New Delhi, March 21 (IANS) The global cellular IoT (Internet of Things) module shipments have witnessed their first-ever annual decline in 2023, falling two per cent (year-over-year), a new report showed on Thursday.

According to Counterpoint Research, inventory adjustments following supply chain disruption and reduced demand in some key market verticals like industrial and enterprise were some of the key factors driving this decline.

"India and China have shown positive growth due to increasing demand in the smart meter, POS and asset tracking markets. Conversely, the rest of the world witnessed a sharper decline, indicating a lack of expected market momentum," said Associate Director Mohit Agrawal.

He also mentioned that around 12 per cent of the modules shipped in 2023 were equipped with AI capabilities at the software or hardware level.

"These modules are gaining popularity in high-end markets such as automotive, router/CPE and PC, facilitating the management of the escalating data load in these sectors," Agrawal added.

According to the report, leading module vendor Quectel experienced a decline in its market share primarily because of weakened demand in markets outside China.

The company has partnered with Syrma SGS Technology to manufacture IoT modules in India.

"In 2024, the IoT module market is expected to return to growth in the second half of the year with normalizing inventory levels and increasing demand in the smart meter, POS and automotive segments," Research Analyst Anish Khajuria said.

He further stated that substantial growth is forecasted for 2025, coinciding with the widespread adoption of 5G and 5G RedCap technologies in smart meters, routers/CPE, POS systems, automotive solutions, and asset-tracking applications.