The global cellular IoT module sector continued to recover from inventory correction during Q1, with year-on-year gains which IoT Analytics figures show maintained a run spanning each quarter of 2024.

Research company IoT Analytics stated cellular IoT module shipments grew 23 per cent in Q1 despite various challenges involving geopolitics and regulations.

These factors “are creating a dynamic market environment”, IoT Analytics noted pointing to a decision by module maker u-blox to exit the sector as an example of the impact.

Quectel, China Mobile, Fibocom, Sunsea AIoT and Telit Cinterion were the top five players in its Q1 report, accounting for 73 per cent of shipments.

Principal analyst Satyajit Sinha noted Quectel had been added to the US Department of Defence’s 1260H list. This covers companies with links to China’s military with a view to limiting interactions albeit stopping short of full sanctions or export controls.

Sinha said an onshoring partnership between Quectel and US-based cellular module production company Eagle Electronics struck late in 2024 “illustrate proactive contingency planning by suppliers in anticipation of worsening geopolitical conditions”.

“The next 18 months are particularly crucial for western IoT module suppliers, who must capitalise on their distinct advantages in compliance, transparency, cybersecurity and reliable supply chain management.”