The core value of wireless module supplier

Wireless module structure has information technology enterprise threshold and customer lte m2service threshold, both standardization and customization characteristics, which need to decide the upstream chip manufacturers involved in too deep not economic, downstream customers can design their own R & D has difficulty, specifically in.

Wireless modules need to redesign and integrate a variety of chips and devices, need to consider a variety of communication protocols/formats, volume, interference, power consumption and special processes, such as industrial grade resistance to low temperature/high temperature, anti-vibration.

Wireless modules are customized and need to meet the specific needs of different customers and different application scenarios, for example, the front-mounted modules need to meet the special specifications and standards of the automotive industry (such as ACE/SAE, etc.);

Customers are not satisfied with the communication module only to undertake networking functions, but also need to integrate sensing, front-end data processing capabilities and other composite functions, and even to integrate Android, cellular network, WiFi and Bluetooth functions and GNSS in one.

IoT explosion for wireless modules to bring economic development for space

In order to achieve networking or positioning functions, IoT terminals generally need wireless modules. Overall, the number of IoT accesses increases by 1-2 wireless modules for each IoT access, according to third-party data and industry surveys, neutral forecast: in 2020, the number of IoT accesses will grow by 317% over 2016 to reach 3.5 billion yuan, supporting the rapid delivery of wireless modules.

Wireless modules are by far the largest non-cellular module shipped, followed by location modules and cellular communication modules. Cellular modules will have the fastest growth rate going forward, given resiliency. The annual domestic shipments have increased from 10 million to 100 million. The market size of cellular modules in China is expected to reach $9.9 billion in 2017, up 94% from 2016 . Abi forecasts that 365 million mobile modules will be shipped globally in 2021, with sales of $4.9 billion.

In the short term, the spillover effect of 4g technology on the m2m industry will lead to structural market size growth

The penetration of 4G technology in cell phones has been very very high, but the development of applications in IoT is at a starting time stage. According to the formation of Ericsson's statistical data analysis, at the end of 2016, the global M2M solution mainly using 2G accounted for about 50%, using 4G LTE less than 10%. As information technology undergoes upgrades and outreach, 4G LTE will continue to increase its share of growth, and it is expected that by 2019 M2M solutions designed using 4G LTE will become mainstream.

In terms of price, there is a tendency for prices to fall in the long run, especially as 4G modules move from testing to mass production, where prices will fall rapidly, but as the level of integration increases, including the integration of Android, WiFi and Bluetooth functions, as well as GNSS functions. 4G single module prices are likely to rise further.

Policies promote market initiatives to comprehensively promote 4g technology in the m2m space. Policy-wise, countries are promoting the popularization of 4 g technology in key areas, such as smart grid field, strengthening the upgrade of smart grid, putting forward new requirements on the integrity, reliability and real-time of metering data collection, the introduction of 4 g wireless communication technology is imminent, and the emergence of new applications of 4 g communication technology has put forward new requirements for markets such as smart POS machines, which require embedded Bluetooth modules in 4 g and robotic system to accomplish a series of innovative applications.