Mobile M2M module segment reaches $1.5B last year, says Infonetics
The mobile machine-to-machine module segment totaled $1.5 billion in 2012, a 25 percent increase from 2011, according to the latest stats from Infonetics Research.
Currently, 2G mobile technologies constitute the majority of mobile M2M module units shipped, but 3G M2M modules are forecast by Infonetics to increase to a majority of M2M modules in 2017. 4G LTE is the fastest growing mobile M2M segment, fueled by connected car initiatives such as GM OnStar, as well as China Mobile's LTE network buildout, and the Chinese government's smart cities initiative.
In fact, Pyramid Research predicts that China will overtake the United States as the largest M2M market in late 2013 and stay on top through 2017.
The mobile M2M module segment, which is one of many technologies available for M2M services, represents less than 15 percent of active connections in 2013. Other technologies used for M2M connections include Wi-Fi, Bluetooth, Zigbee, as well as DSL and T1 lines, noted Godfrey Chua, directing analyst for M2M at Infonetics.
"Mobile operators are deploying more M2M solutions and enterprises and consumers are increasingly adopting them across the globe, creating a robust outlook for the overall M2M services market, as well as the mobile M2M module market. Many mobile operators are putting a sharp focus on and real resources behind their M2M businesses, and it's beginning to pay off. That one of the global leaders, AT&T (NYSE: T), can speak of a billion-dollar business in this segment demonstrates the traction and growth that M2M services are experiencing," Chua observed.
Infonetics forecasts that the automotive, transportation and logistics segment will generate $2.6 billion in spending for mobile M2M modules over the next five years. Research firm SBD predicts that the connected car market in total will reach €40 billion ($53 billion) in 2018, up from €13 billion ($17 billion) in 2012, fueled by embedded SIM technology.
Infonetics forecasts that there will be further vendor consolidation and vetting of business models for the mobile M2M module industry in the next three years.
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CORRECTION: This article was corrected on June 24, 2013, to clarify that the Infonetics figures relate to the mobile M2M module segment and not the broader mobile M2M market.