile device adoption, creates a vast and lucrative market for cellular modems. Many countries in the region have experienced rapid economic growth, leading to an expanding middle class with increasing purchasing power. This economic growth has resulted in higher consumer demand for smartphones and other connected devices, propelling the need for advanced cellular modem technologies. APAC has been at the forefront of adopting the latest mobile technologies. The region quickly embraced 4G LTE, and there has been a robust push toward the adoption of 5G technology. The demand for smartphones and other devices with advanced connectivity features has fueled the cellular modem industry growth in APAC.
 

Cellular Modem Market Share

Qualcomm Incorporated is a major player in the market and is renowned for its contributions to the development of wireless communication technologies. Qualcomm is a leading provider of mobile chipsets, including systems-on-chip (SoCs) that integrate cellular modems. Their Snapdragon series of processors often feature integrated modems, providing connectivity solutions for a wide range of mobile devices, including smartphones and tablets. Qualcomm's Snapdragon modem technologies are widely adopted in the mobile industry. They have played a pivotal role in the evolution from 3G to 4G LTE and now to 5G. Qualcomm's modems are known for their performance, efficiency, and support for advanced features such as carrier aggregation, MIMO (Multiple Input, Multiple Output), and mmWave technology in 5G. The other major players operating in the cellular modem industry include:

• Qualcomm Incorporated
• Intel Corporation
• MediaTek Inc.
• Samsung Electronics Co., Ltd.
• Huawei Technologies Co., Ltd.
• Sierra Wireless, Inc.
• Fibocom Wireless Inc.
   

Cellular Modem Industry News

• In December 2021, Texas Instruments (TI) introduced a new family of cellular modems designed for high-speed data communication applications. The ISO774x family of devices offers data rates of up to 150 Mbps, making them ideal for use in a wide range of applications including industrial automation, medical equipment, and power grids.
   

The cellular modem market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032 for the following segments:

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Market, By Type

• Embedded Modems
• USB Modems/Dongles
• Wireless Hotspot/Routers
• Peripheral Component Interconnect Express (PCIe) Modems

Market, By Technology

• 2G (Second Generation)
• 3G (Third Generation)
• 4G LTE (Fourth Generation Long-Term Evolution)
• 5G (Fifth Generation)
• NB-IoT

Market, By Application

• Smartphones
• Tablets & Laptops
• IoT Devices
• Wearables
• Smart Devices
• Others

Market, By Vertical

• Agriculture
• Automotive & Transportation
• Building Automation
• Consumer Electronics
• Energy & Utilities
• Healthcare
• Industrial & Manufacturing
• Retail
• Telecommunications
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America 
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA