According to the latest market study released by Technavio, the global mobile M2M module market is expected to grow at a staggering CAGR of over 21% by 2020.
This research report titled ‘Global Mobile M2M Module Market 2016-2020’ provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report has taken into consideration the annual sales of mobile M2M modules. In addition, the report discusses the major drivers that influence the growth of the global mobile M2M module market.
Adoption of connected devices and services by consumers
Consumers worldwide are adopting connected devices (such as tablets, smartphones), and PDAs at a much faster rate. These devices can be intelligently connected to each other through advanced M2M modules, smart sensors, and software. The mobile M2M modules enable data flow at high speed and sharing real-time information, helping the growth of businesses.
Telecommunication operators play a vital role in providing services at high speed to consumers by deploying advanced wireless technologies such as 3G and 4G/LTE. These wireless technologies help enterprises in obtaining real-time information, thereby enhancing their operations. In addition, the combination of cellular networks and M2M technology improves the efficiency of organizations by improving speed and accuracy of real-time information without the need for human intervention.
Technavio’s ICT analysts categorizes the global mobile M2M module market into three major segments by technology: 2G, 3G, LTE.
The global mobile M2M module market by 2G technology shipped 50 million units in 2015 and is likely to ship 54 million units by 2020, growing at a CAGR of around 2%. 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. 2G CDMA services are more spectrum-efficient than GPRS. In addition, operators such as Aeris have been upgrading their services, which enable CDMA technology to co-exist with other technologies. 2G modules are still preferred because of high network coverage, and some telecom operators are extending 2G along with the EC-GSM standard. M2M transmissions require few bytes, which can be effectively managed by 2G technologies. Therefore, 2G CDMA is a cost-effective solution for most IoT or M2M applications.
The global mobile M2M module market by 3G technology shipped 44 million units in 2015 and is likely to ship 168 million units by 2020, growing at a CAGR of nearly 31%. With the increase in number of connected devices and demand for high-speed data and bandwidth, most service providers are shifting toward 3G networks. The demand for 3G modules is high in North America and Western Europe. However, the demand for 3G modules increased in countries in APAC such as China, Japan, and South Korea because of the rise in use of 3G modules for M2M applications.
“The demand for 3G modules is expected to increase during the forecast period. 3G connections increase data transmission speeds. Realizing the high potential of M2M technological solutions, enterprises have been using 3G connected M2M applications to handle the growing demand for M2M data collection and management. Despite the high price compared to 2G CDMA modules, 3G modules are preferred as they offer high-speed data and have wider coverage,” says Rakesh Kumar Panda, a lead M2M and connected devices research analyst from Technavio.
The global mobile M2M module market by LTE technology shipped 7 million units in 2015 and is likely to ship 87 million units by 2020, growing at a CAGR of around 66%. The market for LTE modules is expected to grow rapidly during the forecast period. LTE provides high-bandwidth and high-speed data transfer for M2M applications. Most M2M applications in the automotive and energy sectors require high-bandwidth and high-speed for efficient functioning. Further, the rise in implementation of M2M applications among enterprises requires the real-time transfer of data and information among M2M devices. Hence, enterprises are increasingly adopting LTE modules. In addition, rapid deployment of LTE networks worldwide has led to a rise in LTE module shipments in developed as well as developing countries.
“Telecom companies in many regions such as Africa have to enhance network infrastructure to provide effective dual-mode M2M applications. The deployment of 4G LTE network infrastructure is less expensive compared to that of older cellular technologies. LTE can be deployed in the already existing 2G/3G bands and in new bands. For example, 2.6 GHz or digital dividend spectrum (700/800 MHz) for a greater geographical coverage and improved in-building performance. 2.6 GHz is the most preferred capacity band in most regions. Network operators have started deploying the supporting infrastructure in many geographies,” adds Rakesh.
The top vendors highlighted by Technavio’s research analysts in this report are: Gemalto, Huawei, Sierra Wireless, Telit Communications.