IoT Communication Module Market - Global Forecast 2026-2032

The IoT Communication Module Market size was estimated at USD 7.08 billion in 2025 and expected to reach USD 7.74 billion in 2026, at a CAGR of 10.96% to reach USD 14.67 billion by 2032.

As the digital ecosystem expands, IoT communication modules have become the vital enablers of machine-to-machine connectivity, powering a vast array of devices across industrial, consumer, and enterprise landscapes. At the close of 2024, the number of active connected IoT devices surged to approximately 18.8 billion, reflecting sustained growth in demand for seamless data exchange and real-time monitoring across sectors. These modules, whether embedded onto circuit boards or offered as plug-in solutions, integrate radio transceivers, protocol stacks, and power management features to deliver reliable links over cellular networks, LPWANs, satellite systems, and short-range technologies.

The advent of 5G for IoT devices is reshaping module design by offering reduced complexity and power requirements through specifications such as NR-Light or RedCap, which are set to debut in consumer hotspots and industrial sensors in 2025. Meanwhile, private and hybrid 5G networks are transitioning from proof-of-concept to large-scale deployments in manufacturing plants and campuses, where they deliver secure, low-latency connections across sprawling operations.

Parallel to the 5G evolution, low-power wide-area networks have cemented their status as a cornerstone for long-range, battery-operated IoT applications. Global LPWAN connections approached 1.3 billion by the end of 2023 and are projected to sustain a compound annual growth rate of 26% through 2027 driven by robust adoption of NB-IoT and LoRa technologies. These networks enable remote monitoring in utilities, agriculture, and smart city deployments where intermittent transmissions and years-long battery life are paramount.

Moreover, satellite-based IoT connectivity is emerging as a critical complement for terrestrial networks, offering ubiquitous coverage for maritime operations, pipeline monitoring, and remote asset tracking. Innovative trials of NB-IoT roaming on low-earth-orbit constellations demonstrated the feasibility of seamless handovers between ground and space networks, unlocking new use cases in areas without cellular service.

Finally, the integration of edge computing and AI within module form factors is accelerating the move toward distributed intelligence. Modules equipped with on-board processing capabilities and network slicing support can deliver sub-five-millisecond latency for predictive maintenance and real-time analytics, transforming operational efficiency in industries ranging from energy to logistics. These transformative shifts across 5G, LPWAN, satellite, and edge AI technologies are setting a new baseline for module performance, energy efficiency, and application versatility.

Since early 2025, the United States has implemented a series of increased tariff measures on telecommunication and IoT hardware imported primarily from China, with levies ranging from 20% on consumer devices to as high as 145% on advanced telecom equipment. These elevated duties have been rapidly passed through supply chains, prompting U.S.-based module manufacturers and device integrators to reassess cost structures and sourcing strategies.

In the immediate term, many small and mid-sized technology firms experienced abrupt increases in component pricing, leading to tightened profit margins and, in some cases, stock shortages ahead of major sales events. Established brands with deep partnerships and diversified manufacturing bases have managed to buffer these impacts better than startups that rely heavily on Chinese expertise and low-cost production. Proactive firms are now evaluating onshoring of critical module assembly or pivoting to alternative low-cost manufacturing hubs in Southeast Asia and Mexico.

Beyond direct cost escalations, the tariffs have exacerbated lead times and customs clearance delays, with some integrators reporting extensions of six to twelve weeks for affected shipments. This disruption has intensified the drive toward subscription models for device-as-a-service offerings, enabling vendors to amortize higher upfront costs over extended contract periods and smooth revenue recognition. Meanwhile, solutions providers bundling long-term service agreements with hardware deployments are finding increased acceptance among enterprise buyers seeking predictable total cost of ownership.

Looking forward, the unpredictable trajectory of U.S. trade policy underscores the imperative for supply chain resilience and supplier diversification. Companies engaged in IoT communication modules are increasingly investing in dual-sourcing strategies, establishing buffer inventories, and leveraging domestic chip fabrication initiatives to mitigate tariff risk and ensure continuity of supply in the face of evolving geopolitical tensions.

The market for IoT communication modules is dissected by distribution channel, distinguishing between aftermarket offerings designed for retrofitting existing deployments and OEM modules that are integrated during new device manufacturing. Aftermarket segments are fueled by demand to upgrade legacy equipment with modern connectivity, while OEM channels benefit from the efficiency and reliability of factory-installed solutions that streamline certification and support.

When examining module types, the landscape is bifurcated into embedded modules-where the connectivity chip is soldered directly onto the host PCB for compactness and durability-and plug-in modules that attach via standardized interfaces to enable rapid prototyping, field serviceability, and cross-platform compatibility in consumer electronics and testing environments.

Communication technology segmentation covers cellular, LPWAN, satellite, and short-range protocols. Cellular modules span generations from 2G and 3G through advanced 5G RedCap and 5G Advanced variants to meet diverse data rate and latency requirements across smart cities and industrial automation. LPWAN connectivity is further defined by LoRa, LTE-M, NB-IoT, and Sigfox networks, each optimized for energy efficiency and deep coverage in assets such as utility meters and environmental sensors. Satellite modules extend reach beyond terrestrial networks, unlocking connectivity in maritime, remote infrastructure, and emergency response use cases. Short-range modules incorporate Bluetooth, Wi-Fi, Z-Wave, and ZigBee to serve local device ecosystems in smart home, wearable, and healthcare applications.

Finally, end-use application segmentation reveals a broad spectrum of markets-ranging from precision agriculture and connected automobiles to consumer electronics, energy and utilities, healthcare systems, industrial automation, retail analytics, smart city platforms, and residential smart home solutions-underscoring the universal demand for modular connectivity solutions that can be tailored to each vertical’s unique performance and cost criteria.

In the Americas region, robust network infrastructures and supportive regulatory frameworks have catalyzed early adoption of advanced cellular and LPWAN modules, particularly in North America where private 5G networks and smart grid initiatives are accelerating deployments. Latin America is witnessing increased interest in cost-efficient LPWAN solutions to address supply chain visibility and environmental monitoring in agriculture.

Within Europe, Middle East & Africa, European markets emphasize energy efficiency and regulatory compliance in smart metering and automotive telematics, driven by the EU’s digital transition policies. In the Middle East, pilot smart city and oil and gas projects are integrating satellite and cellular modules to overcome gaps in terrestrial coverage, while infrastructure investments in Africa are increasingly directed toward sustainable IoT solutions for utilities and healthcare.

Asia-Pacific stands out as the fastest-growing market, buoyed by China’s nationwide NB-IoT rollout under its “Big Connectivity” initiative and widespread 5G network expansions in Japan and South Korea. India’s focus on IoT-enabled precision agriculture and digital retail ecosystems is fueling demand for versatile modules, and Southeast Asian nations are piloting smart manufacturing and telehealth applications powered by hybrid connectivity platforms.

Quectel Wireless Solutions is showcasing a wide-ranging portfolio of connectivity products including new 5G New Radio modules-such as the RG500S and RM500S series based on Qualcomm’s Snapdragon X315 IoT modem-and a suite of short-range modules supporting Wi-Fi 7, Wi-Fi HaLow, Bluetooth LE Audio, and Auracast. Its advanced antenna lineup and high-precision GNSS modules further underscore its commitment to end-to-end solutions for industrial and consumer applications.

Sierra Wireless continues to fortify its position in the LPWAN segment with the HL78 series LTE-M and NB-IoT modules, which deliver industry-leading power efficiency and security, as well as its flagship 5G LPWA HL7900 module integrating Sony’s Altair ALT1350 chipset. The company’s EM92 series of 5G modules and the open-standard IoT Expansion Card initiative are enabling scalable, future-proof deployments across diverse IoT ecosystems.

u-blox has introduced the MAYA-W4 tri-radio module combining Wi-Fi 6, Bluetooth LE 5.4, and 802.15.4 for Matter-based networks, along with expanded NORA-B2 variants powered by Nordic Semiconductor’s nRF54L SoCs and the ultra-compact ANNA-B5 Bluetooth LE module. These launches emphasize u-blox’s focus on multi-protocol integration, power optimization, and seamless product migration for mass-market and industrial segments.

Telit Cinterion’s newly released ME310M1-W1 module, featuring Sony’s Altair ALT1350 chipset, has gained certification from major U.S. mobile network operators, enabling immediate LTE-M deployments. Its ME910G1-NTN module delivers hybrid LPWA and satellite connectivity for global coverage, and the AI-powered FE990D and FN990D 5G module series leverage Qualcomm’s X85/X82 Modem-RF for advanced traffic prioritization and non-terrestrial network support.

Sequans Communications has unveiled its third-generation cellular IoT semiconductor solutions-Calliope 3 and Monarch 3-which introduce 5G eRedCap capabilities to existing Cat 1bis and LTE-M/NB-IoT platforms. Footprint and software compatibility ensure a seamless migration path for OEMs, reinforcing Sequans’ leadership in low-power, cost-efficient cellular connectivity.

Industry leaders should diversify their connectivity portfolios to include multiple communication standards-ranging from 5G RedCap and private 5G to LPWAN and satellite-to meet evolving application requirements and mitigate single-technology risks. Ensuring modular designs with common form factors and pin mappings will streamline product upgrades and accelerate time to market.

Building resilient supply chains is critical: companies must establish multi-region sourcing strategies, maintain buffer inventories, and engage with domestic fabrication partners to navigate tariff pressures and logistical disruptions. Strategic alliances with hyperscalers, network operators, and satellite providers can unlock new service models and extend global coverage, particularly in underserved regions.

To capture additional value, organizations should invest in edge computing capabilities within modules and cultivate AI-driven analytics that enhance security, energy management, and real-time decision-making at the device level. Embracing subscription-based offerings and outcome-based service level agreements will help shift upfront cost burdens and create predictable revenue streams.

Lastly, active participation in industry consortia and standards bodies will ensure alignment with emerging protocols such as 3GPP Release 18 eRedCap, Matter for smart home integration, and non-terrestrial network specifications. Continuous scanning of trade policy developments will enable proactive adjustments to tariff exposure and help safeguard competitive positioning in a dynamic global market.

This research integrates a multi-layered methodology combining extensive secondary data analysis, expert interviews, and rigorous validation processes. We began by collecting and synthesizing proprietary and public information from company reports, press releases, regulatory filings, and industry publications.

Primary insights were obtained through in-depth interviews with module manufacturers, network operators, technology integrators, and end users across key verticals to capture real-world challenges, adoption trends, and future requirements. We conducted a detailed supply chain assessment to evaluate sourcing strategies, tariff impacts, and logistical considerations affecting component availability and pricing.

Quantitative and qualitative data were triangulated through cross-referencing multiple sources and applying a robust validation framework. Interactive workshops with industry stakeholders further refined segmentation definitions, regional classification, and technology categorizations. This comprehensive approach ensures that our analysis remains objective, current, and directly actionable for decision-makers seeking a clear understanding of the IoT communication module landscape.

Communication modules are rapidly evolving beyond simple transceivers to become intelligent edge nodes that blend connectivity, computing, and analytics within compact form factors. Across diverse sectors-ranging from industrial automation and smart cities to healthcare and consumer electronics-these modules are foundational to realizing the promise of pervasive IoT and Industry 4.0.

Dynamic shifts in network technologies, including the proliferation of 5G RedCap, mainstream LPWAN deployments, and non-terrestrial connectivity, are expanding the module feature set and performance envelope. At the same time, geopolitical factors such as evolving tariff regimes are reshaping supply chains, driving organizations to enhance resilience through diversification and domestic manufacturing initiatives.

Strategic segmentation insights underscore the value of customizing module offerings by distribution channel, module type, connectivity technology, and end-use application. Regional disparities in infrastructure maturity, regulatory frameworks, and investment priorities further highlight the need for tailored go-to-market strategies.

Leading companies are responding with product innovations, strategic partnerships, and platform roadmaps that address power efficiency, multi-protocol compatibility, and software-defined networking capabilities. Moving forward, inhibitors such as cost pressures and supply chain uncertainties will be counterbalanced by opportunities in AI-enabled edge computing, subscription models, and emerging use cases in remote or underserved environments.

Collectively, these insights provide a strategic foundation for stakeholders to navigate the complexities of the IoT communication module market and leverage connectivity advancements to drive business value.

To explore comprehensive insights, detailed market segmentation, and strategic recommendations tailored to your business needs, reach out directly to Ketan Rohom, Associate Director, Sales & Marketing at 360iResearch. Leverage his expertise to secure your copy of the complete IoT Communication Module market research report. Empower your organization with actionable data and in-depth analysis-contact Ketan today to transform how you approach connectivity opportunities.