Home > Market Research > Mobile Markets > The Global Wireless M2M Market – 2nd Edition
The Global Wireless M2M Market is the second consecutive report analysing the latest market developments in all regions of the world.
This strategic research report from Berg Insight provides you with 150 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.
Highlights from the second edition:
> 360-degree overview of the M2M ecosystem.
> pdated profiles of the main suppliers of wireless M2M modules.
> Reviews of the new M2M initiatives launched by top global mobile operators.
> Summary of industry trends in key vertical market segments.
> Statistical data on M2M adoption in major regions and industries.
> Revised market forecasts lasting until 2014.
Where is the global wireless M2M market headed?
The global wireless M2M market has felt the impact of the economic downturn in the past year. Hardware manufacturers have suffered from shrinking margins as volume growth has flattened out at the same time as prices have continued to fall. Falling demand in the automotive sector caused by the sharp decline in vehicle sales has not been fully compensated by resilience in other sectors. Network service providers have fared better and still enjoy high growth for M2M connections even if the rate of increase has slowed down in several markets. The steady increase in M2M subscriptions is starting to generate substantial revenue streams for large mobile operators even if the typical monthly ARPU is just a few euros.
Berg Insight anticipates that 2010 will be a positive year for the global wireless M2M market with hardware shipments returning to growth and a continued increase in the number of network connections. New M2M initiatives launched by major mobile operator groups are expected to have a positive influence on demand, stimulating more new large-scale projects. Regulatory developments will have a major impact on the telematics industry. The EU is expected to propose formal legislation for the introduction of eCall by 2014 but in Brazil the fate of Resolution 245 is uncertain and a setback would inevitably have negative consequences. Another significant development to watch will be the progress of the Dutch government’s plans for a nationwide electronic road charging system.
The outlook for the coming five years is positive, although the weakness of the world economy has reduced the prospects for growth.
Until 2014, Berg Insight forecasts that shipments of cellular M2M devices are forecasted to grow at a compound annual growth rate (CAGR) of 19.2 percent to reach 67.0 million units. During the same period, the number of cellular M2M connections is forecasted to grow at a compound annual growth rate (CAGR) of 25.6 percent to reach 187.1 million. The share for M2M of total mobile subscriptions is projected to increase from 1.4 percent in 2009 to 3.1 percent in 2014.
The main geographical markets for cellular wireless M2M are the EU and the US. In mid-2009, they accounted for around 50 percent of the total number of M2M connections worldwide. The US has the higher M2M penetration of 4.3 percent of all mobile network connections due to the large installed base of OEM telematics systems. In the EU, the average share is 2.4 percent but there are significant regional differences with penetration rates above 5 percent in Scandinavia and below 2 percent in parts of Eastern Europe. China and Brazil are fast growing markets, whereas the increase in M2M connections has stagnated in Japan in the past year.
Automotive was the largest vertical market for wireless M2M communication services in 2009, accounting for around 40 percent of the total number of connections. Aftermarket systems made up around two thirds of the installed base of 23.7 million vehicle telematics devices.
By 2014 the share is forecasted to have increased to over 50 percent as a consequence of massive adoption of telematics technology in the automotive industry that will tilt the balance towards OEM systems. Metering & grid was the second largest vertical market segment with an estimated 13.8 million active connections in 2009.
The segment is projected to grow steadily over the next five years due to strong demand for advanced metering solutions and low replacement rates. Other major vertical market segments include POSterminals and security alarms.
Over the past year, several important initiatives related to M2M have been announced by the leading mobile operator groups in Europe and North America. Telenor launched the global M2M operator Telenor Connexion in October 2008. During the first half of 2009, Orange established an International M2M Centre and Vodafone announced a new international M2M business unit as a part of its Vodafone Global Enterprise organisation. In the second half of 2009, T-Mobile joined forces with Sierra Wireless and Cinterion to develop joint offerings for the M2M market. Telefónica has also established group-level functions dedicated for M2M. Among the US operators, AT&T started a trend in May 2009 by launching a new business and technology platform for M2M and emerging wireless devices. Verizon Wireless followed by entering a joint-venture with Qualcomm to address the M2M market and later Sprint launched a new business unit for M2M and mobile computing.
> How will the global wireless M2M market evolve in the next decade?
> What are the main drivers behind growth in Europe, the Americas and Asia-Pacific?
> What share of mobile network connections will be used by machines in the future?
> Why are the world’s leading mobile operators launching new M2M initiatives right now?
> What forces are driving the restructuring of the wireless M2M hardware industry?
> How are regulatory initiatives in Europe and the Americas re-shaping the telematics market?
> What is the relevance of cellular technologies for smart metering and grid applications?
> Which are the main emerging wireless device categories in the consumer electronics sector?
Executive summary
The global wireless M2M market has felt the impact of the economic downturn in the past year. Hardware manufacturers have suffered from shrinking margins as volume growth has flattened out at the same time as prices have continued to fall. Falling demand in the automotive sector caused by the sharp decline in vehicle sales has not been fully compensated by resilience in other sectors. Network service providers have fared better and still enjoy high growth for M2M connections even if the rate of increase has slowed down in several markets. The steady increase in M2M subscriptions is starting to generate substantial revenue streams for large mobile operators even if the typical monthly ARPU is just a few euros.
Berg Insight anticipates that 2010 will be a positive year for the global wireless M2M market with hardware shipments returning to growth and a continued increase in the number of network connections. New M2M initiatives launched by major mobile operator groups are expected to have a positive influence on demand, stimulating more new large-scale projects.
Regulatory developments will have a major impact on the telematics industry. The EU is expected to propose formal legislation for the introduction of eCall by 2014 but in Brazil the fate of Resolution 245 is uncertain and a setback would inevitably have negative consequences. Another significant development to watch will be the progress of the Dutch government’s plans for a nationwide electronic road charging system.
The outlook for the coming five years is positive, although the weakness of the world economy has reduced the prospects for growth. Until 2014, Berg Insight forecasts that shipments of cellular M2M devices are forecasted to grow at a compound annual growth rate (CAGR) of 19.2 percent to reach 67.0 million units. During the same period, the number of cellular M2M connections is forecasted to grow at a compound annual growth rate (CAGR) of 25.6 percent to reach 187.1 million. The share for M2M of total mobile subscriptions is projected to increase from 1.4 percent in 2009 to 3.1 percent in 2014.
The main geographical markets for cellular wireless M2M are the EU and the US. In mid-2009, they accounted for around 50 percent of the total number of M2M connections worldwide.
The US has the higher M2M penetration of 4.3 percent of all mobile network connections due to the large installed base of OEM telematics systems. In the EU, the average share is 2.4 percent but there are significant regional differences with penetration rates above 5 percent in Scandinavia and below 2 percent in parts of Eastern Europe. China and Brazil are fast growing markets, whereas the increase in M2M connections has stagnated in Japan in the past year.
Automotive was the largest vertical market for wireless M2M communication services in 2009, accounting for around 40 percent of the total number of connections. Aftermarket systems made up around two thirds of the installed base of 23.6 million vehicle telematics devices. By 2014 the share is forecasted to have increased to over 50 percent as a consequence of massive adoption of telematics technology in the automotive industry that will tilt the balance towards OEM systems. Metering & grid was the second largest vertical market segment with an estimated 13.8 million active connections in 2009. The segment is projected to grow steadily over the next five years due to strong demand for advanced metering solutions and low replacement rates. Other major vertical market segments include POS-terminals and security alarms.
Over the past year, several important initiatives related to M2M have been announced by the leading mobile operator groups in Europe and North America. Telenor launched the global M2M operator Telenor Connexion in October 2008. During the first half of 2009, Orange established an International M2M Centre and Vodafone announced a new international M2M business unit as a part of its Vodafone Global Enterprise organisation. In the second half of 2009, T-Mobile joined forces with Sierra Wireless and Cinterion to develop joint offerings for the M2M market. Telefónica has also established group-level functions dedicated for M2M.
Among the US operators, AT&T started a trend in May 2009 by launching a new business and technology platform for M2M and emerging wireless devices. Verizon Wireless followed by entering a joint-venture with Qualcomm to address the M2M market and later Sprint launched a new business unit for M2M and mobile computing.
Top of Page
Table of Contents
Table of Contents i
List of Figures.. v
Executive summary1
1 Introduction to wireless M2M..3
1.1 Introduction3
1.2 Devices 5
1.2.1 Chipsets, modules and terminals..5
1.2.2 Device design and machine integration.9
1.2.3 Value chain.10
1.3 Networks..11
1.3.1 GSM/HSPA networks 12
1.3.2 CDMA networks14
1.3.3 Other wireless networks..15
1.3.4 ISM frequency bands 16
1.3.5 Wireless M2M connectivity solutions 17
1.4 Applications 18
1.4.1 Car telematics19
1.4.2 Fleet management .20
1.4.3 Smart grids and intelligent metering .21
1.4.4 Fixed wireless communication.22
1.4.5 Remote control and monitoring ..22
2 M2M module vendors..23
2.1 Embedded mobile communications solutions.23
2.2 Wireless M2M module vendors 25
2.2.1 Cinterion Wireless Modules ..26
2.2.2 Enfora 29
2.2.3 Huawei..31
2.2.4 Motorola ..32
2.2.5 Sagemcom.33
2.2.6 Sierra Wireless..36
2.2.7 SIM Technology ..40
2.2.8 Telit .41
2.2.9 u-blox.44
2.2.10 Other..45
2.3 Industry analysis..46
2.3.1 Prospects for industry consolidation and restructuring..46
2.3.2 Changing business models ..49
2.3.3 The impact of technology trends 50
3 M2M communication providers ..51
3.1 Europe and International .51
3.1.1 Vodafone .52
3.1.2 Telefónica 53
3.1.3 T-Mobile55
3.1.4 Orange..56
3.1.5 Telenor .58
3.1.6 KPN 60
3.1.7 SFR.61
3.1.8 TeliaSonera 61
3.1.9 Maingate..62
3.1.10 M2M communication aggregators .63
3.2 The Americas.65
3.2.1 Verizon Wireless..66
3.2.2 AT&T..67
3.2.3 Sprint .69
3.2.4 América Móvil 69
3.2.5 Aeris70
3.2.6 KORE Telematics 71
3.2.7 SkyTel71
3.2.8 Orbcomm 72
3.2.9 Iridium73
3.3 Asia-Pacific .74
3.3.1 China Mobile .74
3.3.2 China Telecom.75
3.3.3 NTT DoCoMo 75
3.3.4 KDDI ..77
3.3.5 Softbank ..77
3.3.6 Mach Communications 78
3.4 M2M connectivity enablers.78
3.4.1 Jasper Wireless 79
3.4.2 Wyless ..80
3.5 Industry analysis..81
3.5.1 Mobile operator M2M connection estimates.81
3.5.2 Industry trends .82
3.5.3 Mobile operator strategies for M2M..83
3.5.4 International service offerings ..85
4 Solution providers and integrators 87
4.1 Device manufacturers87
4.2 System integrators..88
4.3 Vertical ASPs .89
4.4 B2B/B2C service providers.91
4.5 OEMs .92
5 Key vertical markets..95
5.1 OEM automotive ..96
5.1.1 Automotive industry trends 96
5.1.2 OEM telematics offerings 99
5.1.3 Regional market trends .106
5.2 Aftermarket automotive .109
5.2.1 Key industry players111
5.2.2 Enterprise solutions – fleet management.113
5.2.3 Consumer solutions – SVT and financial services ..115
5.2.4 Government solutions – vehicle tax collection and road pricing .118
5.3 Smart grids and intelligent metering ..120
5.3.1 Metering industry trends ..121
5.3.2 Smart metering initiatives .122
5.3.3 C&I and grid meters 125
5.4 Fixed wireless communication ..125
5.4.1 POS-terminals 126
5.4.2 Security alarms..128
5.5 Consumer electronics.131
6 Market analysis and forecasts ..133
6.1 Devices ..134
6.2 Network services ..137
6.3 Geographical markets 139
6.3.1 European Union 140
6.3.2 United States ..143
6.3.3 Emerging markets 144
Glossary 147
Index
List of Figures
Figure 1.1: Core elements of wireless M2M solutions.4
Figure 1.2: Cost versus time diagram for wireless technology integration ..6
Figure 1.3: Examples of wireless M2M modules 7
Figure 1.4: Examples of wireless M2M terminals ..8
Figure 1.5: System architecture for an end-to-end M2M solution .9
Figure 1.6: M2M device value chain overview..10
Figure 1.7: Top global GSM/HSPA operators by subscriber base (Q3-2009) .12
Figure 1.8: Top global CDMA operators by subscriber base (2009) 14
Figure 1.9: Example of point-to-multipoint wireless M2M communication solution..16
Figure 1.10: M2M applications by industry sector..18
Figure 2.1: Top embedded mobile communication vendors, by est. sales (World 2008) .24
Figure 2.2: Top wireless M2M module vendors, by estimated shipments (World 2008)25
Figure 2.3: Cinterion wireless M2M modules 27
Figure 2.4: Enfora wireless M2M modules and terminals ..29
Figure 2.5: Motorola wireless M2M modules.32
Figure 2.6: Sagemcom wireless M2M modules ..34
Figure 2.7: Sierra Wireless M2M modules and terminals37
Figure 2.8: Open AT Software Suite v2.0.38
Figure 2.9: Telit wireless M2M modules and terminals 42
Figure 2.10: Financial data for key players in embedded wireless technology ..48
Figure 3.1: Top five M2M communication providers in Europe (2009) 51
Figure 3.2: Top five M2M communication providers in the Americas (2009)66
Figure 3.3: Examples of manufacturers of M2M devices certified by AT&T..68
Figure 3.4: Top three M2M communication providers in the Asia-Pacific (2009) ..74
Figure 3.5: Reported number of M2M connections for Japanese operators (Q4-2009).76
Figure 3.6: Estimated number of M2M connections by mobile operator group (2009)..82
Figure 4.1: Examples of telecom group ICT businesses.89
Figure 5.1: Estimated annual production of machines by category (World 2008).95
Figure 5.2: Motor vehicle production, by region (World 2008).97
Figure 5.3: Top automobile manufacturers by estimated vehicle output (2009) 98
Figure 5.4: Estimated private vehicle sales by market (2009) ..99
Figure 5.5: Top OEM telematics service providers by estimated subscriber base (2009)..100
Figure 5.6: Estimated vehicle population in major countries (2008) ..110
Figure 5.7: Financial data for key players in aftermarket telematics ..112
Figure 5.8: Major providers of fleet management solutions by installed base (2009) ..114
Figure 5.9: Major providers of consumer vehicle tracking systems (2009).116
Figure 5.10: Energy meter population, by region (World 2009)120
Figure 5.11: Energy meter shipments, by region (World 2008) 121
Figure 5.12: Major utilities deploying smart meters in Europe and North America.123
Figure 5.13: POS-terminal shipments and installed base, by region (World 2008) 126
Figure 5.14: Top providers of monitored security alarms (World 2009)129
Figure 5.15: Examples of wireless consumer electronics products 132
Figure 6.1: Cellular M2M device shipments forecast (World 2008–2014)134
Figure 6.2: Cellular M2M device shipments forecast by application (World 2008–2014) 135
Figure 6.3: Cellular M2M device shipments forecast by region (World 2008–2014)..136
Figure 6.4: Cellular M2M connections forecast (World 2008–2014) ..137
Figure 6.5: Cellular M2M connections forecast by application (World 2008–2014)138
Figure 6.6: Cellular M2M connections forecast by region (World 2008–2014) .139
Figure 6.7: Estimated number of M2M connections by market (H1-2009) .140
Figure 6.8: Estimated M2M connections and penetration by country (EU27+2 H1-2009) 141
Figure 6.9: Reported number of M2M SIMs for some EU operators (H1-2009)142
Figure 6.10: Estimated number of cellular M2M connections for US operators (H1-2009) 143
Figure 6.11: Estimated number of M2M connections in major emerging markets (2009)..145
For full details, please email keithw@cmsinfo.com
Top of Page
Buy now!
Top of Page
Home | About | Hot Telecoms Reports | Market Research by Sector | Research by Recency
Telecoms Research Firms | faq | Privacy | Terms
Site Contents | Telecom Suppliers Directory | Telecom Conferences and Events Directory
The Mobile Phone Market | African Fixed & Mobile Telecom Operators List
|
