Massive IoT demands the unique capabilities of hyperscale vendors

 Statista expects the UK IoT market to reach $25.95 billion in revenue by 2023 and grow to $48.7 billion by 2028. IoT will need to overcome tremendous growth while changing the operational efficiency, environmental impact and competitiveness of businesses problem. It’s not just revenue growth that’s at stake, however. IoT is increasingly proving itself to be a force for good, delivering societal benefits and driving initiatives to improve healthcare and safety, reduce waste and conserve energy.

To realize these benefits, organizations need to have access to the latest innovations at a price point that fits their business case. Crucially, these products need to be readily available and free from supply constraints that would otherwise limit customers’ ability to roll out devices at IoT scale. To remain successful, IoT cannot be a hobby for technologists, it must be integrated with the real economy, which means providing flexibility, scalability and reliability to support a large number of emerging business cases.

“IoT devices are user-specific,” confirms Norbert Muhrer, Quectel Solutions President and Chief Sales Officer. “Only those clients who are 100% targeting a vertical market will be successful, so that’s where we start. We identify what the vertical market use case is and what the client wants to achieve. Based on that, we can not only deploy IoT in the UK The equipment offers a compelling portfolio of solutions to customers and can also provide solutions to UK customers looking to operate internationally.”

global fragmentation

IoT is a fragmented global industry with different connectivity technologies, different regulations and different industry standards. Different countries also have different certification requirements. Meeting these global demands requires an in-depth understanding of all the markets where IoT devices can be deployed, their certification requirements, and the regulations the devices need to comply with.

“For example, if you are deploying in the UK, Australia, Japan, Korea, Latin America and the US, you need a solution tailored to each market,” Muhrer points out. “By customization I don’t mean the need to repeatedly develop custom solutions, but customers want regional variants of standard solutions to minimize costs and delays. Being able to provide this requires significant R&D resources, It is therefore possible to create market variants that meet the vertical industry and geographic needs customers face.”

Smaller regional vendors cannot compete here as they lack the resources to develop variants to support the myriad of IoT vertical use cases in every market globally. High-volume manufacturers of IoT modules and antennas have not only the scale but also the experience and insights deployed across many different verticals and geographies to facilitate their growth, thereby driving innovation and cost efficiency.

permanent innovation

“Our goal is to offer new and innovative solutions to the market,” confirms Muhrer. “Frankly, it’s not the same situation as it was five or six years ago, when we were a fast follower, but we’ve shifted our approach and now we’re leaders in innovation. When new technologies come out, we want to be first to market , and we’re doing it more and more. For example, we recently released an Amazon Sidewalk module, as well as new satellite and non-terrestrial networking modules. We don’t do crazy experiments or jump into things we don’t understand The waters are murky, but within our core competencies, we are innovating, and I think customers expect that from industry leaders.”

As the number of connected devices continues to explode into the billions each year, customers also expect vendors to meet the demands of the Internet of Things. Muhrer believes Quectel is well-positioned here, as it recently opened a new 160,000-square-meter factory where it is living out its claims. “The volume of products we produce is very high, so we really want our production to be very good quality,” he said. “This is best achieved through automated robotics, which we have been using extensively for over five years. We also use artificial intelligence in the factory for visual inspection of our products, which has greatly improved our productivity.”

This quality assurance is enhanced by Assurance of Supply, where Quectel sources production from factories in Malaysia and Brazil that also apply the same high quality and high volume production standards. “It’s no secret that we run a very lean organization, and because we’re publicly traded, our margins are 18 percent,” Muhrer said. “We can get by just fine on this, but our competitors often need to at least double their margins. We can offer our customers cost-effective products and innovate at volume. The number of solutions we sell reduces the cost per technology, which drives This has limited our ability to deliver highly efficient yet lower-cost products that are tailored to use cases and deployment scenarios.”

The Internet of Things Benefits Humanity

Access to innovation is the vital lifeblood of continued IoT adoption, and this is a testament to the value created by IoT deployments across the UK. According to Statista, the largest market in IoT is Industrial IoT, which is expected to reach $8.81 billion by 2023, while the second largest market is automotive. These growth areas not only see new revenue opportunities, but also enable the development of new forms of IoT.

“In the Industrial Internet of Things, the classic model of using IoT to enable smart measurements is improving the environment, because when companies understand their emissions or energy consumption, they can work to reduce consumption or impact,” Muhrer explained. “London, for example, is a very old city and, like cities of a similar age, has aging infrastructure and significant water loss from water pipes. Smart sensors can reveal where leaks are occurring and enable providers to correct their infrastructure more accurately .”

Muhrer also cites smart home technology to control home humidity and minimize power consumption, thereby reducing environmental impact. He also details the application involved in optimizing the bin emptying service. “They will only send the trucks to empty boxes that need to be emptied,” he said. “This reduces costs for authorities so they can spend tax money on better investments such as schools, kindergartens and public healthcare.”

To maintain this momentum, companies need access to modules, chipsets and antennas that ideally are easy to integrate, have unlimited supply, and are supported by a service portfolio of original design manufacturing (ODM), certification, testing and support. Importantly, IoT is not a service provider’s core business, it is only an enabler of their products, so the ability to simplify and accelerate device design and introduction is a significant enabler of the IoT growth forecast by Statista.

To do this, businesses rely on the supplier segment to provide a more complete portfolio of products and services. Muhrer explained: “Quectel used to be a cellular-only company, but we have grown to develop a multi-faceted product portfolio that includes cellular, GNSS, Wi-Fi, in addition to antennas and ODM solutions. and Bluetooth modules.” “Whatever solution a UK company is looking for, we will help them connect their devices with the latest, greatest technology. This could be low data rate, energy efficient connectivity in narrowband IoT (such as smart electricity meters or agricultural equipment), or 5G client devices capable of fixed wireless access at extremely high data rates.”

Low-end scenarios involve enabling connected sensors in farm fields to optimize fertilizer use and ensure maximum yields, while high-end 5G use cases involve providing users with wireless broadband connectivity (often for the first time) or supporting advanced medical applications.

For Muhrer, Quectel’s value lies not only in its technology, but also in its ability to allow customers to easily deploy Quectel solutions. “We provide service support to our customers from the design stage until their equipment is certified,” he said. “We do our best to help them move forward because we want our customers to have a great experience with both the technology and the support we provide. Once their equipment is live, we also support them with any issues that arise.”

“For the UK in particular, companies are good at exporting and are part of a global market, which is why they need a global supply chain,” confirms Muhrer. “The Internet of Things is a hyperscale global ecosystem whose needs can only be met by hyperscale global suppliers who can maximize the profitable potential of IoT, and for good.”

  • norbert muller

    Norbert Muhrer joined Quectel in 2017 as President and CSO. He helped the company achieve undisputed global leadership, an achievement he insists is the hard work and ambition of the Quectel team. Prior to joining Quectel, Norbert was Senior Vice President of Gemalto’s IoT business, active in 20 countries, with a client base that included top blue-chip clients such as Audi, Honeywell, Verifone, Philips, Continental and Panasonic as well as large clients. The number of innovative SMEs.

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Label: Hyperscale, IIoT, Industrial IoT, Internet of Things