Cellular Modem Market By Product Type (USB Modems, Embedded Modems); By Application (Telecommunications, Automotive, IoT, Consumer Electronics); By End User (Telecom Providers, Automotive Industry, IoT Service Providers, Consumer Electronics Manufacturers); By Geography, Segment Revenue Estimation, Forecast, 2024–2030

Introduction And Strategic Context

The Global Cellular Modem Market is poised for significant growth from 2024 to 2030 , with a projected CAGR of 7.5% , expanding from a market size of USD 4.5 billion in 2024 to approximately USD 7.2 billion by 2030 , according to market analysis from Strategic Market Research.

 

Cellular modems, the cornerstone of mobile connectivity, are integral in providing high-speed internet access across various industries, from telecommunications to automotive, IoT devices, and beyond. They serve as the bridge between wired or wireless network infrastructure and mobile devices, ensuring seamless internet access in regions with varying levels of connectivity.

 

In 2024, the rapid adoption of 5G networks and the growing demand for high-bandwidth applications such as remote work, telemedicine, and autonomous vehicles are the primary forces driving the cellular modem market. Increasing global demand for IoT devices and smart infrastructure also plays a crucial role in this growth. Governments worldwide are pushing for enhanced connectivity to foster digital transformation, making cellular modems vital to the infrastructure development in both urban and rural areas.

 

The key stakeholders in this market include:

• OEMs (Original Equipment Manufacturers) , who are driving innovation in modem technology.

• Telecommunication companies providing network infrastructure to support modem technologies .

• End-users across various sectors such as automotive, healthcare, and consumer electronics.

• Governments supporting digital connectivity initiatives through regulations and funding.

Given the significant role of 5G technology, companies that are involved in providing the hardware and software solutions for 5G-enabled cellular modems are positioned to capture the largest share of the market.

 

Market Segmentation And Forecast Scope

The cellular modem market is segmented across several key dimensions, reflecting its diverse applications and adoption rates across industries. The primary axes of segmentation include Product Type , Application , End User , and Region .

By Product Type

Cellular modems are commonly divided into two broad categories:

• USB Modems : These compact, portable modems are widely used for personal and business applications, providing reliable internet access to laptops and desktop computers. They are easy to use and primarily serve as a plug-and-play solution for mobile connectivity.

• Embedded Modems : These are integrated directly into devices like smartphones, automotive systems, and IoT devices. They are growing in prominence due to the rise of IoT applications and the shift towards connected devices in industries like smart home automation, healthcare, and vehicle connectivity.

In 2024, USB modems will continue to dominate the market, accounting for nearly 55% of total revenue . However, embedded modems are expected to grow at a faster rate, with an estimated CAGR of 9% from 2024 to 2030, reflecting the expansion of IoT networks and connected devices.

 

By Application

Cellular modems are employed across a wide range of applications, including:

• Telecommunications : The largest application area, driven by the demand for seamless mobile internet connectivity.

• Automotive : The growing adoption of connected car technologies, including infotainment systems, navigation, and autonomous driving features.

• Internet of Things ( IoT ) : Cellular modems are integral to smart cities, smart homes, and industrial IoT applications, where reliable wireless connectivity is crucial.

• Consumer Electronics : Modems in laptops, tablets, and mobile hotspots cater to the growing need for mobile internet solutions.

In 2024, telecommunications will dominate the market, with a market share of 42% , but IoT applications will see the fastest growth, with an expected CAGR of 8.5% .

 

By End User

Key end users of cellular modems include:

• Telecom Providers : These companies integrate cellular modems into their service offerings to enhance mobile broadband and internet services.

• Automotive Manufacturers : Car makers are increasingly integrating cellular connectivity into vehicles, pushing the demand for embedded modems.

• Consumer Electronics Manufacturers : These players drive the demand for USB and embedded modems in mobile devices.

• Industrial and Commercial Users : Smart factories and warehouses are adopting IoT -driven solutions, creating a demand for cellular connectivity.

The telecom sector will remain the largest end-user group, contributing approximately 38% of market share in 2024, while automotive and IoT applications will see rapid growth in the coming years.

 

By Region

Regionally, the adoption of cellular modems varies based on infrastructure development, telecom policies, and industrial demand:

• North America : Home to advanced telecom infrastructure and early adoption of 5G, North America leads the market with 40% of the market share in 2024.

• Europe : Strong demand for connected vehicles and smart cities will propel the European market, with a projected CAGR of 7.8% .

• Asia-Pacific : Expected to be the fastest-growing region due to rising adoption of IoT and expanding mobile networks, particularly in China and India.

• LAMEA (Latin America, Middle East, and Africa) : Growth in these regions is driven by government-led initiatives to improve connectivity in underserved areas.

In 2024, North America remains the dominant region, but Asia-Pacific will experience the highest growth rate, with an anticipated CAGR of 9% through 2030.

The continued rollout of 5G networks and the expanding footprint of IoT devices will be pivotal in shaping the regional growth dynamics in the cellular modem market.

 

Market Trends And Innovation Landscape

The cellular modem market is seeing a wave of innovation driven by technological advancements, regulatory pressures, and shifting consumer needs. As industries strive to keep up with the growing demand for high-speed connectivity, several key trends are emerging that will shape the market landscape from 2024 to 2030.

1. 5G Adoption and Expansion

The most significant trend driving the cellular modem market is the widespread rollout of 5G networks . Cellular modems are being developed to support the high-speed, low-latency requirements of 5G. These next-generation modems will provide businesses and consumers with faster, more reliable internet access, fostering growth in industries like autonomous vehicles , smart cities , and telemedicine . In particular, embedded 5G modems are crucial for powering the future of connected devices, including IoT sensors, smart home systems, and wearables.

The global 5G rollout is pushing manufacturers to innovate around modem size , energy efficiency , and connection speed . Companies are investing heavily in research to make sure their modems can handle the complexities of 5G networks and meet the stringent requirements for mission-critical applications like autonomous vehicles.

 

2. Integration of AI and Machine Learning

Artificial intelligence (AI) and machine learning (ML) are making their way into cellular modems. These technologies are being integrated into modems to optimize network management and signal processing , helping to minimize connection drops and improve overall performance. AI-enabled cellular modems will be able to predict network congestion, reroute traffic, and improve bandwidth efficiency. This innovation is particularly valuable in high-density environments like urban areas, where network congestion is a constant challenge.

Additionally, AI-powered IoT devices rely heavily on cellular modems to ensure seamless connectivity. These devices are increasingly equipped with modems that can intelligently manage data traffic, improve network security, and enhance operational efficiency.

 

3. Low-Power Wide-Area (LPWA) Networks

Another growing trend is the rise of LPWA networks , such as NB- IoT (Narrowband IoT ) and LoRaWAN . These networks are specifically designed for low-power devices, allowing them to communicate over long distances without draining the battery. The increasing adoption of LPWA is revolutionizing the way IoT devices communicate, particularly in remote areas or large-scale industrial operations.

Cellular modems designed for LPWA networks are ideal for applications like smart metering, asset tracking, and environmental monitoring, where power consumption and long-range communication are critical. As more businesses embrace IoT for operational efficiency, the demand for these specialized modems will continue to rise.

 

4. Miniaturization and Embedded Connectivity

As consumer electronics and IoT devices become smaller and more compact, the need for miniaturized modems has increased. Modern modems are being designed to be embedded directly into the devices they power, eliminating the need for separate, bulky hardware. This trend is especially evident in smart devices , such as wearables, health monitors, and home automation systems.

Companies are focusing on reducing the physical footprint of cellular modems while maintaining their performance, durability, and energy efficiency. This shift towards smaller, integrated modems is a critical factor driving the market, especially as consumer demand for wearable tech and connected devices skyrockets.

 

5. Environmental Sustainability and Energy Efficiency

With growing pressure to reduce carbon footprints and minimize e-waste, there is a strong push for greener technologies in all sectors, including the cellular modem industry. Manufacturers are developing energy-efficient modems that consume less power without compromising on speed or reliability. These sustainable solutions are not only more cost-effective for end-users but also help businesses meet sustainability goals.

In addition to energy efficiency, there is an increasing emphasis on reducing the environmental impact of manufacturing processes . Companies are adopting practices like recycling and reuse of materials in modem production, aligning with global efforts to create a circular economy.

 

6. Strategic Mergers and Acquisitions

With the market rapidly evolving, many cellular modem manufacturers are looking to expand their capabilities through strategic mergers and acquisitions (M&A) . This includes acquiring technology firms that specialize in advanced connectivity solutions , AI-powered software , or IoT to enhance their portfolio. Additionally, partnerships with telecom operators and chipmakers are becoming increasingly common to co-develop solutions for next-generation networks like 5G and beyond.

One notable example of this is Qualcomm’s acquisition of NXP Semiconductors , which is focused on automotive and IoT solutions. These kinds of acquisitions are positioning companies to offer integrated solutions that include both hardware and software to meet the growing demand for high-speed, secure connectivity.

 

Expert Insight:

“As industries continue to embrace automation, AI, and IoT , the demand for reliable and high-performance cellular modems will only intensify. The real challenge for companies will be to create solutions that not only meet current needs but are adaptable to future innovations like 6G or the continued expansion of AI .”

Bottom Line: The cellular modem market is undergoing a significant transformation. As 5G adoption accelerates, coupled with advancements in AI, LPWA, and sustainability efforts, manufacturers are racing to stay ahead of the curve by developing smarter, more efficient, and smaller devices. These innovations will unlock new growth opportunities across a range of industries, making cellular modems an essential piece of the global digital ecosystem.

 

Competitive Intelligence And Benchmarking

The cellular modem market is highly competitive, with several key players focusing on innovation, strategic partnerships, and expanding their technological capabilities. While a few industry giants dominate, numerous smaller players continue to emerge, capitalizing on specific segments of the market, such as IoT , automotive connectivity , and consumer electronics . Here’s a closer look at some of the key companies driving the market forward.

Qualcomm

A leading player in the cellular modem market, Qualcomm has been pivotal in the development of 5G modem technology . Their Snapdragon X series modems are widely used in smartphones, IoT devices, and automotive applications. Qualcomm’s strategy is focused on offering high-performance modems that cater to both consumer and industrial markets. Their 5G modem-to-antenna solutions set them apart, as they provide end-to-end solutions for telecom companies and device manufacturers.

Key Strategy : Qualcomm’s focus is on providing comprehensive 5G solutions , from modems to integrated software, optimizing for both high data speeds and low latency.

Global Reach : Qualcomm has a significant presence in North America, Europe, and Asia, collaborating with major mobile carriers and OEMs across the globe.

Product Differentiation : Qualcomm’s 5G modems stand out in terms of speed , energy efficiency , and integration capabilities , positioning them as the go-to supplier for mobile device manufacturers and telecom companies.

 

Huawei

Huawei is another strong competitor, particularly in the 5G modem space. Their Balong series of modems have been instrumental in delivering high-speed, low-latency connections for a range of applications, including smart cities , IoT , and automotive connectivity . Despite facing regulatory challenges, Huawei continues to lead in terms of 5G modem research and development .

Key Strategy : Huawei has invested heavily in the development of proprietary 5G modems and is focusing on expanding its global telecom infrastructure business to promote the use of its technology.

Global Reach : While facing restrictions in the U.S. and some European markets, Huawei has maintained a strong presence in Asia and Africa.

Product Differentiation : Huawei’s modems offer unique integration with telecom infrastructure , making them a preferred choice for service providers looking to deploy end-to-end 5G solutions .

 

Intel

Intel has made significant strides in the cellular modem market , particularly with its acquisition of Altera and Mobileye , which are key players in the automotive and IoT markets . Intel’s XMM series modems are designed for 5G and 4G LTE networks and are integral to mobile computing, IoT devices , and autonomous vehicles . Intel’s position in the market is strengthened by its focus on hardware integration and energy efficiency .

Key Strategy : Intel aims to lead in 5G modem innovation , leveraging its semiconductor expertise to create modems that can power devices in sectors like automotive, IoT , and consumer electronics.

Global Reach : With a focus on the North American and European markets, Intel also has strong partnerships in Asia-Pacific.

Product Differentiation : Intel’s modems are noted for their power efficiency , integration with broader computing systems , and support for various connectivity standards like 5G and LTE.

 

MediaTek

MediaTek is a dominant force in the affordable cellular modem market , especially in regions like Asia-Pacific and Latin America . They provide a wide range of modems for smartphones , tablets , and IoT devices . MediaTek has established itself as a leader in mid-range and budget-friendly 5G solutions , offering cost-effective modems that balance performance and affordability .

Key Strategy : MediaTek targets the mid-tier market with its competitive pricing strategy while still offering 5G capabilities. Their emphasis is on delivering cost-effective solutions for both consumer electronics and IoT applications.

Global Reach : MediaTek is a dominant player in Asia , with increasing market penetration in Europe and Latin America.

Product Differentiation : Known for offering affordable modems with competitive performance , MediaTek is focused on making 5G accessible to a larger audience.

 

Samsung Electronics

As a major player in the consumer electronics and automotive markets , Samsung also manufactures cellular modems to complement its range of smartphones , tablets , and connected vehicle systems . Samsung’s modems are integrated into its Galaxy series smartphones and provide high-speed internet access for a variety of other connected devices.

Key Strategy : Samsung focuses on integrating 5G modem technology into its vast portfolio of consumer devices while expanding into the automotive sector, enabling connected cars and autonomous driving technologies .

Global Reach : Samsung’s market reach spans North America , Europe , Asia-Pacific , and Middle East & Africa , where its modems are used in everything from consumer devices to advanced automotive applications.

Product Differentiation : Samsung offers high-performance 5G modems that are optimally integrated with its ecosystem of smartphones and consumer electronics , ensuring smooth user experiences.

 

Competitive Landscape Insights:

The competitive environment in the cellular modem market is shaped by a few key themes:

• 5G Leadership : Qualcomm and Huawei lead the 5G space, focusing on end-to-end solutions that integrate modems with infrastructure.

• Affordability vs. Performance : Companies like MediaTek focus on making 5G more affordable, targeting emerging markets and mid-tier devices .

• Cross-Sector Integration : Players like Intel and Samsung are leveraging their modem technology in multiple sectors, such as automotive and consumer electronics , allowing them to offer integrated solutions that extend beyond simple internet connectivity.

• AI and IoT Connectivity : Modems designed for IoT and AI-driven applications are gaining traction, as companies like Qualcomm and Intel work to optimize connectivity for new technologies.

Overall, the market is becoming increasingly competitive, with companies that focus on 5G advancements, cost-effective solutions, and strategic partnerships gaining the most ground. As automotive and IoT industries continue to scale, the demand for high-performance, reliable cellular modems will only increase.

 

Regional Landscape And Adoption Outlook

The global cellular modem market is experiencing varied adoption rates across different regions. While North America and Europe currently lead in terms of market share, Asia-Pacific is rapidly emerging as the region with the highest growth potential. Here’s a breakdown of how the cellular modem market is evolving across major regions:

North America

North America remains the largest market for cellular modems, driven by advanced telecom infrastructure , the early adoption of 5G networks , and high consumer demand for connected devices. The United States and Canada are at the forefront of this development, thanks to government-led initiatives promoting digital inclusion and enhanced connectivity. The widespread deployment of 5G networks by telecom providers such as Verizon , AT&T , and T-Mobile is a key growth driver.

• Key Drivers : Strong demand for 5G modems in smartphones, automotive applications, and IoT devices. The ongoing rollout of 5G infrastructure is creating new opportunities for high-performance cellular modems.

• Growth Outlook : North America is expected to maintain a dominant share of the market, with a projected CAGR of 6.5% through 2030. However, as 5G adoption matures , growth will begin to stabilize by the latter part of the forecast period.

 

Europe

Europe is the second-largest market for cellular modems, supported by strong demand across several verticals, including automotive , consumer electronics , and IoT . Countries like Germany , France , and the United Kingdom are driving much of the demand, particularly in connected car technology and smart city applications .

• Key Drivers : Regulatory support for 5G deployment , increased adoption of IoT devices, and an ongoing push for smart cities are propelling the market. In addition, the European Union’s Digital Strategy has prioritized the expansion of digital infrastructure, benefiting the cellular modem industry.

• Growth Outlook : Europe is expected to grow at a CAGR of 7% during the forecast period. While 5G is already widespread in major urban centers, rural areas will likely see continued investment in the next few years, driving growth.

 

Asia-Pacific

The Asia-Pacific (APAC) region is projected to experience the highest growth rate in the cellular modem market due to the rapid expansion of telecom infrastructure, increased investments in 5G , and the burgeoning IoT market. China , India , and Japan are the key countries driving demand, with China leading the charge due to its large-scale 5G rollout and IoT innovations.

• Key Drivers : China 's push to become a leader in 5G technology , along with significant investments in IoT devices across industries such as manufacturing , transportation , and healthcare , are major growth factors. Additionally, the automotive industry in Japan and South Korea is increasingly adopting connected vehicle technology.

• Growth Outlook : Asia-Pacific is forecast to grow at the fastest rate , with a CAGR of 9% through 2030. The region’s adoption of 5G will lead the way, while the shift towards smart cities and industrial IoT will further stimulate demand for cellular modems.

 

Latin America

Latin America’s market for cellular modems is currently smaller than other regions, but it is poised for significant growth over the forecast period. Countries like Brazil , Mexico , and Argentina are focusing on expanding telecom infrastructure, which presents opportunities for cellular modem adoption.

• Key Drivers : Telecom operators in Latin America are investing in 5G network infrastructure, and increasing mobile broadband penetration will drive demand for cellular modems. The growth of connected devices in urban centers, coupled with the ongoing adoption of IoT , is also expected to increase the market size.

• Growth Outlook : Latin America is forecast to grow at a CAGR of 6.5% , with the highest growth in Brazil and Mexico . However, the market is still constrained by infrastructure limitations in rural areas.

 

Middle East & Africa (MEA)

The Middle East and Africa region presents a mix of challenges and opportunities for cellular modem adoption. While 5G rollout in the Gulf Cooperation Council (GCC) countries such as Saudi Arabia and the UAE is progressing rapidly, sub-Saharan Africa faces infrastructure challenges and slower adoption rates.

• Key Drivers : The GCC region is investing heavily in smart city projects and automated solutions , which will boost the demand for cellular modems in these countries. Meanwhile, sub-Saharan Africa is gradually increasing mobile broadband access, with demand for affordable modems in rural and remote areas.

• Growth Outlook : The MEA region will grow at a CAGR of 7.2% , with GCC countries driving growth. South Africa and Nigeria are seeing increasing demand for IoT and smart infrastructure solutions, but challenges related to mobile broadband access and affordability may slow adoption in sub-Saharan Africa.

 

Key Regional Dynamics:

• North America and Europe are expected to maintain their leadership in the market, supported by strong telecom infrastructure and ongoing 5G rollout. However, as 5G adoption matures, growth will stabilize in these regions.

• Asia-Pacific is experiencing the fastest growth, driven by large-scale 5G deployments, massive IoT expansion, and the rise of connected vehicle technologies. The region will dominate market growth in the coming years.

• Latin America and MEA offer significant growth potential, especially in smart city initiatives and IoT adoption, although infrastructure gaps need to be addressed for broader market penetration.

The regional landscape for cellular modems will continue to evolve, with Asia-Pacific leading growth, while North America and Europe maintain high market shares due to established infrastructure and early adoption of 5G technology.

 

End-User Dynamics And Use Case

The adoption of cellular modems spans a wide variety of industries, with each end-user group tapping into the unique advantages that high-speed, low-latency connectivity offers. From consumer electronics to industrial applications, the demand for reliable and robust cellular modem technology is rapidly increasing.

1. Telecommunications Providers

Telecom companies are the largest consumers of cellular modems, as they require advanced connectivity solutions to offer high-speed internet and mobile data services. As 5G and LTE networks continue to roll out globally, telecom operators are incorporating cellular modems into their network infrastructures to provide better coverage , faster speeds , and improved network reliability .

• Use Case : A major telecom provider in North America is integrating 5G modems into their fixed wireless access services, offering rural customers access to high-speed internet, where traditional broadband infrastructure is lacking. This service is expected to significantly expand their customer base in underserved areas.

End-User Focus : Telecom operators, particularly those operating in regions with poor wired broadband infrastructure, will drive continued demand for cellular modems .

 

2. Automotive Industry

The automotive sector is increasingly dependent on cellular modems for enabling connected car technology , such as infotainment systems , real-time navigation , autonomous driving capabilities , and vehicle-to-everything (V2X) communication . Cellular modems in cars help enable seamless connectivity between vehicles and external systems like traffic infrastructure , cloud data centers , and other vehicles.

• Use Case : An automotive manufacturer in Germany is integrating 5G-enabled modems in their new line of autonomous vehicles . This enables the cars to communicate with smart traffic lights , other vehicles , and cloud systems in real time, enhancing traffic flow and reducing congestion. The embedded modems are crucial for the vehicle’s ability to receive OTA (Over-the-Air) updates and for enabling high-speed infotainment features .

End-User Focus : Automotive manufacturers and suppliers of connected vehicle systems are significant adopters of cellular modems , especially as the demand for autonomous driving and smart transportation solutions grows.

 

3. Internet of Things (IoT)

The IoT sector represents a rapidly expanding application for cellular modems, as the growing adoption of connected devices across smart homes , industrial operations , and healthcare systems drives demand for reliable, low-power, wide-area (LPWA) connectivity solutions. LPWA technologies like NB- IoT and Cat-M1 are enabling these devices to operate efficiently on cellular networks.

• Use Case : A manufacturing plant in China has deployed IoT -enabled sensors with embedded cellular modems to monitor factory equipment in real-time. These modems provide secure data transmission over 5G networks, enabling predictive maintenance and minimizing downtime by sending alerts when equipment malfunctions or requires maintenance.

End-User Focus : IoT service providers, manufacturing companies, and smart home tech developers are rapidly adopting cellular modems as essential components for their connected device networks .

 

4. Consumer Electronics

The consumer electronics market is another significant driver of cellular modem adoption. With the proliferation of smartphones , tablets , laptops , and mobile hotspots , consumers expect seamless connectivity and the ability to stay connected anywhere, anytime. 5G modems are increasingly incorporated into mobile devices to enhance user experiences with faster download speeds and lower latency.

• Use Case : A mobile device manufacturer in South Korea has integrated 5G-enabled cellular modems in its latest smartphone model to support high-definition video streaming, ultra-low latency gaming, and AR/VR applications. This integration has positioned the device as a market leader in terms of performance and user experience.

End-User Focus : Consumer electronics manufacturers, particularly those involved in mobile devices, wearables , and portable hotspots , are key adopters of cellular modems to meet the growing demand for high-speed, on-the-go connectivity.

 

5. Industrial and Commercial Applications

The industrial and commercial sectors are also increasingly adopting cellular modems as part of their transition to Industry 4.0 . As manufacturing, logistics, and supply chain companies embrace IoT and automation , the need for robust and reliable connectivity solutions to support machine-to-machine (M2M) communication is rising.

• Use Case : A logistics company in Europe has implemented cellular modems in their fleet of delivery trucks to enable real-time tracking of goods and vehicles. By integrating these modems with the company’s logistics management platform, they can monitor traffic conditions, optimize delivery routes, and improve fuel efficiency.

End-User Focus : Manufacturing, logistics, and supply chain companies that are adopting smart factory and fleet management technologies will drive demand for cellular modems that enable real-time communication and data sharing .

 

Key Insights:

• The telecommunications and automotive sectors are the most mature markets for cellular modems, driven by the expansion of 5G and connected vehicle technologies .

• IoT applications , especially in smart manufacturing and smart homes , represent a high-growth area for cellular modems, as they are pivotal for connecting a wide range of devices securely and efficiently.

• Consumer electronics , particularly smartphones and portable hotspots , will remain one of the largest markets for cellular modems as consumers continue to demand high-speed, mobile connectivity.

With increasing reliance on high-speed data across multiple industries, cellular modems are poised to become even more integral to global connectivity, playing a key role in enabling next-generation technologies like autonomous vehicles , IoT , and mobile devices .

 

Recent Developments + Opportunities & Restraints

Recent Developments (Last 2 Years)

The cellular modem market has seen several important developments over the past two years, signaling both advancements in technology and shifts in industry focus. Some key highlights include:

Qualcomm’s Launch of the X65 5G Modem-RF System (2024)

• Qualcomm unveiled the X65 5G modem , which supports advanced 5G features like sub-6 GHz and mmWave connectivity, delivering faster speeds and better power efficiency. This modem is particularly suited for smartphones , IoT devices , and automotive applications , marking a significant step forward in 5G adoption.

 

MediaTek’s Release of the Dimensity 7000 Series Modem (2023)

• MediaTek introduced the Dimensity 7000 series modems, designed to optimize 5G connectivity for mid-tier smartphones and affordable IoT devices . These modems support Dual 5G SIM and multi-mode 5G , ensuring reliable connectivity in diverse environments, helping make 5G more accessible to a broader consumer base.

 

Huawei’s 5G Chipsets for Automotive Connectivity (2023)

• Huawei has been working closely with automotive manufacturers to integrate its 5G modems into next-generation connected cars . Their Balong 5000 chipset has been deployed in multiple autonomous vehicles , enabling low-latency communication for real-time data sharing between vehicles and infrastructure, as well as enhancing vehicle-to-vehicle (V2V) communication capabilities.

 

Intel’s Acquisition of Rivet Networks (2023)

• Intel expanded its portfolio in the cellular modem space by acquiring Rivet Networks , a company specializing in Wi-Fi technology . This acquisition strengthens Intel’s ability to provide integrated 5G solutions for a variety of applications, including consumer electronics , IoT , and automotive , positioning it as a key player in smart device connectivity .

 

Samsung’s Development of 5G Automotive Modems (2024)

• Samsung introduced its own line of 5G modems designed specifically for automotive applications . These modems provide connectivity for real-time traffic data and infotainment systems , playing a critical role in the development of autonomous vehicles and connected car infrastructure.

 

Opportunities

Expansion of 5G Networks

• The global rollout of 5G technology is a key opportunity for the cellular modem market. As telecom providers continue to expand their 5G networks, the demand for 5G-compatible modems in consumer electronics , IoT , and automotive sectors will rise. In particular, 5G modems will enable faster, more reliable connectivity for next-generation applications like autonomous vehicles and smart cities .

 

Growth of IoT and Smart Devices

• As the Internet of Things ( IoT ) continues to expand across industries, cellular modems will play an essential role in enabling secure, low-power, and wide-area connectivity . The increasing number of connected devices , from smart home products to wearables , will continue to drive demand for efficient cellular modems, particularly those optimized for LPWA (Low Power Wide Area) networks such as NB- IoT and Cat-M1

 

Automotive Connectivity

• The rise of connected cars , autonomous vehicles , and vehicle-to-everything (V2X) communication presents a significant opportunity for cellular modems. 5G-enabled modems will be critical for real-time communication between vehicles and infrastructure, supporting everything from infotainment systems to vehicle navigation and safety systems.

 

Emerging Markets

• There is a significant opportunity for growth in emerging markets where 5G infrastructure is still being developed. As governments invest in digital infrastructure and mobile broadband initiatives, cellular modems will become a vital component for expanding connectivity in rural areas and developing nations . The growth of mobile internet access in regions like Africa , Latin America , and Asia-Pacific presents substantial growth prospects.

 

Sustainability Initiatives

• Sustainability is becoming a driving force in the technology sector. The development of low-energy and eco-friendly cellular modems will appeal to industries focusing on green initiatives and environmental sustainability . Cellular modems that use low power and contribute to reducing carbon footprints in IoT devices and smart cities are expected to gain favor.

 

Restraints

High Development Costs

• While the demand for 5G cellular modems is growing, the R&D and manufacturing costs associated with advanced modem technologies remain high. Smaller companies or those in emerging markets may face difficulties in affording high-performance 5G modems or embedded solutions , potentially limiting market penetration and slowing adoption in these regions.

 

Infrastructure Gaps in Rural Areas

• Although urban regions benefit from the rapid rollout of 5G networks , many rural areas still face significant connectivity gaps . In these areas, 5G infrastructure is either limited or not yet available, which could limit the adoption of high-speed 5G modems in the short term.

 

Regulatory and Spectrum Challenges

• The deployment of 5G networks and the associated development of 5G cellular modems is subject to complex regulatory approvals and spectrum licensing in various regions. Regulatory delays and complications in securing 5G spectrum licenses could slow the pace of 5G adoption, affecting the demand for 5G modems .

 

Cybersecurity Concerns

• As more devices become connected through cellular modems , the threat of cyberattacks and data breaches increases. The increasing integration of cellular modems in critical systems (such as healthcare and autonomous vehicles) raises concerns about their vulnerability to cyber threats . This may lead to increased regulatory scrutiny and may slow down market adoption, especially if robust security measures are not in place.

 

Despite these restraints, the opportunities in 5G, IoT , and automotive connectivity present a compelling case for continued investment and innovation in the cellular modem market. Companies that can address these challenges with cost-effective, secure, and sustainable solutions will find substantial growth potential.

 

7.1. Report Coverage Table

Report Attribute	Details
Forecast Period	2024 – 2030
Market Size Value in 2024	USD 4.5 Billion
Revenue Forecast in 2030	USD 7.2 Billion
Overall Growth Rate	CAGR of 7.5% (2024 – 2030)
Base Year for Estimation	2024
Historical Data	2019 – 2023
Unit	USD Million, CAGR (2024 – 2030)
Segmentation	By Product Type, By Application, By End User, By Geography
By Product Type	USB Modems, Embedded Modems
By Application	Telecommunications, Automotive, IoT, Consumer Electronics
By End User	Telecom Providers, Automotive Industry, IoT Service Providers, Consumer Electronics Manufacturers
By Region	North America, Europe, Asia-Pacific, Latin America, Middle East & Africa
Country Scope	U.S., UK, Germany, China, India, Japan, Brazil, etc.
Market Drivers	5G Rollout, IoT Expansion, Automotive Connectivity, Consumer Demand for High-Speed Internet
Customization Option	Available upon request