KORE Boston Consulting Group Matrix

The ongoing expansion of 5G networks is a key driver for the 5G-Enabled IoT Connectivity category. KORE's strategic investments in its connectivity solutions are designed to capitalize on this trend, aiming to support the increasingly sophisticated IoT applications that 5G enables.

As 5G becomes more prevalent in industrial and enterprise IoT deployments, KORE's connectivity services in this segment are positioned for substantial growth. For instance, the global 5G IoT market size was valued at USD 10.5 billion in 2023 and is projected to reach USD 98.6 billion by 2030, growing at a CAGR of 37.7% during the forecast period, according to a report by MarketsandMarkets. This indicates a strong market opportunity for KORE.

KORE's commitment to future-proofing its connectivity offerings directly addresses the high-growth potential of 5G IoT. By ensuring their solutions can handle the increased bandwidth, lower latency, and greater device density that 5G provides, KORE is aligning itself with a market segment expected to see significant expansion in the coming years.

KORE's significant expansion in IoT connections, reaching over 20 million by mid-2025 and targeting 30 million, firmly places its core connectivity services in the Star category of the KORE BCG Matrix. This substantial volume of managed connections signifies market leadership and a strong position in the rapidly growing IoT landscape.

The impressive scale of KORE's connectivity operations, despite a minor recent dip in core revenue, highlights their dominance and growth trajectory. This robust performance in a key sector confirms their Star status, indicating high market share in a high-growth industry.

Their strategic focus on managing and scaling these connections efficiently solidifies their leading role. This sustained strength in the core connectivity market is a testament to their strategic execution and market penetration.

The projected growth in IoT connections further reinforces KORE's Star designation. This indicates continued dominance and high potential for future success in the expanding IoT market.

KORE's managed services for enterprise IoT deployments act as a significant cash cow. These offerings, encompassing deployment, ongoing operational management, and long-term sustainment support, are designed to alleviate the inherent complexity of IoT for large organizations.

The recurring nature of these managed services, often secured through multi-year contracts, translates into predictable and high-margin revenue streams for KORE. This stability is bolstered by the critical role these services play in ensuring the continuous operation of enterprise IoT solutions.

KORE's demonstrated expertise in navigating the entire IoT lifecycle, from initial setup to maintenance, underpins the reliability and profitability of these cash cow offerings. Their commitment to customer intimacy further solidifies these relationships, ensuring sustained demand.

KORE's core IoT connectivity services are their undisputed cash cows, generating consistent and substantial revenue. Despite market fluctuations, this segment, boasting nearly 20 million connections as of Q1 2025, remains KORE's largest and most reliable cash flow engine.

These mature services, which saw a 12% revenue increase in fiscal year 2024, benefit from KORE's extensive market presence and recurring revenue model derived from a vast, globally distributed customer base. The stability and profitability of these offerings are further enhanced by the company's established Connectivity Management Platforms (CMPs).

The CMPs, vital for managing extensive IoT device fleets, contribute high-margin, recurring revenue. KORE's pure-play hyperscaler status optimizes these operations, ensuring efficiency and scale for these foundational services, which are projected for continued growth in 2024.

Within KORE's product portfolio, hardware offerings that serve niche markets or have struggled to gain substantial traction would be categorized here. These might include specialized devices with limited demand or older hardware models that haven't been updated to compete effectively. Such products typically hold a small market share and generate negligible revenue, potentially diverting valuable resources from more promising areas.

Analyzing KORE's business model, the company's primary strength lies in its connectivity services and integrated solutions. Financial disclosures often highlight revenue streams from IoT platforms and managed services, suggesting that hardware, unless directly supporting these core offerings, may represent a less significant or underperforming segment. For example, if a specific device line, like certain older cellular modules, experienced declining sales in 2024 due to the prevalence of newer, more efficient technologies, it would fit this description.

The "Dogs" in KORE's BCG matrix represent legacy products and services with low market share and minimal growth potential. These often include older connectivity technologies like 2G/3G and specific hardware or IoT solutions that have been surpassed by newer advancements. The company's strategy involves managing the decline of these segments, focusing on phasing them out or divesting to reallocate resources to more promising areas.

For instance, KORE's decision to shed unprofitable contracts, which led to a 5% revenue dip in Q1 2025, directly reflects the management of these Dog products. These offerings are characterized by low profit margins and can act as cash traps, draining resources without significant returns. By exiting these ventures, KORE aims to enhance overall profitability and competitive standing.

Examples of such offerings include legacy industrial asset tracking systems, basic environmental monitoring sensors, and older M2M communication modules that rely on soon-to-be-decommissioned networks. These products, despite potentially serving niche markets, offer limited scalability and future growth prospects, making them prime candidates for strategic pruning.

The average revenue per user (ARPU) dip observed in Q1 2025, influenced by new connections from low-ARPU segments, further illustrates the characteristics of these Dog products. While increasing connection volumes, these low-value offerings can strain resources and require careful management to avoid impacting overall profitability. KORE's focus is on optimizing the cost-to-serve for these segments or finding ways to increase their value.

The 2025 emergence of the eSIM IoT specification, SGP.32, is poised to significantly reshape how we manage device connectivity, creating a substantial growth avenue. KORE is actively engaged in eSIM technology, and its leadership in this new standard is still taking shape.

While KORE's investment in this burgeoning field could secure considerable future market share, it currently represents a speculative venture. The market for SGP.32 compliant eSIM solutions is expected to see rapid expansion, with analysts projecting a compound annual growth rate of over 25% for IoT eSIM deployments leading up to 2025.

KORE's ventures into new vertical markets, such as smart cities and advanced manufacturing, are prime examples of their Question Marks. These are high-growth potential areas where KORE is still establishing its market share. Significant investment in sales, marketing, and tailored solutions is necessary to build credibility and capture market position in these unfamiliar sectors.

The company's exploration of the eSIM IoT specification (SGP.32) also falls into this category. While the market for IoT eSIMs is projected for substantial growth, with a CAGR potentially exceeding 25% leading up to 2025, KORE's leadership position in this evolving standard is still developing, making it a speculative but promising investment.

Similarly, KORE's strategic partnerships, like the Winnebago Connect™ platform launched in 2024, target niche but growing IoT segments. These initiatives require considerable investment and effective execution to scale and secure KORE's foothold, representing initial low market share in specialized new areas.

KORE's investment in New Technologies Networks (NTNs), such as satellite-based IoT, is another key Question Mark. These emerging sectors, with projected CAGRs over 20%, offer vast potential for extending connectivity but require substantial R&D and strategic planning for KORE to gain a significant market presence.