Cellular Modem Market Size

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.