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In Automotive Connectivity, Rolling Wireless Tops Module Market, Qualcomm Dominates Chipset Market in H1 2022

Qualcomm dominates automotive connectivity chipset market with more than 80% share
Rolling Wireless leads the automotive connectivity module market, followed by LG and Quectel
One in two connected cars will have 5G connectivity by 2027

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – September 22, 2022

Global automotive connectivity module and chipset shipments grew by just 3% YoY in H1 2022, according to the latest research from Counterpoint’s Global Automotive NAD Module and Chipset Tracker.

China is the largest region as electric vehicle players, including new start-ups such as NIO, Xpeng Motor and Seres, are offering infotainment systems with large displays and smart cockpit solutions that have a wide array of features, and ADAS that requires embedded connectivity. But during H1 2022, automotive connectivity module shipments in China declined by almost 7% YoY due to slow car production caused by supply chain disruption and COVID-19 restrictions.

Automakers across Europe are trying to generate significant revenues from in-car software services via subscriptions. For this, they are now offering embedded connectivity, even in lower vehicle trims. The Ukraine crisis derailed the European automotive market’s post-COVID recovery. Automotive connectivity module shipments in Europe declined by more than 10% YoY as car production in Germany, France, UK, and other European nations suffered due to the lack of components caused by the Ukraine crisis.

While the two biggest markets could not avoid the effects of the geopolitical crisis and fresh COVID restrictions, North America remained more resilient with automotive connectivity module shipments increasing by 27% YoY during H1 2022.

Commenting on the market dynamics, Senior Research Analyst Soumen Mandal said, “With the increasing adoption of digital features and ADAS, the requirement for embedded connectivity in passenger vehicles will increase. The sales penetration of connected cars surpassed those of non-connected cars for the first time H1 2022. Previously, embedded connectivity was prevalent in luxury models, but now mainstream players like Volkswagen, Toyota and Stellantis are offering connectivity for their mass-market cars.

Qualcomm has a dominant position in the chipset market with more than 80% market share. The strong product portfolio and partnerships with major tier-1 suppliers and automakers are all helping Qualcomm. And now, Qualcomm is offering complete solutions for automotive digital transformation starting with hardware and extending to cloud services with the Snapdragon Digital Chassis. This one-stop solution is helping ecosystem players reduce time to market and be more competitive.

MediaTek and Samsung launched 5G solutions last year. As the automotive sector is gradually adopting 5G connectivity, we expect MediaTek and Samsung to increase their market share in 5G automotive connectivity. However, they will likely require a more concerted effort to substantially grow their share and benefit from greater economies of scale.”

Source: Counterpoint Global Automotive NAD Module and Chipset Tracker, Q2 2022

Automotive specialists lead, but IoT giants aiming for slice of module market

Commenting on the automotive connectivity module player dynamics, Research Vice President Neil Shah said, “Automotive connectivity modules must pass various quality and compliance tests and certifications, hence special expertise is an advantage. Consequently specialist automotive connectivity module players such as Rolling Wireless and LG are leading the market. Quectel, the largest IoT module player, has broken into the top three rankings due to strong performance in its domestic China market. We have seen Quectel gain certification for automotive-grade modules with North American and European telecom operators. This will give strong competition to traditional specialist players like Rolling Wireless, LG, Continental and Harman.

The entry barriers are relatively high for IoT module players but the revenue opportunity afforded by the automotive transformation is attractive. Nevertheless, geopolitical trade tensions and data security concerns will likely be a barrier to Chinese IoT module players penetrating international markets.

Automakers will aim to multisource modules to offset supply-chain risks while supporting the growing demand for connectivity. In addition, we expect some emerging countries like India, Indonesia, Thailand and Brazil will try to build their own manufacturing ecosystem to have better control over the supply chain.”

Source: Counterpoint Global Automotive NAD Module and Chipset Tracker, Q2 2022

Discussing the market outlook, Research Vice President Peter Richardson commented, “Automotive connectivity module shipments are expected to grow annually by around 11% on average to reach 97 million units by 2030. The demand for 5G modules is increasing and we expect around a half of connected cars sold in 2027 will have 5G connectivity. The evolution of centralised architecture with digital cockpit, autonomous capability (ADAS L3+) and electrification will drive growth for 5G technology.

In terms of revenue, the automotive connectivity module market is projected to reach $5 billion by 2030. The multi-billion segment opportunity will ensure the segment remains vibrant and highly competitive.”

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

Counterpoint tracks and forecasts on a quarterly basis 25+ NAD module vendors’ shipments, revenues and ASP performance across 10+ chipset players, and major geographies.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts:

Soumen Mandal

Neil Shah

Peter Richardson

Counterpoint Research

press@counterpointresearch.com

Related Reports:

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

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

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – March 31, 2022

Global cellular IoT module revenue grew 58% YoY in Q4 2021, according to the latest research from Counterpoint’s Global Cellular IoT Module and Chipset Tracker by Application. China, the leading region in the cellular IoT module market, accounted for more than 40% of the revenue. However, India was the fastest growing (154% YoY) cellular IoT module market. 5G was the fastest growing (324% YoY) technology followed by 4G Cat 1 (105% YoY). Router/CPE, PC and industrial were the top applications for 5G.

Commenting on the market dynamics, Senior Research Analyst Soumen Mandal said, “Quectel, Telit and MeiG held the top three positions in the global cellular IoT module market, accounting for 40% of the total revenue in Q4 2021. For 2021, global cellular IoT module shipments and revenue grew by 59% and 57% YoY respectively.”

Quectel’s cellular IoT module revenue grew more than 100% YoY in Q4 2021. Strong partnerships, superior service and a wide range of product offerings are supporting its growth. Quectel launched a new ODM brand, Ikotek, targeting the US market. We expect it to help Quectel increase its footprint in North America and Latin America. Moreover, the products can be customized and designed according to the regulatory requirements of a project.

Telit made a strong comeback after a relatively weaker performance in recent history. Telit has been expanding its offerings, which is helping its revival. Telit NExT is providing flexible connectivity plans across 190 countries to take advantage of emerging business models and removing major bottlenecks for many IoT device vendors. In Q4 2021, Telit’s focus on Latin America to help customers migrate legacy 2G and 3G modules to 4G Cat 1 modules helped it become the leading module supplier in the region to complement its strong position in North America.

MeiG is another Chinese player which is making continuous progress and made it to the top three in cellular IoT modules, both in shipments and revenue. It is focusing more on AIoT and smart module-based higher-end applications such as router/CPE, intelligent cockpit, video recordings, industrial PDAs, drones and AR/VR. MeiG entered lower-end applications in 2021. This product mix of higher-end and lower-end modules helped MeiG increase revenue by more than 100% in Q4 2021.

Thales, Rolling Wireless, Sunsea, Fibocom and Sierra Wireless are other key players. Out of the top 10 players, Rolling Wireless and LG are focussing on the automotive segment only.

Thales is performing well in Europe, North America and Japan targeting smart meter, healthcare and industrial applications. Sunsea improved its performance in the global IoT module market, but it wasn’t enough to prevent its share from going down. The industry is growing at a faster rate compared to Sunsea’s growth. Fibocom is showing a stronger presence in 4G Cat 1 bis technology. However, Fibocom slipped out of the top five module vendors rankings due to weaker performance of NB-IoT modules.

Rolling Wireless’s and Sierra Wireless’s revenues increased 105% and 87% respectively. After spinning off from Sierra Wireless’s automotive division last year, Rolling Wireless quickly made it to the top 10 module vendors list. Rolling Wireless and Sierra Wireless have been successful in targeting specific applications, such as automotive and router/CPE respectively.

Global Cellular IoT Module Revenue Share by Module Vendor, Q4 2021

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

Automotive, router/CPE, industrial, PC and POS are the top five cellular IoT applications in terms of revenue. However, drones, PC and router/CPE are the top three fastest growing segments. Smart meters is another key segment but the lower ASPs of NB-IoT and 4G Cat 1 modules mean it is not among the top five IoT applications in terms of revenue.

Global Cellular IoT Module Vendor Shipment Share Rankings by Key Geographies, Q4 2021

Commenting on the regional performance of module vendors and pricing dynamics, Vice President Research Neil Shah said, “International players made a strong comeback in Q4 2021 after weaker performance in the previous quarter. Quectel, MeiG and Sunsea were the top three cellular IoT module players in China in terms of revenue. For the rest of the world, Quectel, Telit and Thales were the top three cellular IoT module players.”

Quectel is leading in most regions except Latin America, India and Japan. However, as these regions currently represent a small share of the global cellular IoT module market, it doesn’t have much impact overall. Japan’s preference for LTE-M works against Quectel.

In China, MeiG overtook Fibocom to become the second largest cellular IoT module vendor.

Neoway, another Chinese module vendor, maintained its leading position in the Indian market. Strong partnerships with smart meter manufacturers and telematics providers are helping Neoway to maintain its position.

The overall cellular IoT module ASP increased 7% sequentially due to supply chain constraints, especially in 4G modules. Chinese chipset players are trying to reduce the 5G module ASP for mass commercialization. However, 5G adoption hasn’t picked up as expected. We see 5G peaking in the global cellular IoT module market after 2025.

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

Counterpoint tracks and forecasts on a quarterly basis 1450+ IoT module SKUs’ shipments, revenues and ASP performance across 80+ IoT module vendors, 12+ chipset players, 18+ IoT applications and 10 major geographies

*Note: We have updated regional ranking data as per industry feedback (as of Oct 2022) which indicates Quectel led in India shipment share during Q4 2021.

Background

Analyst Contacts:

Soumen Mandal

Neil Shah

Counterpoint Research

press(at)counterpointresearch.com

Related Reports:

Automotive NAD Module Market Sees Slow Growth in Q3 2021 Due to Tight Supply Chain

Rolling Wireless led the cellular NAD module market, capturing nearly 30% revenue share.
Qualcomm maintained its dominant position in NAD connectivity.
Focus and demand for 5G C-V2X integrated modules rising.

San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – January 6, 2021

Global automotive NAD (network access device) module revenue remained flat sequentially in Q3 2021, according to the latest research from Counterpoint’s Global Automotive NAD Module and Chipset Tracker. However, the revenue grew 25% YoY due to rising shipments of 5G and 4G Other cellular technology supported modules. NAD modules perform similar functions in terms of connectivity as IoT modules except that they are designed, optimized and configured for automotive-grade applications. Being traditionally embedded in the Telematics Control Unit (TCU), NAD modules help with network access and communication of relevant telemetry data, based on which the TCU can perform safety and convenience related actions. They also help in fleet management applications. We could see the evolution of the NAD module deployment in the car with the evolution of vehicle architecture with broader connectivity (e.g., 5G V2X), autonomous capability (ADAS L3+) and electrification.

In terms of regional demand, China contributed to one-fourth of the global NAD module shipments during Q3 2021. Europe and North America’s contribution remained steady due to a greater proportion of embedded cellular connectivity. Emerging markets such as India and Brazil are the next big high-growth markets for NAD modules in the coming years.

Commenting on the market dynamics, Research Analyst Soumen Mandal said, “Rolling Wireless, LG and Continental were the top three NAD module vendors globally in Q3 2021 in terms of revenue. These three brands captured two-thirds of the total market revenue.

Rolling Wireless has maintained a good relationship with leading automakers such as Volkswagen, Stellantis, Toyota and Geely. Currently, Rolling Wireless leads in the 4G NAD module segment. The company has recently launched its first 5G NAD module, RN91xx, developed on the Qualcomm Snapdragon Automotive 5G Platform. This solution is expected to help Rolling Wireless expand in North America, Europe, China and Japan, the regions which see the most connected car purchases and are also ahead in terms of 5G infrastructure.

LG (LG Electronics and LG Innotek combined) witnessed a 28% YoY growth in terms of revenue in Q3 2021. Global presence, strong partnerships with automakers and superior product quality will help LG improve performance further and increase its share in the global NAD module market.

Continental has cemented its position in this market with a strong presence in North America and Europe with marquee customers such as Volkswagen, Daimler, BMW and Ford. The company is looking to ramp up its portfolio with 5G C-V2X modules and strike key partnerships and initial customer wins to capture the 5G connected car market.

Traditional module players such as Quectel and SIMCom have also launched 5G-supported automotive-grade modules. If these vendors are successful in attracting international Tier I suppliers or automakers with their low-cost business model and broader scale in the IoT module market, they could strongly challenge the pure automotive-grade module suppliers such as Rolling Wireless and Titan.”

Global Automotive NAD Module Revenue Share by Module Vendor, Q3 2021

Source: Counterpoint Global Automotive NAD Module and Chipset Tracker, Q3 2021

The ongoing chip shortage and supply chain tightness in the automotive sector is negatively impacting the NAD module demand from Tier I suppliers and OEMs. For example, automakers Renault and Nissan were forced to leave out features such as navigation system from their vehicles to mitigate the chip shortage. Currently, the automotive industry is working with a tight supply chain. This situation is expected to improve by the end of this year after the new capacity additions of matured technology nodes at both foundry and integrated device manufacturers (IDMs).

Commenting on the automotive NAD module market outlook, Vice-president Research Neil Shah said, “Automotive NAD module shipments will grow by more than two times between 2020 and 2025. The rising demand for safety and connected features will help this market grow with a CAGR of 18% during 2021-2025.

4G is expected to remain a dominant cellular technology in the global automotive NAD module market, but the share of 5G modules will grow fast after 2023. The higher average selling price (ASP) and semiconductor shortages aren’t helping quicker 5G adoption in the near term, as estimated a year ago. Having said that, 5G will be the key technology for the future of connected and autonomous cars.

As a result, Qualcomm will continue to dominate the automotive embedded connectivity market and further expand with synergies for its automotive focus with the Snapdragon Digital Chassis platform. This platform includes software and semiconductor solutions for ADAS, connectivity and digital cockpit applications.

Upcoming players such as Autotalks are targeting DSRC- and C-V2X-based applications and gaining some traction among NAD module vendors, though players such as MediaTek, UNISOC and Samsung are still less focused on this multi-billion dollar segment.”

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

Counterpoint tracks and forecasts on a quarterly basis 25+ NAD module vendors’ shipments, revenues and ASP performance across 10+ chipset players, and major geographies.

Background

Analyst Contacts:

Soumen Mandal

Neil Shah

Counterpoint Research

press@counterpointresearch.com

Related Reports:

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In Automotive Connectivity, Rolling Wireless Tops Module Market, Qualcomm Dominates Chipset Market in H1 2022