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.
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