The relationship between Wireless communication module and Internet of Things
The relationship between Wireless communication moduleand Internet of Things
The wireless communication module is the fundamental hardware component for communication in IoT applications, and it plays a crucial role in connecting the perception layer and network layer of the IoT. There is a one-to-one correspondence between the wireless communication module and IoT terminal devices.
The wireless communication module enables various types of IoT terminal devices to have the capability of network information transmission, serving as the gateway for these smart terminals to access the IoT. It is a key link connecting the perception layer and network layer of the IoT. All device data generated by IoT perception layer terminals needs to be aggregated to the network layer through the wireless communication module, and then remotely managed and controlled through cloud management platforms, along with data analysis to enhance management efficiency.
From an industrial chain perspective, the upstream of wireless communication modules consists of production raw materials such as baseband chips, which have a high degree of standardization. The downstream includes various application domains. These application domains are usually connected to different fields through intermediate distribution agents. The typical business model for module companies is to purchase upstream materials, take responsibility for product design and sales, and outsource production to third-party factories. Among the upstream materials, baseband chips (communication chips) are core components, accounting for about 50% of the material cost.
With the widespread application of the IoT, the downstream industry becomes highly fragmented. Based on the size of the application market, it can be categorized into macro markets and micro markets. Macro markets (as shown in the figure below) have a large number of IoT modules, high standardization, and intense competition. They are suitable for high income and brand building. While there may be fewer researchers, they possess strong market development capabilities.
1. The value of wireless communication modules
First value: The wireless communication module integrates multiple communication standards in the process of hardware integration and software design, making it suitable for a wider range of application scenarios. Second value: As an intermediate link between upstream standardized chips and downstream dispersed vertical fields, it needs to meet the specific requirements of different customers and different application scenarios. The profit model of module manufacturers is to independently procure upstream materials and take charge of product design and sales. Production can be carried out in-house or outsourced to third-party processing plants. Manufacturers can customize development according to the requirements of application vendors for different application scenarios.
2. The application scope of wireless communication modules
Wireless communication modules are widely used in various applications such as vehicle monitoring, remote control, telemetry, small-scale wireless networks, wireless meter reading, access control systems, cellular paging, industrial data acquisition systems, wireless tags, identity recognition, contactless radio frequency smart cards, small wireless data terminals, fire safety systems, wireless remote control systems, bio-signal acquisition, hydrological and meteorological monitoring, robot control, wireless 232 data communication, wireless 485/422 data communication, digital audio, digital image transmission, and so on.
With the help of wireless communication modules, various Internet of Things (IoT) terminal devices are empowered with network information transmission capability. For all kinds of smart terminals, it is undoubtedly the gateway to connect to the IoT. Therefore, the importance of wireless modules is evident. According to the notice issued by the Ministry of Industry and Information Technology regarding the construction of the IoT, we can see that in the coming years, wireless communication modules such as NB/IoT, LORA, and CAT1 will be widely applied.
So, how do we connect devices and enable communication in the era of the IoT? Similar to making phone calls using cellular networks between people, IoT devices also have a device similar to a "cell phone" that helps them send and receive signals. This is what we call a wireless communication module. It is a collection of chips and peripheral circuits required by the chips, and currently, there is no unified definition in the industry. Wireless communication modules enable various IoT terminal devices to have the ability to transmit network information, serving as the entry point for all kinds of smart terminals to connect to the IoT.
They are a crucial link connecting the perception layer and the network layer of the IoT. All the device data generated by IoT perception layer terminals needs to be aggregated to the network layer through wireless communication modules, and then remotely managed through a cloud-based management platform. Through data analysis, it brings about improved management efficiency.
The IoT is a long industrial chain, with chips as its upstream and terminal applications as its downstream. So where does the value of modules lie? Just imagine, if one device wants to "call" another device, giving it just a chip would not enable communication with other devices. In this case, module manufacturers need to integrate baseband chips, RF components, memory chips, capacitors, resistors, and various other components together to assemble communication modules, allowing devices to communicate with each other.
3. Value Summary of Communication Module
First value: Hardware integration and software design, integrating multiple communication protocols to meet the environmental requirements of different application scenarios, greatly simplifying the work of application vendors.
Second value: Positioned in the middle link between upstream standardized chips and downstream fragmented vertical fields, it needs to meet specific requirements from different customers and different application scenarios.
Because the Internet of Things connects devices and terminals across various industries, encompassing a wide range of application scenarios, different wireless communication modules are needed for different scenarios. Thus, the module's application scenarios are particularly diverse, offering a very large market space. Major markets with significant demand (annual demand exceeding 10 million) have already formed in IoT application scenarios, including smart metering, mobile payment, smart vehicles, and smart grids. The growth in these areas is driving the main growth of the wireless communication module market.Recommended Reading：
