Counterpoint: The shipment volume of the global cellular IoT module market in the second quarter increased by 11% year-on-year.

Counterpoint stated in its article that the latest "Global Cellular IoT Module and Chipset Quarterly Tracking Report" shows that in the second quarter of 2024, global cellular IoT module shipments increased by 11% year-on-year and 6% quarter-on-quarter. This growth is mainly driven by strong demand in the Chinese market, with a 25% year-on-year increase in shipments driven by demand for speakers, cars, and asset tracking applications. The report indicates that 4G Cat 1 bis is the fastest-growing segment, accounting for 42% of the market share in the second quarter, primarily due to demand in China and India. Qualcomm (QCOM.US) remains the market leader, and Aolite Technology (688220.SH) doubled its market share with its strong performance in low-cost 4G Cat 1 bis chipset products. Senior analyst Tina Lu commented on the market dynamics, stating, "China achieved a strong growth of 25%, mainly driven by POS (especially portable and small POS devices like speakers) as well as significant expansion in car and asset tracking applications. In comparison, markets outside of China saw a 5% decline year-on-year due to subdued demand and client-side inventory build-up. However, markets outside of China also showed growth in the areas of cars, remote information processing, routers/CPE, and PC. In terms of technology, 4G Cat 1 bis maintained strong momentum, doubling its contribution to global shipments compared to a year ago. The average selling price (ASP) of 4G Cat 1 bis halved over the past year, making it more cost-effective in smart meters and speaker applications." Quectel Wireless Solutions continues to lead the market, while China Mobile Limited (00941) replaced Fibocom Wireless Inc. to take the second position. Fibocom Wireless Inc. fell to third place. These three companies collectively held over half of the global market share in the second quarter of 2024. In markets outside of China, Telit Cinterion closely followed Quectel Wireless Solutions to rank second. With strong performance in Cat 1 bis applications (such as POS, smart meters, and security cameras), LIERDA entered the global top five for the first time. LIERDA's partnership with domestic chipset providers allows it to offer low-cost modules and seize market share from smaller suppliers in the Chinese market. Another major factor is the growth of Chinese module suppliers, benefiting from significant price differences with other module suppliers. This trend is particularly evident in emerging markets such as India, Africa, and Latin America, where Chinese suppliers continue to expand. International suppliers need to lower their module's average selling price margins to stay competitive and keep up with the growth pace of the Chinese market. Regarding chipset supplier dynamics, research analyst Subhadip Roy stated: "In the global cellular IoT module chipset market, QUALCOMM Incorporated continues to lead, followed by Aolite Technology and Ziguang Zhanrui. Aolite Technology has achieved significant growth over the years, nearly doubling its market share, primarily due to its strong performance in the 4G Cat 1 bis chipset field, which accounted for nearly half of the market share in the second quarter of 2024. Chipset suppliers such as Qualcomm, ZTE Microelectronics, Ziguang Zhanrui, MediaTek, and Hisilicon have introduced 5G RedCap chipsets. Although early adoption of these chipsets is happening in China, US operators are also actively preparing. The price of 5G RedCap modules is about twice that of 4G Cat 4 modules, so people will closely monitor the evolution of pricing to support the adoption of 5G RedCap technology."