LTE Cat 1 Chipsets Market Declining at -9.19% CAGR (2024–2032): Shifting Tides in IoT Connectivity

The LTE Cat 1 Chipsets Market, once a pivotal segment in the low-power wide-area (LPWA) connectivity space, is witnessing a significant downtrend. The market is projected to decline from USD 1.3 Billion in 2024 to just USD 0.6 Billion by 2032, reflecting a CAGR of -9.19% over the forecast period. This marks a sharp contrast to the growth trajectory it enjoyed between 2019 and 2023, when it peaked at USD 1.43 Billion in 2023.

Despite the downturn, LTE Cat 1 chipsets remain relevant for legacy and cost-sensitive IoT applications. However, the market is feeling the pressure from emerging 5G technologies, Cat M1/NB-IoT modules, and non-cellular LPWA solutions that offer superior performance and energy efficiency.

Get a Free Sample Report: https://www.wiseguyreports.com/sample-request?id=553067

Key Market Dynamics

• Growing Demand for IoT Connectivity: LTE Cat 1 chipsets have historically served as a bridge technology for connecting IoT devices to LTE networks. Their ability to offer sufficient bandwidth for most IoT applications—like smart meters, industrial sensors, and logistics tracking—made them a go-to solution.
• Increasing Adoption in Emerging Markets: While demand is tapering in advanced markets due to 5G migration, regions in South America, MEA, and parts of APAC still leverage Cat 1 for affordable connectivity.
• Focus on Low-Power Consumption: These chipsets support extended battery life, making them suitable for battery-operated devices where frequent charging or replacement isn't feasible.
• Government Initiatives for Smart Cities: Several governments continue to use LTE-based infrastructure for urban surveillance, traffic control, and environmental monitoring—although these are increasingly being transitioned to 5G and LPWA networks.
• Competitive Pricing: Low-cost LTE Cat 1 modules provide cost-effective alternatives for mid-tier IoT devices, especially where LTE Cat M1 or NB-IoT isn’t yet deployed.

Key Market Opportunities

• 5G Network Expansion: Although 5G threatens LTE Cat 1’s market share, network densification and multi-mode compatibility may still sustain dual-connectivity modules in hybrid devices.
• IoT Device Growth: The explosive expansion of IoT ecosystems, particularly in healthcare, logistics, and agriculture, offers temporary reprieve for Cat 1 chipsets, especially in non-critical or legacy systems.
• Smart City Applications: Infrastructures built on LTE can still accommodate Cat 1 modules for basic smart utilities, traffic, and waste management systems.
• Industrial Automation: Factories and warehouses in regions lacking robust 5G access still rely on LTE Cat 1 for machine-to-machine (M2M) communication and automation.

Regional Insights

• North America & Europe: Rapid 5G deployment is reducing reliance on LTE Cat 1 in these regions. Transition toward NB-IoT and LTE-M is more pronounced here.
• Asia-Pacific (APAC): Mixed market: while nations like Japan and South Korea lead in 5G, India and Southeast Asia continue to see LTE Cat 1 integration in cost-sensitive projects.
• South America & MEA: These regions present residual demand due to budget constraints and delayed 5G infrastructure rollouts.

Segmentation Overview

• By Module: Standard, Integrated, and Plug-in
• By Frequency Band: Single-band, Multi-band
• By Application: Smart meters, POS terminals, Asset tracking, Remote sensors
• By Protocol: TCP/IP, UDP, MQTT
• By Form Factor: LGA, Mini PCIe, mPCIe
• By Region: North America, Europe, APAC, South America, MEA

Buy Full Research Report: https://www.wiseguyreports.com/checkout?currency=one_user-USD&report_id=553067

Key Players

The market features a blend of global chipset and module vendors. Leading names include:

• Qualcomm Incorporated
• Intel Corporation
• Huawei Technologies Co., Ltd.
• MediaTek Inc.
• Sequans Communications S.A.
• Sony Semiconductor Solutions Corporation
• Sierra Wireless, Inc.
• Samsung Electronics Co., Ltd.
• Gemalto N.V.
• UNISOC Communications Inc.
• Telit Communications S.p.A.
• Altair Semiconductor
• Nordic Semiconductor ASA
• Spreadtrum Communications (Shanghai) Co., Ltd.

These players are actively shifting R&D investments toward 5G and multi-mode IoT chipsets to align with the next wave of cellular connectivity.

Challenges Ahead

• Rapid sunsetting of LTE networks in mature markets
• Shift to NB-IoT and LTE-M for low-power IoT
• Limited future-proofing of LTE Cat 1 deployments
• Falling Average Selling Prices (ASP) squeezing margins

Explore our Global Report in Regional Languages

LTE Cat 1チップセット市場 | Markt für LTE Cat 1-Chipsätze | Marché des chipsets LTE Cat 1 | LTE Cat 1 칩셋 시장 | Lte Cat 1 芯片组市场 | Mercado de chipsets LTE Cat 1

Top Trending Global Research Report with Other Languages:

Field Programmable Devices Fpds Market | Japanese | German | French | Korean | Chinese | Spanish

Gan Power Transistors Market | Japanese | German | French | Korean | Chinese | Spanish

Green Thick Film Chip Resistor Market | Japanese | German | French | Korean | Chinese | Spanish

Forklift Sensors And Cameras Market | Japanese | German | French | Korean | Chinese | Spanish

Gallium Arsenide Type Diodes Market | Japanese | German | French | Korean | Chinese | Spanish

Environmental Detector Market | Japanese | German | French | Korean | Chinese | Spanish

General Purpose Chip Resistor Market | Japanese | German | French | Korean | Chinese | Spanish

Foup For Thin Wafer Market | Japanese | German | French | Korean | Chinese | Spanish

Four Pin Resistance Market | Japanese | German | French | Korean | Chinese | Spanish

Fast Charging Protocol Ics Market | Japanese | German | French | Korean | Chinese | Spanish

About Wise Guy Reports:

We Are One of The World's Largest Premium Market Research & Statistical Reports Centre

Wise Guy Reports is pleased to introduce itself as a leading provider of insightful market research solutions that adapt to the ever-changing demands of businesses around the globe. By offering comprehensive market intelligence, our company enables corporate organizations to make informed choices, drive growth, and stay ahead in competitive markets. 

Integrity and ethical conduct are at the core of everything done within Wise Guy Reports. We ensure transparency, fairness, and integrity in all aspects of our business operations, including interactions with clients, partners, and stakeholders, by abiding by the highest ethical standards.