The Internet of Things is an important direction for the development of future science and technology. Under the influence of 5G and other emerging information technology changes, the era of Internet of Everything and Intelligent Connection of Everything is coming. The wireless communication module, as a key component of the intelligent terminal of the Internet of Things, will also develop rapidly. In an environment where technological innovation is accelerating and market competition is oligopolistic, the wireless communication module industry will also usher in a new round of "shuffle."

The performance differentiation of wireless communication module companies intensifies

As the core component of the Internet of Things smart terminal, the wireless communication module is the link between the Internet of Things and the smart terminal, responsible for data transmission between the smart terminal and the network layer, and is a mainstay in the Internet of Things industry.

Recently, many wireless communication module manufacturers have successively released 2020 performance reports, and the performance can be described as "some people are happy and some are worried." Among them, Quectel and Fibocom have achieved significant growth rates and topped the list. However, the performance of Sunsea Intelligent, Gosuncn, and Youfang Technology has declined significantly, and Gosuncn has lost more than 1.1 billion yuan for two consecutive years.

It can be said that the current development of the communication module industry is polarized. It is not difficult to foresee that in this "Matthew effect" in which the strong are stronger and the weak weaker, the future development of the wireless communication module industry will be more uncertain.

What is the cause of industry polarization?

The Internet of Things is known as the third wave of the development of the world's information industry after computers and the Internet. On the new frontiers of the industry, the polarization of the performance of the wireless communication module industry will inevitably cause people to worry.

In fact, as early as 2017, there were signs of industry performance differentiation. In the wave of Internet industrialization, small and medium wireless model manufacturers were merged and reorganized, and large factories with abundant funds realized their own more efficient management and R&D capabilities through mergers, such as Gosuncn has realized the strategic layout of vertical integration of the Internet of Things through the acquisition of ZTE IoT and UHF RFID special connection companies.

In addition, with the advancement of information technology, the development of 4G and 5G modules requires a lot of funds and has high technical barriers. This has led to leading companies with strong capital and strong technical reserves to gain a greater advantage in the competition and seize a larger market share, which highlights the competitive situation where the strong will remain strong and the weak will become weaker.

What is the future industry ecology?

The continuous transformation of the Internet of Things technology and the boom of emerging industries have put forward higher requirements for the future wireless communication module industry. Whether or not to seize the opportunity in the pain is the key to the further development of the communication module industry.

First of all, in the next 1-2 years, the demand for high-speed, high-performance, and low-latency wireless communication modules represented by 5G will increase to meet the future 5G empowerment of unmanned driving, smart transportation, and smart cities. demand.

Secondly, in the future, communication modules will develop in the direction of more integration and miniaturization, and more and more chips and functions will be integrated into IoT modules.

Finally, the diversified needs of information technology will require the wireless communication module industry to strengthen cooperation with many fields, reduce the cost of production and research and development, and learn from each other's strengths to strengthen its competitiveness.

In general, although there are issues such as fierce competition in the wireless communication module industry, there is still broad room for development in the future.