Global Silicon Developer Explores How Private LTE and 5G Technology Can Expand Their Market Footprint Beyond Traditional Cellular Connectivity Applications

We recently engaged with a prominent cellular connectivity silicon developer that wanted to explore the market opportunity for emerging 5G networking technology to help them identify attractive vertical segments and channel design strategies for expanding beyond traditional cellular and consumer smartphone applications.

Our client’s silicon development has been largely focused on cellular and smartphone connectivity chips and leadership in their core semiconductor business wanted to explore growth opportunities in new segments and applications to broaden their market footprint and drive top line growth.

Their initial hypothesis was focused on expansion into mission critical industrial, resource-intensive and smart city applications to leverage the opportunity for private LTE and 5G networks that address wireless IoT-focused networks in operationally-intensive environments.  Their challenges were twofold: identifying the most attractive application opportunities and addressing market and customer access to OEMs and services players serving target segments.

Our client’s goal was to validate new growth opportunities that could enable them to disrupt the Internet of Things arena much as they had previously disrupted the mobile smartphone space. We began the process by identifying adjacent and untapped opportunities requiring new connectivity enablement capabilities beyond traditional cellular consumer devices. With anticipated 5G cellular technology, the client wanted to identify classes of devices it could enable, the applications and use cases in which those devices are utilized and the value-added applications that would result.

In addition to the market analysis we conducted at the outset of the engagement, we facilitated a series of workshops and supported these interactions with external field research, quantitative modeling and our firm’s knowledge and experience with channel and customer access development in the markets under consideration.  

Working with our client’s team, we conducted in-depth data collection and field research to gather information on potential devices, applications and use cases.  We then organized a device screening, modeling and forecasting work stream. The market model and forecast we developed consisted of installed devices as well as new device shipment volumes as well as revenues associated with the connected devices. The result of the screening and forecasting exercises was a set of priority target device segments and markets that aligned with the anticipated development of new channel design and go-to-market capabilities.

To conclude the study, we presented the results to the client’s corporate strategy team and facilitated a workshop to discuss the implications and impacts on our client’s product development and market access capabilities.

The analysis and workshops set the stage for our client to make better informed strategic decisions that aligned with their new technology and product development efforts. Our market modeling and mapping also informed our client’s development of ecosystem partners, OEM prospect development and related channel strategies.