IoT Industry Grows by 33% in H1 2022 Due to Outsourced Manufacturing

IoT module shipments have been seeing a dramatic rise of late, and that is largely due to its prevalence in the world of outsources manufacturing with all things having been considered and taken into account. Cellular IoT modules used for manufacturing have grown by 33% in the first half of 2022 alone, and it now comprises over 52% of the total IoT module shipments that have been seen in that period.

This comes from research conducted by Counterpoint, and with all of that having been said and now out of the way it is important to note that it shows that the strength of the industry often relies on outsourced manufacturing processes. Original design manufacturers also saw their growth rates skyrocket to reach a whopping 45% in the first half of 2022, with electronic manufacturing services also seeing some growth at around 30%.

As for in house manufacturing, this industry has seen a growth rate of 21%. The first quarter of 2021 saw a decline in shipments for IoT modules, but in spite of the fact that this is the case the second quarter saw a massive uptick that pushed the figures into positive numbers and reversed much of the decline. Chinese OEMs have been leading the charge, with their growth rate allowing the industry to increase in size faster than might have been the case otherwise.

The largest single player that contributed to capturing this market is BYD electronics with a share of about 12.9%. They are closely followed by TDG Tech with 10.3%, with Qisda’s 9.2% share putting them squarely in third place. These are all companies that are either based in mainland China or Taiwan, and it will be interesting to see if they can sustain this growth rate moving forward.

Corporations in the ODM and EMS industries now account for over two thirds of IoT module shipments, and the need to connect various devices through the internet indicates that this growth rate will not show any signs of slowing down anytime soon. Shipments for outsourced manufacturing are expected to grow an average of 17% per year.

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