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India was the fastest growing Internet of Things (IoT) module market with more than 264 per cent growth in the second quarter this year, a report showed.

Although growing on a lower base, the growth in IoT modules in India was driven by smart meters, telematics, point of sale (POS) and automotive applications, according to Counterpoint Research.

Global cellular IoT module shipments grew 20 per cent (year-over-year) in Q2 2022.

"The IoT module market is going through a critical phase where the Chinese brands have become bigger, making it very difficult for international brands to grow in silos," said senior research analyst Soumen Mandal.

The global cellular IoT module market continued to recover despite a tighter supply chain, Covid-19 lockdowns in China and macroeconomic headwinds.

The growth was driven by the ongoing digital transformation involving potential applications around critical infrastructure and logistics catered by some key fast-growing low-tier cellular technologies such as Cat-1 and NB-IoT.

"Further, module players modified their product offerings, striking partnerships across the value chain, from newer connectivity solution providers to acquiring some key competitors, as the IoT industry enters a very exciting growth phase," the report noted.

China retained its position as the world's largest IoT market, contributing to more than half of the demand despite the lockdowns.

"With six out of the top 10 IoT module vendors being from China and with the rising geopolitical competition and data privacy concerns, international players see an opportunity to consolidate and carve out a dichotomy in this segment," said Mandal.

The 5G IoT module shipments remain steady with prices still high and many projects still in pilot stages.

"It will take at least a couple of years to reach an inflection point. We expect the second half of 2023 to see a ramp-up for the 5G IoT modules with good pan-country 5G coverage and scale," said Associate Director Mohit Agrawal.