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The Cellular M2M Value-Added Services (VAS) Market size is estimated to grow at a CAGR of 24.59% between 2022 and 2027. The market size is forecast to increase by USD 50,390.53 million. The growth of the market depends on several factors, including the growing demand for enhanced M2M data communication, the escalating demand for SatCom connectivity, and the increasing number of mobile computing devices. Cellular M2M VAS is defined as the cellular value-added connectivity process within distinct subscriber identity module (SIM)-enabled devices to offer connectivity over multiple wireless networks, including 2G, 3G, 4G/long-term evolution (LTE),5G or wireless fidelity (Wi-Fi), and worldwide interoperability for microwave access (WiMAX).
This cellular m2m value-added services (VAS) market report extensively covers market segmentation by end-user (consumer electronics, automotive, healthcare, transportation and logistics, and others), service (managed services and professional services), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The growing demand for enhanced M2M data communication is driving growth in the cellular m2m value-added services (VAS) market. The value of data as a decision factor is becoming increasingly recognized by businesses. Enhanced M2M data communication allows for the collection, transmission, and analysis of a vast amount of data from connected devices. In order to assist businesses in optimizing processes, reducing interruptions, and making strategic decisions, these data can offer useful insight into different aspects of operations.
However, enhanced M2M data communication facilitates the timely transfer of diagnostic information for predictive maintenance applications. Improved communication of M2M data is useful to companies that have distributed devices, e.g. fleets of vehicles or equipment in distant locations. The demand for the cellular M2M value-added services market, which, in turn, is expected to drive the growth of the global cellular M2M value-added services (VAS) market during the forecast period.
The rising use of M2M-based digital signage in the retail sector is a key trend in the cellular m2m value-added services (VAS) market. Retailers worldwide have started using M2M-based digital signage to supply users with essential particulars about their new product launches, the latest additions to product lines, and discounts. To enhance customer interaction, it uses M2M Digital Signage to send personalized advertising on the basis of customers' information such as location, gender, and age.
Moreover, m2m-based digital signage delivers information on a real-time basis. It provides better features than traditional print-based displays. It will contribute to improving the retail sector's image. In order to better reach out to customers, it will also help retailers save time and money. Such factors are expected to drive the demand for cellular M2M VAS, which, in turn, is expected to drive the growth of the global cellular M2M value-added services (VAS) market during the forecast period.
The high upfront cost of cellular M2M devices and services is a major challenge in the cellular m2m value-added services (VAS) market. A substantial initial investment will be needed to introduce cellular M2M devices and services. This includes the cost of purchasing M2M hardware, sensors, communication modules, and the integration of software and value-added services.
However, other communication technologies and solutions, such as low-power wide area networks (LPWAN) or non-cellular M2M options, may offer lower upfront costs, encouraging companies to seek effective connectivity solutions, thereby giving them an appealing alternative. Such factors are expected to hinder the growth of the global cellular M2M value-added services (VAS) market during the forecast period.
The market share growth by the consumer electronics segment will be significant during the forecast period. The increasing integration of consumer electronics into the IoT ecosystem drives the adoption of M2M technology. A connected device offering convenience, automation, and real-time data sharing is sought by consumers.
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The consumer electronics segments showed a gradual increase in the market share of USD 3,421.30 million in 2017 and continued to grow by 2021. The demand for M2M-enabled consumer electronic devices is fueled by the growth of smart homes, in which different household appliances and equipment are interconnected and controlled remotely through mobile phones or voice assistants. M2M connectivity enhances user experiences by enabling remote control, customization, and automation of devices. Consumers value the convenience of remotely monitoring and managing their devices from anywhere.
The managed services segment of the global cellular M2M value-added services market plays a pivotal role in providing businesses with comprehensive and streamlined solutions for deploying and managing their M2M and IoT devices. Service providers offering managed services are specialized in managing machine-to-machine devices, connectivity, and data analysis. Businesses can leverage this expertise to efficiently deploy, monitor, and maintain their M2M solutions without the need for extensive in-house knowledge. M2M deployments involve multiple components, including devices, connectivity, data processing, and security. The demand for cellular M2M VAS, which, in turn, is expected to drive the growth of the managed services segment of the global cellular M2M value-added services (VAS) market during the forecast period.
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Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to vendors is North America. Urbanization in North America has increased significantly in countries such as Canada and the US. According to data published by The World Bank Group, in 2022, the urban population in Canada and the US accounted for 82% and 83%, respectively, of the total population.
Moreover, the demand for luxury passenger vehicles has risen because of this urbanization rate, as well as the stability of society in cities due to rising disposable income. Premium passenger vehicles have several advanced features to improve the on-road experiences for users. Hence, the increasing demand for several advanced technological features is driving the demand for embedded M2M technology in vehicles, which, in turn, is boosting the growth of cellular M2M value-added services (VAS) across North America.
In 2020, the outbreak of the COVID-19 pandemic negatively impacted the cellular M2M value-added services (VAS) in North America. However, in 2021, the successful implementation of COVID-19 vaccination programs conducted by governments across the region played a pivotal role in controlling the spread of the pandemic and the reopening of economies. Demand for M2M value-addition services, especially in sectors like transport, logistics, and healthcare, has recovered as the companies have begun to resume their operations. The rollout of 5G networks is expected to revolutionize the M2M landscape by providing faster, more reliable, and low-latency connectivity. This technological leap will enable the development of more sophisticated and data-intensive M2M applications. Such factors are expected to drive demand for the cellular M2M value-added services (VAS) market in North America during the forecast period.
The Cellular M2M Value-Added Services (VAS) Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Cellular M2M Value-Added Services (VAS) Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aeris Communications Inc. - The company offers reliable and flexible end-to-end CDMA and GSM M2M solutions for healthcare providers.
Amdocs Ltd. - The company offers Cellular M2M VAS such as Amdocs fiber services, Amdocs network planning services, and Cloud-based connected home solutions.
AT and T Inc. - The company offers AT and T M2X that includes real-time analytics, developer portal, and data security APIs among others.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The cellular M2M value-added services (VAS) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Cellular M2M Value-Added Services (VAS) Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 24.59% |
Market growth 2023-2027 |
USD 50,390.53 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
20.45 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 34% |
Key countries |
US, China, Japan, Germany, and the UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aeris Communications Inc., Amdocs Ltd., AT and T Inc., China Mobile Ltd., Choice IoT Inc., Deutsche Telekom AG, Digi International Inc., eDevice S.A., KDDI Corp., Nippon Telegraph And Telephone Corp., Orange SA, Rogers Communications Inc., Semtech Corp., Telefonica SA, Telenor Group, Telit IoT Platforms LLC, Thales Group, United States Cellular, Verizon Communications Inc., and Vodafone Group Plc |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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