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Global Cellular IoT Module Shipments Grew 20% YoY in Q2 2022

After declining in Q1 2022, the global cellular IoT module market recovered in Q2 2022 despite macroeconomic headwinds and lockdowns in China, the largest IoT market.
The quarter also saw a series of consolidations in the highly competitive IoT module space.
Asset-tracking reached the highest share ever at 7% to break into the top five applications.
Smart meter, POS and industrial were the top three applications in this quarter.
NB-IoT and 4G Cat 1 were the most preferred technologies for cellular IoT applications.

S迭戈,布宜诺斯艾利斯,伦敦, New Delhi, Hong Kong, Beijing, Seoul – September 20, 2022

Global cellular IoT module shipments grew 20% YoY in Q2 2022, according to the latest research from Counterpoint’sGlobal Cellular IoT Module and Chipset Tracker by Application. The global cellular IoT module market continued to recover despite a tighter supply chain, COVID-19 lockdowns in China and macroeconomic headwinds. The growth was driven by the ongoing digital transformation involvingpotential applicationsaround critical infrastructure and logistics catered by some key fast-growing low-tier cellular technologies such as Cat-1 and NB-IoT. Further, module players modified their product offerings, striking partnerships across the value chain, from newer connectivity solution providers to acquiring some key competitors, as the IoT industry enters a very exciting growth phase.

China保留它的位置,成为世界上最大的物联网arket, contributing to more than half of the demand despite the lockdowns. The country’s cellular IoT module market recovered slightly from previous months this year, driven by lockdown-triggered applications like smart locks, surveillance systems and routers. The North American and western European markets grew steadily and held their second and third positions respectively in the global cellular IoT module market. Again,Indiawas the fastest growing IoT module market (+264% YoY), albeit growing on a lower base, driven by smart meter, telematics, POS and automotive applications.

Commenting on the market dynamics,SeniorResearch AnalystSoumen Mandalsaid, “The IoT module market is going through a critical phase where the Chinese brands have become bigger, making it very difficult for international brands to grow in silos. As a result, we have seen the first wave of market consolidation withTelitacquiring Thales’ cellular IoT module business as well as acquiring IoT solutions design house Mobilogix. Also, during the quarter,Semtech, one of the big component vendors and the key chipset provider for the proprietary LoRa-based IoT network, acquired leading cellular IoT and router vendor Sierra Wireless to build an end-to-end wireless IoT portfolio. This kickstarts an exciting phase where the Western vendors are trying to become more ‘integrated’ to capture more value across the value chain, even though the IoT market is a blue-ocean opportunity.”

Mandal added, “With six out of the top 10 IoT module vendors being fromChina和with the rising geopolitical competition and data privacy concerns, international players see an opportunity to consolidate and carve out a dichotomy in this segment. Further, having a robust portfolio and post-sales support is the key. Telit, Thales, u-blox and Sierra Wireless improving their offerings over the last 12 months has been a step in the right direction. With consolidation, these vendors can garnerscale和some competitive edge to at least compete well on pricing and value against the competition”

Note: Figures may not add up to 100% due to rounding

Market summary

The top three players accounted for more than half of the market. Interestingly,Quectel’s shipment share was equal to that of the remaining players in the top 10 list.

Quectel:Quectel’s module shipments increased 47% YoY, further increasing its gap with the remaining players. During the quarter, Quectel launched 4G Cat 4smart modulesSC200E and SG150H, based on Qualcomm and UNISOC chipsets respectively. Furthermore, Quectel unveilediSIM-supported LPWA module BG773A-GL with the help of Kigen, through which it will be able to target M2M applications such as POS, smart metering, asset tracking and wearable devices.
Fibocom: The second largest module vendor, Fibocom, saw 12% YoY growth in its module shipments. Nearly 60% of its module shipments came from the China market. Fibocom has already entered partnerships with Qualcomm, MediaTek, UNISOC, Sequans and Autotalks to increase its share in international markets. This can help Fibocom bridge some of its wide gap with Quectel in the international IoT module market.
MeiG:After a slow Q1 2022 due to China lockdowns, MeiG registered growth which helped it to enter the top three IoT module ranks globally. While focusing onhigher-end IoTmodule applications, MeiG is expanding into the fast-growing 4G Cat 1 bis market, targeting applications such as POS, industrial, asset tracking, smart meter and enterprise. MeiG is also diversifying its supplier portfolio. It has partnered with fast-growing 4G chipset vendor ASR for the 4G Cat 4 module market, especially for the highly competitive China market and other low-cost international markets.
China Mobile:China Mobile maintained its fourth position in the global cellular IoT module market by catering to its huge existing and prospective customer base and extensive cellular network. The operator partnered with Xinyi Semiconductor for focusing on lower-end applications. This has helped both to target 2G-to-4G transitioning IoT applications. China Mobile’s growing 5G footprint and partnerships across the value chain will help the world’s largest operator to rapidly scale its end-to-end 5G IoT solutions in the coming quarters.
Sunsea:Sunsea (SIMCom + Longsung) has been consistently improving its performance over the last 10 quarters. Sunsea is following a strategy similar to that of other Chinese players to offerQualcomm-based solutions for the international market and MediaTek/UNISOC/ASR/Xinyi-based solutions for the homegrown China market. Sunsea added ASR as a partner besides Qualcomm to cater to the increasing demand and offer affordable pricing in China.
Telit:Telit is the first non-China player in the global IoT module vendors’ rankings. Telit is focussing on LPWA-Dual Mode, 4G Cat 1 and LTE-M technologies to target applications such as industrial, healthcare, asset tracking, router/CPE and energy. The vendor has launched 4G Cat 1 bis industrial grade module LE910R1 with 2G fallback to target the APAC and EMEA markets. With the sunset of 2G and 3G technology, this module can be used as a substitute for low-to-mid-end applications. After the acquisition of Thales, Telit has the potential to emerge as the largest module vendor outside of China and eventually match Quectel in scale.
Among other players,Neowayperformed well. It was the fastest growing in QoQ terms (+162%) among top vendors. Besides China, India is turning out to be an important market.
u-bloxrecorded a strong quarter by remodeling and redesigning its products and clearing backlogs. The demand was strong for u-blox in industrial,automotive和healthcare applications.

Commenting on the key connectivity technology trends in the IoT space,Associate DirectorMohit Agrawalsaid, “The top five technologies, including NB-IoT, 4G Cat 1, 4G Cat 4, 4G Cat 1 bis and LPWA-Dual Mode captured more than 80% of the shipments in this quarter. We are witnessing increasing shipments of 4G Cat 1 and 4G Cat 1 bis modules driven by the sunset of 2G and 3G technologies and higher demand in low-to-mid-end applications. Some module players are still shipping 2G modules to cater to specific low-cost applications in some emerging markets, like Africa, Asia and eastern Europe. The 5G IoT module shipments remain steady withpricesstill high and many projects still in pilot stages. It will take at least a couple of years to reach an inflection point. We expect the second half of 2023 to see a ramp-up for the 5G IoT modules with good pan-country5Gcoverage and scale.”

The top five applications in Q2 2022 – smart meter,POS, industrial, router/CPE and asset tracking – captured more than half of the totalIoT module市场。与前一个季度相比,有ant improvements were seen in the router/CPE and residential markets. Theautomotiveconnectivity market did not show much traction due to the poor performance of the automotive industry in China during this quarter.

For detailed research, refer to the following reports available for subscribing clients and individuals:

Counterpoint tracks and forecasts on a quarterly basis 1,500+ IoT module SKUs’ shipment, revenue and ASP performance across 80+ IoT module vendors, 12+ chipset players, 18+ IoT applications and 10 major geographies.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Soumen Mandal

Mohit Agrawal

Counterpoint Research

press@www.arena-ruc.com

Related Reports:

Telit’s Acquisitions to Reshape Global IoT Module Market

In recent times, Telit has acquired cellular IoT businesses from Thales and Mobilogix. TheIoT modulemarket has started consolidating and we expect to see a few more deals in the coming months. In August, we also sawSemtechacquiring Sierra Wireless to offer complete chip-to-cloud solutions to cover the entire IoT value chain. The back-to-back acquisitions by Telit show how it is trying to become an integrated player. With the Mobilogix acquisition, Telit can offer modules, connectivity, security and management platform to design and manufacturing services. It means Telit will act as a one-stop solution provider for its customers. Here, we will try to analyze what these acquisitions mean to Telit and how they will impact the IoT industry.

Telit-Thales deal

Thales is merging its cellular IoT module business into Telit to form a new entity called Telit Cinterion. Thales will own a 25% stake in the newly formed entity and offer SIM technology and security services for IoT modules.

Chinadominates the global cellular IoT module market by taking more than 55% share. International players are struggling to compete in the operator- and government-driven China IoT module market.

After its deal with Telit, Thales will enjoy less distraction from its module business and will be able to focus on its core business which includes software, security and services. Thales will still continue to provideeSIM serviceswhere it is a market leader.

Global Cellular IoT Module Shipments Share by Vendor, Q1 2022

The newly formed company will have a common R&D platform which will help save resources. In the coming times, we may see Telit Cinterion focusing on the IoT platform business to earn revenue on a recurring basis.

Thales has a strong position in Europe and Japan, whereas Telit has a good presence in North America and Latin America. This complementary relationship supports their dream of becoming the #1 cellular IoT player in the international market. Telit-Thales is already leading in the international IoT module market in terms of revenue. With this merger, Telit Cinterion may overtakeQuectelin the international market in terms of shipments in the coming years.

Telit has already divested its automotive business in 2018, but Thales has a good customer base for some European automakers. How the joint venture treats this automotive business will be keenly watched. There is ample opportunity in the automotive business with growing connected and autonomous mobility. With the introduction of5G, Telit may focus on the automotive segment as the automotive module business contributes higher revenue due to a higher average selling price (ASP).

In recent times, Telit has done a great job launching many new modules. This helps Telit to target new regions depending on available technologies and provides an option for customers to select a product as per their requirements.

Telit-Mobilogix deal

Telit moved to acquire Mobilogix, a decade-old end-to-end IoT hardware, software and cloud solution provider to fulfill its ambition of becoming a more integrated player and one of the largest end-to-end white-label solution providers outside China.

Mobilogix’s comprehensive device engineering expertise and resources, which focus on optimizing the specifications for EMS and ODMs, and attainment of regulatory approvals and carrier certification, will help Telit provide solutions to customers with reduced cost and complexity, and faster time to market.

Furthermore, Mobilogix is known for its expertise in customized IoT projects, which provide businesses with solutions in various application verticals that are ready to certify and mass produce. This will help Telit expand its focus in growing segments such astelematics, micro-mobility, healthcare, construction and agriculture.

Chinese module vendors are trying to become integrated players to capture maximum share across the IoT value chain. Telit is also trying to adopt such a model with these recent acquisitions. For example, Quectel is trying to increase its footprint in the North American market with the establishment of a new ODM company, named Ikotek. Similarly, Fibocom established a new ODM company in 2019 for global customers through applications such as gateway,payment terminal, telematics and industrial applications. Telit is slowly becoming vertically integrated and trying to revive back its glory days in the IoT module market.

Solutions from the combined entity will provide a great choice for customers who want to diversify and do not want to depend on the Chinese ecosystem, and need tightly integrated solution expertise from one provider.

If Telit wants to compete head-to-head with Chinese module giants like Quectel and Fibocom, it has to develop an effective business strategy for each international market.

Mobilogix has a wide range of portfolios comprising customIoT projects和solution design services based on three basic architectures, namely beacon, power and battery-operated architecture. Apart from this, it also offers cloud platform integration and custom firmware, which will add value to Telit’s portfolio not only from cellular but also from BLE beacon hardware designs.

Mobilogix has a global presence across key regions such as the US, China, India and Latin America. Its presence in China and emerging markets like India will help Telit grow its presence in these key regions.

Conclusion

Telit is becoming a more integrated player with these acquisitions and moving up the stack to become an end-to-end solution provider. The convenient and comprehensive solutions will add more value to its customers’IoT项目部署,将并发s long-term vision of becoming the #1 international module player in terms of both shipments and revenue.
The acquisitions will help Telit provide solutions to customers from the design/manufacturing of hardware to cloud and security with regional diversification. This will help Telit cater to more application segments, thus improving both revenue and profitability.
However, industry experts will be keenly watching the entire positioning, offering, strategy and business model, which are changing in theIoTspace as you need to be a large-scale and end-to-end player to succeed even though it is a blue ocean out there.

Global Cellular IoT Module Shipments to Cross 1.2 Bn Units by 2030

5G shipments to overtake 4G by 2028 to become the leading technology in the global cellular IoT module market.
Smart meter, industrial, router/CPE, automotive and POS will be the top five applications in 2030 in terms of shipments.
5G RedCap mass adoption is expected to happen in 2027 and onwards.

S迭戈,布宜诺斯艾利斯,伦敦, New Delhi, Hong Kong, Beijing, Seoul – May 9, 2022

Global cellular IoT module shipments are expected to cross 1.2 billion units by 2030 with a CAGR of 12%, according to the latestGlobal Cellular IoT Module Forecastfrom Counterpoint Research. The shipments will be mainly driven by 5G, NB-IoT and 4G Cat 1 bis technologies. 5G will be the fastest growing (60%) technology, followed by 4G Cat 1 bis, during 2022-2030.

With 5G becoming mature, we will see large module vendors such asQuectel, Fibocom, MeiG, Foxconn, Thales, Telit and Sierra Wireless consolidating their positions in the global cellular IoT module market. Longtail module vendors will struggle with scale and partnerships.

Commenting on the market dynamics,SeniorResearch AnalystSoumen Mandalsaid, “With the ongoing sunset of 2G and 3G networks across the world, most of the demand has been shifting to LPWA, 4G Cat 1 and 4G Cat 1 bis technologies until now. NB-IoT will still remain popular in parts of Asia, including China, and Europe, while 4G Cat-1-based modules proliferate over the next few years.

With LPWA technologies such as NB-IoT, LTE-M and 4G Cat-1 driving this initial adoption of cellular IoT, the global cellular IoT market will transition from 4G to 5G in the rest of this decade. This transition will be faster compared to the transition from 2G/3G to LPWA/4G in the IoT segment. 5G will be the leading technology in the global cellular IoT module market, followed by NB-IoT and 4G Cat 1 bis.

The rollout of 5G and introduction of 5G RedCap in coming years will see the adoption of 5G across intelligent IoTapplicationsin industrial, asset tracking,POS,telematics, healthcare andwearablessegments, mostly replacing traditional 4G IoT applications. We estimate that cumulative 5G shipments (excluding 5G RedCap) will reach 2.5 billion units, growing at a CAGR of 60% between 2022 and 2030.

By the end of this decade, we should see the introduction of 6G technology for IoT. However, 6G will be limited to higher-end applications such as enterprise and broadband in the initial years of adoption.”

Commenting on the cellular IoT module application landscape,Vice-President ResearchNeil Shahsaid, “Smart meter, industrial, router/CPE,automotive和POS will be the top five applications in 2030 in terms of shipments.5Gwill be preferred for Industrial 4.0 (like robotics, automation and digital twins), router/CPE (likeFWA和private networks) andautomotive(like connected and autonomous mobility) applications, LPWA will be preferred for utilities (smart meter) and 4G Cat 1 bis and 5G RedCap for POS applications.

China leads in 5G adoption in the global cellularIoTmodule market. However, North America and Europe will have great potential in the future. 5G adoption in emerging markets such as India and Latin America will also grow faster and 5G RedCap may become popular in these regions.”

For detailed research, refer to the following reports available for subscribing clients and also for individual subscription:

Counterpoint Research tracks and forecasts on a quarterly basis 80+ IoT module vendors’ shipments, revenues and ASP performance across 12+ chipset players, 18+ IoT applications and 10 major geographies.

Background

Analyst Contacts:

Soumen Mandal

Neil Shah

Counterpoint Research

press(at)www.arena-ruc.com

Related Reports:

Global Cellular IoT Module Revenue Grows 58% YoY in Q4 2021; 5G, 4G Cat 1 Modules Fastest Growing

Quectel and Qualcomm led the global cellular IoT module and IoT chipset markets respectively in Q4 2021.
5G contributed to nearly a quarter of the cellular IoT module market revenue.
Automotive, router/CPE, industrial, PC and POS were the top five applications in the quarter.

S迭戈,布宜诺斯艾利斯,伦敦, New Delhi, Hong Kong, Beijing, Seoul – March 31, 2022

Global cellular IoT module revenue grew 58% YoY in Q4 2021, according to the latest research from Counterpoint’sGlobal Cellular IoT Module and Chipset Tracker by Application. China, the leading region in the cellular IoT module market, accounted for more than 40% of the revenue. However, India was the fastest growing (154% YoY) cellular IoT module market. 5G was the fastest growing (324% YoY) technology followed by 4G Cat 1 (105% YoY). Router/CPE, PC and industrial were the top applications for 5G.

Commenting on the market dynamics,SeniorResearch AnalystSoumen Mandalsaid, “Quectel, Telit and MeiG held the top three positions in the globalcellular IoT module市场,占总营收的40%Q4 2021. For 2021, global cellular IoT module shipments and revenue grew by 59% and 57% YoY respectively.”

Quectel’scellular IoT module revenue grew more than 100% YoY in Q4 2021. Strong partnerships, superior service and a wide range of product offerings are supporting its growth.Quectellaunched a new ODM brand, Ikotek, targeting the US market. We expect it to help Quectel increase its footprint in North America and Latin America. Moreover, the products can be customized and designed according to the regulatory requirements of a project.

Telitmade a strong comeback after a relatively weaker performance in recent history. Telit has been expanding its offerings, which is helping its revival. Telit NExT is providing flexible connectivity plans across 190 countries to take advantage of emerging business models and removing major bottlenecks for manyIoT devicevendors. In Q4 2021, Telit’s focus on Latin America to help customers migrate legacy 2G and 3G modules to 4G Cat 1 modules helped it become the leading module supplier in the region to complement its strong position in North America.

MeiGis another Chinese player which is making continuous progress and made it to the top three in cellular IoT modules, both in shipments and revenue. It is focusing more onAIoT和smart module-based higher-end applications such asrouter/CPE, intelligent cockpit, video recordings, industrial PDAs, drones and AR/VR. MeiG entered lower-end applications in 2021. This product mix of higher-end and lower-end modules helped MeiG increase revenue by more than 100% in Q4 2021.

Thales, Rolling Wireless, Sunsea, Fibocom and Sierra Wireless are other key players. Out of the top 10 players, Rolling Wireless and LG are focussing on the automotive segment only.

Thales is performing well in Europe, North America and Japan targeting smart meter, healthcare and industrial applications. Sunsea improved its performance in the global IoT module market, but it wasn’t enough to prevent its share from going down. The industry is growing at a faster rate compared to Sunsea’s growth. Fibocom is showing a stronger presence in 4G Cat 1 bis technology. However, Fibocom slipped out of the top five module vendors rankings due to weaker performance of NB-IoT modules.

Rolling Wireless’s and Sierra Wireless’s revenues increased 105% and 87% respectively. After spinning off from Sierra Wireless’s automotive division last year, Rolling Wireless quickly made it to the top 10 module vendors list. Rolling Wireless and Sierra Wireless have been successful in targeting specific applications, such asautomotive和router/CPE respectively.

Global Cellular IoT Module Revenue Share by Module Vendor, Q4 2021

Source: Counterpoint Global Cellular IoT Module and Chipset Tracker by Application, Q4 2021

Automotive, router/CPE, industrial, PC andPOSare the top five cellular IoT applications in terms of revenue. However, drones, PC and router/CPE are the top three fastest growing segments. Smart meters is another key segment but the lower ASPs of NB-IoT and 4G Cat 1 modules mean it is not among the top five IoT applications in terms of revenue.

Global Cellular IoT Module Vendor Shipment Share Rankings by Key Geographies, Q4 2021

Commenting on the regional performance of module vendors and pricing dynamics,Vice President ResearchNeil Shahsaid, “International players made a strong comeback in Q4 2021 after weaker performance in the previous quarter. Quectel, MeiG and Sunsea were the top three cellular IoT module players in China in terms of revenue. For the rest of the world, Quectel, Telit and Thales were the top three cellular IoT module players.”

Quectel is leading in most regions except Latin America, India and Japan. However, as these regions currently represent a small share of the global cellular IoT module market, it doesn’t have much impact overall. Japan’s preference for LTE-M works against Quectel.

In China, MeiG overtook Fibocom to become the second largest cellular IoT module vendor.

Neoway, another Chinese module vendor, maintained its leading position in the Indian market. Strong partnerships with smart meter manufacturers and telematics providers are helping Neoway to maintain its position.

The overall cellular IoT module ASP increased 7% sequentially due to supply chain constraints, especially in 4G modules. Chinese chipset players are trying to reduce the 5G module ASP for mass commercialization. However,5Gadoption hasn’t picked up as expected. We see 5G peaking in the global cellular IoT module market after 2025.

For detailed research, refer to the following reports available for subscribing clients and also for individual subscription:

Counterpoint tracks and forecasts on a quarterly basis 1450+ IoT module SKUs’ shipments, revenues and ASP performance across 80+ IoT module vendors, 12+ chipset players, 18+ IoT applications and 10 major geographies

*Note: We have updated regional ranking data as per industry feedback (as of Oct 2022) which indicates Quectel led in India shipment share during Q4 2021.

Background

Analyst Contacts:

Soumen Mandal

Neil Shah

Counterpoint Research

press(at)www.arena-ruc.com

Related Reports:

Global Cellular IoT Module Shipments up 50% YoY in Q1 2021 as Demand for 5G, LTE-Cat 1 Modules Soars

Quectel and Qualcomm maintained their top positions in the cellular IoT module vendor and chipset player market shares, respectively.
Automotive, router/CPE and industrial are the top three applications in terms of revenue.
5G captured nearly 20% share of the IoT module revenues during this quarter.

S迭戈,布宜诺斯艾利斯,伦敦, New Delhi, Hong Kong, Beijing, Seoul – June 23, 2021

Global cellular IoT module shipments increased by 50% YoY and 11% QoQ during Q1 2021, according to the latest research by Counterpoint’sGlobal Cellular IoT Module, Chipset and Application Tracker. The market made a tremendous comeback during the quarter as the COVID-19 pandemic was under control globally in that period. Europe, North America and Japan registered healthy growth annually while Latin America was the only region that did not grow in terms of revenue during Q1 2021. China maintained its lead across geographies with a growing demand for cellular IoT modules.

Commenting on the market dynamics,Research AnalystSoumen Mandalnoted, “Quectelcontinues to lead the global cellular IoT module vendor rankings in terms of volume and revenue. The Shanghai-based vendor saw its shipments and revenues climb 67% and 78% respectively during the quarter.Thalescontinued to maintain its second position. 5G revenues increased by more than 80% QoQ, which helped Thales decrease the gap with top-ranked Quectel and maintain the gap with Fibocom. The third-largest module vendor,Fibocom, is expanding globally beyond China with a strong focus on telematics,router和PC segments. We can expect strong competition between Fibocom and Thales in coming quarters for the second position in terms of revenue share.”

Exhibit 1: Global Cellular IoT Module Revenue Share by Vendor, Q1 2021

Source: Counterpoint Global Cellular IoT Module, Chipset and Application Tracker, Q1 2021

Mandal added, “Some of the leading incumbents such as Telit and Sierra Wireless continue to stay focused on specific Western markets, applications and expanding their services revenue. Both Telit and Sierra have divested theirautomotivebusinesses. Sierra’s automotive module business was acquired last year by a consortium of investors led by Fibocom to formRolling Wireless, which quickly grew to become the fifth largest cellular IoT module vendor globally, serving high-ASP automotive applications. The rising contracts with leading automakers like Volkswagen, Audi, Porsche, Renault-Nissan and Stellantis, and scaling up of operations with a lower cost and higher quality are helping Rolling Wireless increase market share.”

The following exhibit showcases the competitive dynamics for IoT module vendors across different geographies, with a good divide between Western and Eastern markets. These dynamics are a function of the vendor’s IoTapplicationfocus, breadth and depth of portfolio, channel partnerships, certification across operators and the quality of FAE (Field Application Engineers) force in the respective regions.

Exhibit 2: Global Cellular IoT Module Vendor Shipment Rankings by Key Geographies, Q1 2021

Source: Counterpoint Regional Cellular IoT Module, Chipset and Application Tracker, Q1 2021

Commenting on the cellular IoT module chipset supplier landscape,Vice President ResearchNeil Shahnoted, “While modules based on LPWA technologies such as NB-IoT and LTE-M continued to grow above the market average, LTE-Cat 1 and5Gbecame the fastest-growing cellular technologies in the IoT space this quarter. This adoption has helpedQualcommstrengthen its dominant position further to capture almost half of the market in terms of volume, offering different types of cellularIoT chipsetsolutions to these module vendors.”

Shah added, “Other notable vendors making strides in this market are Shanghai-basedASR微电子, andUnisocwith growing design wins in the 4G Cat 1 segment. French chipset manufacturerSequansis also in a growth mode with a robust 4G broadband, 4G Cat-1, LPWA, and 5G chipset and module portfolio. This should drive significant competition in the fast-growing LTE Cat-1 segment with the ASP of these modules falling below $10.MediaTekis expected to improve its share over 4G Cat 4, 4G Cat other and5Gtechnology. As IoT applications and project implementations are increasing, more chipset players are entering this space. GCT Semiconductor and XINYI Semi are the latest entrants in this segment. It will be interesting to see whether these new entrants are able to strike partnerships with larger module vendors to grow further.”

Currently, Counterpoint is tracking and forecasting 65+ IoT module vendors’ shipments, revenue performance across 12+ chipset players, and 18+ IoT applications across 10 major geographies on a quarterly basis, with a forecast up to 2025.

Full reports are available for subscribing clients through the following links:

Background

Analyst Contacts:

Soumen Mandal

Neil Shah

Counterpoint Research

press(at)www.arena-ruc.com

Related Posts:

Global Cellular IoT Module Shipments Decline 28% Sequentially During Q1 2020

Quectel led the global cellular IoT module shipments with 28% market share during Q1 2020
Qualcomm led the global cellular IoT module chipset shipments, capturing a third of the market
Industrial, enterprise and automotive are the top applications for cellular IoT modules

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – August 26, 2020

Global cellular IoT module shipments reduced by 4% YoY and 28% QoQ during Q1 2020 due to the negative impact of COVID-19 outbreak, according to the latest research from CounterpointGlobal Cellular IoT Module and Chipset Tracker. However, IoT module shipments based on theLow Power Wireless Access(LPWA) technology increased by 51% during this quarter, offsetting the decline in automotive and other mobility applications. The falling prices, lower power consumption and extended coverage are the major reasons for growing popularity of LPWA modules among other cellular technologies.

Research AssociateSoumen Mandalsaid: “Driven by a wider geographic reach, faster time-to-market, excellent IoT application support, aggressive marketing and a broader portfolio, with the MC, M and BC series modules performing well, Quectel managed to retain top spot in the global cellular IoT module market. However, SLM152, ME909 and SIM868 modules from Meig, Huawei and SIMCom, respectively, did well to help these brands compete with Quectel. Further, cost-effectiveness is helping other Chinese players like Fibocom, MobileTek, Lierda and Neoway to increase share in the global cellular IoT module market. International vendors such as Gemalto, Sierra, Telit and u-blox continued to maintain top rankings behind Sunsea IoT and Quectel with strongholds in North America, Europe and other developed markets.”

Exhibit 1:Global Cellular IoT Module Shipments by Brand – Q1 2020

Research Associate Anish Khajuria said: “The average price of IoT modules decreased by 12% YoY in Q1 2020. The rising demand for low-cost LPWA modules such as NB-IoT, LTE-M and LTE Cat-1 has been driving the overall IoT module ASP down. Quectel, Sierra Wireless, Gemalto, Telit and Fibocom are top five players in terms of IoT module shipment revenues globally. However, the rise of long-tail but region-focused brands like Cheerzing, Cavli Wireless, AM Telecom, Kyocera and Yuge is witnessing good traction.”

“Industrial, enterprise and automotive are top application areas for cellular IoT modules. With the rising connectivity and autonomy in automobiles, demand for 4G and 5G modules will rise in coming years,” said Senior AnalystAman Madhok.

Madhok added: “Again, smart manufacturing and smart industry applications in the age of Industry 4.0 will see increasing demand for cellular IoT modules to reduce power consumption, increase efficiency in the production process and connect machines to cloud for optimal business planning.”

Vice-President ResearchNeil Shah指出:“高通主要沙re of chipset shipments powering the IoT cellular modules. Diversifying product offerings, robust supply chain network, innovation and price competitiveness have helped Qualcomm maintain collaboration with major cellular IoT module players. With the shift in focus for Intel away from the cellular modem business, coupled with significant growth in NB-IoT, LTE-M and LTE Cat-1 technologies in key markets such as China, US and Europe, growth opportunities open up for other chipset brands. MediaTek, UNISOC, Hisilicon, Sony (Altair Semi) and newer players such as ASR and Nordic Semi will look to increase their overall market share globally.”

Exhibit 2:Global Cellular IoT Module Shipments by Chipset Vendor – Q1 2020

Commenting on future deployments, Research Associate Fahad Siddiqui said: “China will dominate the global cellular IoT module market in coming years, with North America and western Europe emerging as important markets. With more deployments of5Gnetwork around the world, the demand for 5G modules will increase. Connected vehicles, CPEs and routers for FWA, industrial robots and video surveillance will be some of the key 5G IoT module driven applications, especially in markets such as North America, China, Korea, Taiwan, Japan and UK initially.”

The comprehensive and in-depth ‘Global Cellular IoT Module and Chipset Tracker 2018Q1-2020Q1’ report is a part of Counterpoint’s IoT (Internet of Things) Service. The report is available for downloadherefor subscribing clients.

Background:

Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry.

Analyst Contacts:

Soumen Mandal

Neil Shah

Aman Madhok

Anish Khajuria

Fahad Siddiqui

Counterpoint Research

press@www.arena-ruc.com

Global IoT Cellular Module Shipment Demand in Growth Mode as 4G, LTE Cat-M & NB-IoT Deployments Ramp

Seoul, Hong Kong, New Delhi, Beijing, London, Buenos Aires, San Diego

September 20^th, 2017

Chinese vendor SIMCom led in volumes while Canadian vendor Sierra Wireless led by value as the global cellular module shipments were up 35% YoY. Moving forward, 4G, LTE-M and NB-IoT will be key volume drivers.

According to the latest research from Counterpoint’s IoT (Internet of Things) service, global cellular IoT module shipments grew 35 % annually.

评论的最新研究发展connected devices, Counterpoint’s Research Analyst, Satyajit Sinha, noted, “Cellular connectivity is the backbone to drive secure connection of different devices to the internet across different verticals. The role of cellular modules to securely and reliably connect the devices with the management platforms, the cloud is critical to enable flow of data and information both ways. From monitoring health to smart utility meters, integrated logistics, manufacturing systems, drones and more, the cellular modules will play a crucial role in the transformation from M2M to IoT to IIoE (Intelligent Internet of Things).”

Mr Sinha, further added, “The ability of IoT cellular modules to deliver multiple benefits that can lower the costs, and extend the range of solutions have made IoT cellular modules a successful growth story in recent years. Technology evolution in cellular from 2G to 3G and 4G has delivered enormous spectral efficiency gains and much improved resource utilization with the availability of greater peak data rates and lower latency. New Low Power Wide Area networks (LPWANs) such as Narrowband IoT (NB-IoT) modules are poised to make inroads into the IoT market. This promises long-range cellular connectivity at a substantially lower cost, lower power than the traditionally 2G/3G/4G cellular modules special designed for IoT applications. However, 90 % of the cellular modules shipped in 1H 2017 were still the traditional 2G/3G/4G cellular modules, but this is bound to change rapidly in near- to mid-term as the LTE Cat-M and NB-IoT network rolls out. “

Adding his perspective, Research Director, Peter Richardson, noted, “According to our research, cellular IoT connections crossed half a billion subscriptions in 1H 2017. It took a decade for our industry to reach half a billion IoT connections, however, the next half a billion milestone will reach in less than a fourth of the time it took earlier. This will drive the demand for cellular IoT modules, especially LPWA modules for low power applications and 4G /5G capable modules for data driven applications such as connected cars.

Mr Richardson, further adds, “While, the global operators will mainly drive cellular deployments, competitive forces from proprietary non-cellular LPWA networks such as SigFox, LoRaWAN and others will find traction in ultra-low power, low-cost and low-scale deployments. We could see hybrid strategy of cellular+non-cellular IoT deployments from operators segmented based on types and scale of IoT applications to bear fruit in next couple of years”.

Exhibit 1: GlobalCellular IoT Module Shipments market share by Volume in 1H 2017

Source: Q2 2017 IoT Tracker

细胞中的突出的竞争格局ular IoT module segment, Research Director, Neil Shah added, “Despite failed acquisition by u-blox, the Shanghai based SIMCom Wireless continues to lead the cellular module market in terms of volume with 23% market share growing 122% YoY. Whereas, Canada based Sierra Wireless remained the leader in terms of revenue, capturing a third of the total cellular IoT module market.”

看未来部署,沙先生补充说,” While Chinese brands like SIMCom Wireless or Quectel are winning with affordable 2G and 3G module shipment volumes, the competitive landscape might look different in a year’s time as the industry transitions from 2G/3G to 4G/LPWA networks. We expect to see more hybrid cellular module solutions integrating multiple flavors of cellular access technologies. Integrated players such as Sierra, Telit and Gemalto are well positioned to cash on this trend. Likewise, the cellular chipset vendors such as Qualcomm, Altair and Sequans will see more of their solutions integrated into these modules and witness a considerable uptick in coming quarters.”

In recent months, major operators and players across IoT value chain are highlighting the upcoming wave of 4G and LPWA deployments, for example:

At Mobile World Congress Americas earlier this month, CTO for China Telecom, Qi Bi, noted,“We ran out of devices; people are lined up, I think NB-IoT will take off big time in China”

Discussing this key competitive development, CTO in North America for Nokia, Michael Murphy, added, “Carriers would like to wipe out their LPWA competitors, and I believe they will”

Chief Executive of Link Labs, Bob Proctor added, “Cellular IoT is also getting traction in asset tracking, often coupled with Bluetooth in delivery vehicles or factory-floor systems.Generally speaking, you have to be able to work with many technologies”.

Exhibit 2: GlobalCellular IoT Module Shipments market share by Revenue in 1H 2017

Source: Q2 2017 IoT Tracker

The cellular IoT module market is dominated by top five brands contributing two-thirds of the cellular module volume shipments and 85% of the revenues.

SIMCom Wirelessgrew 122 % YoY, with 23% market share in cellular module volume and upheld the leading position in cellular IoT module shipment. During the first half of 2017, SIMCom obtained certification from Verizon Wireless for its new low-power LTE Cat M1 solution. This is a great step for SIMCom to expand into the important North American market and LTE segment
Sierra Wireless签证官增长同比% 23日发货lume and led the market in terms of revenue with 32% market share. Sierra Wireless’s AirPrime AR Series embedded modules and Legato platform is going to power Car-Net connectivity for Volkswagen automobiles beginning in 2018, a great win during the first half. The vendor also announced industry’s first LTE-Advanced Pro embedded modules alongside its next-generation Narrowband IoT (NB-IoT) modules, which are expected to be certified and available for T-Mobile’s Narrowband IoT network in early 2018
Gemaltogrew 3 % YoY by shipments volume and cemented the second spot in terms of cellular IoT module revenues with 20 % share. Gemalto‘s new Cinterion LTE Cat. M1 looks to deliver low-power and data rate LTE connectivity for Machine-Type-Communication (MTC) to drive power savings targeting10+ years battery life
Telit Communicationsgrew 7 % YoY in cellular module volume shipments and grabbed the third position by volumes as well as revenue, hinting to a well-balanced price and product mix. Telit announced during the first half that its Cat-NB1 modules are under testing on T-Mobile’s Narrowband IoT network, which is expected to launch nationwide by mid-2018. This should help Telit gain significant traction as T-Mobile has been one of the disruptive and high-growth force in USA operator landscape
u-bloxgrew 2 % YoY in volume. However, U-Blox lost cellular module volume’s market share from 6.1 % in 1H2016 to 4.6 % in 1H2017. The failed acquisition of SIMCom Wireless also didn’t help its cause to jump directly to number one module supplier. However, u-blox has been expanding its portfolio with different LPWA solutions, announcing a configurable LTE Cat M1/NB1 multi‑mode module with worldwide coverage. The module SARA‑R410M is expected to be certified and available in early 2018 for T‑Mobile’s NB‑IoT network, which is expected to launch nationwide in mid‑ This is important as T-Mobile is the early mover driving NB-IoT in USA ahead of rivals AT&T and Verizon which are still banking on LTE Cat-M network for IoT strategy

Background:

Analyst Contacts:

Satyajit Sinha

satyajit@www.arena-ruc.com

@Satya_Analyst

Peter Richardson
+44 20 3239 6411

peter@www.arena-ruc.com

@MobilePeter

Neil Shah
+91 9930218469

neil@www.arena-ruc.com

@neiltwitz

Counterpoint Research