Cellular M2M Value-Added Services (VAS) Market by End-user, Service, and Geography - Forecast and Analysis 2021-2025

The cellular m2m value-added services (vas) market share is expected to increase by USD 59.75 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 34.77%.

This cellular m2m value-added services (vas) market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers cellular m2m value-added services (vas) market segmentations by end-user (consumer electronics, automotive, transportation and logistics, healthcare, and others) and geography (North America, Europe, APAC, South America, and MEA). The cellular m2m value-added services (vas) market report also offers information on several market vendors, including Aeris Communications Inc., Amdocs Ltd., AT and T Inc., China Mobile Ltd., Deutsche Telekom AG, Sierra Wireless Inc., Telefonica SA, Thales Group, Verizon Communications Inc., and Vodafone Group Plc among others.

What will the Cellular M2M Value-Added Services (VAS) Market Size be During the Forecast Period?

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Cellular M2M Value-Added Services (VAS) Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a positive impact on the market growth during and post COVID-19 era. The declining cost of connectivity applications is notably driving the cellular m2m value-added services (vas) market growth, although factors such as security and network integration issues in connected vehicles may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the cellular m2m value-added services (vas) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Cellular M2M Value-Added Services (VAS) Market Driver

The declining cost of connectivity applications is one of the key factors driving the growth of the global cellular M2M value-added services (VAS) market. The integrated telematics penetration is increasing year-over-year (YoY) worldwide due to the increased demand for smartphones and the new regulations related to the safety features of automobiles. Basic delivery of the safety features of the vehicles in the era of advancing technology does not amount to a competitive edge. Premium telematics solutions, including navigation, infotainment, and vehicle-to-vehicle communication, are required to satisfy the growing demands of the customers. The telematics industry of the future will be driven by two forces, namely the demand for wireless connectivity by car occupants and the need for auto manufacturers to wirelessly connect to digital car services. This has benefitted the heavy equipment manufacturers, fleet owners, and cellular-based M2M VAS application providers. However, the declining cost of connectivity has enabled emerging vendors to be benefitted from wireless M2M solutions and create embedded connectivity modules. The adoption of cellular M2M VAS applications has increased across a wide range of commercial industries, such as insurance and automotive.

Key Cellular M2M Value-Added Services (VAS) Market Trend

The growth of the automotive industry by leveraging 5G technology will fuel the global cellular M2M value-added services (VAS) market growth. 5G network is expected to support developments such as autonomous vehicles, M2M, and machine-to-infrastructure services, as well as IoT. Over the years, automotive manufacturers and telecom providers have been developing connectivity solutions such as IoT connectivity platforms. IoT connectivity enables the interconnectivity between two vehicles. Innumerable sensors and processors integrated into a car provide accurate and real-time information about the surrounding environment to the driver. Moreover, 5G technology will allow the OTA updates as automation (levels 3 and 4) requires an extensive amount of data processing to occur in real-time. The OTA software updates provide significant monetary benefits by upgrading the software remotely. OTA updates also help to reduce testing periods and minimize software bottlenecks. Thus, it eliminates the high-cost consumption along with the time delay in synchronizing the software. For instance, Tesla has the first-mover advantage with the design of vehicles that have software that is constantly updated. The BlackBerry IoT platform also includes the OTA update solution to deliver scalable solutions for infotainment, navigation, telematics, and security features.

Key Cellular M2M Value-Added Services (VAS) Market Challenge

The premium pricing of traditional personal care products is a major challenge for the global cellular M2M value-added services (VAS) market growth. Auto manufacturers deploy different technologies to provide roadside assistance, anti-theft solutions, navigation, remote vehicle diagnostics, and infotainment services. Car manufacturers are focusing on integrating their apps with consumer devices. However, these integrations would create a security risk for the vehicles. The in-vehicle network was originally designed to support only the internal devices. Many consumers have become apprehensive about security issues as vehicle manufacturers are providing advanced features related to the linking of external devices. Poor integration results in consumer dissatisfaction, affecting the manufacturer's reputation. Encryption, authentication, and validation are key techniques that are used to solve security issues. However, consumers need to read and understand the privacy policy and permissions related to the apps during the installation process. Cybersecurity can be enhanced by avoiding the reuse of passwords across apps and turning off the GPS when it is not required.

This cellular m2m value-added services (vas) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Parent Market Analysis

Technavio categorizes the global cellular M2M VAS market as a part of the global communications equipment market within the overall global information technology sector. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the cellular m2m value-added services (vas) market during the forecast period.

Who are the Major Cellular M2M Value-Added Services (VAS) Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

• Aeris Communications Inc.
• Amdocs Ltd.
• AT and T Inc.
• China Mobile Ltd.
• Deutsche Telekom AG
• Sierra Wireless Inc.
• Telefonica SA
• Thales Group
• Verizon Communications Inc.
• Vodafone Group Plc

This statistical study of the cellular m2m value-added services (vas) market encompasses successful business strategies deployed by the key vendors. The cellular m2m value-added services (vas) market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• Aeris Communications Inc. - The company offers reliable and flexible end-to-end CDMA and GSM M2M solutions for healthcare providers.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The cellular m2m value-added services (vas) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Cellular M2M Value-Added Services (VAS) Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the cellular m2m value-added services (vas) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global communications equipment market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Cellular M2M Value-Added Services (VAS) Market?

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33% of the market's growth will originate from Europe during the forecast period. Germany and France are the key markets for the cellular m2m value-added services (vas) market in Europe. Market growth in this region will be slower than the growth of the market in regions.

The declining cost of connectivity applications will facilitate the cellular m2m value-added services (vas) market growth in Europe over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The lockdowns imposed across Europe to contain the spread of COVID-19 resulted in the shutdown of various business sectors, which reduced the sales volume for cellular M2M VAS in 2020. This is expected to hamper the growth of the cellular M2M VAS market in Europe. However, the rollout of COVID-19 vaccines across Europe in 2021 resulted in reducing the impact of COVID-19, lifting lockdown restrictions, and the resumption of operations in the automotive industry. This is expected to drive the cellular M2M VAS market in Europe during the forecast period.

What are the Revenue-generating End-User Segments in the Cellular M2M Value-Added Services (VAS) Market?

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The cellular m2m value-added services (vas) market share growth by the consumer electronics segment will be significant during the forecast period. The growth of this segment is due to the increase in the rapid adoption of cellular broadband networks in households and the trend among consumers to use smart connected devices among consumers.

This report provides an accurate prediction of the contribution of all the segments to the growth of the cellular m2m value-added services (vas) market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Cellular M2M Value-Added Services (VAS) Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive cellular m2m value-added services (vas) market growth during the next five years
• Precise estimation of the cellular m2m value-added services (vas) market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the cellular m2m value-added services (vas) industry across North America, Europe, APAC, South America, and MEA
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of cellular m2m value-added services (vas) market vendors

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