lte m2

Aftermarket Mobile Module Market Estimates: According to Oica data, globallte m2 vehicle ownership was 1.28 billion in 2015, and we assume that the market has largely reached steady-state levels and that future vehicle ownership will continue to grow at a CAGR of 4% from 2015 levels. Global vehicle ownership is expected to reach 1.56 billion units in 2020 and 1.90 billion units in 2025. We believe the market penetration of rear-mounted cellular modules is relatively low. We expect it to reach 3% by 2025, and the market size of rear-mounted modules will reach RMB 7.69 billion by 2025

Front cellular module market measurement:According to OICA, the global car sales in 2020 is 77.971 million units, which is expected to grow 3% per year. According to the Intelligent Vehicle High Technology Research Institute, the front installation rate of automobiles in 2020 is 47%. Assuming the penetration rate continues to rise, it is expected to exceed 90% by 2025. Based on the different prices of different standard modules, we predict that the market size of vehicle front-mounted modules will reach 11.4 billion yuan in 2025.

Mobile network interconnection: the stock carries the market and the penetration rate increases

Laptop market growth is sluggish, entering the stock market era. In recent years, the global PC and tablet PC overall performance is low, to PC, for example, since 201, PC annual shipments of 365 million units, followed by a year-on-year decline in 2020 shipments of 275 million units, accounting for 75% of 201 shipments. We believe that the global PC and tablet market is already in a more saturated state, and overall seems to have entered the era of stock replacement.

In the domestic market, the penetration of communication modules in PCs is still very low. According to strategic analysis, global shipments of mobile personal computers grew by 70% for the first time in 2020 , reaching 10.1 million units, the highest annual shipments on record. Currently, the penetration of communication modules in the domestic market is still very low at about 3% -5% . We expect the penetration rate of cellular modules to further increase with the improvement of network bandwidth, the reduction of traffic costs and the reduction of terminal prices.

PC interconnection market space estimation:According to Omida's estimation, the global shipment of notebook computers will be 170 million units in 2019, and the shipment of Chromebooks will be over 13 million units. We assume that the market has basically reached a stable level, and future shipments will maintain a small growth on the basis of 2019. At present, in the PC market, except for ThinkPad, which is owned by Lenovo, which launched products supporting 4G modules, other brands have little or no involvement. We believe that the current PC fully connected penetration rate is less than 5%. With the increase in mobile communication rate driven by 5G, the reduction of traffic tariffs to a reasonable level, and the increase in mobile office demand, we expect the penetration rate of fully connected PCs to rise to 20% in 2025, corresponding to a market space of 14.5 billion yuan, with a CAGR of 45% from 2019 to 2025, and a huge market space.