Key Takeaways
- India’s cellular IoT module market grew 40% year-on-year in Q3 2025, driven by demand in smart metering, POS, and telematics.
- Global cellular IoT module shipments increased by 10% year-on-year, while demand for AI-capable modules is rising across various sectors.
- Shifts from legacy systems to cellular technology are accelerating, although profitability is tightening, necessitating a focus on cash flow and edge intelligence.
Market Growth in India
Recent data shows that India’s cellular internet of things (IoT) module market experienced a robust 40% growth year-on-year for the July-September 2025 period, continuing its momentum from previous quarters. This development is attributed to strong demand in smart metering, point of sale (POS) systems, and telematics, as highlighted by Counterpoint Research.
According to Senior Analyst Tina Lu, this growth is particularly evident in emerging and price-sensitive markets. While India saw impressive growth, the global shipments of cellular IoT modules rose by a more modest 10% during the same period.
Shifts in the IoT Landscape
The report indicates that the market’s growth is not only fueled by traditional applications but also by a transition from legacy RF and PLC systems to cellular technology, which positions the industry for the next phase of capability-driven IoT deployments. The rising demand for AI-capable IoT modules is also a pivotal trend, spanning sectors such as surveillance, automotive, industrial applications, and retail.
Research Director Mohit Agrawal emphasized that the value in the IoT sector is shifting from basic connectivity hardware to a focus on edge intelligence and lifecycle services. As industry dynamics evolve, cash-flow strength has emerged as a critical differentiator for businesses navigating a tightening profitability environment.
Global Performance Overview
In terms of global performance, mature markets displayed steady growth, with China increasing by 7%, Europe by 11%, and North America seeing a modest rise of 4%. This performance reflects companies’ cautious spending in an uncertain economic climate.
As the industry moves toward higher-value, AI-enabled IoT solutions, vendors are investing more in edge intelligence, secure software, and 5G-ready portfolios amidst falling average selling prices (ASPs). Notably, the Cat-1 bis technology has solidified its status as the leading volume segment, making up nearly half of all shipments, while RedCap has begun early commercialization efforts, with operators commencing certifications and pilots.
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