Cellular Modem Market size was valued at USD 5.68 billion in 2024 and is projected to exceed USD 56.94 billion by the end of 2037, registering over 19.4% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of cellular modem is evaluated at USD 6.56 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.
Growth Drivers
Challenges
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
19.4% |
Base Year Market Size (2024) |
USD 5.68 billion |
Forecast Year Market Size (2037) |
USD 56.94 billion |
Regional Scope |
|
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 |
|
Technology |
|
Application |
|
Vertical |
|
APAC Market Forecast
Asia Pacific cellular modem market is projected to hold 35% of the revenue share by 2037. 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.
Author Credits: Abhishek Verma
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?