The global cellular IoT module market is projected to maintain a stable growth trajectory in 2026, following a 4% year-on-year increase in Q1 2026. India, in particular, demonstrated robust double-digit growth during this period, fueled by escalating demand for smart meters, POS terminals, asset trackers, and telematics applications as reported by Counterpoint Research. India has solidified its position as the world’s fastest-growing cellular IoT module market, driven by government-mandated smart meter deployments and the growing adoption of telematics in commercial fleet management, according to Principal Analyst Tina Lu.
China retained its dominance in global shipments by volume, although it experienced a 2% year-on-year decline. This decline in the Chinese market was primarily attributed to normal Q1 seasonality patterns, with factors such as the Chinese New Year holiday period and softened demand from domestic OEMs affecting applications like asset tracking, POS, and telematics. The weakening demand was further exacerbated by declining sales of passenger vehicles.
Principal Analyst Tina Lu highlighted significant variations in growth across different technologies. While most technologies witnessed declines, 4G Cat 1 bis module shipments saw a 12% year-on-year increase, propelled by strong demand from smart meters, POS terminals, asset trackers, and telematics applications in emerging markets like India, the Middle East, Africa, and Latin America. Additionally, 5G emerged as the fastest-growing cellular technology, with a 39% year-on-year growth, particularly driven by applications such as router/CPE, connected PCs, and automotive.
Anticipated memory cost escalations are expected to lead to an increase in cellular IoT module average selling prices (ASPs) in the latter half of 2026. This rise in memory costs will compel vendors to raise module prices to sustain profitability, according to Director of IoT Practice, Mohit Agrawal. The ongoing memory shortages are likely to impact module prices, especially for high-memory-density modules, potentially affecting shipment growth in these segments while maintaining demand for lower-memory-density modules. Despite these challenges, the global cellular IoT module market is forecasted to continue its steady growth throughout 2026.
