The Global M2M/IoT Terminal Market

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The Global M2M/IoT Terminal Market

The Global M2M/IoT Terminal Market is a strategy report from Berg Insight analysing the latest developments on the cellular router, gateway and modem market.

Berg Insight defines cellular terminals as standalone devices intended for connecting machines to a cellular network. These include primarily general-purpose cellular routers, gateways and modems that are enclosed in a chassis with at least one input/output port. Trackers, telematics devices and other specialised devices are excluded from this report.

Berg Insight has found that 2.7 million M2M terminals were sold globally during 2015 at a total market value of approximately US$ 550 million. The Americas and Asia-Pacific were the two largest markets in terms of annual shipments during 2015. Berg Insight estimates that approximately 0.95 million terminals were sold in each region. Europe came in on third place accounting for shipments of 0.70 million terminals. In terms of revenues, the Americas is a considerably larger market than Asia-Pacific and Europe with an estimated US$ 265 million in revenues compared to US$ 140 million and US$ 130 million respectively.

Average terminal prices in North America have increased as a result of a high share of 4G LTE routers and gateways in the product mix. The average price of terminals in Asia was very low due to a large share of low-cost 2G modems. Berg Insight forecasts that shipments of M2M terminals will grow at a CAGR of 16.1 percent in the next five years to reach 5.7 million units in 2020.

The M2M terminal vendor landscape is more fragmented than the M2M module market. Four M2M terminal vendors have a global market share of more than 10 percent each. Berg Insight ranks US-based Cradlepoint as the market leader with approximately US$ 90 million in revenues from terminal sales. SIMCom shipped half a million terminals in 2015 and achieved US$ 74 million in revenues. Sierra Wireless and Digi International generated US$ 63 million and US$_59 million respectively from the terminal business. These four vendors held a global market share of more than 50 percent together in 2015. Other notable vendors are CalAmp, MultiTech Systems, Encore Networks and Systech in North America, Xiamen Four-Faith, InHand Networks, Maestro Wireless and NetComm Wireless in Asia-Pacific, and HMS Networks, Advantech B+B SmartWorx, NetModule, Matrix Electrónica, Eurotech, Gemalto, Dr. Neuhaus, Westermo and Option in Europe.

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