LPWAN maintains strong growth. As the simplest and lowest cost wide-areaiot module manufacturers IoT solution, LPWAN brings digital opportunities to a wide range of industries. According to IoT Analytics, the number of LPWAN-enabled device activations reached 450 million in the second and third quarters of 2020, a 62% year-over-year increase, despite the quarantine of many countries due to the epidemic. This number is expected to be 660 million in 2021, up 47% year-over-year, and the number of LPWAN connections is expected to reach 2.7 billion in five years.

Nb-iot accounts for half of the emerging domestic market and is rapidly emerging. Comparative data shows that nb-iot modules account for 54% of domestic cellular module shipments in 2020 and only 6% of overseas market share due to differences in domestic and international nb-iot infrastructure and market strategies. In addition, the first category has become the best alternative for 2g/3g IoT applications, with increasing market share at home and abroad. A rational IoT connectivity architecture is emerging. There is an industry consensus of "60% - 30% - 10%" for different modes of connectivity structure in cellular IoT. Currently, the shipment of cellular iot modules is moving towards this structure, which promotes the rationalization of iot connectivity structure.

From the perspective of the module industry chain, wireless communication module manufacturers are located in the midstream of the wireless communication module industry chain. They purchase chips, PCB boards, discrete devices, and structural parts from raw material manufacturers in the upstream of the industry chain, and then deliver them to downstream agents, project integrators, or various end applications. Wireless communication module manufacturers are responsible for development, design and product sales, and the production process is contracted by module factories. Downstream modules are subdivided into many application scenarios, such as wireless payment, industrial internet, vehicle transportation, smart city, etc. , which provides a wide market space for wireless module manufacturers.

Downstream companies have numerous areas of application research. According to the actual application for market annual demand can be divided, the demanders of cellular communication modules can be divided into large particles through users (annual demand > 10 million pieces) and small particles and users (annual demand ≤ 10 million pieces). Large particles as the market (smart meter, car networking, wireless POS, etc.) of the IoT system module workload, high degree of development of standardization, small particles into the market (industrial Internet, vending machines, etc.) of the IoT to provide a small amount of modules, high degree of customization, high level of gross margin analysis.