Cellular IoT module market hit hard by Covid, chip shortage

New Delhi: Hit hard by the pandemic, the global market for cellular Internet of Things (IoT) modules declined 8 per cent (on-year) to $3.1 billion in 2020, while a global chip shortage is now affecting 2021 shipment volumes and profit margins, a new report has said.

According to data provided by IoT Analytics, a leading provider of market insights and competitive intelligence for IoT and Industry 4.0, the global semiconductor shortage had already affected some cellular module companies in Q4 2020.

“Most cellular module companies have a large backlog of orders in hand, and chip shortages have led to higher chip price volatility. Hence, in H1 2021, we expect a global decline in shipment volume for the overall cellular IoT module market and a decrease in profit margins for module makers,” said the report that was released late on Thursday. The chip shortage is, therefore, hampering the Covid-19 cellular IoT recovery in Europe and North America and markets there are not expected to grow as much as they could, the findings showed.