NEW
YORK, July 12, 2024 /PRNewswire/ -- Inventory
stacking, a response to the Covid-19 pandemic, drove cellular
module growth in 2021 and even into 2022. However, in 2023 it
was a major headwind, driving a shipment decline of over 5%
relative to 2022. What has buoyed the spirits of the cellular
module market has been the growth of Cat-1bis. According to a
new report from global technology intelligence firm ABI
Research cellular module forecasts show that Cat-1bis will
replace nearly 70% of the Cat-1 market by 2029.
For years, many Cat-1 IoT devices were designed using only a
single antenna which sometimes required carrier approval for use on
their networks. LTE networks are ubiquitous with good
coverage hence a single antenna was sufficient. But what
device OEMs and chipset vendors realized is that Cat-1 module costs
can be reduced even more by building a dedicated Cat-1bis chipset
with send and receive functions delivered over a single
antenna. Not only could power consumption be lowered but also
component costs. The Cat-1bis standard in 3GPP Release 13
formalizes the common, yet informal use of single antenna Cat-1
devices. The original Cat 1 specification in 3GPP Release 8
required two antennas.
Commenting on the new data, Dan
Shey, Vice President, Enabling Platforms at ABI Research,
says, "Like many new developments in the cellular IoT market,
China is leading with deployment
of Cat-1bis. Outside of China, Cat-1bis penetration is much lower
since it is typically the replacement technology for new device
designs. Regardless of region, based on the benefits of
Cat-1bis relative to other cellular technologies, we see Cat-1bis
becoming the number two technology choice for cellular IoT
applications by 2029."
Cat-1bis benefits include lower cost – outside of China Cat-1bis
modules are at least 30% cheaper with even greater reductions seen
in China. Network roaming is also a benefit as 4G roaming
agreements are well established unlike the challenges seen today
with NB-IoT and Cat-M. Finally, the Cat-1bis standard
formalizes the use of a single antenna. The only
question which will vary by use case and application is connection
reliability for stationary applications. For battery-powered
IoT applications, fixed placement of a Cat-1bis device where
cellular network coverage is poor could shorten battery life as
single antenna devices struggle to connect to the cellular
network.
But there is also another view of Cat-1bis in the market.
According to Shey, "Presently it is unclear if the chipset vendors
will invest in new Cat-1bis chipsets. At Mobile World
Congress, and more recently at Asia Tech Expo, RedCap was being
pushed not only by module suppliers, but also the device OEMs and
the chipset community. 5G RedCap is creating an opening to
drive 5G device volumes in the IoT domain. The calculus by
the 5G supplier community is 5G capabilities – low latency,
location granularity, and future proofing against LTE sunsets, will
convince more customers to invest in these higher revenue
products."
With Cat-1bis representing the near-term opportunity and 5G
RedCap the longer-term opportunity, both technologies are receiving
increased investment across the supply chain. Chipset vendors will
play a key role in module and device development for both
technologies. Qualcomm, Sequans, UNISOC, and ASR are all
supporting both technologies; development outside of China is led by Qualcomm and Sequans.
These findings are from ABI Research's M2M Embedded Cellular
Modules and M2M Embedded Cellular Modules Update: 1H
2024 reports. This report is part of the company's IoT
Hardware & Devices research service research service,
which includes research, data, and ABI Insights.
About ABI Research
ABI Research is a global technology intelligence firm uniquely
positioned at the intersection of technology solution providers and
end-market companies. We serve as the bridge that seamlessly
connects these two segments by providing exclusive research and
expert guidance to drive successful technology implementations and
deliver strategies proven to attract and retain customers.
ABI
Research是一家全球性的技术情报公司，拥有得天独厚的优势，充当终端市场公司和技术解决方案提供商之间的桥梁，通过提供独家研究和专业性指导，推动成功的技术实施和提供经证明可吸引和留住客户的战略，无缝连接这两大主体。
For more information about ABI Research's services, contact us
at +1.516.624.2500 in the Americas, +44.203.326.0140 in
Europe, +65.6592.0290 in
Asia-Pacific, or
visit www.abiresearch.com.
Contact Info:
Global
Deborah Petrara
Tel:
+1.516.624.2558
pr@abiresearch.com
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SOURCE ABI Research