What was the growth rate of licensing and related revenue compared to the third quarter of 2020 
anced node chiplet design. Chiplet Technology is a new way in semiconductor integration with the goal to cost effectively assemble multiple [Indecipherable] or check let into one small chip package and by such gain time to market and lower anterior to key markets. Chiplet technology is already deploying cloud chips by Intel, Broadcom, AMD and Marvell the Intrinsix with the financial backing of BALPA and its ecosystem partner is aiming to drive chiplet to the defense market and further to proliferate them for commercial applications.
And lastly, regarding our activities and market dynamics in cellular IoT. Cellular IoT model is used in a wide variety of verticals, among which our logistics asset acting industrial, agriculture monitoring, parking payment system automotive connectivity and more. It is a high volume and fast-growing market, forecasted by ABI to reach to 920 million models by 2026, growing at a 29% compound annual growth rate. The main segment in the cellular IoT space is LVR IoT, capturing approximately 40% of the volume and growing 44% CAGR between 2019 and 2025. CEVA has strong traction in the CAT one and NB IoT spaces, the two standards we join which dominate the deployments today.
During the third quarter, we continued to see strong growth in volume, up 356% compared to the third quarter of last year, and received the same report for the first time from a new cellular IoT customer, one of the world's top 10 ranked IC design houses. Europe also prioritizing cellular IoT at the back of its large manufacturing base. We have three widely known European customers that have designed CEVA technology. The first is Nordic Semi, using CEVA for NV IoT with dozens of customers, the second sequence is using our PentaG platform for 5G cellular IoT with number of high-profile design win. The third is an unnamed leading semiconductor who is developing cellular IoT chips targeting its large industrial and smart meter customer base.
So in summary, CEVA is transforming from specialty in DSP core technology to a trusted technology house with a pivotal role in enabling new industries to become connected and sport. Our success is underpinned by our unique strength to combine DSP, AI, software, analog and RF designs into a holistic solution for customer and industry needs. We believe we are at an inflection point to scale our business and strengthen our collaborations with key players across broadening the range of industries.
Finally, we continue to monitor any possible implication of the ongoing supply chain constraint. As commonly acknowledged the semiconductor supply challenges in at our broad industries in different manners, which may translate to lower visibility. With that said, we are on track to meet our targets, and we'll continue to work with our customers and partners to mitigate negative impact.
With that said, let me hand over the call to Yaniv for the financials.
Yaniv Arieli -- Chief Financial Officer
Thank you, Jim. I'll start reviewing our operations and for the third quarter of 2021. Revenue for the third quarter was up 31% to $32.8 million, our second sequential all-time high as compared to $25 million for the same quarter last year. Revenue breakdown is as follows: licensing and are related revenue was approximately $21.6 million in all time high, reflecting 66% of our total revenue, 74% growth from $12.4 million for the third quarter of 2020 and 39% sequential growth. This is the full first quarter that we recognized NRE revenue, which resulted from our acquisition intrinsic back in June. Royalty revenue was down 11% to $11.2 million, reflecting 34% of our total revenues compared to $12.5 million for the same quarter last year.
As Gideon noted, our consistent growth in base station and IoT and the penetration to 5G smartphones is muted by a larger-than-expected decline in 2G royalty revenue. Quarterly gross margins came in better than expected due to lower allocation of Intrinsic NRE cost from the R&D expense line to their cost of goods expense line. Gross margin was 85% on a GAAP basis and 87% on a non-G
anced node chiplet design. Chiplet Technology is a new way in semiconductor integration with the goal to cost effectively assemble multiple [Indecipherable] or check let into one small chip package and by such gain time to market and lower anterior to key markets. Chiplet technology is already deploying cloud chips by Intel, Broadcom, AMD and Marvell the Intrinsix with the financial backing of BALPA and its ecosystem partner is aiming to drive chiplet to the defense market and further to proliferate them for commercial applications.
And lastly, regarding our activities and market dynamics in cellular IoT. Cellular IoT model is used in a wide variety of verticals, among which our logistics asset acting industrial, agriculture monitoring, parking payment system automotive connectivity and more. It is a high volume and fast-growing market, forecasted by ABI to reach to 920 million models by 2026, growing at a 29% compound annual growth rate. The main segment in the cellular IoT space is LVR IoT, capturing approximately 40% of the volume and growing 44% CAGR between 2019 and 2025. CEVA has strong traction in the CAT one and NB IoT spaces, the two standards we join which dominate the deployments today.
During the third quarter, we continued to see strong growth in volume, up 356% compared to the third quarter of last year, and received the same report for the first time from a new cellular IoT customer, one of the world's top 10 ranked IC design houses. Europe also prioritizing cellular IoT at the back of its large manufacturing base. We have three widely known European customers that have designed CEVA technology. The first is Nordic Semi, using CEVA for NV IoT with dozens of customers, the second sequence is using our PentaG platform for 5G cellular IoT with number of high-profile design win. The third is an unnamed leading semiconductor who is developing cellular IoT chips targeting its large industrial and smart meter customer base.
So in summary, CEVA is transforming from specialty in DSP core technology to a trusted technology house with a pivotal role in enabling new industries to become connected and sport. Our success is underpinned by our unique strength to combine DSP, AI, software, analog and RF designs into a holistic solution for customer and industry needs. We believe we are at an inflection point to scale our business and strengthen our collaborations with key players across broadening the range of industries.
 Finally, we continue to monitor any possible implication of the ongoing supply chain constraint. As commonly acknowledged the semiconductor supply challenges in at our broad industries in different manners, which may translate to lower visibility. With that said, we are on track to meet our targets, and we'll continue to work with our customers and partners to mitigate negative impact.
With that said, let me hand over the call to Yaniv for the financials.
Yaniv Arieli -- Chief Financial Officer
Thank you, Jim. I'll start reviewing our operations and for the third quarter of 2021. Revenue for the third quarter was up 31% to $32.8 million, our second sequential all-time high as compared to $25 million for the same quarter last year. Revenue breakdown is as follows: licensing and are related revenue was approximately $21.6 million in all time high, reflecting 66% of our total revenue, 74% growth from $12.4 million for the third quarter of 2020 and 39% sequential growth. This is the full first quarter that we recognized NRE revenue, which resulted from our acquisition intrinsic back in June. Royalty revenue was down 11% to $11.2 million, reflecting 34% of our total revenues compared to $12.5 million for the same quarter last year.
As Gideon noted, our consistent growth in base station and IoT and the penetration to 5G smartphones is muted by a larger-than-expected decline in 2G royalty revenue. Quarterly gross margins came in better than expected due to lower allocation of Intrinsic NRE cost from the R&D expense line to their cost of goods expense line. Gross margin was 85% on a GAAP basis and 87% on a non-G