Cellular Modem Market Outlook:
Cellular Modem Market size was valued at USD 6.28 billion in 2025 and is expected to reach USD 40.2 billion by 2035, registering around 20.4% CAGR during the forecast period i.e., between 2026-2035. In the year 2026, the industry size of cellular modem is evaluated at USD 7.43 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.
