connectivity Archives - Counterpoint

Global Connected Construction Machine Shipments Grew 6.7% YoY in 2022

One in three construction machines sold in 2022 had embedded connectivity.
The connected construction machinery market is expected to see an annual growth rate of 11% over the next eight years.
The top five players – Caterpillar, XCMG, Sany, Komatsu and Volvo – captured 60% of connected construction machine shipments in 2022.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – April 27, 2023

Global connected construction machine shipments grew 6.7% YoY in 2022 despite a decline in overall construction machine shipments, according to Counterpoint’s latest Global Connected Construction Machine Market report. One in three construction machines sold had embedded connectivity. The slowdown in China’s construction activity impacted the shipments of Chinese players and overall global shipments. However, due to a 10% YoY increase in the average selling price (ASP) in 2022, construction machine revenues grew 3% YoY to reach $213 billion. The ASP increased due to supply shortages and addition of features like electrification and connectivity.

Construction machines refer to equipment, machinery and vehicles specially designed for construction tasks such as excavation, loading and unloading, moving materials, material handling and demolition. The construction machinery also includes mining machinery applications like rock drilling, rock cutting, crushing and tunneling. Engineering and construction projects are complex and difficult to manage. Connected machines help measure construction activity, which is regarded as a barometer of economic prosperity for any region.

Commenting on connected construction machine brand dynamics, Senior Research Analyst Soumen Mandal said, “Construction machinery is a highly concentrated market with the top five players – Caterpillar, XCMG, Sany, Komatsu and Volvo – capturing 60% of connected construction machine shipments in 2022. Smaller players like Liebherr are aiming to make inroads by providing connectivity in a larger proportion of their SKUs. JCB and Hitachi cater to the lower end of the market by offering cost-effective solutions and have fewer machines with connectivity. We expect significant growth opportunity for connectivity for these brands in the coming years.”

The demand for connectivity is driven by theft prevention, predictive maintenance, automated operations, distance monitoring, AR/VR-based simulation and usage-based applications like insurance, vehicle financing and rental services. The tracking of machine assets also helps schedule construction operations in a better way and complete projects on time. Orbcomm, Teltonika, Calamp, syniotec, Machinemax, Trackunit, VisionTrack, Tenna, Trimble and DPL Telematics are a few among many players embedding connectivity in heavy construction machines while offering complimentary services like connectivity and device management platforms.

Commenting on the market outlook, Associate Director Mohit Agrawal said, “Global construction machine shipments are likely to remain flat and reach 2.33 million units by 2030. The current downtrend is expected to last another two to three years. We expect the market to rebound from 2025 onwards. The scarcity of skilled technicians, laborers and drivers will fuel the growth of automated machines. We expect nearly 75% of construction machines to have embedded connectivity by 2030 as the industry shifts towards electrification and autonomous operations. Further, we expect the connected construction machinery market to see an annual growth rate of 11% over the next eight years. Currently, 4G is the leading technology in the connected construction machine market but we expect 5G to be the most preferred technology by the end of the forecast period.”

The comprehensive and in-depth ‘Global Connected Construction Machine Market 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

Mohit Agrawal

Counterpoint Research

press@counterpointresearch.com

Related Reports

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

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

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

Highlights for 2022

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

GNSS modules

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

Wi-Fi/BT modules

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

Cellular IoT modules

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

GNSS chips

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

Outlook

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

Related Posts

Qualcomm FastConnect 7800: Introducing Wi-Fi 7 to Power Multi Gigabit, Low-Latency Metaverse & Computing Experiences

It took less than three years for Wi-Fi 6 (802.11ax) one of the latest generation Wi-Fi technologies to go mainstream across smartphones, tablets, PCs, routers, and gateways. The pandemic has been a catalyst to drive even stronger demand for Wi-Fi 6 which saw rapid adoption despite chipset supply crunch being an inhibitor. Billions of devices across infrastructure and personal use are now Wi-Fi 6, whereas Wi-Fi 6E (6GHz) capable devices are also growing rapidly.

While Wi-Fi 6 is about to go mass-market in the near to mid-term, the industry is already warming up for the commercialization of Wi-Fi 7 solutions later this year. Wi-Fi 7 or IEEE 802.11be, enables an even higher throughput for wireless networks that use 5GHz and 6GHz frequency bands to maximize the overall capacity. It also decreases the latency and improves speeds for sophisticated scenarios such as XR, 8K streaming, gaming, Cloud computing, Virtual Work, intense bandwidth scenarios as well as mission critical and industrial applications.

Qualcomm Technologies, one of the leading end-to-end wireless connectivity solutions providers, recently announced and showcased the industry’s first Wi-Fi 7 system solution – FastConnect 7800. FastConnect 7800 aims to push the boundaries of wireless connectivity with advanced innovative features to match peak performance and complement the high-speed 5G cellular networks.

Source: Qualcomm

Key Highlights

Qualcomm’s FastConnect 7800 is a system-level solution featuring 4-stream High Band Simultaneous (HBS) Multi-Link Operations (MLO), Dual Bluetooth (BT 5.3), advanced audio (Snapdragon Sound, LE Audio, aptX Lossless tech, Qualcomm TrueWireless) and a plethora of other new innovations. FastConnect 7800, which is built on the 14nm process node, allows Qualcomm to optimize the connectivity subsystem to deliver peak data speeds in excess of 5.8Gbps, and sub-2ms latencies with relatively better power efficiencies.
The FastConnect 7800 features triband support in terms of 6GHz, 5GHz, and 2.4GHz spectrum, thus maximizing the available channel bandwidth to boost capacity and coverage. The key Wi-Fi 7 feature is the 4096-QAM modulation in 320MHz channel bandwidth (single channel or 160MHz + 160MHz) of High Band Simultaneous Multi-Link Operation (MLO) with 5 and 6GHz connections which helps in achieving multi-gigabit performance and peak speeds of up to 5.8Gbps.

Source: Qualcomm

When 6GHz is unavailable, using multiple links of 240MHz of 5GHz spectrum, the system can achieve up to 4.3Gbps throughputs. Simultaneous Multi-Link which makes use of 5GHz and 6GHz bands simultaneously frees the 2.4GHz spectrum that can be used for Bluetooth and IoT Devices, making spectrum management very efficient.
The FastConnect 7800 also features a Comprehensive Multi-Link which uses two Wi-Fi radios to create a single synchronized link between multiple bands. In doing so, Qualcomm can reduce the overall latency and boost the throughput.
Further, features such as Preamble-Puncturing allow the access point to transmit data on a “punctured” 80MHz or 160MHz channel in high-density or congested scenarios where the secondary 20 MHz channel is busy. The feature allows bonding of the non-contiguous available channels other than the busy secondary channel, thereby preventing the bandwidth from being halved and boosting capacity.
Meanwhile, the FastConnect 7800 also brings along Bluetooth 5.3 and advanced Dual Bluetooth features that are great additions for reliable, and consistent long-range connections. Enhanced handoff and continuity feature provides the users with a seamless switching experience when swapping devices. Smart antenna switching dynamically selects the best of the two links to reduce the interference or drop in audio quality.
Dual Bluetooth also enables broadcast and audio sharing features for audiophiles. Multi-stream audio support for True Wireless Earbuds (TWS) facilitates for an immersive audio experience. Qualcomm also indicates power savings of up to 30-50% for extended audio sessions, whether you are a globetrotter or an explorer. aptX Lossless, aptX Adaptive with advanced modulation & code optimizations promise to present the user with splendid voice quality, crystal clear audio clarity, and a redefined premium audio experience.
For gamers, FastConnect 7800 brings along a low latency gaming mode where speech is required to communicate with fellow players, and a reduction in latency enables the player to have an edge, which is essential for online multi-player gaming scenarios.

Key Takeaways:

Wi-Fi 7 should be able to build alongside 5G, which promises to provide a consistent premium experience of higher capacity, multi-Gigabit throughputs, and lower latencies required for applications such as Cloud Gaming, Extended Reality (XR), 4K video streaming, and uploads, among others.
Qualcomm’s FastConnect 7800 brings a complete system-level premium personal area network (PAN) connectivity experience for users to enjoy advanced use-cases in flagship devices by the end of 2022.
The key features in the FastConnect 7800 such as High Band Simultaneous Multi-Link Operation (MLO), Preamble-Puncturing, Comprehensive Multi-Link, Low-Latency gaming Mode, Intelligent Dual-Bluetooth are the foundation for unlocking the immersive experiences which warrant higher throughputs, capacity, and lower latency.
We would love to see what Qualcomm has in store for the infrastructure (retail routers, enterprise gateways) to drive Wi-Fi 7 penetration beyond endpoint devices this year.

Will Foxconn Shake EV Industry?

Apple supplier Foxconn, with an aim to diversify its business and reduce overdependency on Apple for revenue generation, is betting big on electric vehicles (EVs). During the Hon Hai Tech Day 2020 (HHTD 20) event on October 16 last year, the company launched MIH, an “EV software and hardware open platform”, with an aim to position it as the “Android system of the EV industry”.

Foxconn is not new to the automotive industry. It has already entered partnerships with Yulon Group and FCA Group to produce EVs, provide parts and handle supply chain management. But will the self-declared aim of becoming the Android system of the EV industry make it a threat for traditional automakers? To find the answer, we will have to understand the extent of Foxconn’s ambitions in the automotive space.

MIH to target both software and hardware ecosystems

With the global smartphone industry maturing, Foxconn is looking for an alternative business opportunity. EVs and autonomous vehicles (AVs) perfectly fit into this strategy because here Foxconn can use its existing expertise in automotive and smartphone component manufacturing. However, Foxconn has no plan to make cars under its brand name. Instead, it will manufacture cars for its partners, just like it assembles phones for Apple.

Most of the automakers are using a closed system for developing cars. But Foxconn is aiming to build an open EV platform where any automaker can alter the design to meet specific requirements. Tesla is using its own platform to build EVs, just as Apple does in the smartphone industry. Since Tesla has come a long way in the race for EV industry dominance, Foxconn wants to become the Android of the EV industry. Getting into a partnership with a major automaker will be a challenge as such automakers may not be interested in sharing their core expertise with an open platform.

In the age of AVs, the software will play a crucial role. Foxconn is trying to tap this segment by having a software system that allows automakers and service providers to offer unique features.

Right partnerships to drive success

Foxconn has entered a partnership with Chinese EV start-up Byton, which is facing insolvency, to revive its EV brand. Foxconn is targeting to produce the M-Byton model starting 2022.

Foxconn has inked another partnership with Geely Holding Group to provide customised consulting service to automakers working with CASE (Connected, Autonomous, Shared and Electrified) technologies.

Apple is in talks with Hyundai Motor to build a pure electric autonomous car from 2024. It will be interesting to see how the iPhone maker and assembler compete in the same segment. Or will Foxconn start manufacturing cars for Apple as it does for its phones? the next couple of years, we may also witness more smartphone makers entering this space.

Whatever may be the situation, right partnerships with ecosystem players and the presence of an experienced leadership team will play a vital role in the success of the business.

Industry veterans to aid in faster development of MIH

Foxconn has hired an experienced leadership team for the MIH platform, which indicates that it is serious about this foray. Jack Cheng, who is a co-founder of NIO, ex-MD of Fiat China and chairman of XPT, besides earlier working with Magneti Marelli and Ford Motor, has been appointed as the CEO of MIH platform. William Wei has been appointed as the chief technology officer (CTO). He has more than 20 years of experience in internet and mobile computing which can help Foxconn build a software-powered car like Tesla.

MIH has already more than 400 partners, with ecosystem players like Amazon Web Services, Mediatek, Qualcomm, ST Micro, Texas Instruments, Eaton and Dana. Foxconn also launched an EV developer kit technical specification on January 31, 2021, displaying seriousness about following the declared timeline.

Foxconn’s aim goes beyond EV platform

As part of a new strategic plan, named 3+3= ∞, Foxconn is focussing on three emerging technologies: EVs, digital healthcare and robotics.

As part of a long-term plan, it is trying to become a key supplier for the EV and AV ecosystem. It is already working with CATL and SES to develop its solid-state battery by 2024, while aiming to get a 10% market share in the EV component and services industry by 2027.

Foxconn is also trying to build a state-of-the-art battery management system (BMS), powered by cloud-based artificial intelligence (AI) to improve battery efficiency.

Some airport shuttle buses with Level 3 autonomy and one of the smallest LiDARs (A15) in the world are supported by Foxconn technology. The MIH platform is being readied for 5G, 6G over-the-air (OTA) update and vehicle-to-anything (V2X) communication. Therefore, Foxconn is preparing for the connected and AV space in future. However, it may face strong competition from Qualcomm and Microsoft in this segment.

Counterpoint’s take

As Foxconn is not interested in building its car brand, it may not be a threat to major automakers. But EV component suppliers may face stiff competition from Foxconn. Scalability and price will play a key role in the selection of component players by EV makers.

Large automakers with a clear goal of electrification may not be interested in an open platform as it may raise questions of security and intellectual property. However, small players and start-ups will be more interested as a shared open platform will require less investment.

COVID Dents TCU Shipments but Recovery Looks Promising

Continental, LG, and Harman together account for a majority of global TCU shipments.
One in four TCUs shipped in 2025 will be 5G-enabled. Automakers will focus on future-proofing their cars, accelerating the adoption of 5G TCUs.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – January 28, 2021

The Telematics Control Unit (TCU) market is expected to grow at a compound annual growth rate (CAGR) of 14.4% during 2020-2025, with the market value surpassing $6.3 billion by 2025, according to the latest research from Counterpoint’s Smart Automotive service. The TCU data here refers to both passenger and commercial vehicles. Higher penetration of connected cars employing 4G-enabled TCUs will be visible till 2025. But with countries deploying 5G infrastructure rapidly, automakers will gradually shift to 5G-enabled TCUs having fallback compatibility to cover a wide range of connected car services with seamless network coverage.

In 2020, COVID-19 drastically impacted the already declining automotive sales in several ways:

Automotive factories operated irregularly for many weeks and also saw employee layoffs in H1 2020. This affected the final vehicle assembly.
Subdued consumer sentiments toward expenditure on non-essential items resulted in a decrease in new vehicle registrations. However, with vehicle purchase incentives in place, short-term recovery can be expected.

The implementation of E-call regulation in the EU initially led to a boom in TCU shipments while similar initiatives have been taken in other regions too, such as EVAK/ERA GLONASS (January 2017) in Kazakhstan and Russia, and K-ecall (2021 onwards). Other important factors driving TCU adoption include changing consumer preferences towards safety/entertainment features and the recent increase in interest in electrical vehicles (EVs), which employ upgraded TCUs for battery management and vehicle performance. For instance, GM has increased its budget for electric and automated vehicles from $20 billion to $27 billion and plans to launch 30 new EVs globally in the next five years (over 20 of them are planned for North America alone). The telematics industry is poised for growth in the coming years as automakers promote connected services to attract buyers and earn additional revenue through subscriptions.

Commenting on the TCU market, Senior Analyst Aman Madhok said, “Continental, LG, and Harman accounted for more than 50% shipments in 2020. Continental has been supplying to a variety of automakers, both luxury and non-luxury, besides having a presence in major markets worldwide. During the last few years, Continental has overtaken LG in terms of market share due to new contracts and the increasing penetration of TCUs in mass-produced vehicles. Harman bagged a contract from BMW to supply its latest 5G-enabled TCUs in 2021. Furthermore, it managed to associate with the likes of VW and Maruti Suzuki in recent years.”

Madhok added, “On the other hand, LG’s market share is declining due to its heavy dependence on GM, which has reached a saturation point in terms of TCU penetration.”

The Smart Automotive report also differentiates the embedded TCUs based on cellular connectivity. Looking from the connectivity perspective, Research Vice-President Peter Richardson said, “5G penetration is on the rise and TCU suppliers have already started to sign contracts with their respective customers (automakers) to supply 5G-enabled TCUs. Continental will lead here too. It has already won contracts to supply 5G TCUs to two European car manufactures. Continental will be followed by LG and Harman. GM’s recent bullish sentiment towards complete electrification of its vehicles and aggressive plans for employing 5G technology will benefit LG to expand its 5G portfolio. Falling prices of 5G TCUs will enable their adoption in mid-price cars, with automakers like GM, Ford, and VW leading 5G connectivity by 2025.”

The comprehensive and in-depth ‘Global Telematics Control Unit Market Tracker, 2021’ from our Smart Automotive service is available for purchase at report.counterpointresearch.com. Feel free to contact us at press(at)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 experts in the high-tech industry with an average tenure of 13 years.

Analyst Contacts:

Peter Richardson

Aman Madhok

Fahad Siddiqui

Counterpoint Research

Three-Quarters of All New Cars to be Connected in Five Years

Half of all cars shipped in 2020 will be connected.
US and China together accounted for two-thirds of all connected car shipments in Q2 2020.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – November 11, 2020

The global connected car market is expected to double in the next five years with more than 270 million of such cars to be shipped during 2020-2025, according to the latest research from Counterpoint’s Smart Automotive service. The data only represents the global passenger car shipments with embedded connectivity and does not include connectivity via smartphone.

Commenting on the findings, Senior Analyst Aman Madhok said, “The market declined by 18% YoY in Q2 2020 with connected car shipments reaching close to seven million units during the period. The penetration of connectivity in cars continues to increase, and 2020 will see half of all cars sold worldwide having embedded connectivity in them.

Discussing the impact of COVID-19 on the market, Madhok added, “The shipments declined by 5% when compared to Q1 2020 due to the subdued passenger car sales following the COVID-19 pandemic, even though rebounding car sales in China helped in market recovery to some extent.”

Commenting on the findings from the connectivity perspective, Research Associate Fahad Siddique said, “Automakers continue to adopt the latest technology, with 4G LTE-based connected cars accounting for almost 88% of all shipments in Q2 2020. 5G connected cars will enter mass production next year. By 2025, one out of every five connected cars will have 5G embedded connectivity. China and the US will together account for the majority of 5G connected cars sold in the next five years.”

Discussing the key trends, Research Director Peter Richardson said, “While the E-call regulation has been driving connected car shipments in Europe, increasing cockpit digitization coupled with customer preference for connected services is driving the growth in the US and China. Both the countries together accounted for close to two-thirds of connected car shipments in Q2 2020. Automakers too are promoting connected services to attract buyers and earn additional revenue through subscriptions.”

Talking about how mainstream brands are now adopting connectivity, Peter added, “A few years back, luxury cars like Mercedes Benz and BMW accounted for most of the embedded-connectivity cars sold, along with some mainstream brands like GM. But now more mainstream brands, like Volkswagen and Toyota, have started to take connectivity seriously, giving a huge push to connected car shipments.”

The comprehensive and in-depth ‘Global Connected Car Tracker 2020’ is now available for purchase at report.counterpointresearch.com. Feel free to reach out to us at press(at)counterpointresearch.com for further questions regarding our latest research and insights, or for press enquiries.

BONUS! Podcast: Over 50% of Cars Sold Globally in 2020 will be Connected

Peter Richardson

Aman Madhok

Fahad Siddique

Counterpoint Research
press(at)counterpointresearch.com

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Insights Tag： connectivity