Fibocom Archives - Counterpoint

Renesas Acquires Sequans: A Strategic Move into Cellular IoT

Renesas acquires Sequans Communications for $249 million, expanding into the cellular IoT market.
The acquisition provides Renesas access to Sequans’ expertise, customer base, and partnerships in the 5G/4G cellular IoT sector.
With cellular IoT module shipments expected to exceed 1.2 billion units by 2030, this strategic move aligns with Renesas’ expansion plans and reflects a broader trend of consolidation in the IoT market.

Japanese semiconductor manufacturer Renesas Electronics has acquired France-based Sequans Communications, a pioneer in 5G/4G cellular IoT chips and modules. The acquisition will enable Renesas to expand its portfolio and expertise in the rapidly growing cellular IoT market. Although Renesas is a prominent name in the world of microcontroller units, the company has not historically specialized in connectivity.

According to the deal, Renesas will purchase all outstanding common shares of Sequans, including American Depositary Shares (ADS), for $3.03 per ADS in cash. This values Sequans at around $249 million, considering net debt. The transaction is expected to close by Q1 of calendar year 2024, subject to regulatory approvals.

Here are some analysis of the deal between Renesas and Sequans:

Renesas acquires Sequans to bolster its cellular IoT capabilities and tap into the expanding market. With this acquisition Renesas gains access to Sequans’ US and European customer base, enhancing global reach and market growth.
The partnership between Renesas and Sequans, which began in 2020, has already resulted in successful collaborations to develop modules that combine embedded processors and analog front-end products with wireless chipsets for IoT applications. Sequans has the broadest product portfolio of its non-Chinese competitors except Qualcomm which is why Renesas acquired Sequans.
The Renesas-Sequans collaboration is primed to meet the rising demand for smart solutions. The merger offers diverse choices for customers seeking to reduce dependence on the Chinese ecosystem and gain valuable expertise from a single source.
Renesas plans to integrate Sequans’ connectivity products, aiming to strengthen its presence in the Wide Area Network (WAN) market. They will collaborate on 5G and high-performance 4G modules based on Sequans’ Taurus 5G modem and Renesas’ analog front-end tech.

Renesas’ Acquisitions Over Time

Source: Counterpoint Research

Conclusion

According to Counterpoint’s report on IoT trends, the IoT market is highly fragmented, with over 4,000 players in IoT value chain competing for a share. This fragmentation has led to low margins and has made it difficult for companies to grow and expand. Consequently, there has been a wave of consolidation in the market, with companies merging or being acquired by larger players, a trend that is expected to continue as the market matures. In 2022, there were significant acquisitions within the IoT module industry, such as Telit’s acquisition of Thales and Mobilogix’s cellular IoT divisions, Semtech’s acquisition of Sierra Wireless, and Aeris Communications’ acquisition of Ericsson’s IoT accelerator and connected vehicle cloud business. As the cellular IoT module market continues to mature, we expect more consolidations aimed at providing improved solutions and maintaining competitiveness. Non-Chinese brands are now following the trend of becoming integrated players in the IoT value chain like Chinese module vendors, and it seems like Renesas is also following suit. For Renesas to compete with Chinese module giants like Quectel and Fibocom, it is crucial for them to develop a strong and effective business strategy specific to each international market they want to operate in.

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

Renesas electronics acquired Sequans a strategic move into cellular IoT

u-blox’s H1 2023 Jumps 17% YoY, Expects Slowdown in H2

Results driven by design wins in the automotive and industrial application sectors.
EMEA had the highest growth in revenue at 31% YoY and surpassed the Americas in terms of contribution.
u-blox to experience a reduction in revenue in Q3 2023 and remain sluggish in H2 2023.

Global wireless and positioning technologies leader u-blox’s H1 2023 revenue rose 17% YoY to reach $364.3 million, primarily driven by successful design wins within the automotive and industrial application sectors. However, gains were limited by a decline in consumer revenue.

During u-blox’s earnings call, CEO Stephan Zizala touched upon several important topics like significant design wins, prevailing macroeconomic challenges, and the company’s proactive management strategy for the future.

Macroeconomic Situation and Outlook

CEO: “In a softening macroeconomic and global semiconductor market environment, our order book for H2 2023 developed more slowly than initially anticipated. Mainly due to unfavorable FX rates and overstocking, we expect Q3 revenues and profitability to be weak, with an improvement in Q4.”

Our analyst take: “The IoT module industry is decelerating because of broader macroeconomic conditions and a softening semiconductor market. Key players in the cellular IoT module sector, including Quectel and Telit Cinterion, have witnessed a reduction in growth compared to H1 2022. However, during H1 2023, u-blox achieved significant double-digit expansion, despite significant constraints from the global semiconductor supply chain shortage.”

“However, u-blox is expected to experience a reduction in revenue in Q3 2023 as demand remained weak in the key North American region during H1 2023 and will likely remain sluggish in H2 2023. However, u-blox is optimistic about Q4.”

Management Strategy

CEO: “While we must deal with cycle adaptation, I remain very confident about u-blox’s long-term outlook and growth trajectory, thanks to our strong structural growth drivers in automotive and industrial target applications. We are winning important new projects at leading customers. A large design win for automated driving ramping in 2026 and an innovative approach for satellite IoT connectivity are testimony to these future development prospects.”

Our analyst take: “The automotive industry is undergoing a significant transformation towards electrification and autonomy. This transition highlights the importance of connectivity and navigation, emerging as crucial factors. u-blox stands out from other GNSS competitors due to its exceptional GNSS quality and centimeter-level precision in positioning.”

“Apart from its focus on GNSS and cellular technology, u-blox’s recent collaborations with satellite player Orbcomm leverage its strides toward present-day trends. The aim is to offer hybrid connectivity solutions (combining cellular and satellite capabilities) catering to agriculture, asset tracking, and maritime applications, promising enhanced coverage and communication. However, u-blox is set to encounter intense competition from Quectel, Fibocom, and Telit Cinterion, as they have already introduced hybrid connectivity modules.”H1 2023 Highlights:

u-blox’s gross profit increased 12% YoY in H1 2023 to reach $171 million.
The industrial sector accounted for 65% of the total company revenue and experienced a robust 26% YoY growth. This growth was attributed to significant demand in asset tracking applications.
The automotive segment also exhibited growth, increasing 24% YoY and accounting for 30% to the overall revenue, driven by the acceleration of electric vehicle adoption and advancements in autonomy.
Conversely, the consumer and other segments faced a decline of 55% YoY, accounting for only 5% of the total revenue. This decline was primarily driven by decreased consumer demand starting from mid-2022.
Among regions, APAC was the highest contributor, capturing 43% of the market with 30% YoY growth due to demand from automotive customers and safety stock buildup for healthcare customers. EMEA shows the highest growth with 31% YoY and contributed 32% of the market surpassing Americas with a ramp-up of the tracking business and 2022 order backlog. However, the US region’s revenue fell 12% YoY, accounting for only 25% of the market due to demand reduction in healthcare and consumer applications.
In H1 2023, modules and chips accounted for 80% and 19% of the total revenue, respectively. Module volume grew 9% YoY growth in H1 2023, while chip volume saw a remarkable increase of 31% YoY.
In the module revenue segment, the GNSS module retained its leading position, generating over half of the total revenue. This is attributed to the exceptional quality and precision of u-blox’s GNSS products. The collaboration with GMV resulted in significant design wins, merging u-blox’s GNSS receiver hardware with GMV’s secure correction service, sensor fusion and positioning engine. Furthermore, u-blox has partnered with Position Partners to introduce the PointPerfect GNSS augmentation service to Victoria and New South Wales. This marks the initial phase of the service’s rollout within the Australian and New Zealand markets.
In H1 2023, the Wi-Fi/BT module segment grew 10% YoY. u-blox’s latest release, the JODY-W5, introduced the newest dual-band Wi-Fi 6 and dual-mode Bluetooth® 5.3 module, featuring Bluetooth LE audio within a compact form factor. This design is aimed at preventing wireless network congestion within vehicles while simultaneously enhancing audio capabilities.
According to Counterpoint Research’s Cellular IoT Module Tracker service, u-blox’s cellular IoT module segment grew 18% YoY in H1 2023 to reach $106 million. u-blox has accelerated its adoption of tracking applications driven by the strong performance of its UBX-R5 chipset-based LPWA and LTE-M modules.

Conclusion

Given the macroeconomic challenges characterized by adverse shifts in FX rates and customer overstocking, u-blox’s market outlook for H2 2023 suggests a substantial deceleration. The rise in inventory levels is expected to lead to a decrease in profitability during Q3 2023, followed by a recovery in Q4 2023. However, the demand and requirements for semiconductor solutions, particularly in domains such as autonomous driving, asset tracking and industrial automation, are poised for substantial growth. u-blox remains strategically positioned to capitalize on this growth trend due to its strong expertise in positioning technology and wireless connectivity, which is expected to result in more design wins.

Related Reports:

Quectel, Telit Cinterion, Fibocom Capture More Than Half of Cellular IoT Module Shipments in Q1 2023

Quectel maintained its dominant position globally and in China, the largest IoT module market.
The newly merged entity Telit Cinterion climbed to the second spot. It was followed by Fibocom.
The top three applications – smart meter, POS and router/CPE – formed more than half of the total shipments.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Taipei, Seoul – July 19, 2023

Global cellular IoT module shipments (excluding automotive embedded and telematics modules) remained flat in Q1 2023 when compared to the same period of last year, according to Counterpoint’s latest Global Cellular IoT Module and Chipset Tracker by Application report. However, when compared to Q1 2020, the shipments more than doubled in Q1 2023. Quectel, Telit Cinterion and Fibocom captured more than half of the total cellular IoT module shipments in Q1 2023.

The demand for cellular IoT in applications such as smart utilities, payment terminals and FWA CPE routers and gateways remained healthy during the quarter. But the demand for cellular modules across enterprise digital transformation and industrial projects remained soft. With current uncertain market scenarios, enterprises are being cautious with their expenditures. China and India registered positive growth in shipments while the US, Latin America, Japan, South Korea and Eastern Europe saw a YoY decline.

Commenting on the market dynamics among cellular IoT module OEMs, Senior Research Analyst Soumen Mandal said, “The cellular module market is going through a unique transition both regionally as well as technologically, with the two being intertwined. Low-power and low-cost technologies such as LTE-M, NB-IoT and LTE CAT-1 (and 1 bis) are seeing rapid adoption in China. This has driven a flood of chipset and module providers catering to the strong push from all the stakeholders for the adoption of cellular IoT at scale. On the other hand, we are seeing rapid consolidation and exits of cellular module vendors in markets outside China, where the technology adoption is fairly fragmented and varies across geographies. 5G will further drive consolidation in a couple of years. Therefore, these underlying dynamics are shaping the competitive landscape differently in China and the rest of the world.”

Globally, Quectel led the cellular IoT module market in Q1, followed by the newly merged entity Telit Cinterion, formed after the acquisition of Thales’ cellular IoT module business by Telit last year. The third spot was taken by another China-based fast-growing player Fibocom. Together, these three players held over half of the market’s shipments in Q1. Among the leading IoT module vendors, Neoway demonstrated the highest growth, followed by u-blox. The world’s largest IoT telecom operator in terms of connections, China Mobile, maintained its second position in the Chinese market. Among other vendors, Unionman entered the top-five module vendors list in China, thanks to its impressive performance in NB-IoT and 4G Cat 1 bis modules.

Quectel maintained its leadership position in its domestic market China as well as globally. Its lead in the Americas, India and MEA regions also contributed to its strong position. All this helped Quectel widen its shipment share gap with the nearest competitor. The company’s strong performance is being driven by its broader, integrated portfolio and strong on-the-ground Field Application Engineering (FAE) support.
Telit Cinterion climbed to the second position in the global market after the merger, helping the erstwhile Telit bridge the gap with Quectel in the international market excluding China. Telit Cinterion is now one of the largest Western IoT Vertically integrated to some extent, Telit Cinterion enjoys a strong position in high-value North American and European markets and will further expand in other high-scale markets in the near- to mid-term.
Fibocom experienced impressive growth in Q1 2023 to stand out among the top three global players. Its presence in the router/CPE and POS segments helped Fibocom enter the top-three list for China and the top-five list for international markets excluding China.

Among the top 10 applications, the smoke detector experienced the highest growth, followed by the residential and smart meter segments. The top three applications in terms of shipments – smart meters, POS systems and router/CPE solutions – collectively contributed to more than half of the cellular IoT market.

Commenting on the IoT market outlook for 2023, Associate Director Mohit Agrawal said, “The global cellular IoT module market is expected to witness subdued growth this year as the 4G/5G cellular module growth remains muted due to higher ASP. However, we expect the demand for cellular IoT modules to rebound in the coming years. The mass production of affordable 5G RedCap-based modules, scheduled for the end of this year, is expected to drive the adoption of 5G in the IoT module market. Applications such as smart meters, POS, and router/CPE solutions will play a crucial role in driving both the value and volume of the IoT module market in coming years and will be key focus segments in the near- to mid-term. In the longer term, the demand for IoT modules will be driven by massive IoT applications and the industrial segment. It is projected that IoT module shipments will grow at a compound annual growth rate (CAGR) of 11% between 2023 and 2030.”

* The IoT module here encompasses all applications supported by cellular IoT modules, except for automotive and telematics applications.

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

Counterpoint tracks 1,500+ IoT module SKUs on a quarterly basis and provides forecasts on shipments, revenues and ASP performances for 80+ IoT module vendors, 12+ chipset players and 18+ IoT applications across 10 major geographies.

Background

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

Analyst Contacts

Soumen Mandal

Mohit Agrawal

Follow Counterpoint Research

press@counterpointresearch.com

Related Reports

Global Cellular IoT Module Shipments Jump 14% YoY in 2022 to Reach Highest Ever

Quectel and Qualcomm dominated the cellular IoT module and chipset markets, respectively.
NB-IoT is still popular among technologies but is expected to lose some market share to 4G CAT1.bis in 2023.
5G adoption to get a boost in 2024 if ASP declines to sub-$100 and 5G RedCap-based solutions become available.
China continues to lead IoT module market, followed by North America and Western Europe.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – March 29, 2023

Global cellular IoT module shipments grew 14% YoY in 2022 to register record high annual volume, despite macroeconomic headwinds, according to Counterpoint’s latest Global Cellular IoT Module and Chipset Tracker by Application report. The resumption of smart meter implementation, ongoing retail POS upgrades, intelligent asset tracking and the continued growth in connected cars due to progress in electrification and autonomous capabilities were some of the key drivers for the double-digit percentage growth in demand for IoT modules.

China continued to lead the global cellular IoT module market in terms of demand, followed by North America and Western Europe. Meanwhile, India was the fastest growing market, followed by Latin America and North America. Although India has a smaller base, it has immense potential. Eastern Europe was the only region that registered a decline due to the prolonged Ukraine-Russia war.

Commenting on the competitive dynamics among cellular IoT module OEMs, Senior Research Analyst Soumen Mandal said, “In 2022, Quectel was the top cellular IoT module player in China, the world’s largest market for these components. Meanwhile, China Mobile and Fibocom captured second and third place, respectively, enjoying their tremendous scale in the domestic market. Outside of China, Quectel remained the leader followed by Telit and Thales which have merged and will commence operations as a new brand, Telit Cinterion, starting Q1 2023.

Quectel increased its focus in the consolidating automotive (NAD module) segment in 2022 and secured multiple design wins with major automakers. The competition in the NAD module market is intensifying as the industry transitions to 5G connectivity. With every transition of cellular technology, we have seen the market consolidate as it becomes increasingly challenging to serve the automotive segment, which requires heavy customization but garners a lower margin.

China Mobile, the world’s largest CSP and IoT connectivity player, is becoming more vertically integrated by leveraging its massive scale to capture maximum value. It has the potential to break into the top three global cellular IoT module rankings this year. However, the company primarily operates in China and will need to expand into other verticals and markets via a robust partnership model to maintain its momentum.”

Commenting on the IoT cellular connectivity chipset player dynamics, Associate Director Ethan Qi said, “Qualcomm continued to dominate the cellular IoT chipset market in 2022 with nearly 40% shipments share. Qualcomm strengthened its position in the LTE CAT 4 and higher technologies while also maintaining a dominant position in the 5G market. Qualcomm recently launched its latest 4G CAT1.bis chipset, QCX216, to compete head-on with the LTE CAT1.bis leaders UNISOC and Eigencomm.

Qi added, “In 2022, UNISOC and ASR maintained their second and third positions due to strong adoption of the fast-growing LTE CAT1.bis and CAT 1 based modules, respectively. During the year, two new players from China, Eigencomm and Xinyi Semiconductor, broke into the top five cellular IoT chipset vendor rankings, filling the gap left by Hisilicon. Eigencomm focuses on NB-IoT and 4G CAT1.bis applications while Xinyi Semiconductor focuses on NB-IoT chipsets, both being low-cost but high-volume segments.”

Commenting on the technology landscape, Mandal added, “During 2022, NB-IoT remained the most popular LPWA IoT connectivity technology followed by the fast-growing 4G CAT 1 and 4G CAT 4 modules. Together, these contributed to 60% of the total IoT module market. For most of 2022, China was under lockdown due to the resurgence of COVID-19 which drove greater demand for products such as smart door locks, digital thermometers and wearables, mostly powered by NB-IoT.

NB-IoT saw strong adoption in China but has been less popular outside the country. In contrast, 4G CAT.1bis has been gaining traction globally and has the potential to be an alternative to several NB-IoT and existing 2G/3G applications such as smart meters. However, 5G saw slower adoption in IoT than in smartphones last year due to the higher module costs. The key initial 5G applications are PCs, CPEs and some industrial/enterprise applications.

We believe 5G will enter the mainstream market once the module ASP breaks the sub-$100 barrier and receives a further boost from the 5G RedCap commercialization in coming years.”

Commenting on the IoT market outlook for 2023, Associate Director Mohit Agrawal said, “Global cellular IoT module shipments (including NAD modules) are expected to register robust growth of 19% YoY in 2023. The growth of IoT module shipments in the high-value industrial segment will be key for the IoT projects that have struggled to move beyond the pilot stage and for companies that are focusing more on ROI in a tough macroeconomic environment. Nevertheless, shipments of IoT modules for the smart meter, point of sale (POS) and the automotive markets are expected to continue seeing strong growth, which will offset a slowdown in other segments.”

The market has been undergoing consolidation across the IoT value chain from module players and connectivity management to IoT platform players. This has highlighted the importance of scale, choosing the right vertical and capturing value by striking the right partnerships or developing the right capabilities. We could see some more exits and mergers in 2023 because IoT, which is very vertical driven, has been seeing volatile growth due to internal or external factors.”

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

Background

Analyst Contacts

Soumen Mandal

Mohit Agrawal

Anish Khajuria

Counterpoint Research

press@counterpointresearch.com

Related Posts

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

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

Ethan Qi

Neil Shah

Counterpoint Research

press(at)counterpointresearch.com

Related Reports:

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

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

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – May 9, 2022

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

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

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

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

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

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

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

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

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

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

Background

Analyst Contacts:

Soumen Mandal

Neil Shah

Counterpoint Research

press(at)counterpointresearch.com

Related Reports:

u-blox Makes a Strong Comeback in 2021; Modules Contribute Most of Revenue

u-blox, a global leader in wireless and positioning technologies, has announced its 2021 financial results. The company made a strong rebound after the strong decline in 2020. Revenue reached a record $453.1 million in 2021, an increase of 27.6% from the previous year.

u-blox achieved strong growth across all segments in 2021. The automotive segment grew 41% YoY due to higher demand for navigation and infotainment applications, especially for electric vehicles. The industrial and consumer segments grew 24% and 51% from 2020, respectively.
In 2021, the revenue from Americas increased 37.6% YoY driven by strong demand for navigation, infotainment and industrial automation solutions after the decline in 2020. The strong recovery in the automotive sector and consumer telematics helped EMEA revenue to increase by 30.1%. APAC revenue increased by only 11.8% as China’s revenue remained flat due to COVID-19 and supply chain shortages. However, strong demand for industrial automation, navigation and automated driving helped Japan and South Korea in the APAC region to register significant growth. Recently, u-blox’s LTE-M modules got certified by KDDI in Japan and LGU+ in South Korea, which also pushed growth.

This year, 81% and 18% of the total revenue came from modules and GNSS chips respectively. u-blox made many design wins for its IoT modules which helped its IoT module business to witness continuous growth.

GNSS module market

u-blox is one of the top players in the GNSS module market. The company shipped nearly 25.3 million units of its GNSS module in 2021. The GNSS module revenue is contributing more than half of the total module revenue. u-blox’s GNSS modules are used a lot in automotive applications.

Some GNSS module design wins for u-blox in 2021:

Xpeng Motors selected u-blox’s F9 high-precision GNSS technology for smart electric vehicles.

Wi-Fi/BT module market

In 2021, u-blox shipped nearly . Most of the u-blox Wi-Fi/BT modules are used in industrial and healthcare applications.

Some Wi-Fi/BT module design wins for u-blox in 2021:

Bluetooth module NINA-B406 used for smart lighting with Douglas Lighting.
u-blox’s ANNA-B112 Bluetooth 5 sip used for a headset for chronic pain treatment with EXSURGO.
u-blox’s NINA-B306 standalone Bluetooth 5 low-energy module used by (greenTEG) CORE to communicate wirelessly.

Cellular IoT module market

According to Counterpoint Research, u-blox’s cellular IoT module segment grew 12% YoY to reach $125 million in 2021. u-blox accounted for 2% of the global cellular IoT module market while Quectel, Telit and Thales remained the top three vendors in 2021 in terms of revenue.

The cellular IoT module market remains highly competitive and u-blox has played to its strength while prioritizing GNSS and BT/Wi-Fi module business segments over cellular IoT modules.

u-blox launched 4G Cat 1 module LARA-R6 and 4G Cat 1 bis module LENA-R8 in 2022 to strengthen its cellular IoT module portfolio. With LARA-R6, u-blox wants to target North America, EMEA, APAC, Japan and LATAM markets with applications like telematics, smart meters, point of sales, asset tracking, healthcare and smoke detector. With LENA-R8, it will target EMEA, APAC and LATAM with telematics and asset tracking applications. u-blox is the third player among international (outside China) module players after Sequans and Thales to launch a Cat 1 bis module. We expect these modules to help u-blox regain its share in the cellular IoT module market.

Some cellular IoT module design wins for u-blox in 2021:

Modmo, an e-bike sharing company, used u-blox’s 4G cat 1 module LARA-R211 to provide connectivity in its e-bikes.
Digital Matter preferred u-blox’s 2G module SARA-G350 for its asset tracking device.

GNSS chip market

u-blox shipped nearly 47 million GNSS chips in 2021, which contributed $82 million to the total revenue. Besides using its GNSS chipset in its module, u-blox also provides it to other GNSS module vendors like Navisys and YIC.

Some GNSS chip design wins for u-blox in 2021:

iGPSPORT used the u-blox M10 platform to deliver ultra-long performance for the latest cycling computer.

Market outlook

We expect u-blox revenue to continue to grow more than 20% YoY in 2022 supported by increasing demand from the automotive and navigation segments across all regions. u-blox is on a mission to build its ecosystem with its ‘silicon to cloud’ journey. It wants to use its chipset in its module and connect its module to its cloud platform. u-blox acquired Thingstream, an IoT service platform, in 2020 to provide data and security services to its customers. Further, it took full ownership of Sapcorda, a GNSS augmentation service provider for centimeter-level positioning accuracy, in 2021. These strategic investments are also expected to help u-blox in increasing both product and service revenues, especially in the GNSS segment.

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

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

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – March 31, 2022

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

Commenting on the market dynamics, Senior Research Analyst Soumen Mandal said, “Quectel, Telit and MeiG held the top three positions in the global cellular IoT module market, accounting for 40% of the total revenue in Q4 2021. For 2021, global cellular IoT module shipments and revenue grew by 59% and 57% YoY respectively.”

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Background

Analyst Contacts:

Soumen Mandal

Neil Shah

Counterpoint Research

press(at)counterpointresearch.com

Related Reports:

How 5G AIoT Brings Intelligence to Digital Transformation

Our Research Vice President Neil Shah will be moderating the Fibocom webinar “How 5G AIoT Brings Intelligence to Digital Transformation” on March 1st 2022.

Event details:

Date: March 1st 2022

Time: 11:00 AM (New York)/16:00 PM (London)/17:00 PM (Germany)/23:00 PM (China)

Registration link: Click here

About the event:

After continuous evolution over the past two years, 5G has evolved from an emerging concept to a ubiquitous and mainstream technology for mobile devices. The characteristics of 5G, such as ultra-high-speed, ultra-low latency and ultra-high density, will insert wireless wings to AI. 5G can complete AI operations as fast as possible on the terminal side, which not only reduces latency but also enhance customer experience and improves personalized services. Conversely, 5G will certainly benefit from the AI-enabled processing ability. AI-based applications can react almost in real-time to the data generated by the 5G network, providing completely new possibilities for automation. Replacing traditional wireless algorithms with deep machine learning, AI will dramatically reduce manpower costs and improve overall performance, bringing safety and convenience to people’s daily life, promoting the digital transformation and upgrading of various industrial and commercial activities, and spawning countless innovative services and products. Join our experts to gain actionable insights about how the integration of 5G and AIoT can further expand the application landscape, and how to solve the key challenges faced by the 5G AIoT adopters.

Speakers:

Daniele Cleri

AAEON Europe

AI & IoT Software Architect

Nikola Balj

Fibocom Wireless Inc.

Director of Sales and BD, EMEA

Media Partners:

Agenda:

Global Cellular IoT Module Shipments Grow 70% YoY in Q3 2021; 5G Module Shipments up 700% YoY

Quectel and Qualcomm led the global cellular IoT module and chipset markets respectively in Q3 2021.
NB-IoT contributed to more than one-third of the cellular IoT module market.
Smart meter, POS, enterprise, industrial and router/CPE were the top five applications in this quarter.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – December 9, 2021

Global cellular IoT module shipments grew 70% YoY in Q3 2021, according to the latest research from Counterpoint’s Global Cellular IoT Module, Chipset and Application Tracker. In terms of overall revenue, the market crossed the $1.5-billion mark during the quarter. China continued to dominate in terms of volume, followed by North America and Europe. 5G was the fastest growing technology (+700% YoY) due to a lower base.

Commenting on the market dynamics, Research Analyst Soumen Mandal said, “Chinese module players performed well during this quarter while some international players struggled. Quectel, Fibocom and China Mobile were the top three cellular IoT module players in China in terms of shipments. For the rest of the world, Quectel, Telit and Thales were the top three cellular IoT module players.

Quectel’s cellular IoT module shipments grew nearly 80% YoY in Q3 2021. NB-IoT and 4G Cat 1 modules were major drivers for this immense growth. In this quarter, Quectel won some bids for 5G, including for 5G C-V2X with Great Wall Motor, high-speed rail applications with China Mobile, industrial applications with China’s industry and information technology ministry, 5G module with China Mobile and a customized project with China Unicom. We expect 5G module shipments to gain traction from early next year.

Fibocom maintained its second position in the global cellular IoT module market. The strong demand for NB-IoT modules helped Fibocom’s module shipments grow 84% YoY. Fibocom is also focussing more on 4G Cat 1 and Cat 1 bis modules. We expect to witness more competition in Cat 1 bis space next year.

China Mobile entered the top three module player rankings during this quarter. Its total shipments tripled annually in Q3 2021. The Chinese market is witnessing a lot of traction for NB-IoT and 4G Cat 1 modules as 2G or 3G modules are being replaced in most cases.

All the top five module players in Q3 2021 were from China. MeiG Smart is another Chinese player witnessing continuous growth. Automotive-grade NAD IoT module players Rolling Wireless and LG raced into the top 10 module players rankings as demand for connected cars continued to rise.”

Global Cellular IoT Module Shipment Share by Module Vendor, Q3 2021

Source: Counterpoint Global Cellular IoT Module, Chipset and Application Tracker, Q3 2021

Smart meter, POS and retail were the top three fastest-growing applications. The ongoing chip shortage had a negative impact on the automotive segment. Chipset dynamics are also changing depending on applications and technologies.

Global Cellular IoT Chipset Shipment Share by Chipset Vendor, Q3 2021

Source: Counterpoint Regional Cellular IoT Module, Chipset and Application Tracker, Q3 2021

Commenting on the cellular IoT chipset supplier landscape, Vice-president Research Neil Shah said, “Qualcomm is leading in the global cellular IoT chipset market with more than one-third share. However, the company lost nearly 4% market share compared to the previous quarter. Still, Qualcomm is the leading chipset provider across 4G Cat 4, 4G Cat Others, 5G, LPWA Dual Mode, LTE-M and 3G technologies.

UNISOC, the second-largest cellular IoT chipset player, surpassed Qualcomm to lead in the 4G Cat 1 market. Cat 1 bis has been gaining traction, boosting UNISOC’s market share. UNISOC was leading across the 4G Cat 1, NB-IoT and 2G technologies in Q3 2021, thanks to volume growth in China and declining share of Huawei HiSilicon, which though still remained the third-largest chipset supplier.”

The overall cellular IoT module ASP decreased by 3% sequentially thanks to the shift towards the cheaper NB-IoT and 4G Cat-1 modules during this quarter. However, 4G Cat 4+ and 5G IoT modules’ ASP rose due to tight supplies. This had minimal impact on total shipments, but if the supply situation doesn’t improve, it could slow down 5G adoption.

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

Background

Analyst Contacts:

Soumen Mandal

Neil Shah

Counterpoint Research

press(at)counterpointresearch.com

Related Reports:

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