Global and China Automotive Wireless Communication Module Market Report, 2022

Automotive wireless module is gearing towards a fusion of 5G, C-V2X, GNSS and smart antennas.

Smart connectivity makes the car a new mobile terminal, to which being connected and intelligent is indispensable. Intelligent connected vehicles (ICVs) are more demanding on in-car data exchange and communication with the outside. Automotive wireless communication module capable of data transmission acts as a key integral of vehicle intelligence.

Chinese suppliers of automotive wireless communication module play a dominant part in the industry.

Connected vehicles still at a gallop in 2021 when the shortage of vehicle chips deteriorated see an ever rise in penetration rate. In 2020, ICV sales worldwide registered 39.52 million units with a year-on-year upsurge of 36.6%, a figure projected to hit 53.2 million units in 2021 and more than 100 million units in 2025.

In China, a total of 14.6 million ICVs are sold in 2021, a figure expected to outnumber 26.0 million units with a penetration rate of above 90% in 2025.

Based on that one set of T-Box/TCU (Telematics Control Unit) is configured for each vehicle and packaged with multi-in-one wireless communication module, the global shipments of automotive wireless communication module would reach 53.2 million units and that in China 14.6 million units in 2021, and the shipments worldwide will expectedly rise to 107.59 million units and that in China 26.54 million units in 2025.

Meanwhile, T-Box in a car has a growing value from RMB500-600 to RMB1,000-2,000 with the evolution of the T-Box toward the integrated module (4G+V2X, 5G, 5G+V2X, etc.) from a single 4G module. Actually, the integrated (incl. 5G, V2X, GNSS localization and WIFI) T-Box terminal in single vehicle is valued above RMB2,000, which spurs the automotive wireless communication module market to expand ever.

If by the vehicle communication module shipments in varied communication modes in China, the Chinese market of vehicle wireless communication modules is sized by RMB3.2 billion in 2021, a figure projected to report RMB9.14 billion in 2025.

Automotive wireless communication modules find clear applications and play a crucial role. Against the burgeoning intelligent connected vehicles, the Chinese players are seeking strongholds in the wireless communication module field and faster branching out to the international automotive market.

In the automotive wireless communication module market, Chinese communication module manufacturers are developing rapidly, including Quectel, Fibocom, GosuncnWelink, Huawei, Neoway Technology, Sunsea AIoT Technology (LongSung Technology, SIMCom Wireless Solutions), MeiG Smart Technology, etc., while foreign peers include Sierra Wireless (acquired by Fibocom), Telit (acquired by Tus-Holdings) , Gemalto (acquired by Thales) and u-blox, among others. It is over the recent years that the mergers and acquisitions in the world’s automotive wireless communication module industry are gathering pace, and the industry concentration will rise further in the future.

Through the lens of corporate competition, Chinese suppliers of automotive wireless communication module outperform foreign counterparts in whatever technology, industrial chain, product competiveness or capital attraction, and they tend to be in full swing.

By comparing the technical capability, production layout and "going global" of the influential Chinese providers of automotive wireless communication module, we can see:

Automotive-grade 5G module: Quectel’s 5G module AG55xQ series empower the implementation of more than thirty ‘5G + C-V2X’ projects from automotive clients; Fibocom Auto, Inc., a wholly-owned subsidiary of Fibocom, launched its proprietary 5G, 5G + V2X automotive-grade modules AN958 and AN958T, which are suitable for telematics, smart cockpit and autonomous driving scenarios; GosuncnWelink rolled out the world's first commercial automotive-grade 5G + C-V2X module - GM860A in LGA package and with the smallest size in the industry, as well as vehicle 5G modules - 860A-CIAG and 860A-C1AX; Sunsea AIoT Technology unveiled the automotive-grade 5G+C-V2X module, i.e., SIM8800CE.

Automotive-grade model factories: Quectel’ Hefei base has been operational, and its Changzhou base will be in full operation in 2022; the Guangzhou base of GosuncnWelink will go into production in 2022; and the Zhuhai base of Sunsea AIoT Technology commenced construction in June 2020 and has already been in partial production, and will become operational fully in 2022.

Foreign Tier1 customers: Quectel serves a total of over 60 tier1 suppliers around the globe; Fibocom taps into the international market through the acquisition of Sierra Wireless automotive operations; GosuncnWelink has such clients as Bosch, Continental, Yanfeng Visteon, Pioneer, Hyundai Mobis, and also cover the aftermarket OBD, etc.

Vehicle communication module is evolving towards an integration of 5G, C-V2X, GNSS, smart antennas, etc.

Vehicle infrastructure cooperation, automotive intelligence and synergy with 5G construction are underlined in the Strategy of Development and Innovation of Intelligent Vehicle (issued by National Development and Reform Commission together with other ten ministries in February 2020). As the growing demand for automotive communications is a boon for the wireless communication module market, the availability of 4G modules onto cars is on a rapid rise, and the automotive 5G communication module of more value accelerates to be popularized amid the robust need for OTA updates, high-definition entertainment inside the care as well as automated driving, etc. 

The intelligent connected vehicles in the 5G era will bring a fundamental change in future mobility, which calls for a fusion of technologies like 4G/5G, C-V2X, Wi-Fi, Bluetooth, GNSS high-precision localization, and which requires being integrated with onboard smart antennas. In short, the value of automotive wireless communication module continues to rise in the future.

The active involvement of OEMs invigorates practical implementation of automotive 5G and C-V2X wireless communication modules.

In recent years, the car models with 5G and C-V2X have been launched successively on the market, with a huge demand for vehicle 5G and C-V2X wireless communication modules that are not only technically demanding with a long cycle of certification, but has the first-mover advantage. The companies that can be verified by the OEM and can cooperate with the latter will hold supremacy in the industry. The industrial barriers impel automotive-grade wireless communication modules to gear towards 5G and C-V2X.

The report is structured around the following:

• In terms of policy, economy and industrial chain development, China has the most ideal development environment in the world for automotive wireless communication module industry and more breakthroughs are hopefully made in technology and industry layout
• Chinese automotive wireless communication module manufacturers are technologically leading the world, with more shipments than foreign competitors, but the industry features a high concentration of resources, which is easy to form an oligarch market
• China's wireless communication modules are mainly sold in large quantities but at low prices, and the Chinese players have poor bargaining power. There is still a long way to go if they wish to explore the international market
• Against the severe shortage of automotive chips over the recent two years, 5G/C-V2X vehicle module shipments hardly show explosive growth, and we look forward to a boom between 2023 and 2025
• Although Chinese automotive wireless communication module manufacturers remain superior in T-Box production, it is actually not a piece of cake to access into the supply chain of world-renowned automakers and it takes time.