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.
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.
Global cellular IoT connections grew 29% YoY to reach 2.7 billion in 2022 with 4G continuing to grow its majority share.
China held more than two-thirds of total cellular IoT connections in 2022, followed by Europe and North America.
NB-IoT dominates in China, while LTE-M is preferred in Australia, Japan and North America; Europe supports both.
4G and NB-IoT are the most preferred technologies for cellular IoT applications.
5G is nascent as module prices and breadth of applications reflect early-stage dynamics.
IoT growth drivers are shifting, with the enterprise and transformation initiatives key in propelling IoT connections forward.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – June 12, 2023
Global cellular IoT connections grew strongly at 29% YoY to reach 2.7 billion in 2022, according to Counterpoint’s latest Global Cellular IoT Connections Tracker report. They are expected to grow at a CAGR of 10.8% to reach an installed base of over 6 billion by 2030. China held more than two-thirds of total cellular IoT connections in 2022, followed by Europe and North America.
Amid the challenges faced by various industries, such as inflation, macroeconomic headwinds and supply chain constraints, the cellular IoT market has experienced remarkable growth fuelled by the digital transformation initiatives undertaken by various industry applications like smart meters, automobiles and asset tracking in particular. Cellular IoT connectivity has played a significant role in enhancing productivity, streamlining operations, minimizing downtime, automating processes and generating cost savings for industries. The COVID-19 outbreak unexpectedly proved beneficial for enterprise IoT players, accelerating their digital transformation efforts.
Commenting on the cellular IoT connectivity technology dynamics, SeniorResearch Analyst Soumen Mandal said, “At the end of 2022, 4G and NB-IoT together accounted for nearly 90% of the installed base of cellular IoT connections. 4G emerged as the most preferred technology for cellular IoT connections after surpassing 2G and 3G-based IoT connections in 2016. NB-IoT has gained significant popularity in China, while Japan, Australia and North America prefer LTE-M technology for lower-end applications. Europe has adopted a combination of NB-IoT and LTE-M, supported by roaming services offered by most operators.
In recent times, 4G Cat 1 bis technology has gained significant popularity over NB-IoT due to its superior performance. Applications such as POS, telematics and smart meters are increasingly adopting this technology on a larger scale. The rising shipments of devices based on 4G Cat 1 and 4G Cat 1 bis technologies are contributing to the stagnant market growth of NB-IoT.
5G is still nascent but we expect 5G-based applications to pick up as the module ASP (average selling price) drops to sub-$100 and more 5G RedCap-based solutions become available in the market. The introduction of 5G RedCap and 5G eRedCap will play a crucial role in driving mass adoption of 5G, particularly in developing and underdeveloped countries.”
Commenting on the market outlook, Research Vice President Neil Shah said, “The global cellular IoT connections installed base is expected to surpass 6 billion by 2030 with a CAGR of10.8%. The growth will be mainly driven by cellular connectivity adoption across various sectors such as utilities, automotive, industrial, retail and healthcare. Unlike the previous decade, where consumer devices like smartphones and PCs played a significant role in driving cellular connections, this decade will see a shift towards cellular connections being propelled by the digital transformation initiatives undertaken by enterprise IoT payers. The widespread adoption of cellular connectivity will also contribute to a further reduction in prices for cellular-connected devices, making them more competitive against alternative non-cellular connectivity technologies like LoRa, Sigfox and Wi-SUN. Over the past year, the cellular IoT industry has witnessed many consolidations, including Telit’s acquisition of Thales’ cellular IoT business, 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 can expect more consolidations aimed at providing improved solutions and maintaining competitiveness against other non-cellular connectivity technologies.”
Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the technology, media and telecom (TMT) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
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.
Landis+Gyr, a leading global provider of integrated energy management solutions, posted H1 2022 net revenue of $728.7 million, a 4% rise from the year-ago period.
H1 2022 Highlights:
The company’s H1 2022 bill-to-book ratio was strong, reflecting the continuation of smart metering rollouts across major regions, conversion of backlogs, project deployments, contract wins and strong demand. Landis+Gyr’s revenue and financial performance improved with the help of growth in its residential load management software and services, and meter data management system solutions.
The company had a solid order intake of $773.2 million in H1 2022 across its three main regions of operation. However, total backlog for the period rose 7.5% YoY to a record-high of $3,480 million, driven by component shortages and supply chain constraints.
Landis+Gyr is set firmly on the innovation track with new technological advances, such as the E360 IoT grid-edge meter, E660 next-generation industrial grid-edge meter, cloud-native data hub connector application, GridFlex control SaaS demand-side management solution, NB-IoT-supported T550 heat and cold meter, and the water portfolio development which is on track for launch in 2023.
The company is rapidly growing in the Latin America region with the release of new solutions such as the Magno cabinet meter, Wi-SUN in collaboration with Cisco, Revelo residential meter, G480 NB-IoT ultrasonic gas meter and the Edge intelligence ecosystem.
Acquisitions and investments with a strong focus on high-growth opportunities, such as new EV charging infrastructure and flexibility management, will give Landis+Gyr over-proportional growth and make it resilient to recession.
Landis+Gyr’s smart infrastructure investments in Australia and New Zealand continue to pioneer smart water solutions to detect customer-side and network leaks and reduce non-revenue water losses. The company is set to roll out its smart water meter in New Zealand in partnership with Watercare as it embarks on its first wave of digital transformation in the country.
Regional Key Developments in H1 2022
Americas:
The Americas region delivered net revenue of $391.7 million in H1 2022, up 20.4% YoY, driven by higher contract wins including APS, United Illuminating, Peoples Gas, Tri-County and Meriwether Lewis Electric.
The strong revenue growth was also driven by large advanced metering infrastructure rollouts during the period, namely PSE&G NJ, LG&E and AES Ohio.
Major wins in Latin America with Equatorial, ENEL and EDP for cabinet meters and Iberdrola for C&I meters also helped boost revenue.
Europe, Middle East & Africa (EMEA):
Net revenue from the EMEA region fell 6% YoY in H1 2022 to $248 million driven by the unavailability of critical components. The French and UK markets were hurt by delayed projects and weak currencies during the period.
However, smart meter shipments are expected to increase to 4 million units by 2023 due to the SMET2 implementation program, which will replace the SMET1 smart meter.
The Fluvius project in Belgium along with the metering rollout in Switzerland will drive high order intake for smart meters through continued public tender activities. Landis+Gyr’s partnership with Enedis in France will be a growth driver for the region.
Asia-Pacific (APAC):
Net revenue from the APAC region jumped 23.8% YoY in H1 2022 to $89 million, with the New Zealand and Australian markets being the main drivers. The backlog from this region continues to grow due to strong order intake in Hong Kong, Australia, New Zealand and Southeast Asia (SEA).
The company’s initial deployment of the E360 smart meter in Australia as part of the long-term partnership with Yurika, a unit of Energy Queensland, is proving to be beneficial.
The advanced metering infrastructure in the SEA region is expected to grow as markets such as Indonesia, Thailand, Malaysia and the Philippines are transitioning away from non-AMI setups. The extended partnership with HK Electric to supply smart meters in Hong Kong is also helping Landis+Gyr increase its footprint in the SEA region.
Key Takeaways:
Improvements in computing power are driving digital transformation in the utility sector and Edge intelligence for localized decision-making is becoming more critical as the penetration of distributed energy resources is increasing.
Like the rest of the smart meter market, the ongoing supply chain constraints are weighing on Landis+Gyr’s ability to fulfil customer orders. However, we expect the situation to ease in H2 2022. Landis+Gyr has been building up its inventory in anticipation of strong shipments in H2 2022.
The inventory build-up will result in negative free cash flow but we expect Landis+Gyr to be well positioned to support utilities and end customers.
Landis+Gyr is set to benefit going forward as the strong order intake indicates a favourable market environment and an increased need for more intelligent power grids. This will drive energy efficiency and ensure critical infrastructure stability which will be further amplified by the energy crisis.
COP 27 (or the 27th Conference of the Parties of the United Nations Framework Convention on Climate Change) is underway at Sharm el-Sheikh in Egypt this week. Leaders and experts are meeting to brainstorm on how to tackle climate change and make our planet sustainable. Poverty, climate change, and food security are the top long-term concerns today. The challenge of sustainable development facing the world today requires unique solutions and technology is sure to play an important and positive role.
The Internet of Things (IoT) is having a profound impact on the way we live and the way we consume. Increasingly, it is becoming a key enabler in sustainable development, both from the consumer as well as industrial perspective. IoT can help achieve the UN Sustainable Development Goals for 2030.
Sustainable Development Goals
The 2030 agenda for sustainable development was adopted by all UN members in 2015. It provides a blueprint for peace and prosperity for people and the planet. At its heart are the 17 Sustainable Development Goals (SDGs), which are an urgent call for action by all countries, whether developed or developing, in a global partnership.
IoT can play a role in achieving almost all the 17 goals but below are some of the goals where its impact is going to be significant:
Zero hunger (SDG 2)
There are over 7 billion people who call this planet their home. According to a WFP report, an estimated 768 million people were chronically hungry in 2020 which increased to 828 million in 2022. To achieve the goal of zero hunger, there is a need to increase farm productivity, reduce food waste and improve food storage and distribution.
Smart farming enables farmers to reduce waste and increase productivity. Sensors can be used to monitor weather, soil, and crop condition in real time. Monitoring alone can save billions of gallons of water and gigawatts of electricity by reducing waste and yet increasing farm productivity. Agrisource Data, an Africa-based start-up leveraging IoT and AI for farm analytics claims to have saved 772 million liters of water in the last six years and increase the average yield by around 9%.
Storage and transportation wastages can be greatly reduced by monitoring the environment to ensure optimal temperature and humidity levels. Real-time information helps take corrective action, leading to lower food wastage. Another area where IoT is playing a role is livestock monitoring, enabling farm owners to monitor the well-being of their cattle and reduce the spread of diseases.
The world’s population is aging and the elderly’s well-being is a concern. According to the World Bank, nearly 10% of the world’s population is aged above 65. In many developed countries, it is already at 20%. In such a scenario, it is imperative that the care shifts from hospitals to homes. This is where connected health using IoT is coming to the rescue to provide quality care from the comfort of home. IoT devices are making independent senior living safer with motion sensors and fall detection and panic buttons helping caregivers monitor the elderly remotely.
Air pollution is a key concern for well-being. To take meaningful and timely action, it is important to measure the air quality at a hyper-local level, which is an expensive proposition. Installing air quality monitoring IoT sensors on vehicles is another way of collecting hyper-local pollution data. Vehicles such as bin lorries, buses, and council vehicles regularly drive throughout most urban and residential areas. Installing IoT air quality sensors on cars along with GPS systems is another way to collect the data without having to invest in hundreds of sensors in fixed locations. Manxtechgroup (MTG) has trialed mobile hyper-local air quality monitoring technology in the Isle of Man, delivering hyper-local measurements in a cost-effective manner.
Wearables, smartwatches in particular, are motivating people to stay healthy. Studies have shown that in the following 13 weeks after a smartwatch purchase, people’s step count increases by an average of 2,000.
According to UNICEF and WHO, one in three people globally does not have access to safe drinking water and unsafe water is responsible for 1.2 million deaths every year. IoT can substantially help achieve the clean water objective by reducing water wastage, monitoring water quality, and providing running water through innovative solutions. eWATER is a water operator in sub-Saharan Africa. Combining mobile money, IoT, and Near Field Communication (NFC) technologies, eWATER claims to manage the provision of clean, low-cost water, which is accessible 24/7.
Vodafone UK has partnered with SES Water to develop an NB-IoT-based system to save water lost to leaks. About 23% of the water that runs through underground pipes is lost to leakage, and the project’s short-term aim is to reduce this by 15% in five years, and more than halve it by 2045
For sanitation, IoT-powered smart solutions focus on bringing efficiency in waste collection and management. Route optimization of the waste collection can not only reduce fuel consumption but can also help clear up the waste dumpsters faster.
Affordable and clean energy (SDG 7)
Pollution levels are rising across the world and energy is a big source of pollution. Efforts are being made to produce clean energy at an affordable price.
Smart gird Featured image: Stock
The reliability of renewable energy has been a concern for some. Moreover, the cost of production of green energy has been on the higher side. Combinations of IoT, AI, and ML technologies are helping improve reliability and reduce operational costs. The development of smart grids has been a boon for renewable energy as it improves the reliability of the energy supply by integrating renewable energy with traditional energy sources.
In 2015, the Isles of Scilly (UK) partnered with Hitachi to reduce the island’s reliance on fossil fuels and cut electricity bills by 40%. To meet the goals, the island council installed 400 kW of solar panels on administrative and residential buildings and deployed Hitachi’s IoT platform to distribute the electricity harvested from renewable sources and monitor carbon emissions.
Maintenance of field equipment like wind turbines is expensive and time-consuming. IoT devices capture data and relay it to the cloud, where AI algorithms compare real-time sensor readings with historical data and assess whether the equipment is functioning properly. Power plant personnel and field technicians access the data remotely to determine if repairs are needed. This way, operations cost can be lowered by moving to prescriptive maintenance. Advanced IoT systems may also incorporate edge IoT devices that have enough computing power to locally process sensor data and control the machines without human interference.
The use of smart energy meters enables the collection of real-time consumption data. By using analytics and data processing solutions, electricity suppliers can spot trends and patterns related to peak load conditions. By 2024, 77% of EU households will have smart electric meters. India plans to install 250 million smart meters by 2025. The smart meter will not only bring benefits like accurate billing to consumers but also help the planners use real-time data and analytics.
Industry, innovation and infrastructure (SDG 9)
Creating resilient and sustainable infrastructure and industry, and also promoting innovation, are among the key goals for 2030. From the beginning, key use cases of IoT have been focused on industry and infrastructure. No wonder, an estimated 35-40% of IoT projects currently involve industry or infrastructure. There are innumerable ways in which IoT can help achieve this objective. For instance, in the automotive industry, IoT could enable preventive maintenance, improve navigation, prevent collisions, and enable various levels of vehicle autonomy and other interesting services. In factories, connected operations can lift productivity, lower energy consumption, and reduce costs. US-based start-up Arch Systems provides connected systems for data collection. The systems use sensors to collect factory data in real-time, thus providing detailed metrics to enable manufacturing optimization. The systems extract actionable insights from this data as well as facilitate predictive maintenance. This helps factories move from preventive to predictive maintenance, improving uptime.
The world is becoming increasingly urbanized. Over 60% of the world’s population is projected to live in cities by 2030. Rapid urbanization is underway in emerging economies like India, China, and Indonesia. The cities account for 70% of the carbon emission. Clearly, sustainable cities are needed to fight off the threat of climate change. IoT not only supports sustainable cities but also aligns services and facilities with the citizens’ needs.
IoT and other digital transformation technologies can be embedded across the city infrastructure. Smart traffic signals can respond to different traffic conditions, saving time and fuel as well as relieving congestion. Connected smart bins can alert the authorities when the bin is full so the waste collection can move from a pre-decided itinerary to a need-based frequency. Security camera networks can make cities safer. Reducing fossil fuel consumption is another important step towards a sustainable and cleaner environment. Europe has taken the lead in installing connected charging stations, which has led to a steeper adoption of electric vehicles.
An example of a sustainable city is Peachtree Corners, 20 miles north of Atlanta. The city has smart buildings, connected highways, sensors, cameras, and other smart devices. Bosch is testing its intelligent video analytics with machine learning capabilities on the roads in Peachtree Corners, covering a connected intersection, driverless vehicles, teleoperated scooters, and autonomous package delivery. Singapore has taken the smart city concept to the next level. Recently, Singapore completed work on the world’s first digital twin of an entire nation. Bentley Systems tools accelerated the process of transforming raw GIS, LiDAR, and imagery data into reality mesh, building, and transportation models of the country.
In Summary
Sustainability need not be at odds with development and industry. The use of technology and the right intent can help us achieve the UN Sustainable Development Goals for 2030. IoT, undoubtedly one of the largest enablers of digital transformation, has the potential to be the game changer for sustainability. To increase the industry’s awareness of this, the World Economic Forum (WEF) came up with a set of guidelines in 2018 for IoT’s role in providing a sustainable future. We sincerely hope that the world overachieves the sustainability goals for the sake of our future.
After declining in Q1 2022, the global cellular IoT module market recovered in Q2 2022 despite macroeconomic headwinds and lockdowns in China, the largest IoT market.
The quarter also saw a series of consolidations in the highly competitive IoT module space.
Asset-tracking reached the highest share ever at 7% to break into the top five applications.
Smart meter, POS and industrial were the top three applications in this quarter.
NB-IoT and 4G Cat 1 were the most preferred technologies for cellular IoT applications.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – September 20, 2022
Global cellular IoT module shipments grew 20% YoY in Q2 2022, according to the latest research from Counterpoint’s Global Cellular IoT Module and Chipset Tracker by Application. The global cellular IoT module market continued to recover despite a tighter supply chain, COVID-19 lockdowns in China and macroeconomic headwinds. The growth was driven by the ongoing digital transformation involving potential applications around critical infrastructure and logistics catered by some key fast-growing low-tier cellular technologies such as Cat-1 and NB-IoT. Further, module players modified their product offerings, striking partnerships across the value chain, from newer connectivity solution providers to acquiring some key competitors, as the IoT industry enters a very exciting growth phase.
China retained its position as the world’s largest IoT market, contributing to more than half of the demand despite the lockdowns. The country’s cellular IoT module market recovered slightly from previous months this year, driven by lockdown-triggered applications like smart locks, surveillance systems and routers. The North American and western European markets grew steadily and held their second and third positions respectively in the global cellular IoT module market. Again, India was the fastest growing IoT module market (+264% YoY), albeit growing on a lower base, driven by smart meter, telematics, POS and automotive applications.
Commenting on the market dynamics, SeniorResearch Analyst Soumen Mandal said, “The IoT module market is going through a critical phase where the Chinese brands have become bigger, making it very difficult for international brands to grow in silos. As a result, we have seen the first wave of market consolidation with Telit acquiring Thales’ cellular IoT module business as well as acquiring IoT solutions design house Mobilogix. Also, during the quarter, Semtech, one of the big component vendors and the key chipset provider for the proprietary LoRa-based IoT network, acquired leading cellular IoT and router vendor Sierra Wireless to build an end-to-end wireless IoT portfolio. This kickstarts an exciting phase where the Western vendors are trying to become more ‘integrated’ to capture more value across the value chain, even though the IoT market is a blue-ocean opportunity.”
Mandal added, “With six out of the top 10 IoT module vendors being from China and with the rising geopolitical competition and data privacy concerns, international players see an opportunity to consolidate and carve out a dichotomy in this segment. Further, having a robust portfolio and post-sales support is the key. Telit, Thales, u-blox and Sierra Wireless improving their offerings over the last 12 months has been a step in the right direction. With consolidation, these vendors can garner scale and some competitive edge to at least compete well on pricing and value against the competition”
Note: Figures may not add up to 100% due to rounding
Market summary
The top three players accounted for more than half of the market. Interestingly, Quectel’s shipment share was equal to that of the remaining players in the top 10 list.
Quectel: Quectel’s module shipments increased 47% YoY, further increasing its gap with the remaining players. During the quarter, Quectel launched 4G Cat 4 smart modules SC200E and SG150H, based on Qualcomm and UNISOC chipsets respectively. Furthermore, Quectel unveiled iSIM-supported LPWA module BG773A-GL with the help of Kigen, through which it will be able to target M2M applications such as POS, smart metering, asset tracking and wearable devices.
Fibocom: The second largest module vendor, Fibocom, saw 12% YoY growth in its module shipments. Nearly 60% of its module shipments came from the China market. Fibocom has already entered partnerships with Qualcomm, MediaTek, UNISOC, Sequans and Autotalks to increase its share in international markets. This can help Fibocom bridge some of its wide gap with Quectel in the international IoT module market.
MeiG: After a slow Q1 2022 due to China lockdowns, MeiG registered growth which helped it to enter the top three IoT module ranks globally. While focusing on higher-end IoT module applications, MeiG is expanding into the fast-growing 4G Cat 1 bis market, targeting applications such as POS, industrial, asset tracking, smart meter and enterprise. MeiG is also diversifying its supplier portfolio. It has partnered with fast-growing 4G chipset vendor ASR for the 4G Cat 4 module market, especially for the highly competitive China market and other low-cost international markets.
China Mobile: China Mobile maintained its fourth position in the global cellular IoT module market by catering to its huge existing and prospective customer base and extensive cellular network. The operator partnered with Xinyi Semiconductor for focusing on lower-end applications. This has helped both to target 2G-to-4G transitioning IoT applications. China Mobile’s growing 5G footprint and partnerships across the value chain will help the world’s largest operator to rapidly scale its end-to-end 5G IoT solutions in the coming quarters.
Sunsea: Sunsea (SIMCom + Longsung) has been consistently improving its performance over the last 10 quarters. Sunsea is following a strategy similar to that of other Chinese players to offer Qualcomm-based solutions for the international market and MediaTek/UNISOC/ASR/Xinyi-based solutions for the homegrown China market. Sunsea added ASR as a partner besides Qualcomm to cater to the increasing demand and offer affordable pricing in China.
Telit: Telit is the first non-China player in the global IoT module vendors’ rankings. Telit is focussing on LPWA-Dual Mode, 4G Cat 1 and LTE-M technologies to target applications such as industrial, healthcare, asset tracking, router/CPE and energy. The vendor has launched 4G Cat 1 bis industrial grade module LE910R1 with 2G fallback to target the APAC and EMEA markets. With the sunset of 2G and 3G technology, this module can be used as a substitute for low-to-mid-end applications. After the acquisition of Thales, Telit has the potential to emerge as the largest module vendor outside of China and eventually match Quectel in scale.
Among other players, Neoway performed well. It was the fastest growing in QoQ terms (+162%) among top vendors. Besides China, India is turning out to be an important market.
u-blox recorded a strong quarter by remodeling and redesigning its products and clearing backlogs. The demand was strong for u-blox in industrial, automotive and healthcare applications.
Commenting on the key connectivity technology trends in the IoT space, Associate Director Mohit Agrawal said, “The top five technologies, including NB-IoT, 4G Cat 1, 4G Cat 4, 4G Cat 1 bis and LPWA-Dual Mode captured more than 80% of the shipments in this quarter. We are witnessing increasing shipments of 4G Cat 1 and 4G Cat 1 bis modules driven by the sunset of 2G and 3G technologies and higher demand in low-to-mid-end applications. Some module players are still shipping 2G modules to cater to specific low-cost applications in some emerging markets, like Africa, Asia and eastern Europe. The 5G IoT module shipments remain steady with prices still high and many projects still in pilot stages. It will take at least a couple of years to reach an inflection point. We expect the second half of 2023 to see a ramp-up for the 5G IoT modules with good pan-country 5G coverage and scale.”
The top five applications in Q2 2022 – smart meter, POS, industrial, router/CPE and asset tracking – captured more than half of the total IoT module market. Compared to the previous quarter, significant improvements were seen in the router/CPE and residential markets. The automotive connectivity market did not show much traction due to the poor performance of the automotive industry in China during this quarter.
For detailed research, refer to the following reports available for subscribing clients and individuals:
Counterpoint tracks and forecasts on a quarterly basis 1,500+ IoT module SKUs’ shipment, revenue and ASP performance across 80+ IoT module vendors, 12+ chipset players, 18+ IoT applications and 10 major geographies.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
US-based semiconductor manufacturer and LoRa pioneer Semtech announced a $1.2-billion deal on Wednesday to acquire Canada-based cellular IoT module and device supplier Sierra Wireless. The deal comes after last week’s merger deal between Telit and Thales’ cellular IoT business. The IoT module market has entered a consolidation phase and we can expect a few more announcements in the near future.
The IoT module market is fragmented. Many brands are struggling to improve performance, scale up products and face competitors. Some players are moving towards services, which comprise 77% value of the total IoT value chain, for better revenue opportunities instead of sticking to hardware only. For example, u-blox acquired Thingstream in 2020 to generate more revenue and offer complete IoT solutions, from chipset to cloud. In some cases, companies are trying to build up their own supply chain ecosystem through integration. For example, Quectel entered the IoT antenna space last year. In the future, we may witness some large players offload their cellular IoT module business which is not a core business for them.
The Semtech-Sierra Wireless deal is an important announcement for the IoT space. It can change offerings in the IoT industry. Here are some key takeaways from this deal from Counterpoint analysts:
Sierra Wireless is mainly focused on the cellular business, whereas Semtech is focused on the non-cellular business. The ultra-low power benefits of LoRa and higher-bandwidth capabilities of cellular networks will bring innovation to IoT use cases. They can also solve problems faced in massive IoT adoption across all segments.
International brands such as Sierra Wireless, Telit, Thales and u-blox were struggling to compete with Chinese module vendors such as Quectel, Fibocom and MeiG in terms of scale and bringing innovation to the field.
Sierra Wireless divested its auto business in 2020 to focus on the router/CPE segment but the COVID-19 pandemic, supply chain disruptions and ransomware attack hit Sierra Wireless’ efforts to regain its market share last year. Interestingly, the automotive spin-off business was acquired by a consortium led by Chinese module vendor Fibocom.
We also witnessed a corner-room change at Sierra Wireless to revive brand glory when Phil Brace replaced Kent Thexton as the CEO in July 2021.
This year, Sierra Wireless divested its Omnilink offender monitoring business to Sentinel for $37.6 million. This was not a core business for the company and it offloaded Omnilink to focus more on the services industry. Product segments can generate revenue for one time, whereas services can generate revenue on a recurring basis. That is why we have been seeing many IoT module players shifting towards IoT platforms, cloud and services.
According to its chip-to-cloud strategy for IoT adoption, Semtech aims to offer solutions across the IoT value chain. However, it has no good presence in the module, device and platform categories. Moreover, LoRa isn’t suitable for each IoT application. LoRa and cellular technologies may complement each other in serving segments across the IoT value chain.
Sierra Wireless will bring a rich experience of cellular IoT modules, cellular gateways and cloud service platform to Semtech, while Semtech will offer LoRa chips, LoRa gateways and cloud services. In the future, we may see more hybrid cellular+LoRa solutions instead of dual cellular module-based solutions. In this type of application, the cellular module can be used for data communication and LoRa can be used for device management and other applications where a low payload is required. This can change offerings in the IoT module space and help Semtech increase its market share in the cellular space too.
Semtech already has a good hold on smart meter, smart city, industrial, smart grid and asset-tracking applications through LoRa solutions. The addition of Sierra Wireless products will help Semtech target high-end markets such as security cameras, gateways, fleet and PC.
Outlook
The combined entity is looking for a 10x growth opportunity to reach a $10-billion serviceable addressable market (SAM) by 2027. To achieve this figure, IoT platform and cloud services will play a pivotal role as these can contribute revenue on a recurring basis. At the same time, Semtech needs to be careful not to disrupt the standalone LoRa ecosystem partners and customers. We believe cellular+LoRa-based industrial applications such as security, smart campus, factory and private networks will be a big opportunity for Semtech.
Quectel, Foxconn, China Mobile, WNC, Telit, MeiG, Sequans, Gosuncn were the fastest growing vendors in Q1 2022.
Smart Meters, POS, industrial, automotive and telematics were the top five applications in the quarter.
China, North America, and Western Europe accounted for over 75% of the volume.
San Diego, Buenos Aires, London, New Delhi, Hong Kong, Beijing, Seoul – June 23, 2022
Global cellular IoT module shipments grew 35% YoY in Q1 2022, according to the latest research from Counterpoint’s Global Cellular IoT Module and Chipset Tracker by Application. India was the fastest growing market (59% YoY) followed by Middle East Africa, Japan, North America, China, Western Europe and Korea, all registering healthy double-digit growth. However, the largest IoT module market, China, saw demand dip by 11% QoQ due to the new wave of COVID-19 and resulting lockdowns.
Commenting on the market dynamics, SeniorResearch Analyst Soumen Mandal said, “The cellular IoT module market remains competitive, but there is growing consolidation. For example, Quectel, Fibocom and Sunsea accounted for more than half of the global IoT cellular module shipment volumes for the first time ever. This highlights the growing influence, expertise, and scale of these Chinese vendors in the fast-growing global market.
Quectel’s cellular IoT module shipments grew 77% YoY in Q1 2022 to a healthy 38% of global volume. Quectel now ships more modules than the next ten vendors combined. Quectel continues to dominate geographically with leadership in seven out of ten key markets globally. Quectel commands a strong position in 4G and NB-IoT modules. Quectel is expanding its 5G portfolio and aims to gain scale as the technology ramps.
Fibocom’s shipments grew by 24% YoY benefitting from the surging demand for 4G Cat 1 bis modules, which is one of the fastest growing segments and led by Fibocom globally. 4G Cat 1 bis is becoming a key technology targeting the 2G and 3G IoT installed base and similar applications such as POS and telematics. Fibocom is also heavily focusing on 5G AIoT based smart modules to maintain a lead in high value applications.
Sunsea AIoT which includes the brands SIMcom and Longsung, has cemented its place in the top three brands. It focuses on 4G Cat-1 and NB-IoT modules. China continues to be the key market for Sunsea; it will need to diversify if it wants to scale and grow at the same pace as its peers.
Telit captured 4.6% share and is the only non-Chinese brand in the top five players. Demand for its modules remains healthy in North and Latin America. The module mix shifted slightly with increasing demand for legacy 2G and 3G modules offsetting some volume decline in 4G modules due to supply chain constraints. Telit leads the Latin America market and is among the top three vendors in North America.
China Mobile, Sierra Wireless and u-blox improved their market share in Q1. The world’s largest EMS, Foxconn, also entered our top ten module players list with growing demand in the CPE and connected PC segments. The relationship with top device makers, potential EV business growth and a focus on 5G technology, should help Foxconn to grow in this sector in the mid- to long-term.”
Commenting on cellular IoT technology evolution, Associate DirectorEthan Qi, said, “There is a significant shift happening in the adoption and proliferation of different cellular IoT access technologies, from LPWA (NB-IoT, LTE-M) to 4G (Cat 1, Cat 1 bis) to 4G Cat 3+, 5G and upcoming 5G Redcap. This is driven not only by the wide range of different applications, but also regional and operator adoption dynamics. NB-IoT is considered a key and fast-growing technology for low power IoT applications and has been widely adopted in China and some other parts of the world. Whereas LTE-M is preferred in markets such as Japan, Australia, North America, and parts of Europe. However, we are also witnessing many regions and operators favouring 4G Cat 1 and Cat 1 bis for some mature and some new IoT applications. While most of these technologies are complimentary, operators still have to selectively invest in one over others, depending on the IoT verticals of most importance to them.
As we see 5G rolling out, many of the advanced IoT applications such as automotive, router CPEs, PCs will move to 5G from advanced 4G technologies. Furthermore, the advent of 5G Redcap will also supplant some legacy technologies such as 3G/4G in some IoT applications. So, the entire IoT ecosystem has a wide array of cellular access technology solutions to choose from depending on the applications, data requirements, cost constraints and operator dynamics in a particular market.
The technology mix also shapes the overall cellular IoT module Average Selling Price (ASP), which declined by 3% annually in Q1 due to an increasing mix of lower cost 4G Cat 1 and 4G Cat 1 bis modules. Furthermore, the 4G Cat 4+ modules are still facing supply chain constraints and the % share of 5G modules remains small contributing to the overall ASP decline. We believe the 4G module supply chain issues will moderate later this year, but the falling ASP for 5G modules will provide an option for device OEMs to either select 4G or 5G modules moving forward.”
Commenting on which IoT applications are hottest, Research Vice President Neil Shah said, “Cellular IoT powers a diverse set of applications and the number of things that can be connected to the internet continues to rise.
Smart meters, POS and industrial were the top three applications in the global cellular IoT module market in Q1 2022. These segments are contributing to nearly 40% of total cellular IoT module shipments.
Smart meter projects have restarted in many markets post-COVID and the segment is seeing strong growth with shipments doubling compared to a year ago. Meanwhile, demand in the router/CPE segment is steadily growing as the supply constraints lessen and demand increases for FWA CPEs for the work-from-home segment, and 4G/5G upgrade projects increase for enterprise-grade routers across retail, factories, offices, etc.”
For detailed research, refer to the following reports available for subscribing clients and also for individual subscription:
Counterpoint tracks and forecasts on a quarterly basis 1500+ IoT module SKUs’ shipments, revenues, and ASP performance across 80+ IoT module vendors, 12+ chipset players, 18+ IoT applications and 10 major geographies.
Background
Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.
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, SeniorResearch 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
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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