IoT Wireless Communication Module Market Size (2024 – 2030)

The valuation of the IoT wireless communication module market stood at $2.80 billion in 2023 and is anticipated to attain $11.66 billion by 2030, reflecting a compound annual growth rate (CAGR) of 22.6% during the forecast period.

This market segment pertains to modules facilitating wireless communication among Internet of Things (IoT) devices. These modules typically encompass a microcontroller, a wireless transceiver, and assorted components, supporting diverse wireless communication protocols like Bluetooth, Zigbee, and LoRa. The growth of the IoT wireless communication module market is expected to surge owing to the escalating integration of IoT technology across various sectors and the mounting demand for wireless connectivity within IoT devices.

IoT Wireless Communication Module Market Drivers:

Technological Advancements in Wireless Communication:

The progression in wireless communication technologies, exemplified by Bluetooth 5.0, Zigbee 3.0, and LoRa, is poised to propel market expansion.

Government Initiatives and Funding:

Governmental support and funding towards smart city development and IoT technology adoption are foreseen to fuel market growth.

Proliferation of IoT Applications:

The burgeoning array of IoT applications across different sectors is projected to stimulate market growth.

Adoption of Low-power Wide-area Network (LPWAN) Technologies:

The rising uptake of LPWAN technologies like LoRa and Sigfox, tailored for extensive IoT networks, offering cost-effective, low-power connectivity over considerable distances, is driving market growth.

Surge in Cloud-based Platform Adoption:

The increasing embrace of cloud-based platforms is catalyzing market expansion by facilitating easy data access and sharing among devices.

IoT Wireless Communication Module Market Challenges:

Complex Regulatory Environment: The IoT wireless communication module market contends with stringent regulatory requisites and certifications, which are intricate and time-consuming, posing challenges for product introduction.

Interoperability Issues: Challenges stemming from interoperability between diverse wireless communication protocols and devices may constrain IoT technology scalability and adoption.

Security Concerns: Security apprehensions, encompassing data breaches and hacking incidents, could deter IoT technology and IoT wireless communication module adoption.

High Investment Costs: The elevated costs associated with IoT wireless communication module development and deployment could impede market entry for certain companies.

IoT Wireless Communication Module Market Opportunities:

Advancements in Semiconductor Technologies: The strides in semiconductor technologies present opportunities for market expansion by facilitating the creation of more compact and energy-efficient wireless communication modules.

Increased Adoption of IoT in Industrial Applications: The growing adoption of IoT in industrial applications such as manufacturing, logistics, and supply chain management offers avenues for market growth.

Rising Demand for IoT-enabled Consumer Electronics: The escalating consumer demand for IoT-enabled consumer electronics like smart home devices and wearables creates opportunities for market expansion.

Impact of COVID-19 on the IoT Wireless Communication Module Market:

The Covid-19 pandemic has exerted a significant influence on the IoT wireless communication module market, yielding both favorable and unfavorable effects. The pandemic has hastened IoT technology adoption across diverse industries, particularly in healthcare and manufacturing, with telehealth services and remote monitoring devices assuming greater significance. This surge in adoption has propelled the demand for IoT wireless communication modules, crucial for transmitting data wirelessly. Moreover, the pandemic has intensified focus on automation and digitization, further driving demand for IoT wireless communication modules. However, the pandemic has also led to disruptions in the supply chain and deceleration in research and development activities, impacting the production and availability of IoT wireless communication modules. Consequently, while the pandemic has inflicted short-term adverse effects on the market, it is anticipated to foster long-term growth as the necessity for automation and remote monitoring escalates.

Recent Developments in the IoT Wireless Communication Module Market:

In 2020, NXP Semiconductors, a leading provider of IoT wireless communication modules, announced the acquisition of Marvell's IoT business, which encompasses wireless communication modules for IoT applications such as smart homes and industrial automation.

In August 2022, Semtech unveiled plans to acquire IoT module manufacturer Sierra Wireless. This formal agreement stipulates that Semtech would acquire all outstanding shares of Sierra Wireless at US$31 per share in an all-cash transaction, with an estimated enterprise value of US$1.2 billion.

Segmentation of the IoT wireless communication module market based on technology reveals several key categories:

• Bluetooth
• Zigbee
• LoRa
• Wi-Fi
• Cellular
• Other technologies

Within this realm, Wi-Fi stands out as the dominant technology, boasting the largest market share. Its reliability and robust connectivity make it a preferred choice across a wide array of applications. Conversely, Bluetooth emerges as the fastest-growing technology, owing to its simplicity and versatility, leading to widespread adoption across various devices. It is poised to maintain a substantial market share in the foreseeable future.

The IoT wireless communication module market can also be segmented by end-use industry:

• Healthcare
• Automotive
• Retail
• Industrial
• Other industries

Healthcare commands the largest market revenue share within this segment, leveraging wireless communication modules to revolutionize patient monitoring and streamline medical procedures. The critical demand for real-time monitoring and data exchange in healthcare drives the enthusiastic adoption of IoT wireless communication modules. These modules empower medical professionals to remotely monitor patients, ensuring prompt interventions and personalized care. Whether through wearable devices tracking vital signs or smart pills transmitting medication data, the healthcare sector's reliance on wireless communication modules is evident.

Meanwhile, the automotive industry exhibits rapid growth within this category, fueled by the increasing sophistication of vehicles and their integration with IoT technology. This integration enhances safety and convenience, transforming vehicles into intelligent entities equipped with advanced safety features, infotainment systems, and predictive maintenance capabilities. The automotive sector's interest in these modules stems from their capacity to improve driver safety, optimize vehicle performance, and deliver a seamless connected experience.

Geographically, the IoT wireless communication module market is segmented into:

• North America
• Europe
• Asia Pacific
• Middle East
• Latin America

North America is poised to capture a significant portion of the global market share, thanks to the presence of leading IoT firms and early adopters of IoT technology. Europe also represents a substantial market for IoT wireless communication modules, driven by widespread IoT adoption in industries such as healthcare, transportation, and manufacturing. In the Asia-Pacific region, government initiatives and investments in smart city development fuel the fastest growth in the market. Although Latin America and the Middle East and Africa regions are comparatively smaller markets, they are anticipated to witness significant growth during the forecast period.

Key players in the IoT wireless communication module market include:

1. Qualcomm Technologies
2. Telit
3. u-blox
4. Nordic Semiconductor
5. STMicroelectronics
6. NXP Semiconductors
7. Texas Instruments
8. Murata Manufacturing
9. Intel Corporation
10. Marvell Technology Group
11. Analog Devices
12. Movidius
13. Sierra Wireless