In brief
Shipments of mobile IoT modules and chipsets grew 23% year-over-year in Q1 2025, based on IoT Analytics’ International Mobile IoT Module and Chipset Market Tracker & Forecast.
This marks the fifth straight quarter of cargo progress as stock correction drives renewed demand.
Geopolitical pressure and laws are making a dynamic market atmosphere, as key market participant u-blox exits the mobile IoT module enterprise.
The highest 5 firms by module shipments—Quectel, China Cellular, Fibocom, Sunsea AIoT, and Telit Cinterion—account for 73% of shipments in Q1 2025.
Why it issues
There may be renewed demand for mobile IoT modules and chipsets. Mobile Community operators, gadget, module and chipset producers, and element gamers ought to research market projections and the way friends are adapting amid geopolitical tensions, new laws, and market shakeups.
Mobile IoT module market overview
Mobile IoT module shipments continued a powerful rebound in Q1 2025, rising 23% year-over-year (YoY). In June 2025, IoT Analytics up to date its International Mobile IoT Module and Chipset Market Tracker & Forecast, a quarterly in-depth evaluation of the revenues and cargo volumes of firms supplying mobile IoT modules and chipsets. In line with the most recent knowledge, mobile IoT module shipments grew by 23% year-over-year. This builds on the momentum of 2024, which noticed a 15% YoY improve in shipments, following a tough 2023 that ended with a 16% YoY market decline.
Q1 2025 marks the fifth straight quarter of cargo progress as stock correction drives renewed demand. The Q1 2025 rebound marks the fifth consecutive quarter of cargo progress and the fourth of double-digit progress. A key driver behind this restoration is the decision of the stock overhang that plagued the market all through 2023. Throughout that interval, elevated inventory ranges held again each module and chipset demand, regardless of underlying demand remaining resilient. As inventories normalize, the market is regaining traction, as proven within the tracker. Strengthening demand alerts are translating into greater cargo volumes in Q1 2025, reflecting a broader restoration throughout a number of verticals and areas.
“The inventory situation cleared up. This marks a return to a growth trajectory for the company.” – Senior government at Telit Cinterion throughout an interview with IoT Analytics in Q1 2025
The relevance of the mobile IoT module market
To place the mobile IoT module market in perspective:
In 2024, there have been 18.8 billion IoT connections globally.
Of those, roughly 4 billion (22%) used mobile IoT connectivity.
Among the many mobile IoT connections, 83% (roughly 3.3 billion) relied on pre-fabricated mobile IoT modules.
The remaining 17% built-in mobile connectivity immediately by way of chipsets mounted on customized PCBs, bypassing the necessity for standalone modules.
Firm actions and regional laws altering market dynamics
The Mobile IoT module market continues to evolve, pushed by ongoing consolidation and strategic realignments. Over the previous few years, a collection of mergers and acquisitions has reshaped the aggressive panorama.
Telit divestiture (2019): UK-based IoT connectivity firm Telit divested its automotive enterprise phase to TUS Worldwide, a Hong Kong-based automotive funding holding firm.
Thales acquired Gemalto (2019):French-based aerospace provider Thales acquired Gemalto, a Netherlands-based digital safety firm.
Sierra Wi-fi sells automotive phase (2020): Canada-based IoT communications options supplier Sierra Wi-fi offered its automotive phase to Rolling Wi-fi, a Luxembourg-based supplier of automotive community entry modules and gadgets.
Telit and Thales type new firm (2022): Telit and Thales introduced the formation of Telit Cinterion, with Thales buying a 25% stake.
Season Group acquires Pycom (2022): Hong Kong-based electronics design and manufacturing providers firm Season Group acquired UK-based IoT module firm Pycom Ltd.
Semtech acquired Sierra Wi-fi (2023): US-based semiconductor firm Semtech introduced its intention to accumulate Sierra Wi-fi, a transfer that stunned many business observers given Semtech’s historic deal with unlicensed LPWA applied sciences, comparable to LoRa.
Telit Cinterion sells automotive phase (2023): Telit Cinterion offered its mobile automotive module unit to Germany-based IoT and embedded computing know-how firm Kontron, additional streamlining the previous’s portfolio.
The next are the brand new wave of strategic developments rising, signaling continued shifts in market dynamics and vendor positioning that can have an effect on 2025 and past.
Quectel
Quectel’s inclusion on the US’s 1260H checklist raises compliance dangers and prompts reassessment amongst Western gadget producers. On January 6, 2025, the US Division of Protection up to date its 1260H Listing, a listing mandated by Part 1260H of the Nationwide Protection Authorization Act (NDAA) for Fiscal Yr 2021 that identifies “Chinese military companies” working in the USA. The replace added 134 Chinese language entities throughout varied sectors, together with synthetic intelligence, aerospace, and biotechnology. Among the many newly added firms was Quectel, the clear international market chief in mobile IoT modules. Entities on the 1260H checklist are recognized as supporting China’s military-civil fusion technique and face vital reputational and compliance dangers. Whereas inclusion doesn’t routinely set off sanctions, it flags the listed firms as potential Army Finish Customers (MEUs) underneath the US Export Administration Laws (EAR), rising scrutiny in federal procurement, analysis funding, and compliance processes.
On January 7, 2025, Quectel responded publicly, stating:
“We will take appropriate action to protect ourselves and our stakeholders. We are confident that we will be removed from the 1260H list.” – Norbert Muhrer, president and CSO, Quectel
Implications
Whereas not an outright ban, the itemizing has stirred concern amongst Western gadget producers. The transfer has drawn sentiment-driven comparisons to the 2019 Huawei ban, triggering a possibility for module distributors like Telit (US), Semtech (US), and Cavli Wi-fi (US). Quectel’scustomers are adopting early-stage danger assessments and dual-sourcing discussions amongst gadget producers, significantly within the US and Europe. Though no main design transitions have been finalized, a number of gadget producers are reportedly evaluating product redesigns as a precautionary step to cut back publicity to Chinese language module distributors. Nevertheless, module pricing stays a key barrier for Western gamers, particularly when in comparison with Quectel and different Chinese language distributors.
“Quectel’s listing on the 1260H list has become a key discussion point in customer meetings. Many [device manufacturers] aren’t reacting immediately, but they’re certainly reviewing their sourcing strategies more seriously now. We’re seeing increased interest in dual-design approaches and long-term risk mitigation through diversification.” – Senior government at a Western IoT module vendor, throughout an interview with IoT Analytics in Q1 2025
Quectel anticipated US sanctions with strategic U.S. partnership. Quectel’s inclusion on the US 1260H checklist was not fully sudden. The corporate had already begun getting ready for such situations by licensing its manufacturing know-how and its reference design to an Ohio-based startup, Eagle Electronics, as a part of a broader effort to localize operations and mitigate geopolitical dangers.
In December 2024, Eagle launched a manufacturing facility in Solon, Ohio. The corporate was based by The O.H.I.O. Fund, led by Mark Kvamme and Ray Leach, and TJ Dembinski, who additionally serves as Eagle’s CEO. Eagle Electronics is getting into the market with extra than simply manufacturing capabilities. Backed by a licensing settlement with Quectel, the startup will leverage Quectel’s mobile IoT module reference designs and manufacturing know-how, producing license income for Quectel. To assist the setup, Quectel will ship roughly 30 workers to Ohio in early 2025 to coach Eagle’s workforce over a 2-month interval.
Moreover, Eagle plans to construct its personal branded line of modules, concentrating on preliminary progress within the 4G phase. Additional, Eagle could fill the hole left by Western automotive module distributors.
“Eagle Electronics is a fully independent company. We have our own module manufacturing facility for our brand ‘Eagle Electronics.’ We are focused on 4G modules and currently use Quectel reference designs. This is just the beginning; we are moving with a hardware-as-a-product approach. We will rapidly develop the company to grow in the IoT module tech stack, adding in the ability to do full product production for markets like payment terminals and TCUs, as an example, over time.” – TJ Dembinski, CEO at Eagle Electronics, throughout an interview with IoT Analytics in Q1 2025
u-blox
u-blox exits the mobile IoT module market via a two-pronged divestment technique, triggering provider realignment. In late 2024, Switzerland-based wi-fi and positioning know-how firm u-blox unexpectedly introduced its intention to exit the mobile IoT module enterprise, initiating a two-part divestiture. Step one was accomplished in April 2025, with the sale of its dual-mode cellular-satellite enterprise to Trident IoT. The second step adopted on June 6, 2025, with the official switch of its broader mobile enterprise, together with modules and associated IP, to Irish agency Trasna. For Trasna, the acquisition offers entry to mature mobile module IP, complementing its present SIM, eSIM, and cloud-based gadget administration providers and positioning it to supply built-in IoT connectivity options.
Implication
u-blox’s exit opens a strategic window for Western module suppliers as clients start evaluating long-term options. u-blox accounted for 1.1% of world mobile IoT module income and 1.2% of shipments on the time of its exit, based on the Mobile IoT Module and Chipset Tracker. This creates a modest however strategic opening for Western suppliers comparable to Telit, Cavli Wi-fi, and Semtech. Whereas legacy module shipments are anticipated to proceed underneath present contracts, the exit has launched notable uncertainty amongst clients and distributors—significantly in Europe. A number of key accounts have already initiated discussions about potential transitions, and a few at the moment are getting ready long-term redesigns to allow a full provider change in future product generations.
“We’ve started seeing more inbound from former u-blox customers, especially in Europe. It’s still a niche shift compared to the geopolitical-driven changes, but the divestment is clearly opening the door for new supplier evaluations.” – Enterprise growth director at a Western IoT module vendor throughout an interview with IoT Analytics in Q1 2025
“u-blox’s exit is creating a window of opportunity, especially in Europe, but it’s not a landslide. Some customers are cautiously exploring alternatives like us, while others are holding back due to continuity assurances and the redesign costs involved.” – Regional gross sales head at a Western IoT module vendor throughout an interview with IoT Analytics in Q1 2025
EU’s Radio Gear Directive
The EU’s Radio Gear Directive (RED) poised to reshape the EU mobile IoT module panorama. RED is the EU’s regulatory framework for all radio-enabled gadgets offered within the European Financial Space (EEA). Beginning August 1, 2025, a brand new cybersecurity extension to RED introducing necessary safety necessities for radio tools—together with safe boot, encrypted communications, firmware replace mechanisms, and safety towards unauthorized entry—will take impact.
Implication
Clear IoT module suppliers stand to learn. The brand new guidelines apply not solely to end-user gadgets but additionally to embedded parts, comparable to mobile IoT modules. Distributors delivery into the EU might want to improve firmware, improve software program security measures, and cross extra rigorous CE certification testing. These adjustments are prone to improve growth prices and lengthen the time-to-market. For low-cost and opaque distributors—particularly some Chinese language suppliers—compliance could also be slower or partial, opening the door for Western module makers with clear, standards-aligned platforms. System producers are already beginning to request RED-compliant documentation and safety audit trails, favoring module distributors with robust certification and engineering assist.
“The updated RED Directive … adds a whole chapter of cybersecurity requirements. While the end devices are the primary focus, compliance will require new features at the module level. We’re undertaking a significant development effort—including new software versions and features—to meet these demands.” – Senior government at Telit Cinterion throughout an interview with IoT Analytics in Q1 2025
Mobile IoT module aggressive panorama: The highest 5 firms
In line with the mobile IoT module and chipset tracker, the highest 5 mobile IoT module firms (by 1Q 2025 shipments)—Quectel, China Cellular, Fibocom, Sunsea AIoT, and Telit Cinterion—accounted for 73% of world mobile IoT module shipments.
1. Quectel (40% share)
Regardless of its inclusion on the US’s 1260H checklist and elevated geopolitical scrutiny, Quectel maintained its management place, rising its shipments by 31% YoY in Q1 2025. The corporate continues to scale throughout core LTE and good module segments.
2. China Cellular (15% share)
China Cellular recorded the quickest progress among the many prime 5, with 100% YoY cargo progress, pushed primarily by a fast ramp-up in LTE CAT 1 bis modules. This efficiency displays robust home deployments.
3. Fibocom (8% share)
Fibocom reported 28% YoY progress in shipments. The corporate benefited from rising demand in sectors comparable to good vitality, automotive, and industrial IoT throughout Asia and Europe.
4. Sunsea AIoT (5% share)
Sunsea AIoT posted 5% YoY cargo progress in Q1 2025. Its efficiency stays secure, however it’s comparatively slower than different top-tier Chinese language friends.
5. Telit Cinterion (4% share)
The one Western vendor within the prime 5, Telit Cinterion achieved 10% YoY cargo progress.
Market outlook
In line with IoT Analytics’ International Mobile IoT Module and Chipset Market Tracker & Forecast (Q1 replace), the mobile IoT module income market is anticipated to proceed to develop at 17% YoY in 2025.
Mobile IoT restoration is accelerating provider shifts amid geopolitical pressure. As demand returns and US–China tensions intensify, gadget producers are initiating redesigns, particularly of PCBs or gadgets, to accommodate modules from completely different distributors. ODM choices from distributors comparable to Quectel and SG Wi-fi are driving this shift ahead. Western suppliers are gaining floor on safety and native manufacturing, however worth gaps stay a serious hurdle. 2025 is a setup 12 months—full provider transitions and redesigned architectures could observe in 2026. For newcomers like Trasna (buying u-blox’s mobile enterprise) and Eagle Electronics (constructing US capability on Quectel IP), 2025 is essential for establishing credibility, scaling, and increasing into broader components of the mobile IoT module know-how stack, together with software program and connectivity providers.
The implications of US–China geopolitical tensions are nonetheless evolving, with latest US tariffs prompting the business to reassess its publicity. In the meantime, the RED’s cybersecurity necessities are clearly outlined, and all module distributors are anticipated to replace their firmware and security measures earlier than delivery to the EU beginning in August 2025.
Key applied sciences to be careful for
1. LTE Cat 1 bis
With shipments having grown 122% YoY,Cat 1 bis is gaining traction as a globally appropriate, cost-effective different to NB-IoT and LTE-M. Its single-antenna design simplifies integration, making it ultimate for monitoring, logistics, metering, and fee terminals.
“LTE CAT 1bis adoption is rising sharply… It offers a cost-effective, globally compatible alternative with sufficient performance for most IoT applications, while the added advantage being that it can be deployed across existing LTE infrastructure.” – Abhinand Dinesh, Senior Associatefor Company Advertising at Cavli Wi-fi, throughout an interview with IoT Analytics in Q1 2025
“Cat-1 bis is picking up for sure, and it’s going to continue in the coming quarters.” – Senior government at a Western IoT module vendor throughout an interview with IoT Analytics in Q1 2025
2. 5G
5G module shipments grew 36% YoY. The know-how is increasing in fastened wi-fi entry, automotive C-V2X, and industrial routers. Whereas mainstream 5G serves high-bandwidth use circumstances, RedCap is rising as an answer for mid-tier IoT, hanging a stability between price, energy, and efficiency. Goal purposes embrace physique cams, searching cameras, industrial sensors, and wearables.
“5G RedCap is emerging as a key enabler for mid-tier IoT applications… offering simplified 5G performance tailored for use cases like industrial sensors, wearables, asset tracking, and IoT gateways.” – Abhinand Dinesh, Senior Associatefor Company Advertising at Cavli Wi-fi, throughout an interview with IoT Analytics in Q1 2025
“I was positively surprised by RedCap… it’s not just a showcase tech—it’s a commercial product some key customers will pick up.” – Senior government at a Western IoT module vendor throughout an interview with IoT Analytics in Q1 2025
