The automotive industry is undergoing a massive digital transformation as the concept of CASE (connected, autonomous, shared, electrical) is gaining traction. And as the number of connected vehicles increases, data logging, remote diagnostics, and over-the-air (OTA) software updates become more important.
With the Deep Connected Platform from Sibros, a Silicon Valley-based company, vehicle manufacturers and fleet owners can perform OTA software updates without many hassles. The Deep Updater can be configured for over 80 components and controllers in the vehicle. Similarly, the Deep Logger can collect event-driven data and transmit diagnostics so a service engineer can remotely track down a technical issue.
In the latest episode of The Counterpoint Podcast, host Matthew Orf is joined by Sibros CEO and co-founder Hemant Sikaria and research analyst Fahad Siddiqui to talk about OTA software updates for connected cars and more. The podcast explores how Sibros is helping OEMs and fleet owners with software and data solutions, and how OTA updates can avoid massive recalls, and much more.
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.
Europe’s EV market grew 17% YoY in Q3 2022 despite an 8% overall passenger car sales decline.
Germany continued to lead the European EV market by taking a 33% share of the sales.
The top 10 EV models accounted for 27% of EV sales in Q3 2022.
New Delhi,London, Beijing, San Diego, Buenos Aires, Hong Kong, Seoul – December 20, 2022
Europe’s passenger electric vehicle (EV) sales* increased 17% YoY in Q3 2022, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. Battery electric vehicles (BEVs) accounted for 61% of total EV sales during the quarter. Germany was the region’s largest market with a third of the total volume, followed by the UK and France.
Commenting on the market dynamics, Vice President of Research Peter Richardson said, “The overall European automotive market has declined for three quarters due to a mix of economic pressures and supply chain disruption. However, major European automotive-producing countries like Germany, UK, Italy and Spain have shown some growth in sales this quarter with EVs being a relative bright spot.”
Source: Global Passenger Electric Vehicle Model Sales Tracker, Q1 2018-Q3 2022
Market summary
Mercedes-Benz continued to lead Europe’s EV market with a 9.2% share in Q3 2022. BEVs accounted for 35% of its total EV sales with 75% YoY growth. Its plug-in hybrid EV (PHEV) models include the GLE-Class, GLC-Class and C-Class, while its top-selling BEV models are the EQB, EQA and EQC. Although Mercedes leads Europe’s EV sales, it has failed to find a place in the top 10 best-selling models list. Mercedes has 20 models to offer, the highest among all automakers, and most of them have a similar sales share of less than 1%.
Volkswagen took a sales hit in Q2, losing 44% of EV sales YoY. But its supply chain recovered in Q3, enough for it to surpass BMW to become the second largest EV brand with a market share of 8.9%. Its BEV model range is led by the ID series, which includes the ID.3, ID.4 and ID.5 models. It also significantly improved shipments of its PHEV models.
BMW slipped to the third position, taking 8.6% volume share. Its BEV range contributed to 45% of its EV sales. Its top-selling BEV model was the i3 followed by the i4 and iX. The X5 was its best-selling PHEV model, followed by the 3 series and X3.
Among other top-selling brands, Tesla significantly improved its sales from the previous quarter and broke into the top five brands list again. In September, the Model Y was the best-selling EV model in Europe, accounting for 70% of Tesla’s sales.
The top 10 EV models in Europe contributed to around 27% of the EV market in Q3 2022. Best-selling EVs in Q3 were the Tesla Model Y, Volkswagen ID.4 and Ford Kuga.
Source: Global Passenger Electric Vehicle Model Sales Tracker, Q1 2018-Q3 2022
Commenting on the market outlook, Associate Director Mohit Agrawal said, “We expect the European EV market to remain just under 2.5 million unit sales in 2022. European governments are investing heavily in charging infrastructure, which is helping ease consumer anxiety about adopting EVs. This shift is evident in Counterpoint’s Global Passenger Vehicle Model Sales Tracker. Currently, luxury car brands like Mercedes and BMW are leading EV sales because of the combination of EV and PHEV offerings. But once the affordable mainstream European brands like Renault, Volkswagen and Peugeot strengthen their EV portfolios, we expect overall EV sales volumes to move sharply higher.”
*Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands/companies.
*The countries in this study include Austria, Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Russia, Slovakia, Slovenia, Spain, Sweden, Switzerland, UK and Ukraine.
*Under electric vehicles (EVs), we are considering only battery EVs (BEVs) and plug-in hybrid EVs (PHEVs). Hybrid EVs and fuel cell vehicles (FCVs) are not included in this study.
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.
Telematics shipments in India are expected to reach 50 million units in 2030 at a CAGR of 31% from 2021.
Rising demand for EVs, ubiquitous 4G connectivity and favourable policies will act as potential drivers.
According to Counterpoint’s CORE evaluation, iTriangle leads the overall rankings for India’s telematics ecosystem, followed by Teltonika and Bosch.
New Delhi,London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – November 25, 2022
India is the world’s second-largest automotive and mobility market in terms of production volume. It offers significant opportunities for connected telematics due to its sheer scale as well as the growing design and manufacturing ecosystem. Telematics penetration in 2021 was just 2% of the total number of vehicles on the road. According to Counterpoint’s India Telematics Ecosystem Analysis, telematics shipments are expected to reach 50 million units in 2030 with a CAGR of 31% from 2021. Currently, iTriangle leads the overall rankings for India’s telematics ecosystem in Counterpoint’s CORE evaluation.
Commenting on the market dynamics, Senior Research Analyst Soumen Mandal said, “Presently, India’s telematics market is at a nascent stage but there is a steady demand for telematics devices. High import dependency, lack of advanced technology adoption, and infrastructure challenges have all been inhibitors. However, the rising demand for electric vehicles, ubiquitous 4G connectivity, favourable government policies, and schemes related to design and manufacturing, such as PLI and Make in India, will act as potential drivers for the demand for connected telematics devices for different mobility applications.”
To understand the future trajectory of India’s telematics space, Counterpoint Research analysts evaluated the top 15 players using the proprietary CORE analysis technique.
iTriangle leads the overall rankings for India’s telematics ecosystem, followed by Teltonika and Bosch. With the growing market demand, domestic players such as Blackbox, Rosmerta, Nippon, Accolade and Volty are expected to give strong competition to top players in the coming times.
iTriangle’s expertise in different aspects of manufacturing and ecosystem creation has pushed the company to initiate business in Thailand and other Southeast Asian markets. iTriangle is one of the few Indian companies to cross international borders in the telematics space.
Detailed insights into the Indian telematics market opportunity, devices, policies, use cases and recommendations are all captured in a comprehensive white paper published on our portal.
Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.
Background
CORE is a competitive ranking evaluation that evaluates a player across important criteria. For the study of Indian telematics players, Counterpoint took seven categories and more than 45 sub-categories under its CORE analysis. Each of the categories and sub-categories was selected carefully so that they reflected the existing market, current developments, future trajectory and market acceptance of each player. Counterpoint ranked each of the top 15 players on a scorecard based on the latest publicly available information and primary interviews based on the above categories. Exhaustive secondary research was conducted to gather all the information available publicly.
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Mercedes-Benz overtook Volkswagen to become the top-selling EV brand in Europe.
Germany leads the European market with 28% market share.
The top 10 EV models accounted for almost one-fourth of EV sales in Q2 2022.
New Delhi,London, Beijing, San Diego, Buenos Aires, Hong Kong, Seoul – October 10, 2022
Europe’s passenger electric vehicle (EV) sales* increased 16% YoY in Q2 2022, according to the latest research from Counterpoint’s Global Passenger Electric Vehicle Model Sales Tracker. Battery electric vehicles (BEVs) accounted for 55% of total EV sales during the quarter. Germany, with a 28% share, remained the European EV market leader, followed by France with 16% and the UK with 14%. Among other European nations, Spain and the Netherlands were the fastest growing EV markets, nearly doubling their sales on a YoY basis. However, Norway had the highest EV sales penetration (85%) among European countries and also globally.
Commenting on the market dynamics, Vice President of Research Peter Richardson said, “Europe’s automotive market has been hit by a series of events. The supply chain disruption due to the Russia-Ukraine war had a serious negative impact. The supply crunch of vehicle wiring harnesses and other important components, together with a lack of critical raw materials, forced automakers across Europe, especially in Germany and the UK, to cut vehicle production for several weeks. Moreover, to show solidarity with Ukraine, most automakers halted their businesses in Russia, further hurting sales performance during Q2. Additionally, rising inflation and currency devaluations have pushed raw material costs higher.”
Market Summary
The top five brands accounted for only 36% of the total EV sales across Europe in Q2 2022. Europe is one of the most competitive EV markets where OEMs must fight hard for relatively small market shares. This ensures that most OEMs have similar market shares with a difference of only a few points.
Mercedes-Benz
Leading the pack, Mercedes-Benz accounted for around 9.2% of the total EV sales across Europe during the quarter. Last year, the company announced it would stop the development of internal combustion engines and strengthen its focus on electrification instead. Although the company had the highest number of EV sales across Europe, BEV sales accounted for only 28% of its total EV sales. The company’s present portfolio is strong. Its plug-in hybrid electric vehicle (PHEV) models include the GLC-Class, GLE-Class and C-Class, while its top-selling BEV models are the EQA, EQB, and EQE.
BMW BMW, an early adopter of electrification, was the second-best selling EV brand in Europe in Q2 2022. BMW had a 9.1% share of the EV market in Europe during the period. The PHEV segment accounted for 71% of the company’s total EV sales. The BMW X series and the BMW 3 series cars dominated the PHEV segment, while the company’s i-Series models, namely the iX, i4 and i3, were the flagbearers of its BEV segment.
Volkswagen
Among European OEMs, Volkswagen was hurt the most from the Russia-Ukraine war. Supply chain disruptions and component shortages reduced the company’s sales by 44% YoY during Q2 2022. Volkswagen, one of the largest auto OEMs, was able to secure just 6.2% of Europe EV sales during the quarter. The company is betting on its ID series cars to dominate the EV market. Presently, 64% of EVs sold by Volkswagen are from the ID series alone.
Among other brands, Tesla’s performance fell short of expectations even though its Berlin Gigafactory started production in March 2022. Tesla sales in Europe fell 51% YoY during Q2 2022 mainly due to production halts at its China operations in April and May, stemming from supply issues and restrictions related to the pandemic. A major proportion of Tesla cars sold in Europe is imported from China.
Source: Global Passenger Electric Vehicle Model Sales Tracker: Q1 2018 – Q2 2022
Commenting on the EV ecosystem development, Research Vice President Neil Shah said, “Europe is one of the more mature EV markets. EV sales in Europe have gained traction, thus incentives and subsidies related to EV sales have reduced to almost nil in most European nations. Presently, Europe is looking to strengthen its charging infrastructure and battery recycling ecosystem. A strong charging infrastructure network is likely to boost EV penetration. Among European nations, the Netherlands has the highest density of EV charging stations. Alongside governments, private players, such as Webasto, Free2Move, EVBox, Shell and BP, are teaming up with OEMs to set up a network of charging stations across Europe.”
Shah added, “Apart from developing a strong network of charging stations, the rising demand for EVs is leading to the rise of battery recycling plants. Battery recycling plants are necessary to control e-waste and to recycle valuable metals that can be used in new batteries.”
Source: Global Passenger Electric Vehicle Model Sales Tracker: Q1 2018 – Q2 2022
The top 10 EV models in Europe contributed to around 23% of the EV market in Q2 2022. Bestsellers were the Fiat 500, followed by the Tesla Model Y and Peugeot 208. In the year-ago quarter, none of these EVs were among the top five. The change in the market was due to multiple production shutdowns and delays in shipments faced by OEMs. In 2021, the top-selling EV models were the Renault ZOE, Volkswagen ID.4 and Skoda Enyaq iV. In Q2 2022, eight out of the top 10 EV models sold in Europe were BEVs.
Commenting on the market outlook, Associate DirectorMohit Agrawal said, “EV sales are expected to exceed 2.5 million units by the end of 2022, according to Counterpoint’s Global Passenger Vehicle Forecast. The market is expected to be slow due to component shortages, economic turmoil and geopolitical tensions. Still, one in every five cars sold in Europe will likely be an EV by the end of this year. In 2021, EV sales in Europe accounted for 15% of total passenger vehicle sales.”
*Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands/companies.
*Under electric vehicles (EVs), we are considering only battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). Hybrid electric vehicles and fuel cell vehicles (FCVs) are not included in this study.
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.
Qualcomm held a first-of-its-kind ‘Automotive Investor Day’ in New York recently. The event was organized to highlight the new ventures that Qualcomm is embarking upon in the automotive technology space. The company is building on its presence in 250 million vehicles using its connectivity and telematics technologies. Its automotive revenues traced to telematics and connectivity are projected to total $1.3 billion in 2022, up from $975 million in 2021. With this exclusive road map, the revenues are forecasted to reach $9 billion in 2031, which, based on the total addressable market (TAM) size, are conservative in our opinion. Licensing business is also part of the automotive push with the QTL (Qualcomm Technology Licensing) program to collect $5 per connected vehicle with 5G adoption expected to scale in 2024.
Qualcomm’s automotive efforts begin with its expertise in telematics and connectivity, the first branch of its Digital Chassis suite. Telematics and connectivity here include modems, GPS, Car2Cloud and more. The second biggest unit in terms of projected revenue generation is the digital cockpit, which has infotainment systems and where interaction with the driver/passenger takes place. This section comprises GPUs, CPUs, OS support and the like. Lastly, we have the top revenue generating unit, ADAS/AD systems, dubbed the Snapdragon Ride platform which is related to autonomous driving components, computer vision, ML and efficient computing processors.
Cars Already on the Road
Qualcomm’s automotive presence precedes the revamped approach underlying the Automotive Investor Day. At the first event of the sort, Qualcomm highlighted its dominance in wireless technology in hardware and software and how such a reputation brings value in terms of applications in the automotive industry. Under its tie-ups with OEMs such as Stellantis and General Motors, Qualcomm is providing solutions pertaining to connectivity/car-to-cloud, digital cockpit and ADAS/AD systems. Some of these technologies are already on the road with Cadillac’s Lyriq EV and Opel’s Mokka-E. A new Mercedes-Benz model, reportedly the EQE SUV, is expected to be launched next The vehicle is set to be unveiled mid-October.
One Technology Platform
Qualcomm seeks to drive the automotive industry transformation by using at-the-edge technology and unlocking the potential for passengers and OEMs. The automotive pivot to EVs is key to redefining the automotive language of design and in-car experiences. One feature that proves valuable is linking the vehicle owner directly with the OEM. The vehicle itself will perform other duties such as data collection and analysis of driving modes, and AI refinement in terms of safety, map guidance and software errors. Having the vehicle connected to a centralized system adds value to both ends of the car. The “One Technology Platform” eases the scalability while maintaining uniformity given Qualcomm’s lead in wireless connectivity and established car technology suite.
The Digital Chassis suite offers a combined platform within the vehicle, from connectivity to ADAS. The enablement of at-the-edge applications for vehicles expands the potential of automotive designs and advancements. Qualcomm has opted to design and produce systems-on-chips (SoCs) that can be for OEMs and their intended passenger vehicle concepts. A key notion is to reduce costs and increase uses of the SoCs which can be used in any type of vehicle and at any price point.
Qualcomm will offer flexibility and customization based on the OEM’s needs and work alongside the Tier 1 suppliers. The company noted that OEMs aim for region-specific features and options, which affect pricing and useability. Hence, the One Technology concept is still applied but with interchangeable features catering to the intended market such as traffic patterns, surrounding environment, and regulatory obligations.
Vehicle Lifecycle and Software as Differentiator
In contrast to the smartphone industry, cars have a longer life cycle which changes the perspective of technology implementation. To ensure vehicle longevity on the road, Qualcomm’s designs have future-oriented applications embedded, such as L3 and L4 AD systems. With its recent acquisition Arriver, Qualcomm aims to invest further into the technology for faster implementation and safer driving. Longevity also requires software updates and upkeep which Qualcomm does address by highlighting the importance of the One Technology concept and OEMs’ role in the cycle.
OTA updates of firmware and enabling new features can play a crucial role in keeping the car relevant to the latest technology. With such an approach, the passengers can perhaps experience a customized ride using OEM-specific applications or software add-ons. In addition, sensor algorithms and mapping of vehicle performance will always be refined. Thus, vehicle connectivity is becoming crucial as in-car experiences demand being almost constantly online.
Snapdragon Ride, ADAS/AD in Scope
Given the importance of ADAS/AD development in Qualcomm’s automotive strategy, Snapdragon Ride was showcased in detail. The road map showed SoC designs, vision system development through Arriver and the automated riding stack in collaboration with BMW.
The Snapdragon Ride Flex SoC is to be the first automotive super-compute SoC to integrate various operations including vision, ADAS/AD, and networking. The SoC will continue to be developed to reach Level 4 and even Level 5 autonomy while housing other applications for the passenger in terms of infotainment and the digital cockpit. AI accelerators would be in addition to the SoC to ensure fast computing and allow for data collection to scale solutions adequately while using a centralized cloud system. The Snapdragon Ride platform is the Digital Chassis branch pertaining to the ride experience and its refinement through interconnected functions.
C-V2X is another application Qualcomm is setting its sights on. With the enablement of such technology, the cars would be much safer and constantly connected with their surroundings, from pedestrian detection to parking spaces available in the vicinity. Having the vision SoC, C-V2X and sensors/LiDAR working together under one ecosystem is what Qualcomm offers for OEMs in addition to the other SoC applications and wireless technologies.
Snapdragon Ride SoC requires a vast compilation of compute power and precision for it to run smoothly. With that in mind, Qualcomm showcased the prowess needed to enable the technology. From multi-SoCs to computer vision, utilizing AI and ML algorithms for system enhancements and constant improvements, all allow OEMs to immediately tether the update through to all other vehicles.
Design-win Pipeline: From $19 bn to $30 bn in Two Months
Qualcomm’s automotive push shows strong performance with an increase of $11 billion in two months towards its portfolio of vehicular technologies. The tech firm utilized its Digital Chassis to increase OEM partnerships and engage in automotive innovations with an estimated TAM of $100 billion by 2030. The pipeline additions include both software and hardware with the TAM addressing vehicle connectivity, cockpit digitization and driver assistance systems.
The estimated revenue for 2031 was increased from the November 2021 forecast of $8 billion to more than $9 billion with a CAGR of 18%. The CAGR from 2022 to 2026 is estimated to be 32% with possible revenues of more than $4 billion, up from $3.5 billion from a previous estimate. The revisions indicate the operating scale of expanding OEM partnerships adopting Digital Chassis technologies, adding to the design-win pipeline and revenues associated with scaling and licensing. The content per vehicle is in the $200-$3,000 range depending on the desired features to be embedded.
The forecasted revenues do not include other opportunities cited at the event, which included two-wheelers and e-bikes, domain controllers and last-mile autonomy. However, these applications are to be explored by Qualcomm in the long term. Such opportunities can catapult the use of C-V2X technology and further expand Qualcomm’s TAM and technology adoptions through the various offerings, be it automotive or wireless oriented. The One Technology concept also adds value to OEMs’ efforts to expand their direct customer reach through other technologies and offerings, providing truly personalized yet uniform use cases for customers.
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.
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.
4G car market share will hit the high of 91% in 2022 before declining.
3G car market share will be in a continuous decline after 2021.
London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – June 15, 2022
Europe’s connected car* market bounced back in 2021 after the pandemic-induced downturns. However, the ongoing semiconductor shortage led to production losses which prevented the continent’s overall automotive market from returning to pre-pandemic normalcy. According to the latest research from Counterpoint’s Smart Automotive Service, Europe’s connected car market grew 16% YoY in 2021 to cross 8.6 million units, with Germany leading the charge followed by France. In terms of most 4G cars shipped, Germany was at the forefront followed by France and UK. 5G cars are expected to take center stage going forward.
Commenting on the European automotive market’s performance, Research Analyst Fahad Siddiqui said, “The rapid electric vehicle (EV) uptake in Europe is not only aiding automakers in meeting the CO2 emission targets and providing attractive deals to customers through government subsidies but also helping increase the connected car penetration. The market share of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) with respect to EV sales stood at 38% and 29% respectively in 2021, with the leader in the BEV market being Tesla followed by Volkswagen and then Renault. OEMs are introducing more EV models to remain future-proof. In addition, having a mix of ICE (internal combustion engine) vehicles and EVs in their portfolios means they can continuously upgrade their expertise in the electrification domain and potentially gain market share.”
After witnessing a decline in 2020, Europe’s connected car market performed well last year registering a yearly growth of 16%. The top three automotive groups in 2021 were Volkswagen, Stellantis, and BMW. Volkswagen was heavily affected by the chip shortages, which restricted sales and resulted in low inventories with dealerships. Within Volkswagen Group, connectivity penetration for Audi and Volkswagen brands stood at 90% and 52% respectively with the latter shipping a higher number of connected cars. Being a luxury automaker, Audi enjoys a higher connected car penetration rate with more connected cars in its fleet. The countries where these brands performed best were Germany followed by the UK.
Senior AnalystSoumen Mandal said, “In 2021, China led the EV market, followed by Europe. By 2026, Volkswagen Group is likely to be dominant, followed by Stellantis and the Renault-Nissan-Mitsubishi alliance. In terms of market share, Volkswagen will account for almost 20% of the total market. All other automotive groups are likely to account for less than 15% share.”
Mandal added, “Next-generation connected cars were already visible last year, with the first global 5G car hitting the roads in November. The automobile industry is pivoting towards new vehicle architectures and software will play a key role in this. Software-defined vehicles will employ emerging architectures in the form of zonal distribution of ECUs (electronic control units) with cross-domain functionality, less wiring, and high-performance computers. Furthermore, in the next few years, upgraded network infrastructure will help cars to communicate with networks and with each other to complement the increased autonomous driving efforts. This may help to counteract growing congestion and will be an important part of smart city developments.”
Keeping the technology evolution in mind, Research Vice-President Neil Shahsaid, “Currently, 4G technology can support good data throughput and specialized connectivity for applications related to telematics, predictive analytics, and infotainment in a connected car. However, as electronics in cars are advancing rapidly to cater to higher speed and more data-intensive applications, 5G will play a crucial role in enabling next-level connected mobility. Around a third of cars sold in Europe in 2026 will have 5G connectivity. The leading 5G car brands will be BMW, Stellantis, Volkswagen, and Ford. Ford will introduce 5G connectivity in the US in 2022 followed by other markets later in the year. Volkswagen is expected to introduce a 5G car by the end of 2023, while Stellantis will do so by the end of this year.”
*The connected car data here refers to only passenger cars with embedded connectivity.
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.
China will be leading the global EV market, followed by Europe and US.
BEV will have nearly 40% share in the global passenger vehicle market by 2030.
FCV will remain niche even in 2030.
New Delhi,London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – May 30, 2022
One in two cars will have an electric powertrain by 2030, according to the latest research from Counterpoint’s Passenger Vehicle Forecast*. The increase in environmental awareness among buyers, favourable carbon emission norms, support from governments and the collaborative efforts of ecosystem players are all helping electric vehicle (EV) adoption across the world. However, EV penetration was still below 10% of global passenger vehicle sales in 2021.
Commenting on the regional dynamics, SeniorResearch Analyst Soumen Mandal said, “China is leading the global EV market, followed by Europe and the US. RoW (rest of world) will be the fastest growing region in terms of EV adoption, driven by Vietnam, Singapore, Thailand and Canada.
The EV market in China is influenced by government policies. However, China has reduced subsidies on EVs by 30% in 2022 compared to 2021. Further, the rising inflation rate and supply shortages due to COVID-19 outbreaks have forced OEMs to increase EV prices. April was the weakest month for EV sales in China this year. We expect the situation to improve after COVID-19 restrictions are relaxed and OEMs resume production. The EV sales in China are projected to cross six million units by the end of this year.
Europe is aiming to reduce emission levels by 15% in 2025 and by 37.5% in 2030 from the 2021 levels. This is one of the major reasons for Europe’s EV sales to cross the two million mark in 2021, despite the COVID-19 outbreak. More than 10 countries including Norway, Denmark, France, Germany, United Kingdom and Netherlands have proposed to phase out new sales of petrol and diesel cars. This will help Europe maintain its second position in the global EV market by 2030.
EV sales in the US increased by nearly 100% YoY in 2021. The Biden government has set an ambitious target of 50% of sales being EVs by 2030. Federal and state administrations had previously taken a less supportive approach to EV adoption compared to China and Europe. The latest policy will encourage both OEMs and consumers to be more comfortable opting for EVs over traditional fuel vehicles. Moreover, the US will provide $7.5 billion to build 0.5 million public EV charging stations. We expect the battery electric vehicle (BEV) will account for nearly 30% market share in US passenger vehicle sales by 2030 – but not the half that the government has targeted.”
Other countries contributing to EV adoption include Norway, Japan and India. EV adoption in Norway has already crossed 85% of sales in 2021 and we expect Norway will achieve 100% electrified passenger vehicle sales by 2025. Japan, however, is lagging in EV adoption compared to other developed countries. Toyota and Renault-Nissan have recently adopted a worldwide EV policy and we expect Japan will benefit from these homegrown OEMs. India is aiming to have 30% of its passenger vehicle sales as EVs by 2030. Already, homegrown players such as Tata Motors and Mahindra Electric and a few foreign players like MG Motor and Hyundai are competing for the Indian passenger EV market.
A few years back, it was thought that fuel cell vehicles (FCVs) would be one of the key technologies for the automotive market. However, FCV penetration hasn’t increased much and only a few players such as Hyundai, Toyota, Honda and SAIC are offering FCVs.Commenting on the competitive dynamics, Associate DirectorBrady Wang said, “The EV market is getting more competitive as new companies, including smartphone ecosystem players, are entering the field. Companies such as Foxconn and Xiaomi have already announced their entry into the smart electric car field to diversify business opportunities. Sony has partnered with Honda to produce affordable EVs.
Tesla is also a relatively new entrant. It introduced the groundbreaking Model S around 10 years ago and now dominates the global EV market. New start-ups like Nio, Li Auto, Xpeng, Lucid Motor, Fisker and Rivian are also trying to follow Tesla’s wheel tracks and disrupt traditional auto OEMs, many of which hesitated to invest in EV development in the initial phase. As next-gen cars will be much more software-driven, we will likely see more new players entering the market. However, the traditional players will still have an advantage thanks to their scale of manufacturing and well-established supply chains. Nevertheless, we expect a fierce battle between traditional and newer players in the coming years as EVs become increasingly mainstream.”
Commenting on EV infrastructure developments, Research VPPeter Richardson said, “Increased EV adoption will not, by itself, contribute to the goal of reducing overall vehicular pollution. While increased EV sales are positive, we also need to focus on setting up smart production ramps, more efficient battery manufacturing processes, battery recycling plants and charging infrastructure powered by renewable energy sources like solar, wind, hydro and nuclear. Unless we also adopt clean energy sources, the vision of attaining net-zero carbon emission will remain out of reach.”
In the initial years of EV adoption, there was a chicken-egg dilemma between governments and OEMs. Now, both parties are making collaborative efforts to make the transportation industry greener and more environmentally sustainable, helping smooth the transition from traditional fuel vehicles.
*Under electric vehicles, we are considering only battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs) and fuel cell vehicles (FCVs). Hybrid electric vehicles are not included in this study.
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.
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Commenting on the competitive dynamics, Associate Director 