The demand for vehicle communication modules has detonated the supply side, and the tens of billions of market demand has taken off.

Cellular communication modules, as the link between the device sensor and the information service center, play an important role in vehicle electronic applications. As the intelligent networking of automobiles accelerates, the scale of the global Internet of Vehicles market is expected to exceed one trillion. The global pre-installed automotive cellular communication module market size will be approximately 29.3 billion yuan in 2025, with a CAGR of 33% in the next four years, which will bring a large number of electronic component opportunities. Chinese manufacturers are rushing into the automotive communication module market.

In-vehicle communication modules help new forms of Internet of Vehicles

The Internet of Vehicles is a new industrial form that is deeply integrated with multiple industries such as automobiles, electronics, information communications, and transportation. The Internet of Vehicles (V2X) refers to a new generation of information and communication technology that connects vehicles to everything. It relies on dedicated/cellular communication network interconnection to realize workshop (V2V), vehicle to person (V2P), vehicle to network (V2N), vehicle to network (V2N), and vehicle to network (V2N). Interconnection and information sharing with infrastructure (V2I) to achieve the goals of supporting autonomous driving, enriching in-vehicle entertainment, ensuring traffic safety, and expanding intelligent services. V2X organically connects elements such as "people, cars, roads, and clouds", which not only supports cars to sense more information and promotes autonomous driving technology innovation and application; it also helps build smart transportation systems and promote automobile and transportation services. The development of new models and new business formats.

Schematic diagram of Internet of Vehicles

Source: CITIC Securities

The C in C-V2X refers to Cellular, which is a vehicle wireless communication technology based on the evolution of cellular network communication technologies such as 3G/4G/5G. It relies on all-round connections and connections between people, vehicles, roads and cloud platforms. Efficient information exchange. C-V2X wireless communication technology, as a key enabling technology, helps to build a collaborative Internet of Vehicles industrial ecosystem of "people-vehicles-road-cloud". my country's existing C-V2X technical standards have been basically completed and have a complete industrial chain, and 5G-V2X technology is gradually being implemented. The unique characteristics of 5G such as low latency and high reliability will enable the combination of wireless communication and GPS to achieve true smart car networking.

Automobile wireless communication technology

Source: China Academy of Information and Communications Technology

Communication modules are widely used in automotive products. Internet of Vehicles products mainly include two categories: vehicle front-mounted T-BOX and vehicle rear-mounted OBD. The front-mounted vehicle system belongs to the original configuration of the car, while the rear-mounted vehicle system is mainly purchased by car dealers or consumers themselves. Cellular communication modules play a very important role in the entire process of vehicle electronics applications and are the link between the device sensor end and the information service center. Due to the need to collect a large amount of vehicle data during operation, communication modules are widely used in vehicle products. T-BOX, OBD, smart rearview mirrors, driving recorders, in-car WiFi hotspots, etc. all require built-in wireless communication modules to collect and transmit data information.

Wireless communication modules are functional modules that integrate baseband chips, radio frequency chips, power management chips, positioning chips, PN-type devices, resistance-capacitance components and other materials on the PCB to realize radio wave transmission and reception, channel noise filtering and analog signals and digital signal conversion functions. Wireless communication modules require the redesign and integration of different chips and devices, involving multiple communication protocols/formats, volume, power consumption and special processes. The wireless communication module includes three parts: antenna interface, main functional module and functional interface. Among them: the main functional module is the core of the module, including baseband mode, radio frequency, power management and storage modules.

Communication module disassembly

Source: Quectel, Qualcomm, Skyworks, CITIC Securities

The market demand for tens of billions of automotive communications is taking off

The intelligent networking of automobiles is accelerating, and the penetration rate of the Internet of Vehicles continues to increase. According to IDC data, global shipments of intelligent connected cars in 2020 will be approximately 44.4 million units, and shipments will reach approximately 76.2 million units in 2024, with a CAGR of 14.5% from 2020 to 2024. In addition, IDC also predicts that by 2024, more than 71% of new cars shipped globally will be equipped with intelligent connected systems. The market will mature and growth will slow down in the later period.

Global intelligent connected car sales (million units)

Data source: IDC, compiled by XinbaGe

The global Internet of Vehicles market is expected to exceed one trillion. According to data from Yiou Think Tank, the global Internet of Vehicles market has grown from 245.42 billion yuan in 2015 to 643.44 billion yuan in 2020. It is expected to exceed 1.5 trillion yuan in 2025, with a CAGR of more than 15% from 2020 to 2025.

Global Internet of Vehicles market size and forecast (100 million yuan)

Data source: Yiou Think Tank

The global cellular communication module market size will reach 21.382 billion yuan in 2020, and CITIC Securities predicts that the global cellular communication module market size will reach 96.514 billion yuan in 2025.

Global cellular communication module market size (100 million yuan)

Data source: CITIC Securities

The automotive industry will be the largest 5G IoT cellular module market, and vehicle-mounted modules will be one of the most important scenarios.

Global communication module market share in 2021 (by application field)

Data source: Counterpoint Research

According to statistics from Huaye Industry and Economics, the global pre-installed vehicle cellular communication module market will be approximately 9.8 billion yuan in 2021, with a CAGR of 33% in the next four years and will reach 29.3 billion yuan in 2025. Starting from 2022, 5G and 5G SoC will be the main driving force for the growth of the automotive cellular communications market.

Market size of vehicle front-mounted communication modules (100 million yuan)

Data source: Huaye Industrial Economics

Chinese module manufacturers lead the automotive communications market

The global cellular IoT module and chipset application tracking report released by Counterpoint Research shows that global cellular IoT module shipments still maintained a year-on-year growth of 20% in the second quarter of 2022.

Judging from the ranking of specific manufacturers’ shipments:

Quectel ranked first. The company's module shipments increased by 47% year-on-year, capturing 38.9% of the global market share, further widening the gap with other manufacturers. In the second quarter, Quectel launched 4G Cat.4 smart modules SC200E and SG150H based on Qualcomm and UNISOC chipsets respectively. In addition, Quectel also launched the iSIM-supported LPWA module BG773A-GL with the help of Kigen. Through this module, it will be able to meet M2M applications such as POS, smart metering, asset tracking and wearable devices.

Fibocom ranked second. Its module shipments increased by 12% year-on-year and captured 8.7% of the global market. Nearly 60% of Fibocom’s module shipments come from the Chinese market. Currently, Fibocom has established partnerships with Qualcomm, MediaTek, Unisoc, Sequans and Autotalks to increase its share of the international market. This helps Fibocom narrow the gap between it and Quectel in the international IoT module market.

MeiG ranked third. After experiencing slow growth due to China's blockade in the first quarter of 2022, MeiG achieved greater growth in the second quarter, helping it enter the top three cellular IoT models in the world. Group manufacturers. While focusing on high-end IoT module applications, MeiG is expanding into the fast-growing 4G Cat.1 bis market, targeting POS, industrial, asset tracking, smart meter and enterprise applications. MeiG is also expanding its supplier portfolio. It cooperates with ASR, a fast-growing 4G chipset supplier, for the 4G Cat.4 module market, especially the highly competitive Chinese market and other low-cost international markets.

Global cellular IoT module market share in Q2 2022

Data source: Counterpoint Research

China Mobile maintained its fourth position in the global cellular IoT module market with a market share of 5.5% by catering to its large existing and potential customer base and extensive cellular network. China Mobile focuses on low-end applications by cooperating with Core Wing Information, which helps the two target IoT transition applications from 2G to 4G. China Mobile's growing 5G network coverage and partnerships across the value chain will help the world's largest operator rapidly expand its end-to-end 5G IoT solutions in the coming quarters.

Sunsea Intelligence (SIMCom + Longsung) has been continuously improving its performance in the past 10 quarters, with a market share of 5.5% in the second quarter, ranking fifth. Sunsea Intelligent is currently adopting a similar strategy to other Chinese companies, providing Qualcomm-based solutions for the international market, and providing solutions based on MediaTek / UNISOC / ASR / Xinyi Information for the local Chinese market. In addition to Qualcomm, Sunsea Intelligent will also include ASR as a partner to meet growing demand and provide affordable prices in China.