4G Cat 1 bis Archives - Counterpoint

Global Cellular IoT Connections to Cross 6 Billion in 2030

Global cellular IoT connections grew 29% YoY to reach 2.7 billion in 2022 with 4G continuing to grow its majority share.
China held more than two-thirds of total cellular IoT connections in 2022, followed by Europe and North America.
NB-IoT dominates in China, while LTE-M is preferred in Australia, Japan and North America; Europe supports both.
4G and NB-IoT are the most preferred technologies for cellular IoT applications.
5G is nascent as module prices and breadth of applications reflect early-stage dynamics.
IoT growth drivers are shifting, with the enterprise and transformation initiatives key in propelling IoT connections forward.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – June 12, 2023

Global cellular IoT connections grew strongly at 29% YoY to reach 2.7 billion in 2022, according to Counterpoint’s latest Global Cellular IoT Connections Tracker report. They are expected to grow at a CAGR of 10.8% to reach an installed base of over 6 billion by 2030. China held more than two-thirds of total cellular IoT connections in 2022, followed by Europe and North America.

Amid the challenges faced by various industries, such as inflation, macroeconomic headwinds and supply chain constraints, the cellular IoT market has experienced remarkable growth fuelled by the digital transformation initiatives undertaken by various industry applications like smart meters, automobiles and asset tracking in particular. Cellular IoT connectivity has played a significant role in enhancing productivity, streamlining operations, minimizing downtime, automating processes and generating cost savings for industries. The COVID-19 outbreak unexpectedly proved beneficial for enterprise IoT players, accelerating their digital transformation efforts.

Commenting on the cellular IoT connectivity technology dynamics, Senior Research Analyst Soumen Mandal said, “At the end of 2022, 4G and NB-IoT together accounted for nearly 90% of the installed base of cellular IoT connections. 4G emerged as the most preferred technology for cellular IoT connections after surpassing 2G and 3G-based IoT connections in 2016. NB-IoT has gained significant popularity in China, while Japan, Australia and North America prefer LTE-M technology for lower-end applications. Europe has adopted a combination of NB-IoT and LTE-M, supported by roaming services offered by most operators.

In recent times, 4G Cat 1 bis technology has gained significant popularity over NB-IoT due to its superior performance. Applications such as POS, telematics and smart meters are increasingly adopting this technology on a larger scale. The rising shipments of devices based on 4G Cat 1 and 4G Cat 1 bis technologies are contributing to the stagnant market growth of NB-IoT.

5G is still nascent but we expect 5G-based applications to pick up as the module ASP (average selling price) drops to sub-$100 and more 5G RedCap-based solutions become available in the market. The introduction of 5G RedCap and 5G eRedCap will play a crucial role in driving mass adoption of 5G, particularly in developing and underdeveloped countries.”

Commenting on the market outlook, Research Vice President Neil Shah said, “The global cellular IoT connections installed base is expected to surpass 6 billion by 2030 with a CAGR of 10.8%. The growth will be mainly driven by cellular connectivity adoption across various sectors such as utilities, automotive, industrial, retail and healthcare. Unlike the previous decade, where consumer devices like smartphones and PCs played a significant role in driving cellular connections, this decade will see a shift towards cellular connections being propelled by the digital transformation initiatives undertaken by enterprise IoT payers. The widespread adoption of cellular connectivity will also contribute to a further reduction in prices for cellular-connected devices, making them more competitive against alternative non-cellular connectivity technologies like LoRa, Sigfox and Wi-SUN. Over the past year, the cellular IoT industry has witnessed many consolidations, including Telit’s acquisition of Thales’ cellular IoT business, 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 can expect more consolidations aimed at providing improved solutions and maintaining competitiveness against other non-cellular connectivity technologies.”

The comprehensive and in-depth ‘Global Cellular IoT Connections Tracker, 2022’ report is 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 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

Neil Shah

Mohit Agrawal

Counterpoint Research

press@counterpointresearch.com

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

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

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

Highlights for 2022

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

GNSS modules

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

Wi-Fi/BT modules

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

Cellular IoT modules

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

GNSS chips

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

Outlook

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

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Qualcomm, UNISOC, ASR Lead Cellular IoT Module Chipset Market in Q1 2022

Qualcomm, UNISOC, ASR and MediaTek were the top four cellular IoT chipset vendors in Q1 2022.
4G (Cat 1 and Cat 1 bis) contributed to almost one-third of the cellular IoT module chipset shipments.
Smart meters, POS, industrial, automotive and telematics were the top five applications in the quarter.

New Delhi, San Diego, Buenos Aires, London, Hong Kong, Beijing, Seoul – July 7, 2022

Global cellular IoT module chipset shipments grew 35% YoY in Q1 2022, according to the latest research from Counterpoint’s Global Cellular IoT Module and Chipset Tracker by Application. China was the key region for cellular IoT module chipset consumption during the quarter, with China, North America and Western Europe accounting for over 75% of the volume. PC, router/CPE and industrial were the top three applications for 5G.

Commenting on the market dynamics, Research Analyst Anish Khajuria said, “Qualcomm, UNISOC and ASR held the top three positions in the global cellular IoT module chipset market in Q1 2022, accounting for nearly 75% of the total shipments. UNISOC, Qualcomm and ASR were top chipset players in China in terms of shipments. For the rest of the world, Qualcomm led, followed by UNISOC and Sequans. 4G (Cat 1 and Cat 1 bis) grew 79% YoY in this quarter.”

Qualcomm led with a 42% share and 30% YoY growth across nine out of the ten key regions globally. However, competition from local players in China, such as UNISOC and ASR, in key fast-growing segments like LTE Cat-1/Cat-1 bis and NB-IoT limited Qualcomm’s growth opportunities in the world’s largest IoT market, China. However, Qualcomm has been broadening its IoT chipset portfolio, targeting premium 4G and 5G solutions for verticals such as retail, automotive, industrial robotics and smart cities. It is also collaborating with several industry application and technology providers, including Microsoft, ZTE, BMW and Bosch, to focus on high-value artificial intelligence and 5G IoT capabilities, also termed as the 5G AIoT segment.

UNISOC, the second-largest cellular IoT chipset player globally with a 26% share in shipments, has been strong across 4G (Cat 1 and Cat 1 bis) and NB-IoT technologies. Its cellular IoT chipset shipments have continued to grow for nearly last five quarters, filling the gap which HiSilicon left in the market. Moreover, it is making steady improvements in advanced cellular technologies such as 4G Cat4+ and 5G. It has also succeeded in expanding its customer base, adding Quectel, Fibocom, China Mobile and other international module players. This helped it to capture more than one-fourth of shipments in Q1 2022. UNISOC is focused on low-end applications like smart metering, POS and industrial with stronger demand for its Cat1 bis 8910DM chipset.

ASR Microelectronics maintained its third rank in the cellular IoT chipset market in Q1 2022 due to strong performance in the high-volume 4G Cat 1 and 4G Cat 4 module segments. China continues to be the key market for ASR. The company is yet to launch NB-IoT and 5G solutions and thus will have to work on its long-term capabilities and strategy to maintain this high growth which could continue through 2025. ASR has increased its production capacity this year to meet demand. Local partnerships with several module players in 4G Cat 1 and Cat 4 technology, like Quectel, SIMCom, Neoway, Longsung and Rinlink, are helping drive the scale.

Commenting on the competitive dynamics, Vice President Research Neil Shah said, “The cellular modem chipset competition is heating up in the IoT module space with a growing number of players entering the higher-volume LPWA (LTE-M and NB-IoT) and lower-category 4G LTE (Cat 1 and Cat 1 bis) segments as incumbent players such as Qualcomm and MediaTek focus on the higher-value and more integrated 4G LTE and 5G segments. The move from a two-chip (discrete MCU + cellular modem) to an integrated SoC solution is happening as we enter the 5G era. Further, the addition of AI/ML capabilities in future advanced cellular IoT applications is also catalyzing this trend. However, the low-power and less advanced applications will continue to prevail into the next decade and we could see some adoption of SoC-based integrated solutions. But the discrete solutions will prevail, driving sizeable opportunities for the likes of UNISOC, ASR, Sequans, Sony Semi, Eigencomm, Xinyi and Nordic Semi.”

Other Players

MediaTek took the fourth position in this market. However, it is not much focused on the cellular IoT market compared to the smartphone chipset market. This is one of the key reasons for MediaTek having a 5% shipment share in this quarter. The company is also focusing on 5G enhancement and recently launched Kompanio 900T, a new 5G platform for tablets, notebooks and other IoT devices. The MediaTek T750 chipset launched earlier is growing strong in FWA and CPE devices.

Global Cellular IoT Module Chipset Shipments Share by Vendor, Q1 2022

Source: Counterpoint Global Cellular IoT Module and Chipset Tracker by Region, Q1 2022

Eigencomm registered the highest growth of 869% YoY during Q1 2022, thanks to a strong partnership with Quectel and Fibocom for NB-IoT modules. However, the brand needs to diversify in terms of supporting cellular technologies beyond NB-IoT in its portfolio as well as beyond China.

Xinyi was the second fastest growing chipset player in the market during the quarter with 230% YoY growth. Similar to Eigencomm, the company is currently focusing on the NB-IoT chipset and China region. For the near-to-mid-term, Xinyi needs to leverage its strong partnership with major module vendors such as Quectel, China Mobile, Fibocom, SIMCom, Cheerzing, Longsung, MeiG and Ai-Link and expand into newer cellular technologies to maintain the growth and market share.

Sequans was also in a growth mode in Q1 2022 with a robust 4G, LPWA and 5G chipset portfolio and rising demand in key markets such as smart meters, healthcare and asset tracking. Sequans is the world’s second chipset vendor after UNISOC to commercialize the 4G Cat-1 bis chipset to increase its share and design wins in the growing Cat 1 bis-based IoT applications.

Sony Semicon (Altair) also saw growth this quarter with solid cooperation with Sierra Wireless and Wistron NeWeb focusing on the markets for smart meters, asset trackers and smart cities. Sony is only focusing on LPWA technology with low-power and high-security features on chipsets.

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

Counterpoint tracks and forecasts on a quarterly basis 1,450+ 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:

Anish Khajuria

Neil Shah

Counterpoint Research

press@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:

Qualcomm Retains Top Position in Global Cellular IoT Chipset Market in Q4 2021

Qualcomm, UNISOC and ASR were the top three cellular IoT chipset vendors in Q4 2021.
NB-IoT contributed to almost a third of the cellular IoT chipset shipments during the quarter.
Smart meter, POS, router/CPE, industrial and automotive were the top five applications in Q4 2021.

New Delhi, San Diego, Buenos Aires, London, Hong Kong, Beijing, Seoul – April 12, 2022

Global cellular IoT chipset shipments grew 57% YoY in Q4 2021, according to the latest research from Counterpoint’s Global Cellular IoT Module and Chipset Tracker by Application. China continued to dominate the cellular IoT chipset market by accounting for nearly 60% of the shipments. 5G grew 392% YoY followed by 4G Cat 1 with 154% YoY growth. Router/CPE, PC and industrial were the top three applications for 5G.

Commenting on the market dynamics, Research Analyst Anish Khajuria said, “Qualcomm, UNISOC and ASR held the top three positions in the global cellular IoT chipset market in Q4 2021, accounting for nearly 75% of the total shipments. UNISOC, Qualcomm and ASR were the top three players in China. For the rest of the world, Qualcomm led the market, followed by UNISOC and Intel.”

Qualcomm led the global cellular IoT chipset market with a 38% share in terms of shipments. Qualcomm grew its share both annually and sequentially with traction across key segments such as automotive, router/CPE, retail, asset tracking and industrial IoT. However, competition from local players in China, such as UNISOC and ASR, in key fast-growing segments like LTE Cat-1/Cat-1 bis and NB-IoT limited Qualcomm’s growth opportunities in the world’s largest IoT market. However, Qualcomm has broadened its portfolio of IoT solutions, targeting specific verticals like retail, automotive, industrial IoT and smart cities. It has also launched an IoT services suite covering more than 30 verticals to enhance platform support for IoT-as-a-service (IoTaaS) applications and accelerator programs (like smart cities) with a more ecosystem-led approach bringing in different stakeholders across the value chain.

UNISOC, the second-largest cellular IoT chipset player globally, has been strong across NB-IoT and 4G Cat 1 technologies. Its cellular IoT chipset shipments growth has continued for nearly last four quarters and is able to fill the gap which HiSilicon left in the market. Moreover, it is making steady improvements in higher-end technologies such as 5G, 4G Cat 4 and above. It has also succeeded in expanding its customer base to Quectel, Fibocom, China Mobile and many more module players. This helped it to capture more than one-fourth of shipments in Q4 2021. UNISOC is focused on low-end applications like smart metering, POS and industrial. For 5G, it has launched the V510 baseband and V516 platform which are widely used in FWA routers and CPE devices.

ASR Microelectronics maintained its third ranking in the cellular IoT chipset market in Q4 2021 due to strong performance in the 4G Cat 1 and 4G Cat 4 module segments. ASR is providing strong competition to UNISOC for 4G Cat 1 and to Qualcomm for 4G Cat 4 module-based applications lately. However, ASR is yet to launch NB-IoT and 5G solutions and thus will have to work on its long-term capabilities and strategy to maintain this high growth which could remain for the next 2-3 years. The company has increased its production capacity this year to meet demand. ASR has local partnerships with many module players in 4G Cat 1 and Cat 4 technology, like Quectel, Longsung and Rinlink.

MediaTek took the fourth position in the market in Q4 2021. However, it is not much focused on the cellular IoT market compared to the smartphone chipset market. This is one of the key reasons for it to lose 4% market share sequentially in this quarter. MediaTek is also focusing on 5G enhancement and recently launched Kompanio 900T, a new 5G platform for tablets, notebooks and other IoT devices. The MediaTek T750 chipset is already quite popular for FWA and CPE devices.

Global Cellular IoT Chipset Shipments Share by Chipset Vendor, Q4 2021

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

Eigencomm registered a strong growth of 3743% YoY albeit on a smaller base as it struck partnerships with Quectel and Fibocom for NB-IoT module chipsets.

Sequans also registered growth with a robust 4G, LPWA and 5G chipset portfolio. The French manufacturer saw strong traction in key markets such as asset tracking, healthcare and smart meters.

Sony Semicon (Altair Semi) registered growth this quarter with a strong partnership with Sierra Wireless and Wistron NeWeb targeting smart meters, asset trackers and smart cities markets.

Samsung also launched a 5G chipset targeting automotive applications. It may provide strong competition to Qualcomm and MediaTek if it can enter a strong partnership with automakers.

Intel and HiSilicon are still supplying their leftover inventory to some of their top customers where the modules with their chipsets are designed in.

Global Cellular IoT Chipset Shipments Share by Application, Q4 2021

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

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

Commenting on the application side of chipsets, Vice President Research Neil Shah said, “Smart meter, POS, router/CPE, industrial and automotive were the top five applications in terms of shipments in Q4 2021. PC had the maximum growth of 245% YoY, followed by smart meter with 124% YoY and router/CPE with 112% YoY growth. Router/CPE, PC and industrial were the top three applications for 5G. For NB-IoT, smart meters, asset tracking and energy were the top three applications. 4G Cat 1 is becoming popular in the POS, industrial and smart meter segments due to its high performance and low power consumption architecture. We forecast that smart meters, industrial and router/CPE will grow the maximum in the future.”

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

Counterpoint tracks and forecasts on a quarterly basis 1,450+ IoT module SKUs’ shipments, revenues and ASP performance across 85+ IoT module vendors, 12+ chipset players, 18+ IoT applications and 10 major geographies.

Background

Analyst Contacts:

Anish Khajuria

Neil Shah

Counterpoint Research

press(at)counterpointresearch.com

Related Reports:

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

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

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:

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Qualcomm Retains Top Position in Global Cellular IoT Chipset Market in Q4 2021

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