Global Mobile M2M Module Market 2016-2020
Overview of the mobile M2M module market
According to the market research analysts at Technavio, the mobile M2M module market is anticipated to witness tremendous growth and will post a staggering CAGR of more than 21% over the forecast period. Several key initiatives taken by government organizations is driving the demand for cellular M2M modules used for M2M communications across numerous industries such as energy, oil and gas, automotive, and healthcare. For instance, in the EU, a mandate known as eCall was passed by the government in 2013, in which all upcoming car models are to be equipped with emergency call systems, which will send a notification immediately to emergency service providers in the event of an accident. These government regulations have fuelled the demand for automotive M2M modules, which, in turn, will propel this market’s growth prospects in the coming years.
M2M modules require a timely upgrade for the proper functioning of the software and to keep up with the latest technology. As most modules are placed at remote locations, it is time-consuming and challenging for the technicians to upgrade the module software. However, with the emergence of technologies like Firmware Over-The-Air (FOTA), it has become much easier to update the module software. With the help of this technology, module providers can improve the quality of their modules, reduce cost, avoid product recalls, and improve customer satisfaction. This technology is gaining significant traction in the market and will boost this market’s growth prospects during the predicted period.
Competitive landscape and key vendors
Owing to the presence of several large and small vendors, the global mobile M2M module market witnesses fierce vendor competition. Most vendors in the market are competing to develop innovative products and solutions to cater to the demands of enterprises across various segments. With the augmented demand for 3G and LTE modules for various M2M applications, several vendors are making high investments in R&D to develop low-priced 3G and LTE modules. Many companies have adopted M&A strategy to increase the sale of M2M modules across different geographies.
Key vendors in this market are -
- Sierra Wireless
Other prominent vendors analyzed in this report are Novatel Wireless, Option, Quectel Wireless Solutions, U-Blox, and ZTE.
Segmentation by technology and analysis of the mobile M2M module market
During 2015, the 2G segment dominated the market and held close to 49% of the market shares in terms of shipments. M2M communications require long-range managed connectivity services to transfer data. The cost of a 2G CDMA network is less compared to 2G GSM and 3G HSPA. Moreover, 2G CDMA services are more spectrum-efficient than GPRS. As M2M transmissions require few bytes, 2G technologies are used to manage the transmissions effectively. Although 2G CDMA is a cost-effective solution for most IoT or M2M applications, the 2G modules will see a rapid decline during the forecast period. M2M applications such as telemetry, video surveillance, fleet management, automotive infotainment, and emergency services require high speed and high bandwidth. Therefore, most telecom operators are planning to decommission 2G networks and upgrade to 3G and 4G/LTE networks.
Geographical segmentation and analysis of the mobile M2M module market
In terms of geography, the Americas dominated the market and is likely to reach more than USD 2 billion by 2020. In the Americas, the mobile M2M module market is expected to grow rapidly during the forecast period, with the US being the major revenue contributor. Increased deployment of 3G and LTE technologies and the rise in usage of mobile devices are driving the demand for mobile M2M modules in this region. Moreover, the increased deployment of M2M modules in the electronic security sector will also contribute to the growth of the market in the region.
Key questions answered in the report include
- What will the market size and the growth rate be in 2020?
- What are the key factors driving the global mobile M2M module market?
- What are the key market trends impacting the growth of the global mobile M2M module market?
- What are the challenges to market growth?
- Who are the key vendors in the global mobile M2M module market?
- What are the market opportunities and threats faced by the vendors in the global mobile M2M module market?
- Trending factors influencing the market shares of the Americas, APAC, and EMEA.
- What are the key outcomes of the five forces analysis of the global mobile M2M module market?
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