A new analysis from market research firm Berg Insight highlights mounting pricing volatility in the global cellular IoT module market, underscoring the growing tension between shipment growth and declining unit revenues.
According to the report, covered in the article “Pricing volatility hits cellular IoT module shipments” published by IoT Tech News, global shipments of cellular IoT modules continue to expand at a steady pace, driven by demand across sectors such as smart metering, automotive, industrial automation, and asset tracking. However, this growth is being offset by significant fluctuations in average selling prices, which have introduced uncertainty across the supply chain.
Berg Insight attributes the volatility largely to intensifying competition among module vendors, particularly those based in China, alongside shifting demand toward lower-cost technologies. Modules based on LTE Cat-1 bis and NB-IoT standards are gaining traction due to their cost efficiency, but their widespread adoption is contributing to downward pressure on prices. This trend has made it increasingly difficult for vendors to maintain margins even as shipment volumes rise.
The report also points to broader macroeconomic and industry-specific dynamics, including supply chain adjustments following earlier semiconductor shortages and uneven demand recovery in certain regions. During the pandemic-era chip shortage, prices rose sharply, but subsequent normalization has triggered corrections that are still playing out in the market. These price swings have been especially pronounced in high-volume segments, where buyers are more price-sensitive and competition is fiercest.
Chinese module manufacturers continue to dominate global shipments, reinforcing pricing competition and accelerating commoditization. While this has helped drive adoption of cellular IoT solutions worldwide, it has also intensified pressure on smaller or less cost-efficient suppliers, particularly those outside Asia.
Despite these challenges, Berg Insight maintains that the long-term outlook for cellular IoT remains strong. The expansion of connected devices, combined with ongoing digital transformation efforts across industries, is expected to sustain shipment growth. However, the firm cautions that market participants will need to adapt to a landscape where pricing instability is likely to remain a defining feature.
The findings reported by IoT Tech News suggest that success in the sector will increasingly depend not just on scale, but on the ability to manage costs, diversify technology portfolios, and navigate a rapidly evolving competitive environment.
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