Cellular Modem Market Size & Share, by Type (Embedded Modems, USB Modems/Dongles, Wireless Hotspots/Routers, Peripheral Component Interconnect Express [PCIe] Modems); Technology (2G, 3G, 4G LTE, 5G, NB-IoT); Application (Smartphones, Tablets & Laptops, IoT Devices, Others); Vertical (Agriculture, Automotive & Transportation, Building Automation, Others) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5668
  • Published Date: Feb 16, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Cellular Modem Market size is expected to cross USD 19 Billion by the end of 2036, expanding around 13%CAGR during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of cellular modem was USD 5 Billion. The growth of the market is poised to be dominated by growing demand for connected cars. Approximately 399 million connected vehicles are expected to be in use by 2025, up from about 236 million in 2021. An integrated 3G, 4G, or 5G cellular modem can be found in a connected car. Connected vehicles come with this built-in modem right from the outset. Hence, the demand for cellular modems is projected to rise.

Additionally, a growing emphasis on edge computing capabilities as cellular modems are increasingly integrated into edge devices to handle data locally and reduce latency is one of the key business trends in the market. A further tendency is the focus on sustainability and energy efficiency, with manufacturers creating modems that use less energy and respect environmental regulations. 


Cellular Modem Market
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Cellular Modem Market: Growth Drivers and Challenges

Growth Drivers

  • Surge in Remote Working  - The mandatory social distancing measures imposed by the COVID-19 pandemic have resulted in major changes to many of our "standard" workplace structures and corporate procedures. For employee safety, a growing amount of companies are switching to remote work arrangements. Since the majority of people work from home, having access to a secure Wi-Fi network is essential for staying connected. About 11% of full-time workers conduct their jobs from home, demonstrating how rapidly remote work settings have grown commonplace in 2023. Concurrently, a noteworthy approximately 27% of workers have adjusted to a mixed work style.
  • Rising Demand for OTT Services  - There has been growing demand for OTT services owing to the fall the subscription prices all across the world. Further, the Over-the-Top (OTT) services are expected to be driven by the continued trend of commoditizing sports and entertainment services as well as increased rivalry among OTT providers. The method by which people watch sporting events and consume entertainment content has changed significantly in recent years. These services were previously mostly provided through cable and satellite TV subscriptions, offering little in the way of personalization or on-demand programming. However, the emergence of over-the-top (OTT) platforms has upended this model by providing customers with direct access to a vast array of live broadcasts, sporting events, and entertainment content. However, OTT services require need which necessities the use of a cellular modem.
  • Growing Adoption of Remote Healthcare Services & Telemedicine  - The healthcare business has transformed with the growing use of telemedicine and remote healthcare services, which allow consumers to receive medical consultations and monitoring without traveling to healthcare facilities. Robust cellular connectivity made possible by cellular modems is one of the key enablers of this revolutionary change. These modems guarantee the smooth transmission of real-time health data to healthcare providers from remote patient monitoring devices, such as wearable health trackers and loT-enabled medical equipment. Medical professionals can remotely check on patients' vital signs, monitor medication compliance, and identify possible health problems due to this constant information flow. Cellular modems enable secure video connections between patients and doctors during virtual consultations, ensuring prompt medical advice and lessening the strain on traditional healthcare facilities.

Challenges

  • Issue with Interoperability within Cellular Networks - Technology integration is significantly hampered by cellular network interoperability problems. Even inside the same generation, different cellular networks—like 4G or 5G—often operate on different frequencies and protocols. When equipment from different manufacturers is required to connect or when integrating older technology with newer ones, this diversity might cause compatibility issues. If a 4G device is not compatible with a 5G network, data transmission may be disrupted or, in the worst case, the device may become non-operational.
  • Lack of Efficient Coverage
  • Concern of Cybersecurity

Cellular Modem Market: Key Insights

Base Year

2023

Forecast Year

2024-2036

CAGR

~13%

Base Year Market Size (2023)

~ USD 5 Billion

Forecast Year Market Size (2036)

~ USD 19 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Cellular Modem Segmentation

Type (Embedded Modems, USB Modems/Dongles, Wireless Hotspots/Routers, Peripheral Component Interconnect Express [PCIe] Modems)

The embedded modems segment in the cellular modem market is anticipated to hold 30% of the revenue share during the forecast period. One essential part of embedded systems is embedded modems. They provide interaction between gadgets and other networked devices in addition to the internet. They relieve PCB designers of the task of building an embedded cellular modem from start to finish, freeing them up to concentrate on specifics unique to their particular device. In vending machines and kiosks, integrated modems are frequently used. Products and services are dispensed via self-service machines such as vending machines and kiosks. Usually, cash, debit cards, or credit cards are accepted for payment. With the aid of an integrated modem, some vending machines and kiosks may additionally provide internet access. Self-service kiosks and vending machines are proliferating as companies look for methods to offer self-service alternatives. They frequently take the place of conventional customer care agents, saving businesses money on labor expenses. Also, embedded modems are used in security goods and surveillance systems to monitor and safeguard individuals, assets, and property. To gather data, they usually make use of a network of cameras and sensors. After collection, data is sent to a central location for observation.

Technology (2G, 3G, 4G LTE, 5G, NB-IoT)

The 4G LTE segment in the cellular modem market is expected to generate the highest revenue share of about 35% in the coming years. The major element for the growth of this segment is the rising penetration of the internet. Over 4 billion people used the internet as of January 2024, making up about 65 percent of the world's population. Furthermore, the need for quicker and more dependable connections is on the rise due to the increased reliance on bandwidth-intensive applications including online gaming and cloud services, which makes 4G LTE modems the recommended option. Furthermore, 4G networks provide broad coverage across a wide range of locations, including both urban and rural ones. Users can stay connected even in isolated areas without access to wired Internet infrastructure as a result of its coverage.

Our in-depth analysis of the global cellular modem market includes the following segments:

          Type

  • Embedded Modems
  • USB Modems/Dongles
  • Wireless Hotspots/Routers
  • Peripheral Component Interconnect Express [PCIe] Modems

           Technology

  • 2G
  • 3G
  • 4G LTE
  • 5G
  • NB-IoT

           Application

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

             Vertical

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

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Cellular Modem Industry - Regional Synopsis

APAC Market Forecast

Asia Pacific cellular modem market is projected to hold 35% of the revenue share by 2036. The growth of the market in this region is set to be influenced by rising investment in smart cities. For instance, compared to the earlier estimate of USD 0.000205 Billion, which included less than half of government funding and the remaining amount coming from internal and external sources as well as other central government schemes, the overall cost of these SCM projects is USD 17.92 Billion in India. Additionally, the middle class population is also growing in this region which is spending on consumer electronics further boosting market growth in this region.

North American Market Analysis

North American cellular modem market is also projected to have notable growth during the forecast period. This growth is set to be influenced by rising demand for wearables. Additionally, the implementation of online education is also growing. New learning platforms and delivery strategies have grown as a result of the upheaval in the education sector brought about by the advent of online learning in this region. Online learning has become more and more popular lately since it is affordable, flexible, and accessible. Therefore, the market growth in North America is estimated to observe growth.

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Cellular Modem Market Size
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Top Featured Companies Dominating the Cellular Modem Landscape

top-features-companies
    • NETGEAR, Inc.
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Digi International Inc.
    • Belkin
    • InHand Networks
    • Red Lion
    • Baima
    • Moxa Inc.
    • Robustel
    • Sierra Wireless
    • Skyworks Solutions, Inc.

In-the-news

In The News

  • NETGEAR, Inc.—the industry leader in connected devices that simplify and enhance people's lives—unveiled a potent addition to its array of unlocked 5G mobile hotspots. The NETGEAR Nighthawk M6 Mobile Hotspot Router (MR6150) boosts the maximum 5G speed that can be supported and adds 160MHz capability to connect with the newest WiFi 6 client devices, elevating the mobile broadband experience to new heights at a time when having access to fast, secure, and reliable internet is more important than ever.
  • Digi International, a leading supplier of Internet of Things (IoT) connectivity solutions, unveiled the Digi XBee 3 Cellular LTE Cat 1 and Digi XBee 3 Cellular LTE-M/NB-IoT smart modems for global deployment, adding to its line of Digi XBee 3 Global Cellular solutions. Pre-certified for worldwide cellular deployments, these new modules offer the strength and adaptability of the well-known Digi XBee ecosystem while cutting down on the expenses and time required for carrier certification procedures.

Author Credits:  Abhishek Verma, Hetal Singh


  • Report ID: 5668
  • Published Date: Feb 16, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

The major factors driving the growth of the market are a surge in remote working, rising demand for OTT services, and growing adoption of remote healthcare services & telemedicine.

The market size of cellular modems is anticipated to attain a CAGR of 13% over the forecast period, i.e., 2024-2036.

The major players in the market are NETGEAR, Inc., Digi International Inc., Belkin, InHand Networks, and others.

The 4G LTE segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Cellular Modem Market Report Scope
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