Quectel and Fibocom maintained their market leadership while China Mobile overtook Telit Cinterion to become the third largest player.
The top three applications accounted for around 51% of shipments in Q2 2023 compared to 41% in Q2 2022.
For the full year 2023, global cellular IoT module shipments are expected to remain almost flat compared to 2022.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Taipei, Seoul – October 16, 2023
Global cellular IoT module shipments saw a 3% YoY decline in Q2 2023, according to Counterpoint’s latest Global Cellular IoT Module and Chipset Tracker by Application report. The decline was driven by factors such as lower demand and weaker economic sentiments. Barring the top three applications – smart meters, point of sale (POS) devices and automotive, most segments experienced a sharp drop in shipments. The top three applications – smart meters, POS devices and automotive – accounted for about 51% of the market in Q2 2023. India was the only market to register positive shipment growth for the quarter.
Commenting on the market dynamics, Associate Director Mohit Agrawal said, “In Q2 2023, many of the module players experienced shipment declines as the market shrunk for the first time since the start of COVID-19. The pandemic-induced demand for connected devices is wearing off while the digital transformation efforts in industrial and other key verticals are yet to translate into shipments. Quectel’s revenue from international markets surpassed its revenue from China. Chinese module vendors are increasingly coming under US scanner for security concerns. This scrutiny could potentially challenge their global expansion plans, paving the way for other vendors to seize more opportunities.”
Quectel, the leading module vendor, experienced a decline in its market share due to weakened demand.
China Mobile, with strong performance in smart meter, POS and asset tracker applications, overtook Telit Cinterion to become the third largest player in the global cellular IoT module market.
Telit Cinterion faced challenges due to the market downturn. With India expected to be the fastest-growing market by 2030, Telit recently partnered with VVDN to produce IoT modules in the country and increase its presence there.
Commenting on the future outlook, SeniorResearch Analyst Soumen Mandal said, “IoT module shipments for the full year of 2023 are expected to remain flat compared to 2022. The IoT module market’s performance in H2 2023 will be better than in H1 2023 as the market is showing early signs of recovery. However, the lower demand is influencing the market’s long-term growth trajectory, with the current demand shifting by 2-3 years.”
Mandal added, “The adoption of 5G technology has been slower than expected, primarily due to its higher costs, coverage issues and maturity of the 5G device ecosystem. The forthcoming 5G RedCap has the potential to become the industry’s game changer by offering a more affordable solution. Early adoption of 5G RedCap is expected in POS and router/CPE applications.”
For detailed research, refer to the following reports available for subscribing clients and individuals:
Counterpoint tracks 1,500+ IoT module SKUs on a quarterly basis and provides forecasts on shipments, revenues and ASP performances for 80+ IoT module vendors, 12+ chipset players and 18+ IoT applications across 10 major geographies.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Renesas acquires Sequans Communications for $249 million, expanding into the cellular IoT market.
The acquisition provides Renesas access to Sequans’ expertise, customer base, and partnerships in the 5G/4G cellular IoT sector.
With cellular IoT module shipments expected to exceed 1.2 billion units by 2030, this strategic move aligns with Renesas’ expansion plans and reflects a broader trend of consolidation in the IoT market.
Japanese semiconductor manufacturer Renesas Electronics has acquired France-based Sequans Communications, a pioneer in 5G/4G cellular IoT chips and modules. The acquisition will enable Renesas to expand its portfolio and expertise in the rapidly growing cellular IoT market. Although Renesas is a prominent name in the world of microcontroller units, the company has not historically specialized in connectivity.
According to the deal, Renesas will purchase all outstanding common shares of Sequans, including American Depositary Shares (ADS), for $3.03 per ADS in cash. This values Sequans at around $249 million, considering net debt. The transaction is expected to close by Q1 of calendar year 2024, subject to regulatory approvals.
Here are some analysis of the deal between Renesas and Sequans:
Renesas acquires Sequans to bolster its cellular IoT capabilities and tap into the expanding market. With this acquisition Renesas gains access to Sequans’ US and European customer base, enhancing global reach and market growth.
The partnership between Renesas and Sequans, which began in 2020, has already resulted in successful collaborations to develop modules that combine embedded processors and analog front-end products with wireless chipsets for IoT applications. Sequans has the broadest product portfolio of its non-Chinese competitors except Qualcomm which is why Renesas acquired Sequans.
The Renesas-Sequans collaboration is primed to meet the rising demand for smart solutions. The merger offers diverse choices for customers seeking to reduce dependence on the Chinese ecosystem and gain valuable expertise from a single source.
Renesas plans to integrate Sequans’ connectivity products, aiming to strengthen its presence in the Wide Area Network (WAN) market. They will collaborate on 5G and high-performance 4G modules based on Sequans’ Taurus 5G modem and Renesas’ analog front-end tech.
Renesas’ Acquisitions Over Time
Source: Counterpoint Research
Conclusion
According to Counterpoint’s report on IoT trends, the IoT market is highly fragmented, with over 4,000 players in IoT value chain competing for a share. This fragmentation has led to low margins and has made it difficult for companies to grow and expand. Consequently, there has been a wave of consolidation in the market, with companies merging or being acquired by larger players, a trend that is expected to continue as the market matures. In 2022, there were significant acquisitions within the IoT module industry, such as Telit’s acquisition of Thales and Mobilogix’s cellular IoT divisions, Semtech’s acquisition of Sierra Wireless, and Aeris Communications’ acquisition of Ericsson’s IoT accelerator and connected vehicle cloud business. As the cellular IoT module market continues to mature, we expect more consolidations aimed at providing improved solutions and maintaining competitiveness. Non-Chinese brands are now following the trend of becoming integrated players in the IoT value chain like Chinese module vendors, and it seems like Renesas is also following suit. For Renesas to compete with Chinese module giants like Quectel and Fibocom, it is crucial for them to develop a strong and effective business strategy specific to each international market they want to operate in.
For detailed research, refer to the following report available for subscribing clients and individuals:
Results driven by design wins in the automotive and industrial application sectors.
EMEA had the highest growth in revenue at 31% YoY and surpassed the Americas in terms of contribution.
u-blox to experience a reduction in revenue in Q3 2023 and remain sluggish in H2 2023.
Global wireless and positioning technologies leader u-blox’s H1 2023 revenue rose 17% YoY to reach $364.3 million, primarily driven by successful design wins within the automotive and industrial application sectors. However, gains were limited by a decline in consumer revenue.
During u-blox’s earnings call, CEO Stephan Zizala touched upon several important topics like significant design wins, prevailing macroeconomic challenges, and the company’s proactive management strategy for the future.
Macroeconomic Situation and Outlook
CEO: “In a softening macroeconomic and global semiconductor market environment, our order book for H2 2023 developed more slowly than initially anticipated. Mainly due to unfavorable FX rates and overstocking, we expect Q3 revenues and profitability to be weak, with an improvement in Q4.”
Our analyst take: “The IoT module industry is decelerating because of broader macroeconomic conditions and a softening semiconductor market. Key players in the cellular IoT module sector, including Quectel and Telit Cinterion, have witnessed a reduction in growth compared to H1 2022. However, during H1 2023, u-blox achieved significant double-digit expansion, despite significant constraints from the global semiconductor supply chain shortage.”
“However, u-blox is expected to experience a reduction in revenue in Q3 2023 as demand remained weak in the key North American region during H1 2023 and will likely remain sluggish in H2 2023. However, u-blox is optimistic about Q4.”
Management Strategy
CEO: “While we must deal with cycle adaptation, I remain very confident about u-blox’s long-term outlook and growth trajectory, thanks to our strong structural growth drivers in automotive and industrial target applications. We are winning important new projects at leading customers. A large design win for automated driving ramping in 2026 and an innovative approach for satellite IoT connectivity are testimony to these future development prospects.”
Our analyst take: “The automotive industry is undergoing a significant transformation towards electrification and autonomy. This transition highlights the importance of connectivity and navigation, emerging as crucial factors. u-blox stands out from other GNSS competitors due to its exceptional GNSS quality and centimeter-level precision in positioning.”
“Apart from its focus on GNSS and cellular technology, u-blox’s recent collaborations with satellite player Orbcomm leverage its strides toward present-day trends. The aim is to offer hybrid connectivity solutions (combining cellular and satellite capabilities) catering to agriculture, asset tracking, and maritime applications, promising enhanced coverage and communication. However, u-blox is set to encounter intense competition from Quectel, Fibocom, and Telit Cinterion, as they have already introduced hybrid connectivity modules.”H1 2023 Highlights:
u-blox’s gross profit increased 12% YoY in H1 2023 to reach $171 million.
The industrial sector accounted for 65% of the total company revenue and experienced a robust 26% YoY growth. This growth was attributed to significant demand in asset tracking applications.
The automotive segment also exhibited growth, increasing 24% YoY and accounting for 30% to the overall revenue, driven by the acceleration of electric vehicle adoption and advancements in autonomy.
Conversely, the consumer and other segments faced a decline of 55% YoY, accounting for only 5% of the total revenue. This decline was primarily driven by decreased consumer demand starting from mid-2022.
Among regions, APAC was the highest contributor, capturing 43% of the market with 30% YoY growth due to demand from automotive customers and safety stock buildup for healthcare customers. EMEA shows the highest growth with 31% YoY and contributed 32% of the market surpassing Americas with a ramp-up of the tracking business and 2022 order backlog. However, the US region’s revenue fell 12% YoY, accounting for only 25% of the market due to demand reduction in healthcare and consumer applications.
In H1 2023, modules and chips accounted for 80% and 19% of the total revenue, respectively. Module volume grew 9% YoY growth in H1 2023, while chip volume saw a remarkable increase of 31% YoY.
In the module revenue segment, the GNSS module retained its leading position, generating over half of the total revenue. This is attributed to the exceptional quality and precision of u-blox’s GNSS products. The collaboration with GMV resulted in significant design wins, merging u-blox’s GNSS receiver hardware with GMV’s secure correction service, sensor fusion and positioning engine. Furthermore, u-blox has partnered with Position Partners to introduce the PointPerfect GNSS augmentation service to Victoria and New South Wales. This marks the initial phase of the service’s rollout within the Australian and New Zealand markets.
In H1 2023, the Wi-Fi/BT module segment grew 10% YoY. u-blox’s latest release, the JODY-W5, introduced the newest dual-band Wi-Fi 6 and dual-mode Bluetooth® 5.3 module, featuring Bluetooth LE audio within a compact form factor. This design is aimed at preventing wireless network congestion within vehicles while simultaneously enhancing audio capabilities.
According to Counterpoint Research’s Cellular IoT Module Tracker service, u-blox’s cellular IoT module segment grew 18% YoY in H1 2023 to reach $106 million. u-blox has accelerated its adoption of tracking applications driven by the strong performance of its UBX-R5 chipset-based LPWA and LTE-M modules.
Conclusion
Given the macroeconomic challenges characterized by adverse shifts in FX rates and customer overstocking, u-blox’s market outlook for H2 2023 suggests a substantial deceleration. The rise in inventory levels is expected to lead to a decrease in profitability during Q3 2023, followed by a recovery in Q4 2023. However, the demand and requirements for semiconductor solutions, particularly in domains such as autonomous driving, asset tracking and industrial automation, are poised for substantial growth. u-blox remains strategically positioned to capitalize on this growth trend due to its strong expertise in positioning technology and wireless connectivity, which is expected to result in more design wins.
Quectel maintained its dominant position globally and in China, the largest IoT module market.
The newly merged entity Telit Cinterion climbed to the second spot. It was followed by Fibocom.
The top three applications – smart meter, POS and router/CPE – formed more than half of the total shipments.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Taipei, Seoul – July 19, 2023
Global cellular IoT module shipments (excluding automotive embedded and telematics modules) remained flat in Q1 2023 when compared to the same period of last year, according to Counterpoint’s latest Global Cellular IoT Module and Chipset Tracker by Application report. However, when compared to Q1 2020, the shipments more than doubled in Q1 2023. Quectel, Telit Cinterion and Fibocom captured more than half of the total cellular IoT module shipments in Q1 2023.
The demand for cellular IoT in applications such as smart utilities, payment terminals and FWA CPE routers and gateways remained healthy during the quarter. But the demand for cellular modules across enterprise digital transformation and industrial projects remained soft. With current uncertain market scenarios, enterprises are being cautious with their expenditures. China and India registered positive growth in shipments while the US, Latin America, Japan, South Korea and Eastern Europe saw a YoY decline.
Commenting on the market dynamics among cellular IoT module OEMs, SeniorResearch Analyst Soumen Mandal said, “The cellular module market is going through a unique transition both regionally as well as technologically, with the two being intertwined. Low-power and low-cost technologies such as LTE-M, NB-IoT and LTE CAT-1 (and 1 bis) are seeing rapid adoption in China. This has driven a flood of chipset and module providers catering to the strong push from all the stakeholders for the adoption of cellular IoT at scale. On the other hand, we are seeing rapid consolidation and exits of cellular module vendors in markets outside China, where the technology adoption is fairly fragmented and varies across geographies. 5G will further drive consolidation in a couple of years. Therefore, these underlying dynamics are shaping the competitive landscape differently in China and the rest of the world.”
Globally, Quectel led the cellular IoT module market in Q1, followed by the newly merged entity Telit Cinterion, formed after the acquisition of Thales’ cellular IoT module business by Telit last year. The third spot was taken by another China-based fast-growing player Fibocom. Together, these three players held over half of the market’s shipments in Q1. Among the leading IoT module vendors, Neoway demonstrated the highest growth, followed by u-blox. The world’s largest IoT telecom operator in terms of connections, China Mobile, maintained its second position in the Chinese market. Among other vendors, Unionman entered the top-five module vendors list in China, thanks to its impressive performance in NB-IoT and 4G Cat 1 bis modules.
Quectel maintained its leadership position in its domestic market China as well as globally. Its lead in the Americas, India and MEA regions also contributed to its strong position. All this helped Quectel widen its shipment share gap with the nearest competitor. The company’s strong performance is being driven by its broader, integrated portfolio and strong on-the-ground Field Application Engineering (FAE) support.
Telit Cinterion climbed to the second position in the global market after the merger, helping the erstwhile Telit bridge the gap with Quectel in the international market excluding China. Telit Cinterion is now one of the largest Western IoT Vertically integrated to some extent, Telit Cinterion enjoys a strong position in high-value North American and European markets and will further expand in other high-scale markets in the near- to mid-term.
Fibocom experienced impressive growth in Q1 2023 to stand out among the top three global players. Its presence in the router/CPE and POS segments helped Fibocom enter the top-three list for China and the top-five list for international markets excluding China.
Among the top 10 applications, the smoke detector experienced the highest growth, followed by the residential and smart meter segments. The top three applications in terms of shipments – smart meters, POS systems and router/CPE solutions – collectively contributed to more than half of the cellular IoT market.
Commenting on the IoT market outlook for 2023, Associate Director Mohit Agrawal said, “The global cellular IoT module market is expected to witness subdued growth this year as the 4G/5G cellular module growth remains muted due to higher ASP. However, we expect the demand for cellular IoT modules to rebound in the coming years. The mass production of affordable 5G RedCap-based modules, scheduled for the end of this year, is expected to drive the adoption of 5G in the IoT module market. Applications such as smart meters, POS, and router/CPE solutions will play a crucial role in driving both the value and volume of the IoT module market in coming years and will be key focus segments in the near- to mid-term. In the longer term, the demand for IoT modules will be driven by massive IoT applications and the industrial segment. It is projected that IoT module shipments will grow at a compound annual growth rate (CAGR) of 11% between 2023 and 2030.”
*The IoT module here encompasses all applications supported by cellular IoT modules, except for automotive and telematics applications.
For detailed research, refer to the following reports available for subscribing clients and individuals:
Counterpoint tracks 1,500+ IoT module SKUs on a quarterly basis and provides forecasts on shipments, revenues and ASP performances for 80+ IoT module vendors, 12+ chipset players and 18+ IoT applications across 10 major geographies.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
Quectel and Qualcomm dominated the cellular IoT module and chipset markets, respectively.
NB-IoT is still popular among technologies but is expected to lose some market share to 4G CAT1.bis in 2023.
5G adoption to get a boost in 2024 if ASP declines to sub-$100 and 5G RedCap-based solutions become available.
China continues to lead IoT module market, followed by North America and Western Europe.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – March 29, 2023
Global cellular IoT module shipments grew 14% YoY in 2022 to register record high annual volume, despite macroeconomic headwinds, according to Counterpoint’s latest Global Cellular IoT Module and Chipset Tracker by Application report. The resumption of smart meter implementation, ongoing retail POS upgrades, intelligent asset tracking and the continued growth in connected cars due to progress in electrification and autonomous capabilities were some of the key drivers for the double-digit percentage growth in demand for IoT modules.
China continued to lead the global cellular IoT module market in terms of demand, followed by North America and Western Europe. Meanwhile, India was the fastest growing market, followed by Latin America and North America. Although India has a smaller base, it has immense potential. Eastern Europe was the only region that registered a decline due to the prolonged Ukraine-Russia war.
Commenting on the competitive dynamics among cellular IoT module OEMs, Senior Research AnalystSoumen Mandal said, “In 2022, Quectel was the top cellular IoT module player in China, the world’s largest market for these components. Meanwhile, China Mobile and Fibocom captured second and third place, respectively, enjoying their tremendous scale in the domestic market. Outside of China, Quectel remained the leader followed by Telit and Thales which have merged and will commence operations as a new brand, Telit Cinterion, starting Q1 2023.
Quectel increased its focus in the consolidating automotive (NAD module) segment in 2022 and secured multiple design wins with major automakers. The competition in the NAD module market is intensifying as the industry transitions to 5G connectivity. With every transition of cellular technology, we have seen the market consolidate as it becomes increasingly challenging to serve the automotive segment, which requires heavy customization but garners a lower margin.
China Mobile, the world’s largest CSP and IoT connectivity player, is becoming more vertically integrated by leveraging its massive scale to capture maximum value. It has the potential to break into the top three global cellular IoT module rankings this year. However, the company primarily operates in China and will need to expand into other verticals and markets via a robust partnership model to maintain its momentum.”
Commenting on the IoT cellular connectivity chipset player dynamics, Associate Director Ethan Qi said, “Qualcomm continued to dominate the cellular IoT chipset market in 2022 with nearly 40% shipments share. Qualcomm strengthened its position in the LTE CAT 4 and higher technologies while also maintaining a dominant position in the 5G market. Qualcomm recently launched its latest 4G CAT1.bis chipset, QCX216, to compete head-on with the LTE CAT1.bis leaders UNISOC and Eigencomm.
Qi added, “In 2022, UNISOC and ASR maintained their second and third positions due to strong adoption of the fast-growing LTE CAT1.bis and CAT 1 based modules, respectively. During the year, two new players from China, Eigencomm and Xinyi Semiconductor, broke into the top five cellular IoT chipset vendor rankings, filling the gap left by Hisilicon. Eigencomm focuses on NB-IoT and 4G CAT1.bis applications while Xinyi Semiconductor focuses on NB-IoT chipsets, both being low-cost but high-volume segments.”
Commenting on the technology landscape, Mandal added, “During 2022, NB-IoT remained the most popular LPWA IoT connectivity technology followed by the fast-growing 4G CAT 1 and 4G CAT 4 modules. Together, these contributed to 60% of the total IoT module market. For most of 2022, China was under lockdown due to the resurgence of COVID-19 which drove greater demand for products such as smart door locks, digital thermometers and wearables, mostly powered by NB-IoT.
NB-IoT saw strong adoption in China but has been less popular outside the country. In contrast, 4G CAT.1bis has been gaining traction globally and has the potential to be an alternative to several NB-IoT and existing 2G/3G applications such as smart meters. However, 5G saw slower adoption in IoT than in smartphones last year due to the higher module costs. The key initial 5G applications are PCs, CPEs and some industrial/enterprise applications.
We believe 5G will enter the mainstream market once the module ASP breaks the sub-$100 barrier and receives a further boost from the 5G RedCap commercialization in coming years.”
Commenting on the IoT market outlook for 2023, Associate Director Mohit Agrawal said, “Global cellular IoT module shipments (including NAD modules) are expected to register robust growth of 19% YoY in 2023. The growth of IoT module shipments in the high-value industrial segment will be key for the IoT projects that have struggled to move beyond the pilot stage and for companies that are focusing more on ROI in a tough macroeconomic environment. Nevertheless, shipments of IoT modules for the smart meter, point of sale (POS) and the automotive markets are expected to continue seeing strong growth, which will offset a slowdown in other segments.”
The market has been undergoing consolidation across the IoT value chain from module players and connectivity management to IoT platform players. This has highlighted the importance of scale, choosing the right vertical and capturing value by striking the right partnerships or developing the right capabilities. We could see some more exits and mergers in 2023 because IoT, which is very vertical driven, has been seeing volatile growth due to internal or external factors.”
For detailed research, refer to the following reports available for subscribing clients and individuals:
Counterpoint tracks 1,500+ IoT module SKUs on a quarterly basis and provides forecasts on shipments, revenues and ASP performances for 80+ IoT module vendors, 12+ chipset players and 18+ IoT applications across 10 major geographies.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
At the first full-fledged CES event after the pandemic, the excitement was palpable. The event did not disappoint in terms of the variety of announcements across the internet of things (IoT) spectrum. Our teams, both on-ground and online, tracked over 260 announcements made by over 240 companies covering a range of segments across consumer, enterprise and industrial.
Devices formed the most popular category, with three out of every five announcements relating to this segment. As expected, the consumer and smart home sectors took center stage, but it was intriguing to see new launches in industry segments such as agriculture. Additionally, smart home, metaverse, augmented reality, healthcare and robotics were among the most talked about segments, attracting large crowds.
Here are the top 10 IoT announcements from this year’s CES, according to Counterpoint analysts:
MediaTek introduced the Genio 700 IoT chipset targeting industrial, smart home and smart retail applications. This chipset will be available by Q2 2023. MediaTek also showcased Wi-Fi 7-supported products like gateways, mesh routers, televisions, streaming devices, smartphones, tablets and laptops partnering with TP-Link, Lenovo, Hisense, ASUS, BUFFALO INC, Skyworks, AMD, Qorvo, LitePoint and MAC MLO among others.
MediaTek is slowly diversifying its offerings beyond smartphones. The availability of products with superior capabilities and increased partnerships will help MediaTek increase its footprint in the IoT market.
2. Smart Home: TP-Link expands Tapo smart home products
TP-Link unveiled new products under its Tapo line of smart home devices. These new additions include cameras, a doorbell camera, a smart video door lock, robot vacuums and a smart hub home connection center. Besides, the company also launched its first Matter-certified smart plugs, smart switches, smart outlet extenders and smart bulbs. The launch of these products at CES 2023 highlights TP-Link’s focus on expanding and diversifying its offerings in the smart home market.
The company’s adoption of the Matter protocol for its Tapo and Kasa lines of smart home products shows its commitment to making smart home technology more accessible and user-friendly.
In addition to the smart home products, TP-Link also showcased Wi-Fi 7-supported router and gateway solutions for use in homes, enterprises and ISPs. The integration of Wi-Fi 7 will improve the gaming experience, as well as increase productivity in enterprise applications.
3. Asset Tracking: Pod introduces paper-thin tracker with SODAQ, Lufthansa
Pod Group, in partnership with SODAQ and Lufthansa Industry, has developed a paper-thin smart label tracking device that utilizes low-power cellular connectivity (LTE-M) for a battery life of up to six months. This sustainable, eco-friendly device uses alkaline batteries instead of lithium and has the potential to revolutionize the tracking and logistics industry by improving supply chain efficiency and reducing operational costs.
Similar efforts by SODAQ with Vodafone and Bayer utilizing NB-IoT technology have been observed, but the use of Low Power Wide Area Network (LPWAN) may be more beneficial as it targets a wider range of telecommunications operators.
Bosch Group subsidiary Bosch Sensortec presented a variety of new sensors at CES 2023. These offerings include an AI-enabled smart sensor system, magnetometer, barometric pressure sensor, and an air quality sensor. These sensors demonstrate advancements in power efficiency, accuracy and compact size, and aim to enhance the user experience by tracking personal health and fitness, providing accurate data and prolonging battery life.
Bosch has been a leading manufacturer of micro-electromechanical system (MEMS) sensors since 1995 and has produced over 18 billion units to date. It is also investing in quantum sensors, which can provide measurements that are significantly more precise than current MEMS sensors and enable more accurate diagnosis of neurological diseases. Additionally, the company is developing angular rate sensors that use the nuclear magnetic resonance of noble gas atoms and are optically pumped. These could prove to be highly precise and stable for navigation applications. Bosch believes that sensors will play a key role in IoT and continues to make investments in this area.
Quectel is partnering with Skylo to integrate satellite connectivity into its 5G-ready BG95x/BG77x series of LPWA modules. This hybrid connectivity solution improves network coverage and makes it ideal for a variety of applications, such as trackers, wearables, smart cities and smart meters. Low-earth orbit (LEO) satellites are going to be a key for the non-terrestrial networks (NTN) coming up in 3GPP Rel17/18 in addition to the high-altitude platform system (HAPS).
Quectel also launched the AG59X series of automotive-grade 5G modules based on Qualcomm’s SA525M platform to support autonomous driving. The company has strong partnerships with Chinese automakers such as Li Auto, Nio and BYD, and this module will further strengthen its efforts to increase share in the automotive connectivity market.
6. AR/VR: Thundercomm unveils XR2 VR HMD, 5100 AR glasses and smart vending machine
Thundercomm, a joint venture between Thundersoft and Qualcomm, unveiled a VR HMD solution based on the Snapdragon XR2 platform and AR glasses based on the Snapdragon W5 platform. These products will not only provide flagship experience but also offer low power consumption, higher resolution and more wear comfort. The AR/VR space is heating up with the increased participation from leading technology and smartphone players such as Meta, Apple, HTC and Google. However, an early entry can be beneficial for Thundercomm.
The newly launched smart vending machine will help increase operational efficiencies for retailers. Moreover, this solution will improve the shopping experience and further extend retailers’ reach. Thundercomm is expanding its product lines to capture maximum value from both the consumer and enterprise IoT markets.
Autel Robotics has unveiled a new drone, the EVO Max 4T, which is capable of a variety of applications such as autonomous navigation, semi-autonomous flight missions, firefighting, and inspections. It is equipped with three high-quality cameras, capable of capturing footage from a distance of 1.2 km. Autel has also released the Dragonfish NEST infrastructure, which supports automated eVTOL systems, and the EVO NEST infrastructure, which can operate in all weather conditions.
Drones and eVTOLs will see higher adoption in the future with better efficiency in power consumption, security improvements and better regulatory compliances. These innovations will help Autel increase its presence in the enterprise market and remain competitive with companies like DJI.
8. Industrial IoT: ZVISION partners NVIDIA to improve industrial sensing
ZVISION, a provider of solid-state MEMS LiDAR solutions, is working with NVIDIA to use its robotics simulation platform Isaac Sim to develop advanced robot sensing capabilities and provide high-performance LiDAR solutions.
In Industry 4.0, robotics and simulation will play a key role. Its partnership with NVIDIA will allow ZVISION to expand its applications beyond vehicles, while also reducing costs and speeding up time-to-market for companies undergoing digital transformation. ZVISION offers both short- and long-range LiDAR options that can be tailored to various applications.
9. Platform: Tuya pushes PaaS 2.0, Cube for digital transformation
Tuya officially launched PaaS 2.0 to develop personalized solutions to fulfill global customers’ demands for “product differentiation and independent control”. For private cloud customers, it also unveiled Cube, an enterprise-level IoT platform deployment solution.
PaaS 2.0 is a unique innovation that can assist customers in reducing R&D costs and increasing product competitiveness. Tuya is focusing on public and enterprise cloud applications which are dominated by big cloud players like Alibaba cloud and Tencent cloud.
10. Healthcare: OMRON launches blood pressure monitor with ECG
OMRON introduced a new upper-arm blood pressure monitor with built-in ECG capabilities. This device aims to facilitate the early detection of heart disease by combining blood pressure monitoring and ECG technology. Utilizing home-monitored data, healthcare professionals will be able to provide early treatment and detect Atrial Fibrillation (AFib) at an early stage.
The company also announced the expansion of its digital healthcare apps with new features, such as the Personal Heart Health Coach and the Care Team within the OMRON Connect app. These new features will utilize AI technology to analyze vital data and provide patients with personalized guidance and exercise advice. OMRON’s innovative solution, leveraging technologies like AI, ML and IoT, will help healthcare professionals to better understand patient data through analysis.
Conclusion
CES 2023 has provided ample food for thought for industry executives. Each of the announcements made at the event has significant implications for the direction of the industry. For example, the satellite-related announcements made by chipset and module players could help IoT companies focus on new use cases. Additionally, with Wi-Fi 7 becoming mainstream and Matter-certified home products being rolled out, we can expect to see a significant uptick in demand for smart home products. These developments and more continue to shape the future of IoT and solidify the role technology plays in our daily lives. With more innovation, the possibilities are endless and we are excited to see how the industry will continue to evolve.
China led the global cellular IoT module market in Q3 2022 despite losing volume share. China was followed by North America and Western Europe.
Smart meter, POS, automotive, industrial and router/CPE were the top five applications in terms of volume this quarter.
Automotive, router/CPE, PC, industrial and POS were the top five applications in terms of value this quarter.
The top three technologies in terms of volume were NB-IoT, 4G Cat 1 and 4G Cat 4. They captured more than 60% of the total volume in Q3 2022.
The top three technologies in terms of value were 5G, 4G Cat 4 and 4G Other. They captured nearly two-thirds of the total value in Q3 2022.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – December 27, 2022
Global cellular IoT module shipments grew by only 2% YoY in Q3 2022, according to the latest research from Counterpoint’s Global Cellular IoT Module and Chipset Tracker by Application. China led the market followed by North America and Europe. China’s shipments decreased 8% YoY in this quarter due to a resurgence of COVID-19 cases. However, some of this demand decline was offset by an increase in the residential, smart door lock, patient monitoring, registrar device, smoke detector, drone, smart meter and automotive applications. Other markets such as North America, Western Europe, India, Japan, Latin America, and Middle East and Africa witnessed healthy growth.
Commenting on the competitive landscape, Associate DirectorEthan Qi said, “Quectel is leading the cellular IoT module market, followed by Fibocom, Sunsea AIoT, China Mobile and MeiG. China is dominating this market with all the top five IoT module vendors being from the country. In the past few months, we have seen some consolidation among international players, like Telit taking over Thales’ IoT business and Semtech acquiring Sierra Wireless in the IoT module space to remain resilient against Chinese module vendors. With the increasing adoption of IoT technologies in various sectors, many players will consolidate to get bigger value from this fragmented value chain.”
Commenting on the important underlying technology dynamics shaping the entire IoT ecosystem, SeniorResearch Analyst Soumen Mandal said, “The IoT module market is undergoing changes as demand for low-end technologies like 2G and 3G declines and shifts towards 4G Cat 1 and 4G Cat 1 bis, where higher-end applications are upgrading from 4G to 5G. In this quarter, the top three technologies in terms of shipments – NB-IoT, 4G Cat 1 and 4G Cat 4 – accounted for over 60% of the total shipments. However, in terms of revenue share, 5G, 4G Cat 4 and 4G Other were the top three technologies and held nearly two-thirds of the total revenue. The lower-end technologies such as NB-IoT, 4G Cat 1 and 4G Cat 1 bis are helping connect a greater number of IoT devices, while higher-end technologies like 4G Cat 4, 4G Other and 5G are adding more value to the IoT ecosystem. This is why the automotive, router/CPE, PC and industrial segments, which rely mostly on higher-end technologies, are generating more revenue.
During this quarter, we saw some 4G Cat 1 and 4G Cat 1 bis-based applications being replaced with NB-IoT. Chinese NB-IoT chipset companies Eignecomm and Xinyi have improved their partnerships with module players, particularly in the domestic market. Besides, there were few options available for 4G Cat 1 bis chipsets in international markets, with Sequans being the exception. Last week, Qualcomm entered the 4G Cat 1 bis market by launching the QCX216 chipset in partnership with Quectel, Cavli Wireless and MoMAGIC. We believe that 4G Cat 1 bis technology will start to gain traction as leading IoT module and chipset players focus on it for use in massive IoT applications.”
Mandal further added, “Despite slower growth in IoT module shipments, IoT module revenue increased by 12% YoY in Q3 2022 due to a higher mix of 5G and 4G Cat 4 modules. The average selling price (ASP) of all types of 4G technologies and LTE-M continued to rise, while the ASP for 2G, 3G, 5G and NB-IoT technologies decreased. It is believed that 2023 will be a breakthrough year for 5G, and the ASP may decrease to below $100, which will help facilitate wider adoption.”
Commenting on the key application trends in the IoT space, Associate Director Mohit Agrawal said, “The top 10 applications in the market captured more than 80% of shipments this quarter, with the top five being smart meters, POS, automotive, industrial and router/CPE. Smoke detectors saw the fastest growth, followed by residential applications and drones. China was a driving force in the growth of all three of these fast-growing segments, fuelled by a resurgence of COVID-19 cases in the country. Among the top five applications, industrial and router/CPE applications saw a decrease in shipments both on a sequential and yearly basis. However, the industrial segment still presents a large opportunity due to the number of companies embarking on digital transformation projects.”
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’ 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.
Top 10 ODM/EMS players captured two-thirds of IoT module outsourced manufacturing in H1 2022.
Cellular IoT module outsourced manufacturing to grow at a CAGR of 17% until 2026 from 2021.
New Delhi, Beijing, Hong Kong, San Diego, Buenos Aires, London, Seoul – October 25, 2022
Global cellular IoT module outsourced manufacturing accounted for 52.4% of total IoT module shipments in H1 2022, according to the latest research from Counterpoint’s Global IoT Module Manufacturing Tracker. In terms of global cellular IoT module manufacturing, original design manufacturers (ODM) saw the fastest growth in H1 2022 at 45% YoY, followed by electronics manufacturing services (EMS) at 30% and in-house manufacturing at 21%. 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.
Speaking on ODMs and EMSs, Senior Analyst Ivan Lam said, “In the past few years, leading Chinese OEMs have grown significantly in size. They have experience in managing supply chain partners and manufacturing allies. Leading OEMs have brought in multiple supplier policies to maintain their cost competitiveness, which gives them an advantage in terms of cost offering”.
Source: Counterpoint Global Cellular IoT Module and Chipset Tracker by Application, Q2 2022
The top 10 ODM/EMS players captured two-thirds of IoT module outsourced manufacturing in H1 2022. The leading ODM/EMS suppliers for IoT module manufacturing, such as BYD Electronics, TDG-Tech and Qisda, are mainly from Mainland China and Taiwan. At the same time, leading traditional EMS companies, such as Zollner, Jabil and USI, are also helping the top IoT module OEMs in their global expansion.
Lam added, “Manufacturing cost is still one of the key elements of an IoT module’s cost structure, apart from the cost of the components. Leading OEMs are growing rapidly in China and they are likely to predominantly hire manufacturing partners that have production sites within the country. However, we observed that OEMs also hired EMSs with global production sites, such as production facilities in Mexico or Brazil to cater to the North America and LATAM markets. We forecast the manufacturing capacity utilization in India, Southeast Asia and LATAM will continue to grow given the significant increase in IoT module applications in these markets.”
Commenting on the outlook for IoT module manufacturing, Senior Analyst Soumen Mandal said, “We are expecting outsourced manufacturing shipments to grow at a CAGR of 17% between 2021 and 2026. The soaring IoT module market, driven by innovation and digital transformation, especially in the enterprise segment, will play a pivotal role in IoT module manufacturing. IoT module players may focus on building platforms and services instead of manufacturing IoT modules as they present recurring revenue generation opportunities. This will also be an opportunity for ODM/EMS players to increase their footprint in the IoT module market. However, module players will try to increase control over the supply chain and look for vertical integration even for small components. This will help IoT module players reduce costs and remain competitive in the market. With higher demand in the market, top OEM players are also looking to expand their EMS supplier base to tap global markets.”
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.
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.
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.
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