Mobile M2M module market jumps 10% in first half, says Infonetics
The mobile machine-to-machine (M2M) module market jumped 10 percent sequentially in the first half of 2013, reaching $849 million, according to the latest stats from Infonetics Research.
Infonetics predicts that the mobile M2M module market will almost double in revenue by 2017, reaching $3 billion in that year or a compound annual growth rate of 14 percent.
North America remains the leading region for mobile M2M modules, followed by Europe, the Middle East and Africa; Asia Pacific and Latin America.
Despite this healthy growth, the market is forecast to consolidate, as vendors face a "dynamic, and at times challenging, environment," observes Godfrey Chua, directing analyst for M2M and connected world at Infonetics.
"We expect the next 12 to 36 months to bring further industry consolidation and continued vetting of M2M business models. These factors, when coupled with macroeconomic issues including a tepid U.S. recovery and uncertainty in Europe and the ongoing transitions between technology platforms (2G to 3G to 4G), temper the near-term growth prospects of mobile M2M modules. Overcoming these challenges will be key to laying the foundation for the accelerated growth we anticipate in a few years," Chua adds.
Sierra Wireless' purchase of AnyData and Telit's acquisition of ILS Technology for $8.5 million demonstrate the consolidation trend. ILS was recently selected by ABI Research as the top M2M security vendor, followed by Axeda and Sierra Wireless.
GSM/GPRS/EDGE made up 59 percent of mobile M2M module units shipped the first half of 2013, although this share will decline as the transition to 3G proceeds and eventually 4G, with 4G LTE accounting for as much as 12 percent of mobile M2M module revenue by 2017, according to Infonetics.
- see the Infonetics release