A smart module as the name suggests has added smartness compared to a typical cellular IoT module. It encapsulates additional functions that would previously have been handled by separate components, adding cost and complexity to devices. Smart modules bring together computing, graphics processing, data storage and connectivity into a single, unified and compact hardware component. They also support operating systems such as Linux and Android to enable multimedia and other advanced functions.
A smart module can contain a wide range of capabilities depending on the demands of the use case. Typically, edge processing, cellular modems, Wi-Fi and Bluetooth capabilities and positioning technology, either in the form of GNSS or cell-based positioning, are included. The multiple functions of a smart module work together seamlessly, significantly reducing the bill of materials (BOM) cost of an IoT device. Time-to-market can also be shortened because developers and designers don’t need to procure multiple components and ensure they integrate well into the device. Software and hardware development is simplified and accelerated.
Smart modules offer processing capability and expanded functions
The smartness of a smart module isn’t only because it integrates multiple functions, it also contains genuine intelligence. Smart modules feature highly-capable processors, on-board RAM and Flash memory and interface capabilities to support integration with peripherals such as SD cards, displays, cameras, sensors, buzzers, vibration alarms, touchpads, audio equipment and switches.
Smart module adoption is gaining momentum as the benefits of the system-on-chip (SoC) package and greatly expanded functionality in comparison to traditional modules are more widely recognized. Smart modules are suitable for a large variety of applications and can deliver substantial cost savings, greater performance and simplified development in comparison to traditional approaches that involve several discrete components. Greater awareness and availability of smart modules is seeing rapid acceleration in uptake of smart modules. Smart modules accounted for around 2% of global cellular IoT module shipments in 2023, according to IoT Analytics research but the growing sophistication of IoT devices and use cases is creating greater demand and the firm predicts smart modules will rise to 10% of global cellular IoT shipments by 2027. That’s a CAGR of 79%.
Early adopter segments
The combination of edge processing, connectivity and positioning technologies has broad appeal and smart modules are widely adopted in healthcare, manufacturing, public safety, transportation, smart homes and the logistics and utilities sectors.
In the automotive industry, for example, smart IoT modules are integrated with applications such as real-time navigation, reversing cameras, voice recognition and infotainment. Industrial IoT applications include smart modules being used in handheld devices to support field mobility, warehouse management or manufacturing. In robotics, smart IoT modules are utilized in lawn mowers, automated receptionists and guide robots. In retail, smart point of sale devices use smart modules to facilitate reliable payments, handle inventory and process customer data.
Looking ahead, a further category of AI-enabled cellular IoT modules, which adds specialized chipsets for AI acceleration on top of smart module functions, is starting to gain market traction.
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