IDATE: Cellular M2M market to grow 14 percent

By 2015, the M2M market is predicted to grow by 30 percent in volume

The cellular machine-to-machine market is expected to increase 14 percent in 2012 over 2011, reaching €22 billion, according to a recent report by consulting and research firm IDATE.

In terms of volume, the M2M market is expected to reach 140 million modules in 2012, a 36 percent increase over 2011, IDATE predicts. By 2015, the M2M market is predicted to grow by 30 percent in volume to almost 370 million modules.

Asia-Pacific should dominate Europe and North America in volume, but Europe should still lead in value, followed by North America, IDATE said.

Over the next few years, the M2M market will be driven by demand in the automotive, consumer electronics and utilities industries.

"The M2M market is growing very fast but its development is not spread out homogeneously over the verticals markets. Take the automotive industry worldwide: in volume we predict an average growth rate of 40 percent until 2016. In parallel, the consumer electronics industry has an AGR of 15 percent and will represent barely a third of the M2M volume for the automotive industry in 2016," said Samuel Ropert, project manager and senior consultant at IDATE.

At the same time, IDATE noted that some barriers could obstruct growth in the automotive and utilities sectors. In the short term, some applications in these industries are recurrently delayed and have a potential impact on the traditional M2M market.

"The utilities market is now seen as less attractive with business opportunity being somewhat limited. In fact, most smart meters will be connected to the cellular network through a concentrator and large utilities players will try to leverage their negotiation power to drive down the unit price. Finally, multiple M2M users are adopting a 'wait and see' position regarding the world economic situation," IDATE explained.

For more:
- see IDATE's release

Related Articles:
Spotlight: Sierra Wireless introduces 2nd generation 4G embedded modules
Jasper Wireless takes top spot in M2M vendor assessment