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The global market for cellular routers and gateways, driven by enterprise demand and 5G adoption, is projected to grow at a CAGR of 9% through 2029, reaching US$2.6 billion, with leading vendors integrating AI and software features to capitalise on rising demand.
The global market for cellular routers and gateways reached an estimated US$1.7 billion in 2024, with roughly 6.2 million devices shipped during the year, according to industry research. Shipments rose modestly by 2% year‑on‑year while annual sales increased by about 7%, a divergence the report attributes to a shift in product mix toward higher‑value 5G devices and normalising inventories after the post‑COVID volatility. [1][3][2]
Market momentum has been reinforced by early 2025 results: half‑year revenue figures from several large vendors point to continued recovery, with many reporting double‑digit growth as enterprises accelerate upgrades to high‑speed cellular hardware. Berg Insight forecasts that revenues will expand at a compound annual growth rate (CAGR) of 9% through 2029, reaching US$2.6 billion by the end of the forecast period. [1][3][2]
Enterprise demand is the principal driver behind the market’s steady growth. According to the report, businesses increasingly view cellular connectivity , powered by mature 4G LTE and expanding 5G coverage , as a credible alternative to fixed lines for distributed branches and remote sites, and cellular SD‑WAN is becoming a mainstream option for resilient, business‑critical connectivity. [1][3][4]
The competitive landscape remains concentrated. Berg Insight ranks Ericsson as the overall market leader, citing a broad portfolio that combines routers and adapters with cellular‑centric SD‑WAN and security services, and noting the vendor’s early integration of AI and automation features such as AI‑assisted anomaly detection and troubleshooting. Teltonika Networks is identified as the revenue runner‑up and the volume leader, benefiting from in‑house manufacturing and tight cost control. Cisco, Semtech and Peplink round out the top five; together these five vendors accounted for around US$866 million in annual revenues and approximately 52% of the market in 2024. [1][3][2]
Beyond the top five, a wider group of suppliers maintains significant positions. Digi International, HMS Networks, InHand Networks, Inseego and Moxa are listed among the notable vendors that each shipped more than 100,000 devices in 2024. Regional players of note include BEC Technologies, Belden, Fortinet, Lantronix and MultiTech in North America; Advantech, Four‑Faith, Hongdian, PUSR and Robustel in Asia‑Pacific; and Celerway, Eurotech, INSYS icom, RAD and Westermo in EMEA. [1][3][2]
The broader IoT component market exhibits complementary trends. Berg Insight’s work on cellular IoT modules shows a robust recovery in 2024, with module shipments and revenues rising strongly, driven particularly by demand in China and Asia‑Pacific , a dynamic that feeds demand for gateways and routers as integrators and enterprises deploy more cellular‑connected equipment. Historical forecasts and earlier studies also underline that router and gateway shipments scaled rapidly during the late 2010s and into the early 2020s as cellular became mainstream for machine‑to‑machine applications. [5][4][6][7]
Looking ahead, the market’s near‑term trajectory will hinge on two linked developments: the pace of 5G device adoption and the rollout of value‑added software features such as embedded security, SD‑WAN orchestration and AI‑driven operations. According to the research, vendors that can combine higher‑performance hardware with software and services that simplify deployment and ensure continuity are best positioned to capture the projected revenue growth to 2029. [1][3][2]
📌 Reference Map:
##Reference Map:
- [1] (The Fast Mode / Berg Insight summary) – Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 4, Paragraph 5, Paragraph 7
- [2] (Advanced Television) – Paragraph 1, Paragraph 4, Paragraph 5, Paragraph 7
- [3] (Berg Insight) – Paragraph 1, Paragraph 2, Paragraph 3, Paragraph 4, Paragraph 5, Paragraph 7
- [4] (IoT Business News) – Paragraph 3, Paragraph 6
- [5] (IoT M2M Council , cellular module report) – Paragraph 6
- [6] (IoT M2M Council , gateway shipments forecast) – Paragraph 6
- [7] (Electronics Media , historical shipments) – Paragraph 6
Source: Fuse Wire Services
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