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Market Overview
According to Fortune Business Insights, the global connectivity module market size was valued at USD 71.78 billion in 2024. The market is projected to grow from USD 78.48 billion in 2025 to USD 157.58 billion by 2032, exhibiting a CAGR of 10.5% during the forecast period.
Connectivity modules are hardware components enabling wireless communication (Wi-Fi, Bluetooth, 5G, LTE, NB-IoT) crucial for IoT ecosystems in healthcare, automotive, and industrial automation. The market is growing steadily due to rising IoT adoption, advancements in 5G, and a surge in smart infrastructure.
Major Players Profiled in the Market Report:
Sierra Wireless (Canada)
Murata Manufacturing Co., Ltd (Japan)
Quectel Wireless Solutions (China)
Fibocom Wireless Inc. (China)
SIMCom Wireless Solutions (China)
Nordic Semiconductor (Norway)
Sequans Communications (France)
Ezurio (U.S.)
Telit Communications (U.K.)
Huawei Technologies (China)
U-blox (Switzerland)
Queclink Wireless Solutions (China)
Source: https://www.fortunebusinessinsights.com/connectivity-module-market-114484
Segments
Growing Wider Applications of Short-Range Modules Boosts Segment Growth
Based on connectivity technology, the market is segmented into Cellular (WWAN), LPWA (Cellular), LPWAN (Non-cellular), Short-Range (WLAN/PAN), and Positioning. The short-range (WLAN/PAN) segment held the largest revenue share of USD 36.82 billion in 2024 due to wider applications in smart homes and consumer electronics. Meanwhile, Cellular (WWAN) held the highest CAGR of 13.8%.
Easy Integration and Highly Reliable Manufacturing for Mass Production Drives LGA/SMT Segment Growth
Based on form factor, the market is divided into LGA/SMT Modules, Mini-PCIe, uBlox-style castellation, plug-in, and combo modules. The LGA/SMT segment dominated with a revenue share of USD 36.19 billion in 2024 owing to easy integration and suitability for mass production. Combo modules grew with the highest CAGR of 15.2%.
Higher Scalability and Remote Management in IoT and Connected Devices Enhances Cloud Segment Growth
Based on deployment, the market is divided into on-premise and cloud. The cloud segment held the highest market share in 2024 with a revenue of USD 48.03 billion, driven by scalability and remote management capabilities.
Capability of Extending Battery Life and Supporting Long Term Data Transmission Supplements Low Power Segment Growth
Based on power, the market is segmented into low, medium, and high. The low power segment held the highest market share in 2024 (USD 34.83 billion) as IoT devices focus on battery life. The high power segment held the highest CAGR of 16.2% due to data-heavy applications like video streaming.
Expanding Adoption of Sensors and Connected Devices Augments the Manufacturing Segment Growth
Based on industry vertical, the market is segmented into automotive & transportation, manufacturing, energy & utilities, healthcare, retail & e-commerce, and others. The manufacturing segment held the highest market share in 2024 (USD 12.31 billion) due to widespread automation. The healthcare segment held the highest CAGR of 15.1%.
Geographically, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.
Report Coverage
The report offers:
Detailed analysis of prominent companies, deployment modes, types, and end users.
Insights into connectivity module market trends and market share analysis.
Major growth drivers, restraining factors, and opportunities.
Key industry developments including product launches and partnerships.
Drivers & Restraints
Growing Adoption of IoT Devices Drives Market Development
The rapid expansion of the Internet of Things (IoT) is a primary driver. Patent applications for IoT grew significantly between 2010-2018, and venture capital investment reached USD 8 billion in 2020. With estimates suggesting over 75 billion IoT devices in use by 2025, the demand for modules supporting Bluetooth, Wi-Fi, LTE, and 5G is increasing to facilitate data transfer in smart appliances, vehicles, and industrial sensors.
However, global supply chain disruptions hamper market growth. Ongoing semiconductor shortages, transportation issues, and geopolitical tensions have led to production interruptions and increased manufacturing costs.
Regional Insights
Asia Pacific Dominates the Market Due to Large Manufacturing Base
Asia Pacific dominated the global market with a share of 38.25% in 2024 (USD 27.46 billion). This dominance is attributed to a large manufacturing base, massive smart city projects, and ongoing IoT adoption in countries like China and India.
North America is expected to reach a share of USD 21.88 billion in 2025, driven by effective 5G infrastructure and demand for connected vehicles. Europe is projected to contribute USD 16.71 billion in 2025, fueled by smart city projects in the U.K., Germany, and France.
Connectivity Module Market Future Growth:
The market is poised for robust future growth driven by the integration of Generative AI, which is enabling smarter edge processing and reducing reliance on cloud computing. This shift supports real-time decision-making and minimizes latency. Furthermore, the ongoing global rollout of 5G and advanced cellular networks offers lucrative opportunities, facilitating ultra-low latency and massive device connectivity for autonomous vehicles and industrial robots. Smart city infrastructure projects are also emerging as a prominent trend, boosting the demand for scalable and secure connectivity modules.
Competitive Landscape
Growing Focus of Key Players on Innovation and New Launches Leads to their Governing Market Positions
The industry is highly competitive, with players like Sierra Wireless, Murata, and Quectel focusing on extensive R&D and product innovation. Companies are adopting strategies such as developing compact multi-protocol modules and forming partnerships with telecom operators to enhance global distribution and meet evolving consumer demands.
Key Industry Development
October 2025: MikroElektronika launched a new low-power wireless connectivity module aimed at accelerating IoT and IIoT applications.
September 2025: Digi International announced the Digi XBee 3 BLU module, delivering secure Bluetooth Low Energy 5.4 connectivity.
March 2025: Lantronix Inc. announced its new Open-Q 8550CS System-on-Module (SOM) powered by the Qualcomm Dragonwing QCS8550 processor for Edge AI intelligence.
November 2024: Qualcomm introduced new micro-powered Wi-Fi (QCC730M) and programmable IoT connectivity modules (QCC74xM).
June 2022: Renesas Electronics announced two new cloud development kits equipped with the RYZ014A Cat-M1 module.
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