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How the Wireless Module Enables Everything to Speed up Development

2017-04-28

1 Wireless Communication Module Introduction and Industry Chain Analysis
The wireless module integrates the chip, memory, and power amplifier components on a single circuit board and provides standard interface functional modules. Various types of terminals can realize communication or positioning functions through wireless modules. The wireless module is divided into "communication module" and "positioning module" by function. Relatively speaking, the communication module has a wider range of applications, because not all terminals of the Internet of Things need a positioning function. Communication modules include cellular communications modules (2G/3G/4G/5G/NB-IoT, etc.) and non-cellular communications modules (WiFi/Bluetooth/LoRa, etc.). Annual shipments of cellular communications modules are 10,000 upgrade to billion level; positioning module is mainly GNSS module, including GPS module, Beidou module and so on.
The wireless communication module enables all types of terminal equipment to have networking information transmission capabilities. It is the key link connecting the perception layer and network layer of the Internet of Things. Belong to the underlying hardware, with its irreplaceable.
The upstream industries of wireless modules are raw material production industries such as baseband chips, radio frequency chips, positioning chips, capacitors, and resistors. The degree of standardization is relatively high. The baseband chip (communication chip) is the core, accounting for about 50% of the material cost, and has high technical barriers. At present, chip suppliers mainly rely on overseas manufacturers, such as Intel, Qualcomm, MediaTek, etc., and domestic Hass, RDA, and New Coastline, Lexin, ZTE Microelectronics, etc., Beidou chip suppliers include Beidou Xingtong and others.
The downstream of the wireless module is generally an IoT device manufacturer or an IoT system integration service provider. In general, most IoT devices that require networking or positioning need a wireless module. Downstream is the application of various subdivisions. It is extremely decentralized. It often flows through various intermediate distribution and distribution links. The module provider purchases upstream materials and is responsible for design and sales. Production is outsourced to third-party processing plants.

2 Core Values of Wireless Module Providers
The wireless module has a technical threshold and a customer threshold, which has both the characteristics of standardization and customization. This determines that upstream chip manufacturers are involved in too deep and uneconomical, and downstream customers have their own R&D difficulties. The specific performance is as follows:
The wireless module needs to redesign and integrate a variety of chips and devices, taking into account various communication protocols/standards, volume, interference, power consumption, special processes, etc., such as industrial-grade requirements for low temperature/high temperature resistance and vibration resistance;
The wireless module has the characteristic of customization, and it needs to meet the specific requirements of different customers and different application scenarios. For example, the vehicle-mounted front-loading module needs to meet the special specifications and standards of the automotive industry (such as ACE/SAE);
The customer is not satisfied that the communication module only bears the networking function, but also needs the composite functions such as fusion awareness and front-end data processing capabilities, and even integrates the Android system, cellular network, WiFi and Bluetooth functions, and GNSS.

3 IoT Outbreak Brings Development Space to Wireless Modules
In order to achieve networking or positioning functions, Internet of Things terminals generally need wireless modules. Under normal circumstances, each additional IoT connection will require 1-2 wireless modules; according to third-party data and industry research, the neutral forecast: China's Internet of Things connections in 2020 will increase by 317% compared to 2016. It will reach 3.5 billion, which will support the rapid shipment of wireless module shipments.
At present, the largest wireless module shipments are non-cellular communication modules, followed by positioning modules and cellular communication modules. Taking into account the flexibility, the future cellular module growth will be fastest, and the domestic annual shipments are increasing from 10 million to 100 million. It is estimated that the cellular module market in China will reach 9.9 billion yuan in 2017, an increase of 94% from 2016; ABI predicts that global cellular module shipments in 2021 will reach 365 million, with sales of 4.9 billion US dollars.

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