Asset Tracking Archives

u-blox Marks 25 Years With Record-breaking Revenue, Strong Growth Across All Segments

u-blox’s total revenue grew 44% YoY in 2022 to reach $654 million.
The company shipped more than 100 million chipsets and modules in 2022.
u-blox’s revenue is expected to grow more than 15% YoY in 2023.

Last year saw u-blox’s 25th anniversary, and the company marked the occasion in style, registering a record-breaking revenue of $654 million in 2022, an increase of 44.3% from 2021. Despite supply chain challenges, u-blox managed to fulfill customer demands with a diversified supplier base. The company experienced strong growth across all segments and regions.

Highlights for 2022

u-blox’s operating profit increased 258% YoY in 2022 to reach $138 million, demonstrating improved operational efficiency.
The mass adoption of high precession technology in industrial automation, delivery robots, autonomous construction and agricultural equipment helped its industrial segment to grow 52% YoY and capture 63% of the company’s total revenue.
The automotive segment also grew 54% YoY due to the increased demand for navigation and infotainment applications, driven by the shift towards electric vehicles. The segment contributed 28% to the total revenue.
The consumer segment grew 34% YoY and captured 9% of the total revenue.
Among regions, the revenue from APAC increased 59% YoY propelled by high demand for various applications such as infotainment, navigation, telematics and healthcare, particularly in Japan, Australia and New Zealand. In EMEA, the revenue grew by 43% driven by the strong performance of infotainment, navigation, industrial automation and asset-tracking applications. Similarly, the revenue in the Americas grew 48% YoY fueled by the robust growth of infotainment, navigation, telematics and healthcare applications.
In 2022, modules and GNSS chips contributed 79% and 20% of the total revenue respectively. The company shipped more than 100 million modules and chips combined in 2022.

GNSS modules

u-blox is maintaining its leadership position in the GNSS module market due to its superior quality and high precision. In 2022, u-blox’s GNSS module shipments grew by 28% YoY, contributing more than half of the total module revenue. These modules are widely used in automotive and industrial applications. To further enhance its positioning solutions, it has formed partnerships with GMV to provide end-to-end safe positioning solutions for autonomous vehicles. Additionally, u-blox has secured multiple design wins, including with NXP semiconductor, NVIDIA and Li-Auto, for its ZED-F9K GNSS module for automotive applications.

Wi-Fi/BT modules

In 2022, u-blox’s Wi-Fi/BT module segment experienced a 17% YoY growth, generating a revenue of nearly $57 million. The widespread adoption of Wi-Fi 6 in healthcare and industrial applications has played a significant role in the segment’s growth. Besides, u-blox’s partnership with AWS has created two innovative modules that are pre-provisioned for secure communication with AWS via Wi-Fi and cellular IoT, simplifying access to cloud services for customers. This collaboration with AWS is expected to drive the adoption of u-blox’s high-quality modules targeted at the industrial segment, increasing the company’s market share and revenue growth potential.

Cellular IoT modules

According to Counterpoint Research’s Cellular IoT Module Tracker Service, u-blox’s cellular IoT module segment grew by 37% YoY in 2022, reaching $176 million. The launch of new products in the first half of the year played a crucial role in this growth, with its smallest 4G Cat 1 modules shipping one million units within two months of launching. Its UBX-R5 LPWA chipsets are also gaining traction among customers. In the cellular LPWA chipsets market, u-blox is competing with major players such as Qualcomm, Sony and Sequans. Sony’s latest 5G LPWA chipset may create further competition for u-blox.

GNSS chips

u-blox shipped nearly 54 million GNSS chips in 2022, which contributed $131 million in revenue. The u-blox 8 series chipsets continue to be the top-selling chipset, while the new M10 chipsets are ramping up production at a rate of one million per month. Nofence is leveraging u-blox GNSS chipsets to develop GNSS-enabled livestock collars for regenerative farming.

Outlook

The company’s future strategy is to continue to lead with innovative solutions that combine chipsets and modules with services while considering socio-economic and eco-friendly factors. The ongoing adoption of electric and autonomous vehicles will be a major growth opportunity for u-blox. With a strong order book in place, u-blox is forecasting a substantial YoY revenue increase of 6% to 16% for 2023. The average analyst estimate for the 2023 revenue is $724 million, representing an 11% increase. Considering the high demand and interest for its products in the automotive, industrial and asset-tracking segments, it is probable that u-blox’s revenue will be near the higher end of the projected range.

Related Posts

Qualcomm Aware: Pivotal SaaS Play to Catalyze the Complex IoT Ecosystem

The entire world is going through digital transformation with connectivity at the center intelligently bridging the edge-cloud gap. The data emanating at the edge, whether it is telemetry data from the sensors or location, has been pivotal in adding intelligence, context, and analytics to the connected asset to enable quick, accurate, informed, and timely decision-making.

If we look at the entire IoT or location value chain, it spans from the endpoint/edge (possibly a device/sensor/gateway) to the network infrastructure, enabling connectivity between the edge and the software or API-driven cloud and analytics platforms. While connectivity is the glue, location also provides important context to the asset and the data emanating from the asset.

WATCH: Qualcomm Aware Platform Explained

Power of connectivity and location

We have extensively researched and talked about the IoT market and the importance of end-to-end control, from chipsets, modules, and devices to connectivity to the platforms, including both IoT and location. The IoT landscape, which has been fragmented, is now undergoing consolidation as there is a significant mismatch between the value being created and captured. However, the success in IoT lies in a player which can be integrated and offer end-to-end capabilities while also remaining open and flexible to work with different partners across the value chain at the same time. This should allow the player to create and capture maximum value opportunities for everyone and accelerate the digital transformation journeys of different companies.

Qualcomm has been the leading and largest “connectivity” chipset provider in the IoT and automotive segments, shipping hundreds of millions of chips every year. While connectivity and IoT are natural to Qualcomm, the San Diego-based systems company has also realized the importance of blending the power of location and connectivity. Therefore, Qualcomm has acquired its long-time partner Skyhook, a Boston-based company that has been a leader in the development of location technologies integrating into the devices, and PoLTE, a Dallas-based company focusing on cellular-based accurate positioning technology for mobile devices to IoT applications such as fleet management and asset tracking. Driving location-based intelligence right from the chipset via APIs reduces a lot of integration-related difficulties for companies trying to connect their assets to the cloud securely and seamlessly.

WATCH: Qualcomm Aware Platform Use Cases Demo

Qualcomm Aware SaaS platform – API-driven chip to cloud connectivity

With its important position in the IoT value chain and leveraging its location and connectivity expertise, Qualcomm recently launched Qualcomm Aware, an API-first platform offering secure and out-of-the-box chip-to-cloud integration. Qualcomm is doing this via an intelligent software on top of the chip to help solution makers optimize, configure, and transmit location and telemetry data from the edge to the cloud simply via APIs integrating with partner solutions.

Source – Qualcomm

Initial capabilities: Location data, connectivity management, security and more

The Qualcomm Aware solution can be tailored to specific verticals, applications or use cases. It comprises of following capabilities:

• Location data GNSS, cellular, Wi-Fi, hybrid location, geofencing, etc
• Power-optimized, configurable hardware and software components
• Security – edge to cloud, Silicon Root of Trust, provisioning, etc
• Connectivity management – cellular, roaming, Wi-Fi, Bluetooth, etc
• Devices – With Qualcomm Aware low-power embedded chipsets

In our opinion, the platform for a particular use case, such as asset tracker, might offer the full solution to start with. But when the need to scale up arises, the platform will have to become more modular so that the end customers or system integrators have more options to choose from. For example, just leverage location APIs or with connectivity management or the off-the-shelf Qualcomm Aware partner devices or not.

Initially targeted use cases: Asset tracking

Source – Qualcomm

Since it blends location and connectivity well, asset tracking is the lowest-hanging opportunity for Qualcomm Aware.

Qualcomm has partnered with Quectel, Ikotek, Thundercomm, and others to build Qualcomm Aware-ready asset trackers to help customers kickstart with the offering as the previous-generation chipset-based devices cannot be upgraded to become Qualcomm Aware compatible. While the solution comes with bundled connectivity (via partner), Qualcomm does not aim to become an MVNO and step on its partners’ toes. For the mapping, routing and location data, Qualcomm is partnering with Mapbox and TomTom in this initial phase. Larger players such as HERE and Google are expected to be on the partnership roadmap eventually.

Source – Qualcomm

Therefore, transport and logistics is the initial target segment, followed by retail, manufacturing, construction and utilities.

Success will be in partnerships and moving to self-serve model

Qualcomm is thus expanding its capabilities and offerings to become a strong enabler with a platform play in this high-potential, fragmented but consolidating market. The timing of the launch might be questionable for many considering the ongoing consolidation, but we believe this is the best time to enter the market with a unique and highly scalable platform to invigorate this market, especially with a strong position in the edge market.

Source – Qualcomm

To be successful with a SaaS approach, being open and striking the right partnerships is paramount. It is great to see Qualcomm striking partnerships across the value chain, from module and device manufacturers, software and middleware players, and location and mapping vendors to system integrators and cloud players. Qualcomm will have to invest in and empower dedicated pre-sales, consulting and post-sales teams to make headway into these markets. Moving to a self-serve model would be critical to further scaling the SaaS business.

Key takeaways: Chip-to-cloud partner-driven IoT and location platform approach

• No vendor other than Qualcomm enjoys a strong position when it comes to the edge of the market.
• As intelligence moves to the edge, a secure edge-to-cloud connectivity offering can help simplify integration, portability and provisioning of IoT solutions, catalyzing the IoT ecosystem.
• Qualcomm Aware helps the company broaden its portfolio beyond hardware to a recurring and scalable software/services business, which investors and partners would welcome.
• Further, Qualcomm Aware can help crack the significant but complex and fragmented IoT market to make a play in the $700-billion connected intelligent edge opportunity.
• The platform’s future success will depend on how Qualcomm expands its partner ecosystem across verticals and geographies while also moving to a self-serve model.

Top 10 IoT Announcements at CES 2023

At the first full-fledged CES event after the pandemic, the excitement was palpable. The event did not disappoint in terms of the variety of announcements across the internet of things (IoT) spectrum. Our teams, both on-ground and online, tracked over 260 announcements made by over 240 companies covering a range of segments across consumer, enterprise and industrial.

Devices formed the most popular category, with three out of every five announcements relating to this segment. As expected, the consumer and smart home sectors took center stage, but it was intriguing to see new launches in industry segments such as agriculture. Additionally, smart home, metaverse, augmented reality, healthcare and robotics were among the most talked about segments, attracting large crowds.

Here are the top 10 IoT announcements from this year’s CES, according to Counterpoint analysts:

1. Wi-Fi: MediaTek launches Genio 700, Wi-Fi 7 products

MediaTek introduced the Genio 700 IoT chipset targeting industrial, smart home and smart retail applications. This chipset will be available by Q2 2023. MediaTek also showcased Wi-Fi 7-supported products like gateways, mesh routers, televisions, streaming devices, smartphones, tablets and laptops partnering with TP-Link, Lenovo, Hisense, ASUS, BUFFALO INC, Skyworks, AMD, Qorvo, LitePoint and MAC MLO among others.

MediaTek is slowly diversifying its offerings beyond smartphones. The availability of products with superior capabilities and increased partnerships will help MediaTek increase its footprint in the IoT market.

2. Smart Home: TP-Link expands Tapo smart home products

TP-Link unveiled new products under its Tapo line of smart home devices. These new additions include cameras, a doorbell camera, a smart video door lock, robot vacuums and a smart hub home connection center. Besides, the company also launched its first Matter-certified smart plugs, smart switches, smart outlet extenders and smart bulbs. The launch of these products at CES 2023 highlights TP-Link’s focus on expanding and diversifying its offerings in the smart home market.

The company’s adoption of the Matter protocol for its Tapo and Kasa lines of smart home products shows its commitment to making smart home technology more accessible and user-friendly.

In addition to the smart home products, TP-Link also showcased Wi-Fi 7-supported router and gateway solutions for use in homes, enterprises and ISPs. The integration of Wi-Fi 7 will improve the gaming experience, as well as increase productivity in enterprise applications.

3. Asset Tracking: Pod introduces paper-thin tracker with SODAQ, Lufthansa

Pod Group, in partnership with SODAQ and Lufthansa Industry, has developed a paper-thin smart label tracking device that utilizes low-power cellular connectivity (LTE-M) for a battery life of up to six months. This sustainable, eco-friendly device uses alkaline batteries instead of lithium and has the potential to revolutionize the tracking and logistics industry by improving supply chain efficiency and reducing operational costs.

Similar efforts by SODAQ with Vodafone and Bayer utilizing NB-IoT technology have been observed, but the use of Low Power Wide Area Network (LPWAN) may be more beneficial as it targets a wider range of telecommunications operators.

4. Sensor: Bosch showcases sensor technology

Bosch Group subsidiary Bosch Sensortec presented a variety of new sensors at CES 2023. These offerings include an AI-enabled smart sensor system, magnetometer, barometric pressure sensor, and an air quality sensor. These sensors demonstrate advancements in power efficiency, accuracy and compact size, and aim to enhance the user experience by tracking personal health and fitness, providing accurate data and prolonging battery life.

Bosch has been a leading manufacturer of micro-electromechanical system (MEMS) sensors since 1995 and has produced over 18 billion units to date. It is also investing in quantum sensors, which can provide measurements that are significantly more precise than current MEMS sensors and enable more accurate diagnosis of neurological diseases. Additionally, the company is developing angular rate sensors that use the nuclear magnetic resonance of noble gas atoms and are optically pumped. These could prove to be highly precise and stable for navigation applications. Bosch believes that sensors will play a key role in IoT and continues to make investments in this area.

5. Modules: Quectel enables satellite connectivity, strengthens automotive module portfolio

Quectel is partnering with Skylo to integrate satellite connectivity into its 5G-ready BG95x/BG77x series of LPWA modules. This hybrid connectivity solution improves network coverage and makes it ideal for a variety of applications, such as trackers, wearables, smart cities and smart meters. Low-earth orbit (LEO) satellites are going to be a key for the non-terrestrial networks (NTN) coming up in 3GPP Rel17/18 in addition to the high-altitude platform system (HAPS).

Quectel also launched the AG59X series of automotive-grade 5G modules based on Qualcomm’s SA525M platform to support autonomous driving. The company has strong partnerships with Chinese automakers such as Li Auto, Nio and BYD, and this module will further strengthen its efforts to increase share in the automotive connectivity market.

6. AR/VR: Thundercomm unveils XR2 VR HMD, 5100 AR glasses and smart vending machine

Thundercomm, a joint venture between Thundersoft and Qualcomm, unveiled a VR HMD solution based on the Snapdragon XR2 platform and AR glasses based on the Snapdragon W5 platform. These products will not only provide flagship experience but also offer low power consumption, higher resolution and more wear comfort. The AR/VR space is heating up with the increased participation from leading technology and smartphone players such as Meta, Apple, HTC and Google. However, an early entry can be beneficial for Thundercomm.

The newly launched smart vending machine will help increase operational efficiencies for retailers. Moreover, this solution will improve the shopping experience and further extend retailers’ reach. Thundercomm is expanding its product lines to capture maximum value from both the consumer and enterprise IoT markets.

7. Robotics & Drones: Autel Robotics showcases EVO Max 4T drone

Autel Robotics has unveiled a new drone, the EVO Max 4T, which is capable of a variety of applications such as autonomous navigation, semi-autonomous flight missions, firefighting, and inspections. It is equipped with three high-quality cameras, capable of capturing footage from a distance of 1.2 km. Autel has also released the Dragonfish NEST infrastructure, which supports automated eVTOL systems, and the EVO NEST infrastructure, which can operate in all weather conditions.

Drones and eVTOLs will see higher adoption in the future with better efficiency in power consumption, security improvements and better regulatory compliances. These innovations will help Autel increase its presence in the enterprise market and remain competitive with companies like DJI.

8. Industrial IoT: ZVISION partners NVIDIA to improve industrial sensing

ZVISION, a provider of solid-state MEMS LiDAR solutions, is working with NVIDIA to use its robotics simulation platform Isaac Sim to develop advanced robot sensing capabilities and provide high-performance LiDAR solutions.

In Industry 4.0, robotics and simulation will play a key role. Its partnership with NVIDIA will allow ZVISION to expand its applications beyond vehicles, while also reducing costs and speeding up time-to-market for companies undergoing digital transformation. ZVISION offers both short- and long-range LiDAR options that can be tailored to various applications.

9. Platform: Tuya pushes PaaS 2.0, Cube for digital transformation

Tuya officially launched PaaS 2.0 to develop personalized solutions to fulfill global customers’ demands for “product differentiation and independent control”. For private cloud customers, it also unveiled Cube, an enterprise-level IoT platform deployment solution.

PaaS 2.0 is a unique innovation that can assist customers in reducing R&D costs and increasing product competitiveness. Tuya is focusing on public and enterprise cloud applications which are dominated by big cloud players like Alibaba cloud and Tencent cloud.

10. Healthcare: OMRON launches blood pressure monitor with ECG

OMRON introduced a new upper-arm blood pressure monitor with built-in ECG capabilities. This device aims to facilitate the early detection of heart disease by combining blood pressure monitoring and ECG technology. Utilizing home-monitored data, healthcare professionals will be able to provide early treatment and detect Atrial Fibrillation (AFib) at an early stage.

The company also announced the expansion of its digital healthcare apps with new features, such as the Personal Heart Health Coach and the Care Team within the OMRON Connect app. These new features will utilize AI technology to analyze vital data and provide patients with personalized guidance and exercise advice. OMRON’s innovative solution, leveraging technologies like AI, ML and IoT, will help healthcare professionals to better understand patient data through analysis.

Conclusion

CES 2023 has provided ample food for thought for industry executives. Each of the announcements made at the event has significant implications for the direction of the industry. For example, the satellite-related announcements made by chipset and module players could help IoT companies focus on new use cases. Additionally, with Wi-Fi 7 becoming mainstream and Matter-certified home products being rolled out, we can expect to see a significant uptick in demand for smart home products. These developments and more continue to shape the future of IoT and solidify the role technology plays in our daily lives. With more innovation, the possibilities are endless and we are excited to see how the industry will continue to evolve.

Related Reports

iTriangle Leads India Telematics Ecosystem; EVs to Drive Telematics Demand

Telematics shipments in India are expected to reach 50 million units in 2030 at a CAGR of 31% from 2021.
Rising demand for EVs, ubiquitous 4G connectivity and favourable policies will act as potential drivers.
According to Counterpoint’s CORE evaluation, iTriangle leads the overall rankings for India’s telematics ecosystem, followed by Teltonika and Bosch.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – November 25, 2022

India is the world’s second-largest automotive and mobility market in terms of production volume. It offers significant opportunities for connected telematics due to its sheer scale as well as the growing design and manufacturing ecosystem. Telematics penetration in 2021 was just 2% of the total number of vehicles on the road. According to Counterpoint’s India Telematics Ecosystem Analysis, telematics shipments are expected to reach 50 million units in 2030 with a CAGR of 31% from 2021. Currently, iTriangle leads the overall rankings for India’s telematics ecosystem in Counterpoint’s CORE evaluation.

Commenting on the market dynamics, Senior Research Analyst Soumen Mandal said, “Presently, India’s telematics market is at a nascent stage but there is a steady demand for telematics devices. High import dependency, lack of advanced technology adoption, and infrastructure challenges have all been inhibitors. However, the rising demand for electric vehicles, ubiquitous 4G connectivity, favourable government policies, and schemes related to design and manufacturing, such as PLI and Make in India, will act as potential drivers for the demand for connected telematics devices for different mobility applications.”

To understand the future trajectory of India’s telematics space, Counterpoint Research analysts evaluated the top 15 players using the proprietary CORE analysis technique.

iTriangle leads the overall rankings for India’s telematics ecosystem, followed by Teltonika and Bosch. With the growing market demand, domestic players such as Blackbox, Rosmerta, Nippon, Accolade and Volty are expected to give strong competition to top players in the coming times.

iTriangle’s expertise in different aspects of manufacturing and ecosystem creation has pushed the company to initiate business in Thailand and other Southeast Asian markets. iTriangle is one of the few Indian companies to cross international borders in the telematics space.

Detailed insights into the Indian telematics market opportunity, devices, policies, use cases and recommendations are all captured in a comprehensive white paper published on our portal.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

Background

CORE is a competitive ranking evaluation that evaluates a player across important criteria. For the study of Indian telematics players, Counterpoint took seven categories and more than 45 sub-categories under its CORE analysis. Each of the categories and sub-categories was selected carefully so that they reflected the existing market, current developments, future trajectory and market acceptance of each player. Counterpoint ranked each of the top 15 players on a scorecard based on the latest publicly available information and primary interviews based on the above categories. Exhaustive secondary research was conducted to gather all the information available publicly.

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

Neil Shah

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

Related Reports

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.

San Diego, Buenos Aires, London, 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’s Global 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 involving potential applications around 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 retained its position as the world’s largest IoT market, 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, India was 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, Senior Research Analyst Soumen Mandal said, “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 with Telit acquiring 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 from China and 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 garner scale and 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 4 smart modules SC200E and SG150H, based on Qualcomm and UNISOC chipsets respectively. Furthermore, Quectel unveiled iSIM-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 on higher-end IoT module 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 offer Qualcomm-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, Neoway performed 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-blox recorded a strong quarter by remodeling and redesigning its products and clearing backlogs. The demand was strong for u-blox in industrial, automotive and healthcare applications.

Commenting on the key connectivity technology trends in the IoT space, Associate Director Mohit Agrawal said, “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 with prices still 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-country 5G coverage and scale.”

The top five applications in Q2 2022 – smart meter, POS, industrial, router/CPE and asset tracking – captured more than half of the total IoT module market. Compared to the previous quarter, significant improvements were seen in the router/CPE and residential markets. The automotive connectivity 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

Analyst Contacts

Soumen Mandal

Mohit Agrawal

Counterpoint Research

press@counterpointresearch.com

Related Reports:

u-blox Continues Strong Growth in H1 2022

u-blox recorded an excellent H1 2022 with $311.9 million in total revenues, an increase of 47% from H1 2021 despite macroeconomic headwinds. The demand and interest in u-blox products remained strong across all markets and business segments. The strategy of remodeling and redesigning its products has worked for u-blox in dealing with specific shortages. This time, u-blox changed module design a lot to cut component shortages and clear backlogs.

H1 2022 highlights

u-blox’s gross profit increased 53.9% YoY in H1 2022 to reach $152.4 million.
The industrial segment captured 61% of the company’s total revenue and grew 62% YoY due to higher demand for automation and healthcare applications. The automotive segment also grew 62% YoY and its revenue contributed 28% to the total revenue. The consumer segment grew 18% YoY and captured 10% of the total revenue. In this segment, the growth mainly came from consumer telematics applications.
Americas and APAC regions grew more than 50% YoY while EMEA grew 30%. This growth was driven by industry-focused solutions for automation, mobility, healthcare and network applications. APAC’s growth despite China lockdowns was a testament to u-blox’s strong pipeline of design wins.
In the first half of 2022, modules and GNSS chips contributed 81% and 18% of the total revenue respectively. The module volume grew by 34.3% YoY in H1 2022 to reach nearly 27 million.

The ASP of modules and chipsets increased 20% and 46% YoY respectively due to supply chain constraints and product mix-ups.

GNSS modules

u-blox’s GNSS module shipments grew 56% YoY in H1 2022, contributing more than half of the total module revenue. The good quality and position accuracy of its GNSS products helped u-blox grow this market significantly. This year, it launched the smallest GNSS module, MIA-M10, with its latest technology targeting size-constrained applications like asset-tracking devices, pet trackers, livestock trackers and wearables. Xiaoan selected the u-blox M10 product to enhance the positioning performance of shared motorcycles and electric bicycles.

Wi-Fi/BT modules

In H1 2022, u-blox’s Wi-Fi/BT module segment grew 24% YoY to reach a revenue of nearly $30 million. In short-range radio modules (Wi-Fi and Bluetooth), u-blox continued to expand its capabilities. It launched Wi-Fi 6-based modules, which are ideal for industrial, smart home and mass-market applications.

Cellular IoT modules

In recent times, we have seen international module players merging their cellular IoT businesses to become more competitive in this space. u-blox is slowly recovering its cellular IoT module business. In H1 2022, u-blox’s cellular IoT module segment grew 36% compared to H1 2021, according to Counterpoint Research’s Cellular IoT Module Tracker Service. u-blox provided flexibility to its customers by launching new products. However, we expect u-blox will focus more on GNSS products and services compared to cellular IoT modules, considering growth opportunities.

GNSS chips

The quality of u-blox’s GNSS chipsets is far better than other players, which is helping u-blox witness continued growth in this market. With the rising demand for positioning and location-based ecosystems, u-blox will be able to record a multi-fold increase in its revenue by targeting applications like passenger and commercial vehicles, asset tracking, micro-mobility, surveillance, industrial and healthcare.

Market outlook

The steady expansion of u-blox’s production capacity and strong bookings resulted in this record revenue in H1 2022. Within the first half of 2022, its order book value doubled compared to the end of 2021, which makes u-blox well-positioned to continue to grow revenues and improve profitability. It is already managing well the supply constraint situation. We expect u-blox’s revenue will grow nearly 50% YoY in 2022.

Related Posts

Can Semtech’s Acquisition of Sierra Wireless Change Offerings in IoT Space?

US-based semiconductor manufacturer and LoRa pioneer Semtech announced a $1.2-billion deal on Wednesday to acquire Canada-based cellular IoT module and device supplier Sierra Wireless. The deal comes after last week’s merger deal between Telit and Thales’ cellular IoT business. The IoT module market has entered a consolidation phase and we can expect a few more announcements in the near future.

The IoT module market is fragmented. Many brands are struggling to improve performance, scale up products and face competitors. Some players are moving towards services, which comprise 77% value of the total IoT value chain, for better revenue opportunities instead of sticking to hardware only. For example, u-blox acquired Thingstream in 2020 to generate more revenue and offer complete IoT solutions, from chipset to cloud. In some cases, companies are trying to build up their own supply chain ecosystem through integration. For example, Quectel entered the IoT antenna space last year. In the future, we may witness some large players offload their cellular IoT module business which is not a core business for them.

The Semtech-Sierra Wireless deal is an important announcement for the IoT space. It can change offerings in the IoT industry. Here are some key takeaways from this deal from Counterpoint analysts:

Sierra Wireless is mainly focused on the cellular business, whereas Semtech is focused on the non-cellular business. The ultra-low power benefits of LoRa and higher-bandwidth capabilities of cellular networks will bring innovation to IoT use cases. They can also solve problems faced in massive IoT adoption across all segments.
International brands such as Sierra Wireless, Telit, Thales and u-blox were struggling to compete with Chinese module vendors such as Quectel, Fibocom and MeiG in terms of scale and bringing innovation to the field.
Sierra Wireless divested its auto business in 2020 to focus on the router/CPE segment but the COVID-19 pandemic, supply chain disruptions and ransomware attack hit Sierra Wireless’ efforts to regain its market share last year. Interestingly, the automotive spin-off business was acquired by a consortium led by Chinese module vendor Fibocom.
We also witnessed a corner-room change at Sierra Wireless to revive brand glory when Phil Brace replaced Kent Thexton as the CEO in July 2021.
This year, Sierra Wireless divested its Omnilink offender monitoring business to Sentinel for $37.6 million. This was not a core business for the company and it offloaded Omnilink to focus more on the services industry. Product segments can generate revenue for one time, whereas services can generate revenue on a recurring basis. That is why we have been seeing many IoT module players shifting towards IoT platforms, cloud and services.
According to its chip-to-cloud strategy for IoT adoption, Semtech aims to offer solutions across the IoT value chain. However, it has no good presence in the module, device and platform categories. Moreover, LoRa isn’t suitable for each IoT application. LoRa and cellular technologies may complement each other in serving segments across the IoT value chain.
Sierra Wireless will bring a rich experience of cellular IoT modules, cellular gateways and cloud service platform to Semtech, while Semtech will offer LoRa chips, LoRa gateways and cloud services. In the future, we may see more hybrid cellular+LoRa solutions instead of dual cellular module-based solutions. In this type of application, the cellular module can be used for data communication and LoRa can be used for device management and other applications where a low payload is required. This can change offerings in the IoT module space and help Semtech increase its market share in the cellular space too.
Semtech already has a good hold on smart meter, smart city, industrial, smart grid and asset-tracking applications through LoRa solutions. The addition of Sierra Wireless products will help Semtech target high-end markets such as security cameras, gateways, fleet and PC.

Outlook

The combined entity is looking for a 10x growth opportunity to reach a $10-billion serviceable addressable market (SAM) by 2027. To achieve this figure, IoT platform and cloud services will play a pivotal role as these can contribute revenue on a recurring basis. At the same time, Semtech needs to be careful not to disrupt the standalone LoRa ecosystem partners and customers. We believe cellular+LoRa-based industrial applications such as security, smart campus, factory and private networks will be a big opportunity for Semtech.

Quectel, Fibocom & Sunsea Capture Half the Cellular IoT Module Market in Q1 2022

Quectel, Foxconn, China Mobile, WNC, Telit, MeiG, Sequans, Gosuncn were the fastest growing vendors in Q1 2022.
Smart Meters, POS, industrial, automotive and telematics were the top five applications in the quarter.
China, North America, and Western Europe accounted for over 75% of the volume.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – June 23, 2022

Global cellular IoT module shipments grew 35% YoY in Q1 2022, according to the latest research from Counterpoint’s Global Cellular IoT Module and Chipset Tracker by Application. India was the fastest growing market (59% YoY) followed by Middle East Africa, Japan, North America, China, Western Europe and Korea, all registering healthy double-digit growth. However, the largest IoT module market, China, saw demand dip by 11% QoQ due to the new wave of COVID-19 and resulting lockdowns.

Commenting on the market dynamics, Senior Research Analyst Soumen Mandal said, “The cellular IoT module market remains competitive, but there is growing consolidation. For example, Quectel, Fibocom and Sunsea accounted for more than half of the global IoT cellular module shipment volumes for the first time ever. This highlights the growing influence, expertise, and scale of these Chinese vendors in the fast-growing global market.

Quectel’s cellular IoT module shipments grew 77% YoY in Q1 2022 to a healthy 38% of global volume. Quectel now ships more modules than the next ten vendors combined. Quectel continues to dominate geographically with leadership in seven out of ten key markets globally. Quectel commands a strong position in 4G and NB-IoT modules. Quectel is expanding its 5G portfolio and aims to gain scale as the technology ramps.

Fibocom’s shipments grew by 24% YoY benefitting from the surging demand for 4G Cat 1 bis modules, which is one of the fastest growing segments and led by Fibocom globally. 4G Cat 1 bis is becoming a key technology targeting the 2G and 3G IoT installed base and similar applications such as POS and telematics. Fibocom is also heavily focusing on 5G AIoT based smart modules to maintain a lead in high value applications.

Sunsea AIoT which includes the brands SIMcom and Longsung, has cemented its place in the top three brands. It focuses on 4G Cat-1 and NB-IoT modules. China continues to be the key market for Sunsea; it will need to diversify if it wants to scale and grow at the same pace as its peers.

Telit captured 4.6% share and is the only non-Chinese brand in the top five players. Demand for its modules remains healthy in North and Latin America. The module mix shifted slightly with increasing demand for legacy 2G and 3G modules offsetting some volume decline in 4G modules due to supply chain constraints. Telit leads the Latin America market and is among the top three vendors in North America.

China Mobile, Sierra Wireless and u-blox improved their market share in Q1. The world’s largest EMS, Foxconn, also entered our top ten module players list with growing demand in the CPE and connected PC segments. The relationship with top device makers, potential EV business growth and a focus on 5G technology, should help Foxconn to grow in this sector in the mid- to long-term.”

Commenting on cellular IoT technology evolution, Associate Director Ethan Qi, said, “There is a significant shift happening in the adoption and proliferation of different cellular IoT access technologies, from LPWA (NB-IoT, LTE-M) to 4G (Cat 1, Cat 1 bis) to 4G Cat 3+, 5G and upcoming 5G Redcap. This is driven not only by the wide range of different applications, but also regional and operator adoption dynamics. NB-IoT is considered a key and fast-growing technology for low power IoT applications and has been widely adopted in China and some other parts of the world. Whereas LTE-M is preferred in markets such as Japan, Australia, North America, and parts of Europe. However, we are also witnessing many regions and operators favouring 4G Cat 1 and Cat 1 bis for some mature and some new IoT applications. While most of these technologies are complimentary, operators still have to selectively invest in one over others, depending on the IoT verticals of most importance to them.

As we see 5G rolling out, many of the advanced IoT applications such as automotive, router CPEs, PCs will move to 5G from advanced 4G technologies. Furthermore, the advent of 5G Redcap will also supplant some legacy technologies such as 3G/4G in some IoT applications. So, the entire IoT ecosystem has a wide array of cellular access technology solutions to choose from depending on the applications, data requirements, cost constraints and operator dynamics in a particular market.

The technology mix also shapes the overall cellular IoT module Average Selling Price (ASP), which declined by 3% annually in Q1 due to an increasing mix of lower cost 4G Cat 1 and 4G Cat 1 bis modules. Furthermore, the 4G Cat 4+ modules are still facing supply chain constraints and the % share of 5G modules remains small contributing to the overall ASP decline. We believe the 4G module supply chain issues will moderate later this year, but the falling ASP for 5G modules will provide an option for device OEMs to either select 4G or 5G modules moving forward.”

Commenting on which IoT applications are hottest, Research Vice President Neil Shah said, “Cellular IoT powers a diverse set of applications and the number of things that can be connected to the internet continues to rise.

Smart meters, POS and industrial were the top three applications in the global cellular IoT module market in Q1 2022. These segments are contributing to nearly 40% of total cellular IoT module shipments.

Smart meter projects have restarted in many markets post-COVID and the segment is seeing strong growth with shipments doubling compared to a year ago. Meanwhile, demand in the router/CPE segment is steadily growing as the supply constraints lessen and demand increases for FWA CPEs for the work-from-home segment, and 4G/5G upgrade projects increase for enterprise-grade routers across retail, factories, offices, etc.”

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 1500+ IoT module SKUs’ shipments, revenues, and ASP performance across 80+ IoT module vendors, 12+ chipset players, 18+ IoT applications and 10 major geographies.

Background

Analyst Contacts:

Soumen Mandal

Ethan Qi

Neil Shah

Counterpoint Research

press(at)counterpointresearch.com

Related Reports:

Quectel, Thales & Fibocom Lead the Global Cellular IoT Module Market in Q4 2020

The global cellular IoT module market continued to recover sequentially but is yet to reach 2019 levels.
Quectel and Qualcomm maintained their top positions in the cellular IoT module vendor and chipset player market shares respectively.
Smart meter, automotive and telematics are the top three applications for cellular IoT modules globally in terms of shipments.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – April 15, 2021

Global cellular IoT module shipments increased 9% QoQ but decreased 6% YoY during Q4 2020, according to the latest research by Counterpoint’s Global Cellular IoT Module, Chipset and Application Tracker. The COVID-19 pandemic slowed down the cellular IoT module demand across mobility sectors but saw an increased adoption among other industry verticals, such as healthcare and gateways. Only Japan and South Korea witnessed an increase in shipments on a YoY basis. The total cellular IoT module shipments for 2020 ended at 265 million units. A fresh wave of COVID-19 and semiconductor shortages stopped the cellular IoT module market from recovering fully.

Commenting on the market dynamics, Research Analyst Soumen Mandal said, “Quectel continued to lead global cellular IoT module vendors in terms of shipment volumes and revenues. However, it lost market share in successive quarters due to the rise of longtail module vendors, especially in China. There has been an intense competition for the second spot between the incumbent Thales, Sierra Wireless and the fast-growing Fibocom. The negative impact of COVID-19 forced Thales to surrender the second spot to Fibocom in Q2 2020. However, Thales recaptured it in Q3 2020, retaining it through the end of the year. The improved performance in Europe, North America and Japan helped Thales regain its position. Fibocom is trying to increase its global presence and improve service support to increase its share in the global cellular IoT module market.

Sierra Wireless slipped out of the top five module vendor rankings with the divestment of its automotive business to a consortium led by Fibocom Wireless to form an independent company, Rolling Wireless. Among large module vendors in China, only Fibocom and Meig experienced positive quarterly and yearly growth during Q4 2020 in terms of shipments.”

Exhibit 1: Global Cellular IoT Module Shipments Share by Module Vendor, Q4 2020

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

Mandal added, “The 4G LTE modules continued to dominate, contributing to nearly half of the global cellular IoT module shipment volumes. The demand for 4G Cat-1 modules is poised to grow significantly this year. The demand for NB-IoT modules remains healthy, contributing to a third of the cellular IoT module shipment volumes in Q4 2020. Smart meters, telematics and utilities are the top applications for NB-IoT technology. The 3GPP Release 14 spec-based NB-IoT (Cat NB2) modules gain location capabilities among others, expanding the spectrum of use cases to the broader mobility, tracking and telematics applications.

The demand for 5G IoT modules during the quarter was limited to the router/CPE market and other industrial applications. However, the majority of launched 5G modules are expected to enter mainstream production in the second half of 2021. The demand will also begin to take off with improving 5G coverage in many key markets such as China, North America and parts of Europe.”

Exhibit 2: Global Cellular IoT Module Shipments Share by Chipset Brand, Q4 2020

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

Commenting on the cellular IoT module chipset supplier landscape, Vice-President Research Neil Shah noted, “Qualcomm further increased its share in the global cellular IoT chipset market to nearly half in Q4 2020, riding on the growing demand for 4G and LPWA modules. As the top-tier Chinese module vendors look to expand their presence beyond China, Qualcomm and other suppliers such as Sony (Altair Semi) and Sequans seem to be major beneficiaries going forward. HiSilicon has been the top supplier when it comes to NB-IoT technology. It expects to continue to lead in the coming quarters despite US sanctions. However, with growing competition and design wins, UNISOC and MediaTek look forward to increasing their market share, especially in the NB-IoT segment away from HiSilicon. With the entry of newer suppliers in the cellular IoT chipset market, such as AutoTalks, ASR and Eigencomm, alongside the vertically integrated u-blox, Nordic Semi will light up some competition, especially in the fast-growing LPWA segment.”

Shah added, “The NB-IoT module ASP (average selling price) continues to decline (3% YoY) with scale in Q4 2020, driving further adoption of NB-IoT technology. Sub-$5 priced modules contributed to almost a third of the shipments during this quarter. The ASP of another fast-growing segment, 4G LTE Cat 1 modules, decreased by 9% YoY in Q4 2020 and is an emerging choice to replace many existing and future 2.5G/3G M2M applications.”

Currently, Counterpoint is tracking and forecasting 40+ IoT module vendors’ shipments, revenue performance across 10+ 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:

These reports are a part of Counterpoint’s IoT Service.

Background

Analyst Contacts:

Soumen Mandal

Neil Shah

Counterpoint Research
press(at)counterpointresearch.com

Related Posts:

Top

Insights Tag: Asset Tracking

u-blox Marks 25 Years With Record-breaking Revenue, Strong Growth Across All Segments

Qualcomm Aware: Pivotal SaaS Play to Catalyze the Complex IoT Ecosystem

WATCH: Qualcomm Aware Platform Explained

Power of connectivity and location

WATCH: Qualcomm Aware Platform Use Cases Demo

Qualcomm Aware SaaS platform – API-driven chip to cloud connectivity

Initial capabilities: Location data, connectivity management, security and more

The Qualcomm Aware solution can be tailored to specific verticals, applications or use cases. It comprises of following capabilities:

Initially targeted use cases: Asset tracking

Success will be in partnerships and moving to self-serve model

Key takeaways: Chip-to-cloud partner-driven IoT and location platform approach

Top 10 IoT Announcements at CES 2023

iTriangle Leads India Telematics Ecosystem; EVs to Drive Telematics Demand

Background

Analyst Contacts

Related Reports

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

Market summary

Background

Analyst Contacts

Related Reports:

u-blox Continues Strong Growth in H1 2022

Can Semtech’s Acquisition of Sierra Wireless Change Offerings in IoT Space?

Outlook

Related post

Quectel, Fibocom & Sunsea Capture Half the Cellular IoT Module Market in Q1 2022

Quectel, Thales & Fibocom Lead the Global Cellular IoT Module Market in Q4 2020

Coverage

Insights

Social media

Contact us

Top

WATCH: Qualcomm Aware Platform Explained

Power of connectivity and location

WATCH: Qualcomm Aware Platform Use Cases Demo

Qualcomm Aware SaaS platform – API-driven chip to cloud connectivity

Initial capabilities: Location data, connectivity management, security and more

The Qualcomm Aware solution can be tailored to specific verticals, applications or use cases. It comprises of following capabilities:

Initially targeted use cases: Asset tracking

Success will be in partnerships and moving to self-serve model

Key takeaways: Chip-to-cloud partner-driven IoT and location platform approach

Background

Analyst Contacts

Related Reports

Market summary

Background

Analyst Contacts

Related Reports:

Outlook

Related post

Coverage

Insights

Social media

Contact us

Term of Use and Privacy Policy