Volkswagen Group led in connected car sales, closely followed by Toyota Group.
4G cars captured more than 95% of connected car sales in 2022.
Tesla broke into the top-10 connected car sales rankings for the first time.
New Delhi,London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – April 24, 2023
Global connected car sales* grew 12% YoY in 2022 with the share of connected cars in the overall car sales exceeding 50%, according to the latest research from Counterpoint’s Smart Automotive Service. The US remained the strongest market for connected cars followed by China and Europe. These three markets accounted for nearly 80% of the total connected car sales globally in 2022. Despite having a relatively small share of connected car sales, Japan experienced the highest growth in connected car penetration.
Commenting on the market dynamics, Research Analyst Abhilash Gupta said, “The penetration of connectivity in cars improved during 2022 after struggling in 2020 and 2021. In 2022, new facelift versions of older models like the Honda Civic, Toyota Corolla, Ford Escape and Chevrolet Equinox were introduced with upgraded 4G connectivity and new features. Some prominent features include remote lock/unlock, remote engine start/stop, climate control, vehicle status, location tracking, geofencing, emergency assistance, in-cabin music, video streaming, and over-the-air updates. Next-generation vehicles are being introduced with various connected and autonomous features that require high-speed internet access available through 5G. However, as of now, 5G remains a niche, available only in premium cars like the Ford F-150 Lightning, Cadillac LYRIQ, Mercedes-Benz EQS, Audi e-tron GT, BMW iX and GWM Haval HG.”
Gupta added, “With consumers’ focus shifting to connectivity in the car, non-connected car shipments are steadily declining. The top five automotive groups accounted for nearly half of the connected cars sold in 2022. Volkswagen Group led the charts in terms of connected car sales volume, closely followed by Toyota Group. Tesla broke into the top 10 for the first time.”
Commenting on the market outlook, Senior Analyst Soumen Mandal said, “The shift towards digitization in cars is increasing at a rapid pace and is visible in the consistent rise of connected car penetration globally. Currently, 4G dominates the connected car market with almost 95% share. But as the automotive market is transitioning towards electrification, software-defined vehicles and autonomy, the need for seamless and faster in-vehicle connectivity will be fulfilled through 5G. By 2030, more than 90% of connected cars sold will have embedded 5G connectivity. Connected car sales are expected to grow at a CAGR of 13% between 2022 and 2030.”
*Sales here refer to wholesale figures, i.e. deliveries out of factories by respective brands, and consider only passenger cars with embedded connectivity.
The comprehensive and in-depth ‘Global Connected Car Tracker,Q1 2019-Q4 2022’ and ‘Global Connected Car Forecast, 2019-2030F’ are now available for purchase at report.counterpointresearch.com.
Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
u-blox’s total revenue grew 44% YoY in 2022 to reach $654 million.
The company shipped more than 100 million chipsets and modules in 2022.
u-blox’s revenue is expected to grow more than 15% YoY in 2023.
Last year saw u-blox’s 25th anniversary, and the company marked the occasion in style, registering a record-breaking revenue of $654 million in 2022, an increase of 44.3% from 2021. Despite supply chain challenges, u-blox managed to fulfill customer demands with a diversified supplier base. The company experienced strong growth across all segments and regions.
Highlights for 2022
u-blox’s operating profit increased 258% YoY in 2022 to reach $138 million, demonstrating improved operational efficiency.
The mass adoption of high precession technology in industrial automation, delivery robots, autonomous construction and agricultural equipment helped its industrial segment to grow 52% YoY and capture 63% of the company’s total revenue.
The automotive segment also grew 54% YoY due to the increased demand for navigation and infotainment applications, driven by the shift towards electric vehicles. The segment contributed 28% to the total revenue.
The consumer segment grew 34% YoY and captured 9% of the total revenue.
Among regions, the revenue from APAC increased 59% YoY propelled by high demand for various applications such as infotainment, navigation, telematics and healthcare, particularly in Japan, Australia and New Zealand. In EMEA, the revenue grew by 43% driven by the strong performance of infotainment, navigation, industrial automation and asset-tracking applications. Similarly, the revenue in the Americas grew 48% YoY fueled by the robust growth of infotainment, navigation, telematics and healthcare applications.
In 2022, modules and GNSS chips contributed 79% and 20% of the total revenue respectively. The company shipped more than 100 million modules and chips combined in 2022.
GNSS modules
u-blox is maintaining its leadership position in the GNSS module market due to its superior quality and high precision. In 2022, u-blox’s GNSS module shipments grew by 28% YoY, contributing more than half of the total module revenue. These modules are widely used in automotive and industrial applications. To further enhance its positioning solutions, it has formed partnerships with GMV to provide end-to-end safe positioning solutions for autonomous vehicles. Additionally, u-blox has secured multiple design wins, including with NXP semiconductor, NVIDIA and Li-Auto, for its ZED-F9K GNSS module for automotive applications.
Wi-Fi/BT modules
In 2022, u-blox’s Wi-Fi/BT module segment experienced a 17% YoY growth, generating a revenue of nearly $57 million. The widespread adoption of Wi-Fi 6 in healthcare and industrial applications has played a significant role in the segment’s growth. Besides, u-blox’s partnership with AWS has created two innovative modules that are pre-provisioned for secure communication with AWS via Wi-Fi and cellular IoT, simplifying access to cloud services for customers. This collaboration with AWS is expected to drive the adoption of u-blox’s high-quality modules targeted at the industrial segment, increasing the company’s market share and revenue growth potential.
Cellular IoT modules
According to Counterpoint Research’s Cellular IoT Module Tracker Service, u-blox’s cellular IoT module segment grew by 37% YoY in 2022, reaching $176 million. The launch of new products in the first half of the year played a crucial role in this growth, with its smallest 4G Cat 1 modules shipping one million units within two months of launching. Its UBX-R5 LPWA chipsets are also gaining traction among customers. In the cellular LPWA chipsets market, u-blox is competing with major players such as Qualcomm, Sony and Sequans. Sony’s latest 5G LPWA chipset may create further competition for u-blox.
GNSS chips
u-blox shipped nearly 54 million GNSS chips in 2022, which contributed $131 million in revenue. The u-blox 8 series chipsets continue to be the top-selling chipset, while the new M10 chipsets are ramping up production at a rate of one million per month. Nofence is leveraging u-blox GNSS chipsets to develop GNSS-enabled livestock collars for regenerative farming.
Outlook
The company’s future strategy is to continue to lead with innovative solutions that combine chipsets and modules with services while considering socio-economic and eco-friendly factors. The ongoing adoption of electric and autonomous vehicles will be a major growth opportunity for u-blox. With a strong order book in place, u-blox is forecasting a substantial YoY revenue increase of 6% to 16% for 2023. The average analyst estimate for the 2023 revenue is $724 million, representing an 11% increase. Considering the high demand and interest for its products in the automotive, industrial and asset-tracking segments, it is probable that u-blox’s revenue will be near the higher end of the projected range.
Telematics shipments in India are expected to reach 50 million units in 2030 at a CAGR of 31% from 2021.
Rising demand for EVs, ubiquitous 4G connectivity and favourable policies will act as potential drivers.
According to Counterpoint’s CORE evaluation, iTriangle leads the overall rankings for India’s telematics ecosystem, followed by Teltonika and Bosch.
New Delhi,London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – November 25, 2022
India is the world’s second-largest automotive and mobility market in terms of production volume. It offers significant opportunities for connected telematics due to its sheer scale as well as the growing design and manufacturing ecosystem. Telematics penetration in 2021 was just 2% of the total number of vehicles on the road. According to Counterpoint’s India Telematics Ecosystem Analysis, telematics shipments are expected to reach 50 million units in 2030 with a CAGR of 31% from 2021. Currently, iTriangle leads the overall rankings for India’s telematics ecosystem in Counterpoint’s CORE evaluation.
Commenting on the market dynamics, Senior Research Analyst Soumen Mandal said, “Presently, India’s telematics market is at a nascent stage but there is a steady demand for telematics devices. High import dependency, lack of advanced technology adoption, and infrastructure challenges have all been inhibitors. However, the rising demand for electric vehicles, ubiquitous 4G connectivity, favourable government policies, and schemes related to design and manufacturing, such as PLI and Make in India, will act as potential drivers for the demand for connected telematics devices for different mobility applications.”
To understand the future trajectory of India’s telematics space, Counterpoint Research analysts evaluated the top 15 players using the proprietary CORE analysis technique.
iTriangle leads the overall rankings for India’s telematics ecosystem, followed by Teltonika and Bosch. With the growing market demand, domestic players such as Blackbox, Rosmerta, Nippon, Accolade and Volty are expected to give strong competition to top players in the coming times.
iTriangle’s expertise in different aspects of manufacturing and ecosystem creation has pushed the company to initiate business in Thailand and other Southeast Asian markets. iTriangle is one of the few Indian companies to cross international borders in the telematics space.
Detailed insights into the Indian telematics market opportunity, devices, policies, use cases and recommendations are all captured in a comprehensive white paper published on our portal.
Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.
Background
CORE is a competitive ranking evaluation that evaluates a player across important criteria. For the study of Indian telematics players, Counterpoint took seven categories and more than 45 sub-categories under its CORE analysis. Each of the categories and sub-categories was selected carefully so that they reflected the existing market, current developments, future trajectory and market acceptance of each player. Counterpoint ranked each of the top 15 players on a scorecard based on the latest publicly available information and primary interviews based on the above categories. Exhaustive secondary research was conducted to gather all the information available publicly.
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
India’s telematics market is currently at a nascent stage but there is a steady demand for telematics devices. While the potential is huge, high import dependency, lack of advanced technology adoption, and infrastructure challenges have been some of the inhibitors. However, the rising demand for electric vehicles, ubiquitous 4G connectivity, favourable government policies, and schemes related to design and manufacturing will act as potential drivers for the demand for connected telematics devices for different mobility applications. These factors will help telematics device shipments to reach to 50 million units in 2030 at a CAGR of 31% from 2021. As a result, telematics device revenues will climb to ₹175 billion in 2030 at a CAGR of 21% from 2021. According to our CORE evaluation, iTriangle leads India’s telematics ecosystem followed by international leaders Teltonika and Bosch. Players such as UNO Minda, Atlanta, LG, Blackbox, Rosmerta and Nippon follow close behind.
Qualcomm dominates automotive connectivity chipset market with more than 80% share
Rolling Wireless leads the automotive connectivity module market, followed by LG and Quectel
One in two connected cars will have 5G connectivity by 2027
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – September 22, 2022
Global automotive connectivity module and chipset shipments grew by just 3% YoY in H1 2022, according to the latest research from Counterpoint’s Global Automotive NAD Module and Chipset Tracker.
China is the largest region as electric vehicle players, including new start-ups such as NIO, Xpeng Motor and Seres, are offering infotainment systems with large displays and smart cockpit solutions that have a wide array of features, and ADAS that requires embedded connectivity. But during H1 2022, automotive connectivity module shipments in China declined by almost 7% YoY due to slow car production caused by supply chain disruption and COVID-19 restrictions.
Automakers across Europe are trying to generate significant revenues from in-car software services via subscriptions. For this, they are now offering embedded connectivity, even in lower vehicle trims. The Ukraine crisis derailed the European automotive market’s post-COVID recovery. Automotive connectivity module shipments in Europe declined by more than 10% YoY as car production in Germany, France, UK, and other European nations suffered due to the lack of components caused by the Ukraine crisis.
While the two biggest markets could not avoid the effects of the geopolitical crisis and fresh COVID restrictions, North America remained more resilient with automotive connectivity module shipments increasing by 27% YoY during H1 2022.
Commenting on the market dynamics, SeniorResearch Analyst Soumen Mandal said, “With the increasing adoption of digital features and ADAS, the requirement for embedded connectivity in passenger vehicles will increase. The sales penetration of connected cars surpassed those of non-connected cars for the first time H1 2022. Previously, embedded connectivity was prevalent in luxury models, but now mainstream players like Volkswagen, Toyota and Stellantis are offering connectivity for their mass-market cars.
Qualcomm has a dominant position in the chipset market with more than 80% market share. The strong product portfolio and partnerships with major tier-1 suppliers and automakers are all helping Qualcomm. And now, Qualcomm is offering complete solutions for automotive digital transformation starting with hardware and extending to cloud services with the Snapdragon Digital Chassis. This one-stop solution is helping ecosystem players reduce time to market and be more competitive.
MediaTek and Samsung launched 5G solutions last year. As the automotive sector is gradually adopting 5G connectivity, we expect MediaTek and Samsung to increase their market share in 5G automotive connectivity. However, they will likely require a more concerted effort to substantially grow their share and benefit from greater economies of scale.”
Source: Counterpoint Global Automotive NAD Module and Chipset Tracker, Q2 2022
Automotive specialists lead, but IoT giants aiming for slice of module market
Commenting on the automotive connectivity module player dynamics, Research Vice President Neil Shah said, “Automotive connectivity modules must pass various quality and compliance tests and certifications, hence special expertise is an advantage. Consequently specialist automotive connectivity module players such as Rolling Wireless and LG are leading the market. Quectel, the largest IoT module player, has broken into the top three rankings due to strong performance in its domestic China market. We have seen Quectel gain certification for automotive-grade modules with North American and European telecom operators. This will give strong competition to traditional specialist players like Rolling Wireless, LG, Continental and Harman.
The entry barriers are relatively high for IoT module players but the revenue opportunity afforded by the automotive transformation is attractive. Nevertheless, geopolitical trade tensions and data security concerns will likely be a barrier to Chinese IoT module players penetrating international markets.
Automakers will aim to multisource modules to offset supply-chain risks while supporting the growing demand for connectivity. In addition, we expect some emerging countries like India, Indonesia, Thailand and Brazil will try to build their own manufacturing ecosystem to have better control over the supply chain.”
Source: Counterpoint Global Automotive NAD Module and Chipset Tracker, Q2 2022
Discussing the market outlook, Research Vice President Peter Richardson commented, “Automotive connectivity module shipments are expected to grow annually by around 11% on average to reach 97 million units by 2030. The demand for 5G modules is increasing and we expect around a half of connected cars sold in 2027 will have 5G connectivity. The evolution of centralised architecture with digital cockpit, autonomous capability (ADAS L3+) and electrification will drive growth for 5G technology.
In terms of revenue, the automotive connectivity module market is projected to reach $5 billion by 2030. The multi-billion segment opportunity will ensure the segment remains vibrant and highly competitive.”
For detailed research, refer to the following reports available for subscribing clients and individual subscription:
Counterpoint tracks and forecasts on a quarterly basis 25+ NAD module vendors’ shipments, revenues and ASP performance across 10+ chipset players, and major geographies.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
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.
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.
The connected car market is growing, and cars are becoming more connected than ever before, and this will continue as the Counterpoint Connected Car study predicts that more than 70% of the cars sold will be connected cars in the year 2025. The data generated by the vehicle includes information about the vehicle status, driver’s behavior, and location-based data. With the emergence of Electric Vehicles (EV) and more driving safety features, connected vehicles become more relevant. This available vehicle data is “gold” for OEMs, suppliers, insurers, mobility providers, fleet owners and much more. However, most players especially OEMs failed to take the opportunity to monetize the car data. In this blog, we will be learning about connected car data, why OEMs failed to monetize the data and lastly, talk about the connected vehicle data platforms and the players.
What makes a car “connected’’?
A car is connected if it has internet access, which allows the car to share internet access and data with other devices inside the car and/or devices, networks, services outside the car as well as other cars, homes, offices, or infrastructure. A connected car is connected through two types of connectivity solutions: tethered or embedded.
An embedded connectivity solution is built into the vehicle using embedded hardware called a Telematics Control Unit (TCU). The telematics unit has an integrated modem that establishes the connection between the car and the network. For the vehicles that don’t have a built-in TCU, services can also be provided via devices that are brought in by users, like smartphones or wireless dongles (connected to the vehicle’s On-Board Diagnostics (OBD) port), such connectivity solutions are termed tethered or, sometimes, a Bring Your Own Device (BYOD) solution.
Use Cases for Vehicle Data
The connected car data presents the opportunity to monetize the data through different business models. The vehicle data can be used to elevate the consumer experience or offer new services or improve the vehicle’s performance. The various applications of car data are as follows:
Usage-based Insurance
Predictive Maintenance
OTA updates/upgrades
Fleet management
Traffic Management
Roadside assistance
In-car advertisements
In-car payments
OEM’s slow approach to capitalize on the car data
At the outset, OEMs struggled to capitalize on car data as they wanted to be in control of the data at every part of the value chain even though they were not in a good position to do so. Moreover, automakers lacked the resources and skills needed to leverage the data into meaningful insights. In addition, connected cars produce huge amounts of data. Storing the data, and who owns the car data, became a big question for carmakers. As per the European Union’s (EU) regulation, 2018/858, car manufacturers should share connected car data with third parties. Some of the OEMs, like GM, were the first to monetize the data services. Now, with the introduction of data aggregators like Otonomo or Wejo, almost every OEM is looking to monetize vehicle data.
What are the Data Aggregators?
Data aggregators are the companies that offer a platform for the collection, storage, analysis and sharing of the data from OEMs, Telematics Service Providers (TSP), or fleets. These companies process the raw vehicle data from various car companies and follow the privacy norms according to the relevant regulations. The processed and standardized car data is then ready to sell/share through a marketplace or as APIs to different entities such as insurance companies, mobility companies, governments, etc. Examples of such companies are Caruso, High Mobility, Otonomo, Wejo and some established player like HERE. In this blog, we will focus on Wejo and Otonomo.
Wejo
Founded in 2014, Wejo went public in 2021 through the SPAC merger with Virtuoso Acquisition Corp. The company is backed by GM and Palantir. It has two business solutions, Wejo Marketplace and Software and Cloud solutions. The marketplace includes a data visualization platform called Wejo Studio. In the last quarter of 2021, Wejo introduced its software and cloud solution. It has partnered with Microsoft to build its suite of data and intelligence solutions on the Azure cloud platform. This year at CES, Wejo announced its analytical platform specifically designed for connected, electrical and autonomous vehicles leveraging its partnership with Microsoft Azure and its data platform called Wejo ADEPT. The platform will only collect the most relevant data by filtering and then analyzing the connected car data at the edge before transferring it to the cloud. Wejo plans to expand its offerings into five new services.
Source: Wejo
Wejo has a strong partnership with OEMs and Tier-1 suppliers, by the end of 2021, it had partnered with 22 OEMs and Tier-1 suppliers. Leveraging its relationship with OEMs it has 16.1 million cars on its platform out of which it receives data from 11.8 million vehicles and processes nearly 16 billion data points per day, mainly in the US. Its customer base includes 68 companies, and most of the revenue (90%) comes from the US through its Marketplace services.
Source: Wejo
Financial Highlights
The full-year revenue amounts to $2.6 million which is a 92% growth from last year. The fourth-quarter revenue contributed to $1.4 million which is 180% higher than the same period last year.
The net loss increased from $60.3 million in 2020 to $217.8 million in 2021
The total contractual value increased by 68% to $20.5 million
Otonomo
The company was founded in 2015 with its headquarters based in Israel. The company went public in August 2021 through the SPAC merger with Software Acquisition Group. Otonomo offers a Vehicle Data platform and marketplace and, after the acquisition of Neura, it leverages its capabilities and offers a mobility intelligence platform. In addition to the platform and marketplace, Otonomo also offers API solutions for real-time data and historical vehicle data.
Source: Otonomo
It has partnered with 22 automakers on vehicle data agreements. The platform has 50 million vehicles with 4 billion data points per day. Otonomo uses Amazon cloud to host its platform. By the end of 2021, it had 55 customers from different industries. In February 2022 it has made another acquisition of the company known for telematics-based insurance technology.
Source: Otonomo
Financial Highlights
In 2021 the revenue grew by 337% to $1.7 million as compared to last year. The fourth-quarter revenue amounts to $1.1 million compared to $0.21 million in the same period in 2020.
The net loss for 2021 is $30.9 million as compared to the $20 million in the previous year.
EMEA contributes approx. 71% of the revenue followed by APAC with 19% and the rest North America
Three companies/customers accounted for 55% of its revenue. Hylabs ltd is the biggest contributor with approximately 28% followed by Mitsubishi Motors with 14% and Neotec Bio with 13%.
Conclusion
Even though both Otonomo and Wejo are data aggregators, they differ in their technology capabilities and business approach. Otonomo provides vehicle data for various use cases across different verticals but lacked visualization capability. While Wejo has visualization capabilities, it lacks solutions for different use cases, although it plans to launch some in 2022. Otonomo is playing aggressively and looking to consolidate new resources and capabilities through acquisitions and thereby bringing new customers and increasing the addressable market. Wejo, on the other hand, relies on developing its product or new services through partnerships with global technology players.
Wejo currently does not offer any solution or services to developers through its own API whereas Otonomo has its own API, which allows developers or new service providers to have access to vehicle data. Lastly, Otonomo and Wejo are each strong in one region – Europe and USA respectively.
We have also published a report on the location platforms where we also analyzed and evaluated 25+ platform players like HERE and Otonomo based on the CORE (Competitive Ranking & Evaluation) framework.
LG led the global TCU market in 2021, followed by Continental and Harman.
US, China and Germany were the top three geographies in the global TCU market.
5G is still a niche segment, capturing less than 1% of global TCU volumes.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – April 7, 2022
Global telematics control unit (TCU) shipments grew 13% YoY in 2021, according to the latest research from Counterpoint’s Global Telematics Control Unit Tracker. This growth came despite the COVID-19 outbreak and supply chain shortages, and was driven by the rising penetration of connected cars and the consumer preference for digital features. Moreover, favourable government policies such as eCall mandates are also helping this market to grow. The global ASP (average selling price) of TCUs increased slightly in 2021 due to the rising cost of 4G chipsets. We expect the supply situation to remain constrained through much of 2022.
Commenting on the market dynamics, SeniorResearch Analyst Soumen Mandal said, “LG leads the global TCU market, followed by Continental and Harman. These top three players account for nearly three-quarters of the market.
LG’s TCU shipments grew 19% YoY in 2021. Its close relationships with GM and Volkswagen in the Chinese and US markets are helping LG maintain its leadership position. LG is leading across all major regions except Europe.
Continental, the second-largest TCU player, has a good hold on the European market, especially Germany, France and UK. However, it lost around 2% market share in 2021 compared to 2020. Continental launched 5G TCUs in early 2022 to target 5G opportunities in the automotive sector. We expect this to help Continental regain share in the coming quarters.
Harman, the third-largest player, is mainly focused on the luxury car market. It is already offering 5G TCUs with leading premium brands. Harman’s expertise in the automotive industry and its strong distribution channels via Samsung will likely help it to win more deals and improve its position.
Among other brands, Denso and Visteon made big improvements in the TCU brand ranking list for 2021. The partnerships between Denso and Toyota, and Visteon and Ford are proving beneficial for these brands.”
Source: Counterpoint Global Telematics Control Unit Tracker, Q4 2021
With technology transitions, 2G and 3G are unable to meet the data demands of cars. And with especially 3G being phased out, 4G and 5G are becoming the only viable options. Currently, more than 90% of connected cars are using 4G TCUs. However, 4G is reaching maturity. We have already seen a few 5G chipsets, NAD modules and TCU launches in 2021. We expect more cars will be equipped with 5G connectivity this year. Moreover, increasing penetration of autonomous vehicles and C-V2X deployment will help in 5G adoption as well.
Looking at connectivity trends, Research AnalystMohit Sharma said, “As we move to higher levels of autonomy, the amount of data generated by ADAS sensors will surpass 400MB/s. To process all this data, high processing power will be required. In addition, more sophisticated AI algorithms will be required along with large volumes of data storage. The industry has to shift to 5G for cloud computing. 5G will provide more than 30 times faster data speeds and promises to reduce latency by 10 times.”
Autonomous vehicles, connected cars and electrification are the main trends shaping the future of mobility. Connectivity will be the backbone of these systems. OEMs are enhancing existing connectivity services like infotainment and OTA software updates while adding newer services like custom entertainment packages and insurance. Automakers are pushing connected services to diversify their revenue streams and more closely understand the overall customer behaviour to improve their car’s performance and services.
Source: Counterpoint Global Telematics Control Unit Tracker, Q4 2021
On future perspective, Associate Director Brady Wang said, “Global TCU shipments are expected to grow at a CAGR of 15% during 2020-2025. In terms of value, the TCU market will grow more than twofold to reach $7 billion by 2025. The rising penetration of higher-priced 5G TCUs is one of the major reasons for this huge growth. In terms of shipments, 5G will be the fastest (206%) growing technology during the forecast period.”
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 10+ TCU brands’ shipments, revenues and ASP performance across 4 cellular technologies 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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