This year’s Mobile World Congress (MWC) in Barcelona proved to be a great success. At the event, which was held in earnest for the first time since the COVID-19 pandemic, many companies introduced new products and technologies. With nearly 90,000 visitors, the event managed to regain its former vigor, excitement, and buzz.
Networks and operators actively participated in MWC 2023 and introduced new technologies and solutions. The event also revealed industry players’ aspirations to take the lead in 5.5G and 6G, and the telecommunication companies’ concerns about monetization.
Another noteworthy point was the remarkable presence of Chinese companies. In particular, Chinese companies including Huawei, HONOR, OPPO, and TECNO introduced foldable smartphones, showing that the foldable market, which was formed with Samsung at the forefront, is blooming in earnest.
In the latest episode of ‘The Counterpoint Podcast’, Counterpoint’s Research Director Tom Kang and Associate Director Sujeong Lim, who participated in the event, discuss their takeaways from MWC 2023.
Click the Play Button to Listen to the Podcast
Podcast chapter markers
1:22 – MWC atmosphere
2:33 – Hot topics at the event
4:55 – Foldable market forecast. When will Apple enter the foldable market?
6:16 – New technologies – eSIM, satellite communication
After declining in Q1 2022, the global cellular IoT module market recovered in Q2 2022 despite macroeconomic headwinds and lockdowns in China, the largest IoT market.
The quarter also saw a series of consolidations in the highly competitive IoT module space.
Asset-tracking reached the highest share ever at 7% to break into the top five applications.
Smart meter, POS and industrial were the top three applications in this quarter.
NB-IoT and 4G Cat 1 were the most preferred technologies for cellular IoT applications.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – September 20, 2022
Global cellular IoT module shipments grew 20% YoY in Q2 2022, according to the latest research from Counterpoint’s Global Cellular IoT Module and Chipset Tracker by Application. The global cellular IoT module market continued to recover despite a tighter supply chain, COVID-19 lockdowns in China and macroeconomic headwinds. The growth was driven by the ongoing digital transformation involving potential applications around critical infrastructure and logistics catered by some key fast-growing low-tier cellular technologies such as Cat-1 and NB-IoT. Further, module players modified their product offerings, striking partnerships across the value chain, from newer connectivity solution providers to acquiring some key competitors, as the IoT industry enters a very exciting growth phase.
China retained its position as the world’s largest IoT market, contributing to more than half of the demand despite the lockdowns. The country’s cellular IoT module market recovered slightly from previous months this year, driven by lockdown-triggered applications like smart locks, surveillance systems and routers. The North American and western European markets grew steadily and held their second and third positions respectively in the global cellular IoT module market. Again, India was the fastest growing IoT module market (+264% YoY), albeit growing on a lower base, driven by smart meter, telematics, POS and automotive applications.
Commenting on the market dynamics, SeniorResearch Analyst Soumen Mandal said, “The IoT module market is going through a critical phase where the Chinese brands have become bigger, making it very difficult for international brands to grow in silos. As a result, we have seen the first wave of market consolidation with Telit acquiring Thales’ cellular IoT module business as well as acquiring IoT solutions design house Mobilogix. Also, during the quarter, Semtech, one of the big component vendors and the key chipset provider for the proprietary LoRa-based IoT network, acquired leading cellular IoT and router vendor Sierra Wireless to build an end-to-end wireless IoT portfolio. This kickstarts an exciting phase where the Western vendors are trying to become more ‘integrated’ to capture more value across the value chain, even though the IoT market is a blue-ocean opportunity.”
Mandal added, “With six out of the top 10 IoT module vendors being from China and with the rising geopolitical competition and data privacy concerns, international players see an opportunity to consolidate and carve out a dichotomy in this segment. Further, having a robust portfolio and post-sales support is the key. Telit, Thales, u-blox and Sierra Wireless improving their offerings over the last 12 months has been a step in the right direction. With consolidation, these vendors can garner scale and some competitive edge to at least compete well on pricing and value against the competition”
Note: Figures may not add up to 100% due to rounding
Market summary
The top three players accounted for more than half of the market. Interestingly, Quectel’s shipment share was equal to that of the remaining players in the top 10 list.
Quectel: Quectel’s module shipments increased 47% YoY, further increasing its gap with the remaining players. During the quarter, Quectel launched 4G Cat 4 smart modules SC200E and SG150H, based on Qualcomm and UNISOC chipsets respectively. Furthermore, Quectel unveiled iSIM-supported LPWA module BG773A-GL with the help of Kigen, through which it will be able to target M2M applications such as POS, smart metering, asset tracking and wearable devices.
Fibocom: The second largest module vendor, Fibocom, saw 12% YoY growth in its module shipments. Nearly 60% of its module shipments came from the China market. Fibocom has already entered partnerships with Qualcomm, MediaTek, UNISOC, Sequans and Autotalks to increase its share in international markets. This can help Fibocom bridge some of its wide gap with Quectel in the international IoT module market.
MeiG: After a slow Q1 2022 due to China lockdowns, MeiG registered growth which helped it to enter the top three IoT module ranks globally. While focusing on higher-end IoT module applications, MeiG is expanding into the fast-growing 4G Cat 1 bis market, targeting applications such as POS, industrial, asset tracking, smart meter and enterprise. MeiG is also diversifying its supplier portfolio. It has partnered with fast-growing 4G chipset vendor ASR for the 4G Cat 4 module market, especially for the highly competitive China market and other low-cost international markets.
China Mobile: China Mobile maintained its fourth position in the global cellular IoT module market by catering to its huge existing and prospective customer base and extensive cellular network. The operator partnered with Xinyi Semiconductor for focusing on lower-end applications. This has helped both to target 2G-to-4G transitioning IoT applications. China Mobile’s growing 5G footprint and partnerships across the value chain will help the world’s largest operator to rapidly scale its end-to-end 5G IoT solutions in the coming quarters.
Sunsea: Sunsea (SIMCom + Longsung) has been consistently improving its performance over the last 10 quarters. Sunsea is following a strategy similar to that of other Chinese players to offer Qualcomm-based solutions for the international market and MediaTek/UNISOC/ASR/Xinyi-based solutions for the homegrown China market. Sunsea added ASR as a partner besides Qualcomm to cater to the increasing demand and offer affordable pricing in China.
Telit: Telit is the first non-China player in the global IoT module vendors’ rankings. Telit is focussing on LPWA-Dual Mode, 4G Cat 1 and LTE-M technologies to target applications such as industrial, healthcare, asset tracking, router/CPE and energy. The vendor has launched 4G Cat 1 bis industrial grade module LE910R1 with 2G fallback to target the APAC and EMEA markets. With the sunset of 2G and 3G technology, this module can be used as a substitute for low-to-mid-end applications. After the acquisition of Thales, Telit has the potential to emerge as the largest module vendor outside of China and eventually match Quectel in scale.
Among other players, Neoway performed well. It was the fastest growing in QoQ terms (+162%) among top vendors. Besides China, India is turning out to be an important market.
u-blox recorded a strong quarter by remodeling and redesigning its products and clearing backlogs. The demand was strong for u-blox in industrial, automotive and healthcare applications.
Commenting on the key connectivity technology trends in the IoT space, Associate Director Mohit Agrawal said, “The top five technologies, including NB-IoT, 4G Cat 1, 4G Cat 4, 4G Cat 1 bis and LPWA-Dual Mode captured more than 80% of the shipments in this quarter. We are witnessing increasing shipments of 4G Cat 1 and 4G Cat 1 bis modules driven by the sunset of 2G and 3G technologies and higher demand in low-to-mid-end applications. Some module players are still shipping 2G modules to cater to specific low-cost applications in some emerging markets, like Africa, Asia and eastern Europe. The 5G IoT module shipments remain steady with prices still high and many projects still in pilot stages. It will take at least a couple of years to reach an inflection point. We expect the second half of 2023 to see a ramp-up for the 5G IoT modules with good pan-country 5G coverage and scale.”
The top five applications in Q2 2022 – smart meter, POS, industrial, router/CPE and asset tracking – captured more than half of the total IoT module market. Compared to the previous quarter, significant improvements were seen in the router/CPE and residential markets. The automotive connectivity market did not show much traction due to the poor performance of the automotive industry in China during this quarter.
For detailed research, refer to the following reports available for subscribing clients and individuals:
Counterpoint tracks and forecasts on a quarterly basis 1,500+ IoT module SKUs’ shipment, revenue 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.
US-based semiconductor manufacturer and LoRa pioneer Semtech announced a $1.2-billion deal on Wednesday to acquire Canada-based cellular IoT module and device supplier Sierra Wireless. The deal comes after last week’s merger deal between Telit and Thales’ cellular IoT business. The IoT module market has entered a consolidation phase and we can expect a few more announcements in the near future.
The IoT module market is fragmented. Many brands are struggling to improve performance, scale up products and face competitors. Some players are moving towards services, which comprise 77% value of the total IoT value chain, for better revenue opportunities instead of sticking to hardware only. For example, u-blox acquired Thingstream in 2020 to generate more revenue and offer complete IoT solutions, from chipset to cloud. In some cases, companies are trying to build up their own supply chain ecosystem through integration. For example, Quectel entered the IoT antenna space last year. In the future, we may witness some large players offload their cellular IoT module business which is not a core business for them.
The Semtech-Sierra Wireless deal is an important announcement for the IoT space. It can change offerings in the IoT industry. Here are some key takeaways from this deal from Counterpoint analysts:
Sierra Wireless is mainly focused on the cellular business, whereas Semtech is focused on the non-cellular business. The ultra-low power benefits of LoRa and higher-bandwidth capabilities of cellular networks will bring innovation to IoT use cases. They can also solve problems faced in massive IoT adoption across all segments.
International brands such as Sierra Wireless, Telit, Thales and u-blox were struggling to compete with Chinese module vendors such as Quectel, Fibocom and MeiG in terms of scale and bringing innovation to the field.
Sierra Wireless divested its auto business in 2020 to focus on the router/CPE segment but the COVID-19 pandemic, supply chain disruptions and ransomware attack hit Sierra Wireless’ efforts to regain its market share last year. Interestingly, the automotive spin-off business was acquired by a consortium led by Chinese module vendor Fibocom.
We also witnessed a corner-room change at Sierra Wireless to revive brand glory when Phil Brace replaced Kent Thexton as the CEO in July 2021.
This year, Sierra Wireless divested its Omnilink offender monitoring business to Sentinel for $37.6 million. This was not a core business for the company and it offloaded Omnilink to focus more on the services industry. Product segments can generate revenue for one time, whereas services can generate revenue on a recurring basis. That is why we have been seeing many IoT module players shifting towards IoT platforms, cloud and services.
According to its chip-to-cloud strategy for IoT adoption, Semtech aims to offer solutions across the IoT value chain. However, it has no good presence in the module, device and platform categories. Moreover, LoRa isn’t suitable for each IoT application. LoRa and cellular technologies may complement each other in serving segments across the IoT value chain.
Sierra Wireless will bring a rich experience of cellular IoT modules, cellular gateways and cloud service platform to Semtech, while Semtech will offer LoRa chips, LoRa gateways and cloud services. In the future, we may see more hybrid cellular+LoRa solutions instead of dual cellular module-based solutions. In this type of application, the cellular module can be used for data communication and LoRa can be used for device management and other applications where a low payload is required. This can change offerings in the IoT module space and help Semtech increase its market share in the cellular space too.
Semtech already has a good hold on smart meter, smart city, industrial, smart grid and asset-tracking applications through LoRa solutions. The addition of Sierra Wireless products will help Semtech target high-end markets such as security cameras, gateways, fleet and PC.
Outlook
The combined entity is looking for a 10x growth opportunity to reach a $10-billion serviceable addressable market (SAM) by 2027. To achieve this figure, IoT platform and cloud services will play a pivotal role as these can contribute revenue on a recurring basis. At the same time, Semtech needs to be careful not to disrupt the standalone LoRa ecosystem partners and customers. We believe cellular+LoRa-based industrial applications such as security, smart campus, factory and private networks will be a big opportunity for Semtech.
Quectel, Foxconn, China Mobile, WNC, Telit, MeiG, Sequans, Gosuncn were the fastest growing vendors in Q1 2022.
Smart Meters, POS, industrial, automotive and telematics were the top five applications in the quarter.
China, North America, and Western Europe accounted for over 75% of the volume.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – June 23, 2022
Global cellular IoT module shipments grew 35% YoY in Q1 2022, according to the latest research from Counterpoint’s Global Cellular IoT Module and Chipset Tracker by Application. India was the fastest growing market (59% YoY) followed by Middle East Africa, Japan, North America, China, Western Europe and Korea, all registering healthy double-digit growth. However, the largest IoT module market, China, saw demand dip by 11% QoQ due to the new wave of COVID-19 and resulting lockdowns.
Commenting on the market dynamics, SeniorResearch Analyst Soumen Mandal said, “The cellular IoT module market remains competitive, but there is growing consolidation. For example, Quectel, Fibocom and Sunsea accounted for more than half of the global IoT cellular module shipment volumes for the first time ever. This highlights the growing influence, expertise, and scale of these Chinese vendors in the fast-growing global market.
Quectel’s cellular IoT module shipments grew 77% YoY in Q1 2022 to a healthy 38% of global volume. Quectel now ships more modules than the next ten vendors combined. Quectel continues to dominate geographically with leadership in seven out of ten key markets globally. Quectel commands a strong position in 4G and NB-IoT modules. Quectel is expanding its 5G portfolio and aims to gain scale as the technology ramps.
Fibocom’s shipments grew by 24% YoY benefitting from the surging demand for 4G Cat 1 bis modules, which is one of the fastest growing segments and led by Fibocom globally. 4G Cat 1 bis is becoming a key technology targeting the 2G and 3G IoT installed base and similar applications such as POS and telematics. Fibocom is also heavily focusing on 5G AIoT based smart modules to maintain a lead in high value applications.
Sunsea AIoT which includes the brands SIMcom and Longsung, has cemented its place in the top three brands. It focuses on 4G Cat-1 and NB-IoT modules. China continues to be the key market for Sunsea; it will need to diversify if it wants to scale and grow at the same pace as its peers.
Telit captured 4.6% share and is the only non-Chinese brand in the top five players. Demand for its modules remains healthy in North and Latin America. The module mix shifted slightly with increasing demand for legacy 2G and 3G modules offsetting some volume decline in 4G modules due to supply chain constraints. Telit leads the Latin America market and is among the top three vendors in North America.
China Mobile, Sierra Wireless and u-blox improved their market share in Q1. The world’s largest EMS, Foxconn, also entered our top ten module players list with growing demand in the CPE and connected PC segments. The relationship with top device makers, potential EV business growth and a focus on 5G technology, should help Foxconn to grow in this sector in the mid- to long-term.”
Commenting on cellular IoT technology evolution, Associate DirectorEthan Qi, said, “There is a significant shift happening in the adoption and proliferation of different cellular IoT access technologies, from LPWA (NB-IoT, LTE-M) to 4G (Cat 1, Cat 1 bis) to 4G Cat 3+, 5G and upcoming 5G Redcap. This is driven not only by the wide range of different applications, but also regional and operator adoption dynamics. NB-IoT is considered a key and fast-growing technology for low power IoT applications and has been widely adopted in China and some other parts of the world. Whereas LTE-M is preferred in markets such as Japan, Australia, North America, and parts of Europe. However, we are also witnessing many regions and operators favouring 4G Cat 1 and Cat 1 bis for some mature and some new IoT applications. While most of these technologies are complimentary, operators still have to selectively invest in one over others, depending on the IoT verticals of most importance to them.
As we see 5G rolling out, many of the advanced IoT applications such as automotive, router CPEs, PCs will move to 5G from advanced 4G technologies. Furthermore, the advent of 5G Redcap will also supplant some legacy technologies such as 3G/4G in some IoT applications. So, the entire IoT ecosystem has a wide array of cellular access technology solutions to choose from depending on the applications, data requirements, cost constraints and operator dynamics in a particular market.
The technology mix also shapes the overall cellular IoT module Average Selling Price (ASP), which declined by 3% annually in Q1 due to an increasing mix of lower cost 4G Cat 1 and 4G Cat 1 bis modules. Furthermore, the 4G Cat 4+ modules are still facing supply chain constraints and the % share of 5G modules remains small contributing to the overall ASP decline. We believe the 4G module supply chain issues will moderate later this year, but the falling ASP for 5G modules will provide an option for device OEMs to either select 4G or 5G modules moving forward.”
Commenting on which IoT applications are hottest, Research Vice President Neil Shah said, “Cellular IoT powers a diverse set of applications and the number of things that can be connected to the internet continues to rise.
Smart meters, POS and industrial were the top three applications in the global cellular IoT module market in Q1 2022. These segments are contributing to nearly 40% of total cellular IoT module shipments.
Smart meter projects have restarted in many markets post-COVID and the segment is seeing strong growth with shipments doubling compared to a year ago. Meanwhile, demand in the router/CPE segment is steadily growing as the supply constraints lessen and demand increases for FWA CPEs for the work-from-home segment, and 4G/5G upgrade projects increase for enterprise-grade routers across retail, factories, offices, etc.”
For detailed research, refer to the following reports available for subscribing clients and also for individual subscription:
Counterpoint tracks and forecasts on a quarterly basis 1500+ IoT module SKUs’ shipments, revenues, and ASP performance across 80+ IoT module vendors, 12+ chipset players, 18+ IoT applications and 10 major geographies.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
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.
India’s Connected Vehicle event is back offline after two years. Held in Bengaluru from May 4 to May 6, the event saw attendance from the chipset, NAD module, telematics, cybersecurity and mapping domains, besides regulatory bodies and communication service providers within the connected and autonomous vehicles ecosystem. Analysts from Counterpoint Research were also present. Here are their key takeaways from the sessions held at the event.
Connected, Autonomous, Shared, Electric and Smart Mobility
India is lagging in connected car penetration (17%) compared to the global market (43%). However, the country is also preparing for a shift towards smart electric mobility and focussing on local manufacturing. Such events will help Indian ecosystem players to remain updated on the latest in the field around the world and prepare themselves for the coming transformation.
5G Automotive Association, Tata Elxsi, Dell and what3words participated in this session and discussed the need for C-V2X technology for better communication, opportunities for ecosystem players from connected mobility, a paradigm shift from hardware to software-centric approach and a unique mapping solution that uses three keywords.
Source: Counterpoint Research Smart Automotive Services, 2022
Shifting Future of Automotive Industry to Top Gear with Connected Mobility
The rising demand for safety and comfort features is helping to increase connected car penetration. We expect more than 70% of cars will be connected by 2025 in the global market and one in four cars will have 5G connectivity. However, connectivity penetration will be lower than 40% in India by 2025.
This session mainly focussed on safety during driving, challenges in handling data generated from vehicles, creating actionable insights from telemetry data, and collaborative effort among OEMs and Tier-1 suppliers to make this transition smooth. Intel, Zeliot, VE Commercial Vehicles and Danlaw shared their understanding of this transition.
Driving Towards Connected, Secure, Autonomous & Electric Mobility
In the future, cars will be driven by software. We have already witnessed smartphone players such as Foxconn and Xiaomi entering this market. Data will be the new fuel and nearly 30% of the automotive market value will come from software and services. Moreover, electronic content in a car will rise with increasing smart electric mobility penetration.
According to Counterpoint’s latest research, India’s automotive electronics market will triple by 2027, driven by rising income levels and increasing customer preference for in-vehicle digital experience.
Collaborative efforts of all ecosystem players, whether OEMs, Tier-1 suppliers, regulatory bodies, system integrators or service providers, are important for a successful transition. The Indian government is also working to come up with AIS189 and AIS190 standards for connected vehicle security. Continental and Bosch share the same view on this topic and think a collaborative effort will be the key to connected mobility success in India. Secure Things highlighted how our vehicles are becoming more prone to safety issues and hacking. Both hardware and software level security will be required as preventive measures.
Emerging Technologies – Riding the Next Wave of Connected & Autonomous Mobility
Connected mobility is undergoing dramatic changes. Earlier, we used to connect smartphones to a car via Bluetooth or cable. Today, most cars come with embedded connectivity. In the future, cars will be able to communicate with other vehicles, pedestrians, networks, infrastructure, grid and home.
The upcoming connected and autonomous era will induce a huge influx of data for which substantial storage will be required. We expect Level 4 cars will require more than 1TB of data storage by 2025. Moreover, 30% of cars sold globally will support Level 2 or above. Western Digital is working on automotive storage products. It believes that one day storage will be a key feature at the time of selecting a vehicle. During this session, Bosch introduced Mobility Cloud Platform and Mobility Marketplace. This platform can support other IoT applications such as industrial and enterprise.
Download the full analysis from event sessions below:
ADAS – A Game Changer for Safe and Autonomous Driving
MG Motors introduced ADAS in India for the first time back in 2019 through its L1 SUV Hector. Even as ADAS technology is rapidly gaining acceptance in the global market, India is not that far behind. Currently, L2+ autonomy is being offered in most premium vehicles. With the changing landscape of vehicle architecture, the incorporation of ADAS will be easier and more cost-effective.
Windriver and Hexagon showed how the changing vehicle architecture will benefit system integration and deployment of autonomy. While Windriver has expertise in test and analysis of vehicle architecture and software and ADAS system, Hexagon helps deploy autonomy across sectors and platforms by blending the digital and physical worlds. Hexagon uses ML algorithms to create a simulation through well-captured surround photos. The simulation helps understand how a situation will look with automation, and also increases the accuracy of the automated process.
Shaping the Future of Mobility with IoT, Connectivity & Sustainability
The mobility roadmap is hugely dependent on connectivity. OEMs are constantly innovating to make the journey more pleasurable with better IVI system, better navigation, CV2X and ultimately autonomy, which will not be possible if a proper vehicular connection is not established. According to our research, global cellular IoT module shipments are expected to cross 1.2 billion units by 2030 with a CAGR of 12%. 5G will be the fastest-growing (60%) technology, followed by 4G Cat 1 bis, during 2022-2030. Among cellular IoT modules, global NAD module shipments are expected to reach 80 million by 2025, growing at 14% CAGR from 2021, with one out of every five connected cars projected to have embedded 5G connectivity by then.
Leading frontline companies like Cavli Wireless and MediaTek have shared some details about how they plan to increase connectivity across the automotive industry. As the future bets on autonomy, connectivity benefits are not just limited to in-vehicle internet browsing and autonomy but also extend to vehicle accident prevention, better navigation, precise tracking and more. In short, increased connectivity will enable a sustainable digital ecosystem that, if used properly, holds immense development potential.
Intelligent Transportation System to Promote Safety & Improve Mobility
Increased vehicle connectivity has made transportation safer, more reliable and timelier. Along with changing architecture and increased integration of improved software, the addition of newer technologies is becoming easier.
Intellicar, Skoda, and IBM took the stage to showcase how intelligent transport solutions could tackle some of the general and critical issues of the industry. Intellicar has a solution line from hardware and firmware customization to a low-latency data directory. Skoda showed how intelligent systems can reduce road accidents. IBM provided a global overview and discussed its strength as a software developer and system integrator.
Protecting Software-defined Vehicles with Cybersecurity Solutions
With the increased use of software and internet, present-day cars are no less than a computer and like every other computer, cars are also exposed to cyber threats like malware. If the system used in vehicles is not properly protected, a lot of damage can happen, including loss of life. Therefore, strong and effective anti-virus protection with an improved firewall is much required.
Escrypt, a cyber threat protection company, was of the view that vehicle data safety could be ensured through blockchain-based communication systems, smart gateways, cyber digital twin, AI-based detectors and other encryption systems.
Charting the Future of Connected Mobility with Automotive Telematics
The growing automotive sector holds a lot of potential for the development of new and smart technologies. The transition from conventional vehicles to EVs is also paving the road toward a sustainable connected future. Technologies that were limited to certain fields earlier are finding their way into the expanding automotive space. The use of security systems, blockchain, data tokenization and other platform-based and protocol-based technologies and services is penetrating the automotive space, making the sector more flexible, versatile and user-friendly.
Source: Counterpoint Research Smart Automotive Services, 2022
Market Outlook
Emerging technologies such as ADAS/AD, in-vehicle connectivity, upgraded cybersecurity for the software-defined vehicles, electric vehicles and connected vehicles are taking centre stage as the automotive industry undergoes a paradigm shift. The automotive supply chain is dynamically changing as well, with OEMs making huge investments and starting to adopt digital services to remain future-proof and not cede revenue monetizing opportunities to technology companies. Apart from traditional auto OEMs, the involvement of non-automotive tech companies has been increasing in this space. The future of the automotive sector will be heavily dependent on digital technology. Due to traditional auto OEMs’ lack of expertise in digitalization, non-automotive companies are partnering with them to secure a market share in this growing space.
London, Hong Kong, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – April 20, 2022
Global semiconductor chip shortages are likely to continue easing during the second half of 2022 as demand-supply gaps decrease across most components, according to Counterpoint Research’s latest smartphone Component Tracker Report.
These shortages have plagued many industries for the past two years and vendors across the supply chain have spent much effort dealing with uncertainties. Since late 2021, demand-supply gaps have been shrinking, signaling an approaching end to supply tightness across the broader ecosystem.
Inventory levels of 5G-related chipsets including mainstream application processors, power amplifiers and RF transceivers have increased significantly in 2022 Q1, easing the shortage for smartphone components rapidly. Though some exceptions still exist, like older-generation 4G processors as well as power management ICs.
Smartphone Component Shortage Outlook for 2022
Across PCs and laptops, the supply gap for the most important PC components like power management ICs, Wi-Fi and I/O interface IC has narrowed. “We saw OEMs and ODMs continued to accumulate component inventory to cope with uncertainties cropping up from COVID-19 earlier this year.” said research analyst William Li, who focuses on semiconductors and components.
However, Li suggests H1 2022 will see downward shipment revisions, largely due to increasing inventory in the channel and a slowdown in consumer PC momentum. “Coupled with wafer production expansion and continuous supplier diversification, we have witnessed significant improvement in the component supply situation, at least in the first quarter,” observed Li. “The big risk factor moving forward is the lockdowns happening across China right now, especially in and around Shanghai. But if the government can manage the outbreak and help key ecosystem players turn the corner quickly, we believe the broader semiconductor shortage will ease around late Q3 or early Q4.”
“Last year, supply tightness dovetailed with the rebound in consumer and business demand, causing a lot of headaches across the supply chain. But over the past few months, what we have seen is softening demand intersecting nicely with higher inventories,” observed Dale Gai, director of Counterpoint Research’s semiconductor and components practice. “The issue now isn’t shortages but shock to the system from lockdowns, which is having a domino effect across China at the moment.”
Industry and government alike have been focusing on dealing with the short-term risks associated with unpredictable and sharp production stoppages. Senior analyst Ivan Lam noted, “Holding the line is a priority, especially for local governments, and we have seen how some companies are able to continue operations as closed-loop systems. The supply chain was lucky last year, but this latest COVID wave is a big test the country needs to manage carefully but quickly. It is crunch time now and all eyes are on China.”
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.
Boston, Toronto, London, New Delhi, Beijing, Taipei, Seoul – November 18, 2021
Indonesia’s smartphone shipments declined 6% YoY in Q3 2021 mainly due to increased COVID-19 infections, according to Counterpoint Research’s Monthly Indonesia Channel Share Tracker. The ongoing global component shortages also played a role. Despite these challenges, the market managed to sustain volumes QoQ.
As components dictate the smartphone industry dynamics, nearly all of the Top 5 smartphone brands faced varying degrees of shipment challenges. OPPOemerged as the leader with a 22% share. It was least affected by the component shortage during the quarter. This is partly due to the limited impact from COVID-19 resurgence and social restrictions on OPPO’s manufacturing facility in Indonesia. Samsungcame in second as its performance improved driven by new launches. Gradual recovery from production issues related to the COVID-19 lockdowns in Vietnam played a part as well. vivo, Xiaomi and realme followed Samsung in the Top 5.
Xiaomi’s rank dropped in Q3 2021 compared to Q2 2021 due to component shortages. The rising cost of components forced the brand to increase prices on four models – Redmi 9A, Redmi 9C, POCO M3 Pro 5G and Redmi Note 10 5G – around mid-October.
Source: Counterpoint Research Monthly Indonesia Channel Share Tracker, September 2021
Consumer demand showed signs of recovery in Indonesia towards the end of Q3 2021, thanks to the continued flattening of COVID-19 daily infections and economic activities returning to normal. However, Indonesia’s smartphone industry growth outlook in the near future will be affected by supply uncertainties.
5G
Research AnalystPaula Ruth said, “5G smartphone contribution to total smartphone shipments jumped from 7% in Q2 2021 to 14% in Q3 2021. We see this proportion increasing towards the end of Q4 2021 and beyond. In Q3, XL Axiata passed the operational suitability trial required by the government to launch 5G in the country. The operator then started preparations for 5G commercialization by conducting 5G showcases in various big cities in Indonesia. Earlier, Telkomsel and Indosat had launched commercial 5G in Q2 2021. With operators’ efforts to expand 5G coverage in the country, there is a growing consumer preference for 5G smartphones.”
Online channels
While the online proportion of total shipments did not change much during the first two months of Q3, the online shopping festivals in September, like 9.9, gave a much-needed push to the channel. Online shipments accounted for 16% of total shipments in Q3 2021. This proportion is likely to increase to around 20% by the end of this year.
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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.
Pax, New POS and Ingenico led the global POS market in 2020.
China is the leading global POS market capturing half of it, followed by Latin America and Europe.
Retail, hospitality and healthcare industries are the top applications for the POS market.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – October 20, 2021
Global point-of-sale device (POS) shipments are expected to reach 270 million units by 2025 with a CAGR of 19%, according to Counterpoint Research’s latest “Global POS Market Tracker and Forecast”.
COVID-19 did have a negative impact on the global POS market as most of the retail shops were closed due to lockdowns in 2020. The hospitality sector witnessed a steep decline in shipments due to curbs on outdoor travel across the world during the pandemic. However, healthcare, warehouse and related O2O commerce saw rising POS shipments to ensure better patient and inventory management. Further, rising consumer awareness on cashless transactions, favorable government policies, and technological advancements are invigorating the POS terminals market with newer form factors and capabilities.
Commenting on the market dynamics and competitive environment, Vice President, Research, Neil Shah noted, “Chinese players are dominating the global POS market with 8 of the top 10 vendors hailing from China. However, all major regions are focussing on creating local POS supply chains. At the same time, we expect Chinese brands to increase their international presence to avoid losing market share due to the home market becoming mature. We believe the market is quite fragmented today but will see more consolidation over the next couple of years. Pax, New POS and Ingenico continue to lead the market in terms of shipment volumes.”
Global POS Market Share Landscape
Source: Counterpoint Global POS Market Report, August 2021
* Represents shipments for Ingenico brand only, Worldline group is tracked separately
Pax, with its robust supply chain, manufacturing facilities and R&D capabilities, will remain in a leading position in the global POS market, driven by a strong presence across China and Latin America. Moreover, a balanced portfolio across various connectivity technologies helps Pax widen its opportunities geographically.
New POS, the second-largest player, is focused more on 4G and non-cellular POS terminals. Smart, portable and multilane POSs are the top product categories offered by this brand.
Ingenico continues to be one of the leading brands across multiple Western markets. Its acquisition by Worldline group will bump up its market share and position.
Other important players such as MoreFun and Tianyu have a strong presence in China. Verifone and Ingenico capture nearly two-thirds of POS shipments in India. Verifone is also leading in the North American POS market.
Commenting on the future landscape, Research Analyst Soumen Mandal noted, “China dominates the global POS market and its market is fast becoming mature. Going forward, India will become the fastest-growing market (+38% CAGR) driven by the digital transformation of retail and rising consumer preference for online transactions. The rapid urbanization, globalization of employment and rising travel will foster the development of the POS market in hospitality segments. However, retail will be able to hold its top position in this market based on strong performance across India and Latin America. The rising use of POS terminals in the transportation, government, education, banking and ride-hailing sectors is expected to open new application areas.”
Global POS Market Forecast Insights
*Notes: NAM – North America, LATAM – Latin America, MEA – Middle East Africa, RoW – Rest of World
4G will evolve as a dominant technology driven by the smart POS terminals growth.
Data security concerns, high maintenance costs and checkout-free offline retail model will be major challenges for the POS market.
However, artificial intelligence (AI) and machine learning (ML) integration in POS terminals for fraud detection and prevention, integrated customer loyalty programs and dematerialization of cards is driving this market.
mPOS devices with large displays and near-field communication (NFC) features are the latest trends in this market.
With more regulatory encouragement and the young generation’s aversion to carrying cash, the global POS market will see more growth in the coming years.
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.
Hong Kong, London, Boston, Toronto, New Delhi, Beijing, Taipei, Seoul – August 11, 2021
Thailand smartphone shipments grew 18% YoY in Q2 2021, according to Counterpoint Research’s Monthly Thailand Channel Share Tracker. A slowly recovering economy after the second wave of COVID-19, availability of mid-tier 5G devices, and higher penetration of online sales drove smartphone volumes during the quarter.
Commenting on the factors that led to this growth, Senior Research Analyst Glen Cardoza said, “Thailand was reeling at the beginning of the quarter but the cases started to decline during late May and June. As a result, the authorities relaxed COVID-19 restrictions and opened parts of the country to tourists. This brought some relief to the economy and the impact was visible in the smartphone segment as well. However, the trend was short-lived. The cases have started to rise again. With only 11% of Thailand’s population vaccinated with at least one dose, we are seeing restrictions coming back in place.”
While OPPO became Thailand’s leading smartphone brand in Q2 2021, Xiaomi saw the strongest growth due to its increasing offline reach, the introduction of the affordable 5G Note series, and growth from its sub-brand POCO. Xiaomi rose from the fourth position in Q2 2020 to share the second position with Samsung in Q2 2021. Samsung maintained its focus on the premium Galaxy S-series and the affordable A-series throughout the quarter. Even vivo pushed its 5G models like the V21 5G and Y52 5G.
Online share made up 19% of the total shipments in Q2 2021 and the overall online volume increased by 50% compared to Q2 2020. E-commerce sales continue to surge in Thailand this year for almost all product categories. As H1 2021 showed promise with an increase in smartphone shipments, online channels continue to aid volume distribution across the country.
Commenting on operator initiatives, Cardoza said, “Thailand’s three main operators (AIS, TRUE, and Dtac) are racing to cover the country with 5G connectivity. The fact that the number of 5G subscriptions went up in the last quarter itself is fuelling their initiatives. Dtac has been busy covering all provinces with its 700MHz spectrum while AIS has been partnering with other ecosystem players like OTT platforms to give more value in packages.”
Compared to last year’s 3%, 5G compatible smartphones made up 34% of the shipments in Q2 2021. This is set to increase by the end of 2021. Thailand has the highest proportion of 5G smartphones in the region. This is attributed to the swift rise of 5G infrastructure and telecom initiatives in the past year and a half. Top smartphone OEMs have been consistent with their 5G launches. Some of the models which are doing well are the OPPO Reno 5 series, vivo Y72 5G, Mi 11, Redmi Note 10 series, Samsung Galaxy S21 series, and the realme Note 8 series.
Going forward, the resurgence in COVID-19 will dictate changes, if any, in Thailand’s Q3 smartphone shipments.
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.
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Commenting on the competitive dynamics, Associate Director 
