Volkswagen Group led in connected car sales, closely followed by Toyota Group.
4G cars captured more than 95% of connected car sales in 2022.
Tesla broke into the top-10 connected car sales rankings for the first time.
New Delhi,London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – April 24, 2023
Global connected car sales* grew 12% YoY in 2022 with the share of connected cars in the overall car sales exceeding 50%, according to the latest research from Counterpoint’s Smart Automotive Service. The US remained the strongest market for connected cars followed by China and Europe. These three markets accounted for nearly 80% of the total connected car sales globally in 2022. Despite having a relatively small share of connected car sales, Japan experienced the highest growth in connected car penetration.
Commenting on the market dynamics, Research Analyst Abhilash Gupta said, “The penetration of connectivity in cars improved during 2022 after struggling in 2020 and 2021. In 2022, new facelift versions of older models like the Honda Civic, Toyota Corolla, Ford Escape and Chevrolet Equinox were introduced with upgraded 4G connectivity and new features. Some prominent features include remote lock/unlock, remote engine start/stop, climate control, vehicle status, location tracking, geofencing, emergency assistance, in-cabin music, video streaming, and over-the-air updates. Next-generation vehicles are being introduced with various connected and autonomous features that require high-speed internet access available through 5G. However, as of now, 5G remains a niche, available only in premium cars like the Ford F-150 Lightning, Cadillac LYRIQ, Mercedes-Benz EQS, Audi e-tron GT, BMW iX and GWM Haval HG.”
Gupta added, “With consumers’ focus shifting to connectivity in the car, non-connected car shipments are steadily declining. The top five automotive groups accounted for nearly half of the connected cars sold in 2022. Volkswagen Group led the charts in terms of connected car sales volume, closely followed by Toyota Group. Tesla broke into the top 10 for the first time.”
Commenting on the market outlook, Senior Analyst Soumen Mandal said, “The shift towards digitization in cars is increasing at a rapid pace and is visible in the consistent rise of connected car penetration globally. Currently, 4G dominates the connected car market with almost 95% share. But as the automotive market is transitioning towards electrification, software-defined vehicles and autonomy, the need for seamless and faster in-vehicle connectivity will be fulfilled through 5G. By 2030, more than 90% of connected cars sold will have embedded 5G connectivity. Connected car sales are expected to grow at a CAGR of 13% between 2022 and 2030.”
*Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands, and consider only passenger cars with embedded connectivity.
The comprehensive and in-depth ‘Global Connected Car Tracker,Q1 2019-Q4 2022’ and ‘Global Connected Car Forecast, 2019-2030F’ are now available for purchase at report.counterpointresearch.com.
Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.
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.
Qualcomm dominates automotive connectivity chipset market with more than 80% share
Rolling Wireless leads the automotive connectivity module market, followed by LG and Quectel
One in two connected cars will have 5G connectivity by 2027
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – September 22, 2022
Global automotive connectivity module and chipset shipments grew by just 3% YoY in H1 2022, according to the latest research from Counterpoint’s Global Automotive NAD Module and Chipset Tracker.
China is the largest region as electric vehicle players, including new start-ups such as NIO, Xpeng Motor and Seres, are offering infotainment systems with large displays and smart cockpit solutions that have a wide array of features, and ADAS that requires embedded connectivity. But during H1 2022, automotive connectivity module shipments in China declined by almost 7% YoY due to slow car production caused by supply chain disruption and COVID-19 restrictions.
Automakers across Europe are trying to generate significant revenues from in-car software services via subscriptions. For this, they are now offering embedded connectivity, even in lower vehicle trims. The Ukraine crisis derailed the European automotive market’s post-COVID recovery. Automotive connectivity module shipments in Europe declined by more than 10% YoY as car production in Germany, France, UK, and other European nations suffered due to the lack of components caused by the Ukraine crisis.
While the two biggest markets could not avoid the effects of the geopolitical crisis and fresh COVID restrictions, North America remained more resilient with automotive connectivity module shipments increasing by 27% YoY during H1 2022.
Commenting on the market dynamics, SeniorResearch Analyst Soumen Mandal said, “With the increasing adoption of digital features and ADAS, the requirement for embedded connectivity in passenger vehicles will increase. The sales penetration of connected cars surpassed those of non-connected cars for the first time H1 2022. Previously, embedded connectivity was prevalent in luxury models, but now mainstream players like Volkswagen, Toyota and Stellantis are offering connectivity for their mass-market cars.
Qualcomm has a dominant position in the chipset market with more than 80% market share. The strong product portfolio and partnerships with major tier-1 suppliers and automakers are all helping Qualcomm. And now, Qualcomm is offering complete solutions for automotive digital transformation starting with hardware and extending to cloud services with the Snapdragon Digital Chassis. This one-stop solution is helping ecosystem players reduce time to market and be more competitive.
MediaTek and Samsung launched 5G solutions last year. As the automotive sector is gradually adopting 5G connectivity, we expect MediaTek and Samsung to increase their market share in 5G automotive connectivity. However, they will likely require a more concerted effort to substantially grow their share and benefit from greater economies of scale.”
Source: Counterpoint Global Automotive NAD Module and Chipset Tracker, Q2 2022
Automotive specialists lead, but IoT giants aiming for slice of module market
Commenting on the automotive connectivity module player dynamics, Research Vice President Neil Shah said, “Automotive connectivity modules must pass various quality and compliance tests and certifications, hence special expertise is an advantage. Consequently specialist automotive connectivity module players such as Rolling Wireless and LG are leading the market. Quectel, the largest IoT module player, has broken into the top three rankings due to strong performance in its domestic China market. We have seen Quectel gain certification for automotive-grade modules with North American and European telecom operators. This will give strong competition to traditional specialist players like Rolling Wireless, LG, Continental and Harman.
The entry barriers are relatively high for IoT module players but the revenue opportunity afforded by the automotive transformation is attractive. Nevertheless, geopolitical trade tensions and data security concerns will likely be a barrier to Chinese IoT module players penetrating international markets.
Automakers will aim to multisource modules to offset supply-chain risks while supporting the growing demand for connectivity. In addition, we expect some emerging countries like India, Indonesia, Thailand and Brazil will try to build their own manufacturing ecosystem to have better control over the supply chain.”
Source: Counterpoint Global Automotive NAD Module and Chipset Tracker, Q2 2022
Discussing the market outlook, Research Vice President Peter Richardson commented, “Automotive connectivity module shipments are expected to grow annually by around 11% on average to reach 97 million units by 2030. The demand for 5G modules is increasing and we expect around a half of connected cars sold in 2027 will have 5G connectivity. The evolution of centralised architecture with digital cockpit, autonomous capability (ADAS L3+) and electrification will drive growth for 5G technology.
In terms of revenue, the automotive connectivity module market is projected to reach $5 billion by 2030. The multi-billion segment opportunity will ensure the segment remains vibrant and highly competitive.”
For detailed research, refer to the following reports available for subscribing clients and individual subscription:
Counterpoint tracks and forecasts on a quarterly basis 25+ NAD module vendors’ shipments, revenues and ASP performance across 10+ chipset players, and 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.
LiDAR shipments are expected to cross 100 million units by 2030 driven by the automotive industry. The increase in demand for LiDAR will match the increase in demand for ADAS and automated driving in passenger cars and robotaxis. As the number of LiDAR sensors per car increases, reaching a likely maximum of eight units to enable fully autonomous driving, the LiDAR market is expected to grow at a CAGR of 65.9% to reach $15 billion by 2030.
Level 3 and above automated driving will require a fusion of LiDAR, radar and camera sensors. While a few companies, like Tesla and Wayve, will look to make autonomous driving successful without LiDAR, most car manufacturers, like Mercedes-Benz, Nissan, BMW, Stellantis, Volkswagen and Volvo, have already announced their intention to include LiDAR in their sensor suites for ADAS/AD in upcoming car models.
The biggest threat to LiDAR comes from alternative technologies such as cameras and machine vision. A small number of companies believe that vision-based systems are sufficient to support autonomous driving. This can hamper the growth of LiDAR as the cost of switching to cheaper vision-based solutions is relatively low.
Automotive LiDAR market
The current LiDAR market is crowded as more than 70-80 companies are operating globally, targeting different industries and regions. From 2020 onwards, a total of nine companies – Velodyne, Luminar, Aeva, Ouster, Innoviz, Aeye, Indie Semiconductor, Quanergy and Cepton – have announced listing of stocks through SPAC mergers.
Valeo’s Scala is the world’s first mass-produced LiDAR for cars. In 2021, Mercedes-Benz and Honda introduced Level 3 models S-Class and Legend respectively. Both are equipped with Scala LiDAR. Since 2017, Valeo has shipped more than 170,000 LiDAR units.
According to a Counterpoint study, the value of the automotive LiDAR market reached around $100 million in 2021 as car companies including Toyota, Honda and Chinese companies like Xpeng launched models equipped with LiDAR. Many car OEMs have signed deals with LiDAR suppliers for their upcoming models. Chinese automakers are at the forefront in entering such partnerships.
Future of automotive LiDAR market
According to Counterpoint’s Global Autonomous Passenger Vehicle Forecast, by 2025, 10% of the new cars sold globally will have Level 3 driving capabilities. Developed markets like the US and Europe will have a higher percentage of Level 3 cars and will first see the entry of Level 4 cars (subject to regulatory approval). This suggests LiDAR has a considerable growth opportunity as Level 3 and above cars will reach the mass market in unison by 2030. According to Counterpoint’s Automotive LiDAR Market Trends and Implications, 2022 study, the LiDAR market is expected to grow from $0.1 billion in 2021 to over $15 billion and over 100 million units shipped in 2030.
Conclusion
After the first use of LiDAR in the automotive segment, it took more than five years for LiDAR to make it to a production vehicle and it still has not been successful at achieving broad market penetration. But it is early days and the scope for LiDAR is considerable. We believe that despite the slow initial diffusion, LiDAR adoption will gather pace.
For more insights and analyses on the Automotive LiDAR Market, please refer to Automotive LiDAR Market Trend and Implications, 2022, which captures the current and future LiDAR trends, LiDAR cost, and threats to LiDAR in the automotive industry.
The use of IoT devices is making our daily lives smarter. IoT combined with artificial intelligence (AI), or artificial IoT (AIoT), is helping in automated real-time decision-making and data analysis. AI can add value to IoT through machine learning (ML) and improved decision-making. Similarly, IoT can add value to AI through connectivity and data exchange. With the rapid technological advancements, AIoT is transforming every industry, enterprise and consumer.
5G is going to be the key ingredient in driving AIoT applications. According to a Counterpoint Research study, the shipments of 5G AIoT-supported modules will grow at a CAGR of 84% between 2022 and 2030. Further, 60% of 5G IoT modules will have AI capability by 2030 for better processing and real-time decision-making.
AIoT applications
The adoption of AIoT is becoming an emerging technology trend across a wide range of industries where real-time data operation is needed, such as industrial manufacturing, robotics, logistics, healthcare, agriculture, smart cities and smart home.
Industrial manufacturing
Manufacturing relies on digital transformation to become more efficient and reduce human error. This sector needs to adopt AIoT solutions. AIoT-powered robots in factories improve the manufacturing process with excellent efficiency. They help reduce labor costs as well as time.
Smart cities
In a smart city, there are several uses of AIoT, such as traffic management and waste management. To avoid chaos and congestion on the road in a crowded city, AIoT-based drones help monitor traffic and transmit real-time traffic data for analyses through AI and for making decisions on the speed limit and timing of traffic lights, all without human interference. Therefore, real-time traffic monitoring by drones increases efficiency and reduces congestion.
Security and surveillance are other important applications for AI in smart cities. AI cameras can help police monitor illegal activities and prevent unwanted situations.
Autonomous vehicles
Self-driving cars are one of the best use cases of AIoT applications. IoT-enabled devices like cameras, radars and sonars in the car gather data and the AI system helps analyze this data within a few milliseconds so that the car can make decisions like a human. Fully autonomous vehicles will generate 1-2TB of data per hour and AI will be required to handle this amount of data and take some decisions at the edge.
Smart homes
AI in the connected home space is mainly used for voice assistant, situational awareness, automation and security. Starting from door locks, smoke alarm, surveillance and smart speakers to smart appliances such as lighting, thermostat, refrigerator, plugs, routers, meters, home controllers and vehicle chargers, many applications have already adopted AI features.
Challenges in implementing AI in IoT
As most AI applications are based on real-time decision-making, they need a high-speed data rate to communicate. 5G’s high speed and low latency will be ideal for AIoT applications. But in many regions, 5G infrastructure is still not there or is in the initial phase. Hence, it will be challenging to scale. Data management and taking the right decision at the right time by handling huge amounts of data will be another big challenge for AI adoption. Moreover, the security angle will also need to be addressed. Both hardware- and software-level security will be required for AIoT applications to keep connected devices safe.
Initiatives by module and chipset players in AI applications
With the increasing traction for 5G-based AIoT applications, module vendors like Fibocom, Quectel, Thundercomm and MeiG are stepping forward to launch AI-supported 5G IoT modules. Some module vendors are offering AI features at the hardware level while some vendors are offering AI features at the software level. Whether to use hardware- or software-level AI features depends on the application and cost of the project. Recently, Quectel announced that it would add software-level AI capability in its Rel 16-based 5G modules by partnering with NVIDIA. International module vendor Telit is also adding AI capabilities in its FM980 5G module through NVIDIA software. However, Quectel, Fibocom, MeiG and Thundercomm are already offering hardware-level 5G AI-supported modules for high-end applications such as C-V2X, AR/VR, robots, smart cities, live streaming, gaming and edge computing.
In terms of chipset players, Qualcomm is leading in the 5G AIoT chipset space. This year, it launched the world’s first AI-supported 5G modem Snapdragon X70. Moreover, it has broader 5G AIoT SoC offerings with the QCM6490, Snapdragon 480, Snapdragon 690 and Snapdragon 750.
The second-largest IoT chipset player, UNISOC, is trying to gain momentum for 5G through AIoT-based SoCs. So far, UNISOC is offering AIoT features in its T770, T760 and T740 chipsets.
Recently, MediaTek launched the Genio 1200 chipset, specially designed for 5G AIoT devices. It is targeting applications such as smart home, industrial, robotics and audio/video terminals.
We expect that 2023 will provide momentum to the 5G AIoT market as the IoT market has been facing some instability lately due to inflation, supply issues and other macro factors.
India’s Connected Vehicle event is back offline after two years. Held in Bengaluru from May 4 to May 6, the event saw attendance from the chipset, NAD module, telematics, cybersecurity and mapping domains, besides regulatory bodies and communication service providers within the connected and autonomous vehicles ecosystem. Analysts from Counterpoint Research were also present. Here are their key takeaways from the sessions held at the event.
Connected, Autonomous, Shared, Electric and Smart Mobility
India is lagging in connected car penetration (17%) compared to the global market (43%). However, the country is also preparing for a shift towards smart electric mobility and focussing on local manufacturing. Such events will help Indian ecosystem players to remain updated on the latest in the field around the world and prepare themselves for the coming transformation.
5G Automotive Association, Tata Elxsi, Dell and what3words participated in this session and discussed the need for C-V2X technology for better communication, opportunities for ecosystem players from connected mobility, a paradigm shift from hardware to software-centric approach and a unique mapping solution that uses three keywords.
Source: Counterpoint Research Smart Automotive Services, 2022
Shifting Future of Automotive Industry to Top Gear with Connected Mobility
The rising demand for safety and comfort features is helping to increase connected car penetration. We expect more than 70% of cars will be connected by 2025 in the global market and one in four cars will have 5G connectivity. However, connectivity penetration will be lower than 40% in India by 2025.
This session mainly focussed on safety during driving, challenges in handling data generated from vehicles, creating actionable insights from telemetry data, and collaborative effort among OEMs and Tier-1 suppliers to make this transition smooth. Intel, Zeliot, VE Commercial Vehicles and Danlaw shared their understanding of this transition.
Driving Towards Connected, Secure, Autonomous & Electric Mobility
In the future, cars will be driven by software. We have already witnessed smartphone players such as Foxconn and Xiaomi entering this market. Data will be the new fuel and nearly 30% of the automotive market value will come from software and services. Moreover, electronic content in a car will rise with increasing smart electric mobility penetration.
According to Counterpoint’s latest research, India’s automotive electronics market will triple by 2027, driven by rising income levels and increasing customer preference for in-vehicle digital experience.
Collaborative efforts of all ecosystem players, whether OEMs, Tier-1 suppliers, regulatory bodies, system integrators or service providers, are important for a successful transition. The Indian government is also working to come up with AIS189 and AIS190 standards for connected vehicle security. Continental and Bosch share the same view on this topic and think a collaborative effort will be the key to connected mobility success in India. Secure Things highlighted how our vehicles are becoming more prone to safety issues and hacking. Both hardware and software level security will be required as preventive measures.
Emerging Technologies – Riding the Next Wave of Connected & Autonomous Mobility
Connected mobility is undergoing dramatic changes. Earlier, we used to connect smartphones to a car via Bluetooth or cable. Today, most cars come with embedded connectivity. In the future, cars will be able to communicate with other vehicles, pedestrians, networks, infrastructure, grid and home.
The upcoming connected and autonomous era will induce a huge influx of data for which substantial storage will be required. We expect Level 4 cars will require more than 1TB of data storage by 2025. Moreover, 30% of cars sold globally will support Level 2 or above. Western Digital is working on automotive storage products. It believes that one day storage will be a key feature at the time of selecting a vehicle. During this session, Bosch introduced Mobility Cloud Platform and Mobility Marketplace. This platform can support other IoT applications such as industrial and enterprise.
Download the full analysis from event sessions below:
ADAS – A Game Changer for Safe and Autonomous Driving
MG Motors introduced ADAS in India for the first time back in 2019 through its L1 SUV Hector. Even as ADAS technology is rapidly gaining acceptance in the global market, India is not that far behind. Currently, L2+ autonomy is being offered in most premium vehicles. With the changing landscape of vehicle architecture, the incorporation of ADAS will be easier and more cost-effective.
Windriver and Hexagon showed how the changing vehicle architecture will benefit system integration and deployment of autonomy. While Windriver has expertise in test and analysis of vehicle architecture and software and ADAS system, Hexagon helps deploy autonomy across sectors and platforms by blending the digital and physical worlds. Hexagon uses ML algorithms to create a simulation through well-captured surround photos. The simulation helps understand how a situation will look with automation, and also increases the accuracy of the automated process.
Shaping the Future of Mobility with IoT, Connectivity & Sustainability
The mobility roadmap is hugely dependent on connectivity. OEMs are constantly innovating to make the journey more pleasurable with better IVI system, better navigation, CV2X and ultimately autonomy, which will not be possible if a proper vehicular connection is not established. According to our research, global cellular IoT module shipments are expected to cross 1.2 billion units by 2030 with a CAGR of 12%. 5G will be the fastest-growing (60%) technology, followed by 4G Cat 1 bis, during 2022-2030. Among cellular IoT modules, global NAD module shipments are expected to reach 80 million by 2025, growing at 14% CAGR from 2021, with one out of every five connected cars projected to have embedded 5G connectivity by then.
Leading frontline companies like Cavli Wireless and MediaTek have shared some details about how they plan to increase connectivity across the automotive industry. As the future bets on autonomy, connectivity benefits are not just limited to in-vehicle internet browsing and autonomy but also extend to vehicle accident prevention, better navigation, precise tracking and more. In short, increased connectivity will enable a sustainable digital ecosystem that, if used properly, holds immense development potential.
Intelligent Transportation System to Promote Safety & Improve Mobility
Increased vehicle connectivity has made transportation safer, more reliable and timelier. Along with changing architecture and increased integration of improved software, the addition of newer technologies is becoming easier.
Intellicar, Skoda, and IBM took the stage to showcase how intelligent transport solutions could tackle some of the general and critical issues of the industry. Intellicar has a solution line from hardware and firmware customization to a low-latency data directory. Skoda showed how intelligent systems can reduce road accidents. IBM provided a global overview and discussed its strength as a software developer and system integrator.
Protecting Software-defined Vehicles with Cybersecurity Solutions
With the increased use of software and internet, present-day cars are no less than a computer and like every other computer, cars are also exposed to cyber threats like malware. If the system used in vehicles is not properly protected, a lot of damage can happen, including loss of life. Therefore, strong and effective anti-virus protection with an improved firewall is much required.
Escrypt, a cyber threat protection company, was of the view that vehicle data safety could be ensured through blockchain-based communication systems, smart gateways, cyber digital twin, AI-based detectors and other encryption systems.
Charting the Future of Connected Mobility with Automotive Telematics
The growing automotive sector holds a lot of potential for the development of new and smart technologies. The transition from conventional vehicles to EVs is also paving the road toward a sustainable connected future. Technologies that were limited to certain fields earlier are finding their way into the expanding automotive space. The use of security systems, blockchain, data tokenization and other platform-based and protocol-based technologies and services is penetrating the automotive space, making the sector more flexible, versatile and user-friendly.
Source: Counterpoint Research Smart Automotive Services, 2022
Market Outlook
Emerging technologies such as ADAS/AD, in-vehicle connectivity, upgraded cybersecurity for the software-defined vehicles, electric vehicles and connected vehicles are taking centre stage as the automotive industry undergoes a paradigm shift. The automotive supply chain is dynamically changing as well, with OEMs making huge investments and starting to adopt digital services to remain future-proof and not cede revenue monetizing opportunities to technology companies. Apart from traditional auto OEMs, the involvement of non-automotive tech companies has been increasing in this space. The future of the automotive sector will be heavily dependent on digital technology. Due to traditional auto OEMs’ lack of expertise in digitalization, non-automotive companies are partnering with them to secure a market share in this growing space.
Modern cars now feature an array of advanced digital technologies such as ADAS (Advanced Driver Assistance Systems) that offer things like lane assist, adaptive cruise control, collision avoidance, and more. And as things progress towards the next level of autonomous driving, the digital cockpit will play a crucial role in unlocking future connected car experiences. Besides offering personalized experiences and seamless connectivity to drivers and passengers, a digital cockpit will also enhance driver safety.
But who are the key players in the automotive industry that are offering the technology stack to power these new experiences? What does Qualcomm’s announcement of its Digital Chassis mean for automakers? And lastly, what are EV (electric vehicle) makers doing to improve range, build more fast-charging stations, and integrate new battery chemistries?
In the latest episode of ‘The Counterpoint Podcast’, host Maurice Klaehne is joined by analysts Soumen Mandal and Mohit Sharma for an insightful discussion on autonomous and electric vehicles (EVs). The discussion also touches on connected cars, touchscreen infotainment systems with guided maps, ADAS, CES 2022 announcements, and more. At the end of the podcast, Soumen and Mohit also talk about the key trends they are seeing in the automotive industry.
Rolling Wireless led the cellular NAD module market, capturing nearly 30% revenue share.
Qualcomm maintained its dominant position in NAD connectivity.
Focus and demand for 5G C-V2X integrated modules rising.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – January 6, 2021
Global automotive NAD (network access device) module revenue remained flat sequentially in Q3 2021, according to the latest research from Counterpoint’s Global Automotive NAD Module and Chipset Tracker. However, the revenue grew 25% YoY due to rising shipments of 5G and 4G Other cellular technology supported modules. NAD modules perform similar functions in terms of connectivity as IoT modules except that they are designed, optimized and configured for automotive-grade applications. Being traditionally embedded in the Telematics Control Unit (TCU), NAD modules help with network access and communication of relevant telemetry data, based on which the TCU can perform safety and convenience related actions. They also help in fleet management applications. We could see the evolution of the NAD module deployment in the car with the evolution of vehicle architecture with broader connectivity (e.g., 5G V2X), autonomous capability (ADAS L3+) and electrification.
In terms of regional demand, China contributed to one-fourth of the global NAD module shipments during Q3 2021. Europe and North America’s contribution remained steady due to a greater proportion of embedded cellular connectivity. Emerging markets such as India and Brazil are the next big high-growth markets for NAD modules in the coming years.
Commenting on the market dynamics, Research Analyst Soumen Mandal said, “Rolling Wireless, LG and Continental were the top three NAD module vendors globally in Q3 2021 in terms of revenue. These three brands captured two-thirds of the total market revenue.
Rolling Wireless has maintained a good relationship with leading automakers such as Volkswagen, Stellantis, Toyota and Geely. Currently, Rolling Wireless leads in the 4G NAD module segment. The company has recently launched its first 5G NAD module, RN91xx, developed on the Qualcomm Snapdragon Automotive 5G Platform. This solution is expected to help Rolling Wireless expand in North America, Europe, China and Japan, the regions which see the most connected car purchases and are also ahead in terms of 5G infrastructure.
LG (LG Electronics and LG Innotek combined) witnessed a 28% YoY growth in terms of revenue in Q3 2021. Global presence, strong partnerships with automakers and superior product quality will help LG improve performance further and increase its share in the global NAD module market.
Continental has cemented its position in this market with a strong presence in North America and Europe with marquee customers such as Volkswagen, Daimler, BMW and Ford. The company is looking to ramp up its portfolio with 5G C-V2X modules and strike key partnerships and initial customer wins to capture the 5G connected car market.
Traditional module players such as Quectel and SIMCom have also launched 5G-supported automotive-grade modules. If these vendors are successful in attracting international Tier I suppliers or automakers with their low-cost business model and broader scale in the IoT module market, they could strongly challenge the pure automotive-grade module suppliers such as Rolling Wireless and Titan.”
Global Automotive NAD Module Revenue Share by Module Vendor, Q3 2021
Source: Counterpoint Global Automotive NAD Module and Chipset Tracker, Q3 2021
The ongoing chip shortage and supply chain tightness in the automotive sector is negatively impacting the NAD module demand from Tier I suppliers and OEMs. For example, automakers Renault and Nissan were forced to leave out features such as navigation system from their vehicles to mitigate the chip shortage. Currently, the automotive industry is working with a tight supply chain. This situation is expected to improve by the end of this year after the new capacity additions of matured technology nodes at both foundry and integrated device manufacturers (IDMs).
Commenting on the automotive NAD module market outlook, Vice-president Research Neil Shah said, “Automotive NAD module shipments will grow by more than two times between 2020 and 2025. The rising demand for safety and connected features will help this market grow with a CAGR of 18% during 2021-2025.
4G is expected to remain a dominant cellular technology in the global automotive NAD module market, but the share of 5G modules will grow fast after 2023. The higher average selling price (ASP) and semiconductor shortages aren’t helping quicker 5G adoption in the near term, as estimated a year ago. Having said that, 5G will be the key technology for the future of connected and autonomous cars.
As a result, Qualcomm will continue to dominate the automotive embedded connectivity market and further expand with synergies for its automotive focus with the Snapdragon Digital Chassis platform. This platform includes software and semiconductor solutions for ADAS, connectivity and digital cockpit applications.
Upcoming players such as Autotalks are targeting DSRC- and C-V2X-based applications and gaining some traction among NAD module vendors, though players such as MediaTek, UNISOC and Samsung are still less focused on this multi-billion dollar segment.”
For detailed research, refer to the following reports available for subscribing clients and individual subscription:
Counterpoint tracks and forecasts on a quarterly basis 25+ NAD module vendors’ shipments, revenues and ASP performance across 10+ chipset players, and 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.
Our Research Vice President Neil Shah will be speaking at the Connected & Autonomous Vehicle Summit 2021 on September 23rd. The topic of the panel discussion is “Paving the way to autonomous vehicles with ADAS”.
Session Details: Thu, Sep 23, 2021, 10:00 AM – 4:30 PM IST
Neil will be joined by:
Surender Kannan, Vice President of Sales APAC & Japan, Cavli Wireless
Dr. Ajay Palkar, Head of Electrical & Electronics – EE I Technology Centre, SKODA AUTO Volkswagen India
Ever since the automobile industry graduated to become an accepted mode of road transportation, it has had a profound impact on the world. It has scaled many landmarks in its 100 years plus journey. It has altered the way people move, live, and consume things. During the COVID-19 pandemic, the resilience of the Indian auto industry was tested severely and the crisis would demand increased merger & acquisition activity in the near future. Before the pandemic, the industry has witnessed various emerging technologies such as connected mobility, electric mobility, autonomous driving, ADAS, blockchain, speech and voice recognition, advanced navigation etc. paving their place in regulatory mechanisms.. The idea of connectivity will not only enhance user’s safety, security and convenience but will also revolutionise how services are paid for.
Today, powered by the advancements in technology the automotive industry is undergoing an accelerated transition, drawing our much needed attention towards it. All of us are waiting for Covid fog to clear before we bring back our two annual physical platforms for the industry to address the present and future of transportation in India.
In the prevailing pandemic, we conscientiously decided on cancelling our annual conference TI Automotive 2020 & annual conclave CV 2021. Meanwhile, for us as a focussed media in automotive telematics, simultaneous move to build a virtual platform has come as a natural corollary.
Telematics Wire is looking forward to welcoming you all to our first virtual conference and exhibition “Connected & Autonomous Vehicle Summit” (CAV Summit).
CAV Summit is a progression with optimism and resolve in the direction to play a part in the cumulative industry vision to renew the vibrancy of the automotive industry. It is a step to forge synergy and reconnect all of us in the automotive telematics community.
CAV Summit is being organised to promote information interchange amongst stakeholders in the passenger mobility and transportation. The success story of shared mobility in India is now well known. Connected vehicle ecosystem and in not so far various levels of autonomy will be seen on roads in India as well. Notwithstanding the present apprehensions of a sizable customer segment against fully autonomous cars at their doorstep, trend seems to be shifting towards CAV finding their place in passenger and commercial space.
Get ready to explore valuable content and ample engagement opportunities in this summit. Live-streamed videos and virtual tours with opportunities to interact with luminaries of the industry in interactive sessions.
To get live updates from the event you can watch this space or follow us on Twitter Follow @CounterPointTR.
Tesla is no longer a car company but a technology company. It is looking to build highly disruptive, efficient and intelligent products leveraging the whole gamut of horizontal technologies, from alternative energy to artificial intelligence. The focus is on having scalable solutions with great user experience by effecting a full vertical as well as horizontal integration of technologies and businesses.
Tesla CEO Elon Musk has been showcasing this vision through events such as ‘Tesla Battery Day’, ‘Tesla Autonomy Day’ and ‘ Tesla AI Day’. Musk wants to tell the stakeholders how the company is working on cutting-edge technologies to build futuristic life-changing products with “clean tech” as a foundation.
At the recently concluded ” Tesla AI Day”, the company unveiled the Dojo D1 chip and a humanoid robot, which are expected to open new business opportunities for Tesla. The company also showcased how it is providing training to neural networks to make better decisions in real-life driving situations.
Full self-driving (FSD) and beyond
Tesla FSD can complete a trip without any action by the driver. This year, Tesla launched an FSD beta version 9.2 with an additional one-time payment of $10,000 and a $199 monthly subscription package. This powerful supercomputing capability will not be limited to Tesla cars. Any interested carmaker or tech company can join hands with Tesla as it will require more investment to build system infrastructure. When asked whether Tesla would keep autopilot as open source, Musk said it was open to licensing driverless technology to other carmakers.
Tesla cars with autopilot experienced only 0.2 accidents per million miles driven in 2020 while the US average is 2 accidents per million miles driven, which means Tesla cars with autopilot are nine times safer than other cars.
Even if we compare fire incidents, one Tesla car caught fire for every 205 million miles (~330 million km) travelled while the US average was one car catching fire for every 19 million miles (~31 million km) travelled during 2012-2020. Public misconceptions and inappropriate comparisons make it difficult for the company to uphold the actual facts.
Analyst take: Tesla is fully committed to active and passive safety of a car, which differentiates it from other brands. But since fresh cases are coming where its autopilot failed to prevent crashes, Tesla will have to work a lot on FSD and autopilot systems before becoming a fully autonomous vehicle company. On the way, it will also have to clear investigations by government bodies.
In the long term, Tesla Robotaxis will try to reduce power consumption by improving powertrain efficiency, thus minimizing the cost for customers and reducing carbon footprint.
Tesla’s vision system and solving problems through simulation
Tesla’s vision system is equipped with 8 cameras, 12 ultrasonic sensors and a powerful computer to provide safety during the journey. Tesla AI head Andrej Karpathy explained that a vision-based system works on neural networks which can function in any environment via the autopilot system. Currently, Tesla’s vision system can detect objects, traffic lights and lanes.
Now, Tesla is performing over one million evaluation runs per week to improve neural network training. It is also constantly working on increasing the GPU cluster size. Currently, Tesla has more than 10,000 GPUs, constituting the fifth-largest supercomputer in the world.
Analyst take: Tesla is keen to solve computer vision problems in real-life environments through series of evaluation testing. We hope it will ultimately help Tesla to accurately predict the behavior of pedestrians and vehicles, and prevent accidents.
Tesla isn’t only building a smart car, it also takes care of the vehicle’s cybersecurity. The company organizes the Bug Bounty program and Pwn2Own research competition to take feedback from those who are passionate about digital security. This continuous improvement in product development is one of the major pillars of Tesla’s success.
Unveiling Dojo chips
Tesla unveiled the Dojo AI training chips built on a 7nm process node and packaged with the BGA packaging technology. Tesla claims it has GPU-level compute, CPU-level flexibility and twice the network chip-level IO bandwidth which can outperform NVIDIA systems.
Tesla uses a distributed computer architecture to address latency and bandwidth as a primary optimization process. This chip reaches 362TFlops of BF16 or CFP8 and 22.6 TFlops of FP32 with 400W TDP. The power density is similar to the NVIDIA A100 HGX GPU.
Analyst take: Tesla is trying to bring 10x improvement in performance for the next generation of chips. Dojo is a ground-breaking technology, but we aren’t sure whether it can beat others in terms of performance until it comes under production. The recent semiconductor shortage will be another challenge for Tesla in solving supply chain issues for hardware development.
Tesla tends to go in for in-house design and development. We have seen how Tesla has built its battery ecosystem. In another case, it was sourcing SoCs from NVIDIA, but it started making its own self-driving SoC in 2019. The in-house AI training chip will help Tesla improve the Dojo supercomputer’s performance with reduced footprint and cost.
Tesla bot: Tesla to enter humanoid robot market
Tesla is working on building a humanoid robot named Tesla Bot, which is expected to come as a prototype next year. Tesla Bot is 5’8’’ in height, 128 lbs in weight (~56.7kg), can walk 5mph (~8kph), deadlift 150 lbs (~68kg) and has a head that displays useful information. This robot is capable of performing tasks that are repetitive, boring or unsafe for human beings. Tesla is using in the robot technologies that are similar to the ones used in its cars, such as an autopilot camera, FSD computer, neural network and Dojo supercomputer.
Analyst take: We aren’t sure whether Tesla will be able to build a prototype by next year as it has a record of missing deadlines. However, Tesla Bot will eliminate jobs in the future and people will have to skill up for newer technologies or look for alternative income sources. At the same time, we believe that physical work will be a choice in the future.
Tesla’s efforts to look beyond vehicles will find a result in the introduction of Tesla Bot. Whenever it comes into production, it will bring disruption to the manufacturing, mining, retail and hospitality industries.
Tesla is yet to comment on the recent probe ordered against its autopilot system, which could have provided some confidence to the investors, regulators and customers. We think Tesla needs to educate stakeholders at first to remove misbeliefs about disruptive technologies like the Dojo supercomputer, FSD and humanoid robot.
Apple supplier Foxconn, with an aim to diversify its business and reduce overdependency on Apple for revenue generation, is betting big on electric vehicles (EVs). During the Hon Hai Tech Day 2020 (HHTD 20) event on October 16 last year, the company launched MIH, an “EV software and hardware open platform”, with an aim to position it as the “Android system of the EV industry”.
Foxconn is not new to the automotive industry. It has already entered partnerships with Yulon Group and FCA Group to produce EVs, provide parts and handle supply chain management. But will the self-declared aim of becoming the Android system of the EV industry make it a threat for traditional automakers? To find the answer, we will have to understand the extent of Foxconn’s ambitions in the automotive space.
MIH to target both software and hardware ecosystems
With the global smartphone industry maturing, Foxconn is looking for an alternative business opportunity. EVs and autonomous vehicles (AVs) perfectly fit into this strategy because here Foxconn can use its existing expertise in automotive and smartphone component manufacturing. However, Foxconn has no plan to make cars under its brand name. Instead, it will manufacture cars for its partners, just like it assembles phones for Apple.
Most of the automakers are using a closed system for developing cars. But Foxconn is aiming to build an open EV platform where any automaker can alter the design to meet specific requirements. Tesla is using its own platform to build EVs, just as Apple does in the smartphone industry. Since Tesla has come a long way in the race for EV industry dominance, Foxconn wants to become the Android of the EV industry. Getting into a partnership with a major automaker will be a challenge as such automakers may not be interested in sharing their core expertise with an open platform.
In the age of AVs, the software will play a crucial role. Foxconn is trying to tap this segment by having a software system that allows automakers and service providers to offer unique features.
Right partnerships to drive success
Foxconn has entered a partnership with Chinese EV start-up Byton, which is facing insolvency, to revive its EV brand. Foxconn is targeting to produce the M-Byton model starting 2022.
Foxconn has inked another partnership with Geely Holding Group to provide customised consulting service to automakers working with CASE (Connected, Autonomous, Shared and Electrified) technologies.
Apple is in talks with Hyundai Motor to build a pure electric autonomous car from 2024. It will be interesting to see how the iPhone maker and assembler compete in the same segment. Or will Foxconn start manufacturing cars for Apple as it does for its phones? the next couple of years, we may also witness more smartphone makers entering this space.
Whatever may be the situation, right partnerships with ecosystem players and the presence of an experienced leadership team will play a vital role in the success of the business.
Industry veterans to aid in faster development of MIH
Foxconn has hired an experienced leadership team for the MIH platform, which indicates that it is serious about this foray. Jack Cheng, who is a co-founder of NIO, ex-MD of Fiat China and chairman of XPT, besides earlier working with Magneti Marelli and Ford Motor, has been appointed as the CEO of MIH platform. William Wei has been appointed as the chief technology officer (CTO). He has more than 20 years of experience in internet and mobile computing which can help Foxconn build a software-powered car like Tesla.
MIH has already more than 400 partners, with ecosystem players like Amazon Web Services, Mediatek, Qualcomm, ST Micro, Texas Instruments, Eaton and Dana. Foxconn also launched an EV developer kit technical specification on January 31, 2021, displaying seriousness about following the declared timeline.
Foxconn’s aim goes beyond EV platform
As part of a new strategic plan, named 3+3= ∞, Foxconn is focussing on three emerging technologies: EVs, digital healthcare and robotics.
As part of a long-term plan, it is trying to become a key supplier for the EV and AV ecosystem. It is already working with CATL and SES to develop its solid-state battery by 2024, while aiming to get a 10% market share in the EV component and services industry by 2027.
Foxconn is also trying to build a state-of-the-art battery management system (BMS), powered by cloud-based artificial intelligence (AI) to improve battery efficiency.
Some airport shuttle buses with Level 3 autonomy and one of the smallest LiDARs (A15) in the world are supported by Foxconn technology. The MIH platform is being readied for 5G, 6G over-the-air (OTA) update and vehicle-to-anything (V2X) communication. Therefore, Foxconn is preparing for the connected and AV space in future. However, it may face strong competition from Qualcomm and Microsoft in this segment.
Counterpoint’s take
As Foxconn is not interested in building its car brand, it may not be a threat to major automakers. But EV component suppliers may face stiff competition from Foxconn. Scalability and price will play a key role in the selection of component players by EV makers.
Large automakers with a clear goal of electrification may not be interested in an open platform as it may raise questions of security and intellectual property. However, small players and start-ups will be more interested as a shared open platform will require less investment.
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Future of automotive LiDAR market
