Connected device growth in Q3 driven by emerging markets
Statistics reveal that developed markets are upgrading wireless infrastructure, while the developing world powers consumer device shipment growth
According to recent market research, new connectivity options in Wi-Fi and IoT are gaining ground. Wi-Fi 7 is expanding in the enterprise domain faster than its predecessors, while cellular IoT rollout is progressing apace in numerous developing economies.
PC and smartphone shipments have both increased – the former buoyed by enterprise replacements; the latter by new offerings to consumers in regions such as Africa and the Middle East. As retail sentiment remains shaky in both the United States and China, top tech brands are hunting growth across a wide range of geographies.
Let’s examine the latest quarterly data.
Enterprise WLAN: Wi-Fi 7 crosses 20% revenue threshold
Enterprise WLAN infrastructure revenue grew 13.2% YoY in Q2 2025 to $2.6 billion, accelerating from 10.6% growth in Q1, according to IDC. While shipment data lags, analysts suggest that the revenue acceleration signals strong vendor pricing power as enterprises upgrade to next-generation standards, the latest of which is Wi-Fi 7.
Wi-Fi 7 adoption is moving faster than previous cycles, capturing 21.2% of dependent access point revenue in Q2 – nearly doubling from 11.8% in Q1. Wi-Fi 6E contributed 26.8% of revenue, with legacy Wi-Fi 6 making up the balance.
There were pronounced divergences between markets. Americas revenue jumped 17% YoY, driven mainly by US growth; while China saw a 6.6% YoY decline. This regional split reflects both infrastructure refresh cycles and ongoing policy pressures affecting Chinese enterprise spending.
Cisco retained leadership with 37.8% market share, which equates to $996 million in revenue. Ubiquiti emerged as the fastest-growing major vendor, surging 66.8% YoY to reach a 11.9% share ($312 million), potentially driven by what media reports have described as competitive Wi-Fi 7 pricing. Huawei grew 5.4% and commands a market share of 9%.
Further info:
Enterprise WLAN Market Grew 13.2% in Q2 2025, According to IDC Worldwide WLAN Tracker
Cellular IoT: 5G RedCap ready for takeoff
Global cellular IoT module shipments increased 17% YoYin Q2 2025. According to Counterpoint Research, much of this growth is occurring in markets such as India, China and Latin America, where IoT devices continued to be rolled out across a wide range of applications, from smart meters to surveillance cameras.
China’sQuectelremains the module shipments leader, with 37% market share; while ChinaMobile’s IoT unit ranks next at 11%. SUNSEA, Lierda and Fibocom round out the all-Chinese top five. If the Chinese domestic market is excluded, California’s Telit Cinterion is the second-biggest player after Quectel.
4G Cat 1 bis has consolidated its position as the workhorse of the category due to factors such as affordability and network availability. However, a newer specification – 5G RedCap – is showing signs of a breakout, shooting up 800% YoY as mass deployment gets underway.
One trend to watch in the space is dealmaking in response to geopolitical sensitivities. Quectel has licensed its technology to an Ohio-based company that began shipping US-made modules in Q3. This follows Fibocom’s divestiture of its international module business and u-blox’s complete exit from cellular IoT earlier this year.
Further info:
Cellular IoT Module Shipments Up 17% YoY in Q2 2025
Tablets: Market cooling after tariff-driven inventory build-up
The tablet market sent conflicting signals in Q3 2025, with IDC reporting a 4.4% YoY decline, while Omdia measured 5% YoY growth. Consensus places quarterly shipments in the 38–40 million range, with analysts agreeing that the market is digesting the inventory built up against the backdrop of tariff fears earlier in the year.
Both reports highlight the expansion of Chinese brands – the largest of which are Lenovo, Huawei and Xiaomi – into new Middle East and Asia-Pacific markets. While Apple and Samsung are the global leaders by a wide margin, Lenovo in particular turned in significant growth.
It will be interesting to watch the technology mix in future quarters. In October, Apple unveiled the latest iPad Pro with a new chip that enables Wi-Fi 7 use. The transition may be slow, however, as the fastest-growing brands are more budget friendly and a key demand driver globally is government and educational procurement of no-frills base models.
Further info:
Worldwide Tablet Shipments Declined 4.4% in Q3 2025, According to IDC
Omdia: Global Tablet Shipments Rose 5% in Q3 2025, Extending Two-Year Growth Streak
PCs: Lenovo leads robust growth
Q3 was the strongest quarter for PC shipments in over a year, with high double-digit growth in the 8–9% range.
Lenovo was both the top vendor, with over 25% market share, and the fastest-growing firm. It is putting distance between itself and its main rivals within the Windows computer ecosystem, HP Inc and Dell. The market is consolidating, with the top five firms – which also include Apple and Asus – accounting for 75% of volumes.
As of October, 40% of installed PCs were still on Windows 10, for which Microsoft has now officially phased out support. Upgrades of older devices should continue to play an important role in driving sales of devices equipped with hardware support for newer standards.
Further info:
PC Shipments Accelerate in Q3, Signaling Steady Refresh Cycle
Q3 2025 Global PC Shipments: Growth Accelerates as Windows 10 End-of-Support Nears
Smartphones: ASP up even as low-cost brands surge
Smartphone shipments saw a nice recovery from a muted first half of the year. Various data providers pegged growth at between 2.5–5% YoY.
In an otherwise mature and stable market, Transsion remains a disruptive force. IDC reported a 13.6% YoY rise in shipments for the low-cost Chinese vendor focused on frontier markets. According to TechInsights, Huawei and its budget spinoff Honor also recorded double-digit growth.
While established geographies including North America and Greater China saw weakness or even contraction during the quarter, Omdia recorded blistering growth rates of 18% in the Middle East and 25% in Africa.
Despite trends favouring lower-cost brands and less wealthy markets, TechInsights observed a “healthy” expansion in average selling price (ASP) to $327. Smartphone wholesale revenue is outgrowing shipment volume, it said, reaching $103.8 billion for the quarter.
Further info:
Worldwide Smartphone Market Grows 2.6% in Q3 2025, According to IDC
Global Smartphone Market Grows 3% in Q3 2025, Led by Emerging Economies
Global Smartphone Market Grew 3% YoY by Shipments and 5% YoY by Wholesale Revenue in Q3 2025
Sisvel Insights Market Data Digest is a regular feature aggregating commercial information from the major SEP licensing verticals. Our goal is to provide patent licensing executives with a grasp of the commercial and competitive dynamics in the market for connected devices. The digest exclusively draws on publicly available information from third parties, all of which is available from the original sources via links. Verticals with extensive data available (eg, smartphones) will be covered every quarter. Other sectors will be covered as and when new data is published.
