History Wireless Communication Module Manufacturers

(Overseas Companyies)

1. Sierra Wireless

The history of this company in Canada is summarized in three words: "buy, buy, buy".  Sierra Wireless, founded in 1993 in Canada, provides hardware, software and services in the Wireless market, providing customers with innovative, reliable, high-performance solutions.  Acquired Junxion, Wavecom, Sagemcom M2M division, AnyData, Motion Technology successively.  One company in this list deserves to be singled out, WaveCom.  

WaveCom is the first company in the world to commercialize GSM technology and roll it out to applications in the form of a standard module. This is an early prototype of a 2G module.  AT the same time the development of embedded Open AT technology, OpenCPU, embedded applications can effectively shorten the development cycle, save cost, this is now many module manufacturers mentioned OpenCPU model.  

 The Wireless communication module business is only a small part of this, because Sierra Wireless's early days as a Wireless card terminal, unlike most other module manufacturers, it has a natural product gene and system development integration ability. 

Sierra Wireless operates in three divisions:  OEM Solutions (Original Equipment Manufacturer), Enterprise Solutions, Cloud and Connectivity services.

1. OEM Solutions Division: Provides cellular embedded modules, software and tools to integrate wireless connectivity into OEM customers' various products and solutions, including AirPrime Embedded wireless module portfolio;  Provides Legato, an open source, Linux-based application framework.  The division provides its products and solutions for the automotive, transportation, enterprise networking, energy, sales and payments, mobile computing, security, industrial monitoring, field services and healthcare industries, among others.  The division also provides professional services to OEM customers during their product development and release process.  

2. Enterprise Solutions Division: Provides a range of second, third and fourth generation cellular embedded wireless modules and gateways, as well as security and equipment management solutions, as well as professional services for public safety, transportation, field services, energy, industrial, retail and financial enterprises.  

3. Cloud and Connectivity Services: secure and scalable cloud-based platforms for iot applications;  Connectivity services, including smart SIM for mobile network support;  And manage wireless broadband services. 

Sierra Wireless offers products and solutions in four main areas: 

1. AirLink: Wireless gateway for industrial, enterprise and automotive applications.  The AirLink Intelligent Gateway and router uses embedded intelligence and ALEOS application framework to support the remote management, control and configuration of vertical market solutions and application services.  

2. AirPrime, an embedded module that provides cellular connectivity for wireless mobile computing and M2M commonly used by equipment manufacturers, brings new 2G-4G, GSM and CDMA devices to market with PCI Express MiniCard, surface-mount modules, modem-only capabilities and programmable devices.  

3. AirVantage, cloud-based applications that facilitate the delivery of M2M services, including AirVantage Management Services, M2M device management applications, and the AirVantage enterprise platform that uses API standards to collect, share and integrate machine data, as well as the development and deployment of M2M applications. 

4. SAGEMCOM GSM-R terminal, wireless equipment for railway communications and applications.  

Sierra Wireless is hardly a pure module manufacturer, but more of an integrated solution provider for industrial and in-car data connectivity and cloud solutions.  This is also for so many years despite the domestic module manufacturers fighting hot, but did not shake its position in the industry and automotive high-end customers.  At the time of publication, Sierra Wirless vehicle business was sold to Fibocom in a capital operation. 

Revenues and gross margins are among the best in the industry.

2. UBLOX

When most people in the industry think of UBLOX, they think of its GPS chips and modules.  Instead, cellular wireless communication modules are little known, especially in China.  The Swiss company also completed the transition of wireless communication modules through various acquisitions. Europe and the United States really have a strong awareness of mergers and acquisitions to enhance the competitiveness of products.  In 2015, it completed the acquisition of Cohda's on-board module V2X business to enter the high-end on-board industry, while significantly improving GPS performance and introducing centimetre accuracy to the mass market.  In the field of positioning, is a veritable leader.  In the market, domestic module manufacturers have made a lot of hardware compatible GPS modules for UBLOX, NEO LEA and other series modules. The modules can be imitated and compatible, but UBLOX's own RESEARCH and development of GPS cellular chips can be considered as a moat. UBLOX is a rare manufacturer involved in both upstream chips and downstream modules. 

3. Gemalto

Gemalto is a Dutch company.  The history of these enterprises in Europe and the United States is indeed relatively monotonous, Gemalto is a smart card, including mobile phone SIM card, selling cards to sell the world's first is very strong, may feel that selling cards in the future imagination space is relatively small, so aimed at the wireless communication module industry, after all, the card is necessary to buy the module.  Laowai continued to play the "buy, buy, buy" tradition, in 2010 for 162 million euros to buy a module manufacturer called Cinterion, remember before the Chinese name of Cinterion in China.  In fact, Cinterion is also a big player. In 2008, a hedge fund acquired the module business of Siemens. Yes, Siemens also does wireless communication module, and it does very well.  In 2007, the global share of communication modules was 27% for Siemens, 25% for WAVecom, 13% for Simcom and 8% for MOTOROLA. 

 Originally, SIM card and wireless communication module are a good combination, but from the perspective of the market did not achieve the effect gemalto wanted.  Instead, at the end of 2017, Air France wholly acquired Gemalto at a price of 4.76 billion euros.  At the same time, some benchmarking industry customers accumulated by Siemens in Europe and America are being eaten by domestic manufacturers. 

Open the Old Gemalto website and you'll be amazed. 

4. Telit

Compared with other manufacturers with superior market operations above, Telit is still very focused in the module industry. After acquiring the M2M module division of MOTOROLA Solutions, its product line is very complete and complete from wireless short distance to cellular communication, as well as positioning module and cellular module combination.  At the same time, the concept of cloud tube end is very advanced, from M2MAir cloud platform to Internet of things card to front-end module and terminal, a coherent system.  In the later period, due to the fierce market competition from domestic manufacturers and internal management problems, the market gradually shrank and basically withdrew from the competition in the domestic market.  For example, the on-board business was acquired by The domestic ADAS manufacturer Enlighten International; Japan sea major shareholders hold Telit shares and so on.  It seems that Chinese enterprises have also learned the capital market operation to enhance the competitiveness of the upstream and downstream industrial chains.  

In addition, Enfora module [later acquired by GNSS vendor Novatel] is rarely seen in China, but it gradually dropped out of the module market to focus on downstream applications due to fierce market competition. 

summary 

In addition to the module manufacturers discussed above, in fact, there are many small and medium-sized players into the game, such as China Mobile Iot, Mobile Communications, Gao Xinxing (ZTE iot) and so on.  The reason is that the market for iot applications is large enough;  Application fragmentation;  It has added value (facilitate the secondary development of terminal customers).  But as the market competition heats up, especially the localization process (baseband chip and related chip industry) accelerates, will accelerate the cost, supply chain and service level competition.  Especially has landed (IPO) module manufacturers, how to keep the existing large customer groups, differentiation and scale competition is imminent.  More and more manufacturers not only provide wireless communication modules, but also gradually support supporting systems around modules, such as Internet of things cards and cloud platforms.  Even antenna design, certification services and ODM services.  Looking back at Sierra Wireless's history in Canada, the module business itself was just a piece of the puzzle, and the added value was in providing a complete solution to the enterprise.  But most of the domestic wireless communication module manufacturers, originally the module is the main puzzle, many module manufacturers are also in the module as the core to do related supporting services. 

At the end of the story, the final players may still be domestic manufacturers staged at home and abroad love and hate, love and murder. 

History Wireless Communication Module Manufacturers

(Chinese Companyies)

The similarity between Internet of Things and Internet is that the concept originates from overseas, rises in China, and forms a leading trend.  The Internet benefits from the super traffic of 1.4 billion people, and the Internet of Things benefits from the complete and rich supply chain in China.  In particular, based on the Internet of Things technology combined with the Internet business model, the application layer launched in China is endless, such as shared bikes, shared charge banks, intelligent POS machines, face payment, etc.  Every day, the media is filled with all kinds of data, such as the number of Internet of Things (iot) devices in the next three years will reach billions, and the demand for modules will be billions. 

At the same time, we can also see that there are large and small module manufacturers entering the industry every year. At present, the main domestic manufacturers include Quectel Communication, MobileTek communication, Sunsea Communication (acquired SimCOM and Longsung), Fibcomm, Neoway, Luat, GAOSUNCN, MeiG Smart and Huawei.  The main overseas manufacturers are Sierra Wireless, Telit, Ublox and Gemalto.SimCOM - The author's early contact with the Wireless communication module industry is in some small workshop hardware solution companies in Shenzhen, often see two 2G modules, one is SimCOM's SIM300,  The other is the Siemens MC55i.  I compared these two modules from the Internet, and there are some records in the CSDN forum below. 

Cheap and easy to use is the most direct feeling at that time, then it is almost difficult to see the shadow of Siemens MC55 module, domestic 2G module market is basically occupied by SIM300 various branch versions.  After 2012, the author was engaged in the overseas market and found that SIMCOM module was often seen in Europe, America and Southeast Asia. At that time, foreigners basically only knew about this Module manufacturer in China, and its reputation was good.  Until 2017, SIMCOM was the global leader in sales, second only to Canada's Sierra Wireless.  The rest of the story is well known. Sunsea Smart Acquired SimCOM in 2017.  After the article to talk about the sea intelligence this enterprise.  In general, SimCOM has started the localization of modules, which has had a profound impact on the subsequent module manufacturers. Not only the development mode, but also the document style can be found in other module manufacturers.  In particular, the early development of overseas markets and the establishment of Chinese brands have given guidance to the successors.  If you look at the revenue, the revenue in 2019 was 1.276 billion yuan, the net profit was 101 million yuan, and the net interest rate was 8%.  The net profit in 2018 was 103 million yuan.  The current performance is not easy because of the merger and acquisition of enterprises, the departure of employees and the turbulence of the company.

Quectel - 

In the past two years, Quectel has become the world's largest module supplier by market capitalization after its successful IPO in 2019.  In addition to the capital level, Quectel Communications has surpassed Sierra Wireless in global module sales and become the world's first module manufacturer in terms of shipments. It employs about 2000 people all over the world.  Founded in 2010, the founder and core members are all from Simcom. The team is pragmatic and practical, and the product quality can be said to be the benchmark in the industry.  However, until 2017, the market size and share were smaller than SIMCOM.  Before 2016, the enterprise operation was also tepid, and the turning point appeared in 2016. It got on the express train of smart mobile payment. With the help of Qualcomm 4G Android module, it won several leading enterprises in POS industry, such as Fujian New Continent and Ingenico.  And, most importantly, the right partner -- Qualcomm.  In the subsequent NBIOT market to seize the platform and operators to walk in the forefront of the industry, to maintain a keen sense of cutting-edge market.  After having enough resources, vigorously layout 5G and car front installation to seek a second growth point.  However, the selection of cat.1 platform will be another test for remote communication.  The sales model of Quectel Communication has always been based on channel, with large stalls. It is said that 80% of customers are in the channel.  Finally, everyone should not be embarrassed to Quectel sales colleagues, it is too difficult.  (Revenue in 2019 was $4.1 billion, up 52% from 2018, while profit was down 18%.) 

Fibcomm- 

Looking at the development history of Fibocom, it is a typical route from agency to independent research and development. In the early stage, many domestic giants, Huawei and Lenovo, completed original accumulation and then independent research and development through the agency of overseas communication terminals, commonly known as trade and industry technology.  Trade and industry technology refers to the first business, to achieve a certain amount of original accumulation, to survive, and then develop new technologies, new products, and sales, to find a new profit growth point.  SimCOM mentioned above also started to contact the module industry in its early days by acting as the 2G module of TTPCOM in the UK.  Range and the module of trip is winding, founder tian-yu zhang during early engaged in electronic components procurement established contact with MOTOROLA, the MOTOROLA the only agent communication module, if it weren't for Telit acquired MOTOROLA mobile division after the termination of the cooperation, wide estimates on and don't push yourself to do independent research and development of communication module.  Intel's strategic investment and investment in 2014 helped Fibocom to become invincible in PC business, with a large market share and high gross profit.  From MOTOROLA to Intel, the importance of choosing the right partner, of course, depends on the marketing and public relations skills of the founder team.  It was successfully listed in 2017, becoming the first listed manufacturer in the wireless communication module industry.  Posted a financial data for 2019, wireless communication module revenue of 1.879 billion gross margin increased from 23% in 2018 to 27% in 2019.  This gross margin is definitely the TOP in the wireless communication module industry. From the revenue analysis, the growth rate of MI (PC tablet), the most profitable business, has slowed down obviously;  Meanwhile, a small detail, Intel continued to sell its stake in Fibocom from 8.25%(2017.3) to 2.58%(2019.10), and Intel also abandoned the IoT chip market. 

In terms of product line distribution, overseas market layout, large customer development staff and so on, Fibocom has become the biggest rival of Shanghai Quectel Communication in China, and the war will spread from China to overseas in the near future.  Fibocom's focus is not on module product line development, but on market and capital operation. In November, we completed the acquisition of Sierra Wireless Automotive division, which is a critical step in overseas market development and the acquisition of TOP quality customers.  In terms of the overseas market, SIMCOM is the first to move far, through the acquisition of the way does not rule out the curve overtaking. 

Neoway - 

Neoway technology in the module business in the last two years is obviously far left behind by Fibcomm and  Quectel , except for the power market and other industries have little share.  Its IPO failure, fortunately, it catch up with the policy dividend on the science and innovation board, caught the tail of the capital market.  Among the top five customers, CPON in India and Harman in North America account for nearly half of the revenue in the on-board OBD market. Neoway has increased its R&D and marketing efforts in terminals.  It is said that the on-board OBD project benefits from the background of high-level ZTE, and it has to be said that the background is also part of the strength.  The following executive information you have a look. 

MeiG Smart - 

In the early stage, MeiG Smart was engaged in the manufacturing of precision components for mobile intelligent terminals. In 2019, the precision components business was sold to Shenzhen Junwei Precision for 35 million yuan, focusing on the Internet of things module and terminal and ODM business.  In 2019, the sales of intelligent terminal business increased significantly, thanks to the ODM business outbreak of intelligent COB(Chip on Board). For example, the core customer is Dongda Integration, and THE PDA project provides PCBA scheme design;  Limichuang scooter project is supplied by PCBA, and the Qty are all at 100K level. 

Luat - 

I know this company, because of two things, one thing is the price of 4G module dry to the cabbage price;  The second is that he has a Internet celebrity boss Qin Peng, module industry boss inside the most good at writting  the article and advertisement, in the writing of the article is the most understand the module. 

Luat[Luke him]...  The core members of the team are from Longsung and Aitvy. Longsung was acquired by Sunsea Smart, but Aitvy no longer exists, so we don't spend any time in these two companies. 

The traditional AT command is encapsulated into API with Lua language, and provides demo of various functional applications.  However, Luat through the Internet operation of Luat fans.  He is also a price butcher, betting on new platforms.  In this keen competition market of modules, no, it should be blood, it will be very difficult for small enterprises to fight their way out. I strongly agree that if small enterprises do not take extraordinary measures, they will have little chance to go shopping with giants step by step, especially in the module industry that heavily relies on the supply chain.  Finally, thank you for bringing 4G module price to a new level. Good luck. 

For the next few months of 2020, cat.1 module shipments will be 2KK per month, which is about the same as TOP module manufacturers.  There are a few positive signs: 

1, no matter what industry, no matter how strong the competitors, technology marketing channel services to seize one of the points can fight out.  The technology market channel service compares with the friend business, Luat is more suffer a loss.  But the team spent a lot of time on marketing. 

2, the survival of small business - close to the user.  The module business is an asset-heavy business, not just in terms of hardware, but in terms of service before and after sales.  Technical support takes up a lot of resources because it involves secondary development.  The team itself is not very big, so far formed a more complete online support system.  Documentation, FAQ, program explanation, etc.  For most application vendors, the module itself is not that important.  Price and service are key. 

3, the "three maxima" of enterprise competitiveness - greatly reduce the cost, greatly improve the experience, greatly improve the efficiency - these three maxima, Luat has achieved a great reduction in cost.  In the early days when 4G was still 100 yuan, the universe went straight to 60+. 

4. Opportunities exist only when external factors are "variable".  -- Qualcomm platform to domestic 4G platform;  -- High speed 4G to CAT.1 low speed low cost 4G.