The M2M Bible - Opportunities, Challenges, Strategies, Industry Verticals and Forecasts: 2013 - 2018

Release Date: February 2013

Number of Pages: 245

Number of Tables and Figures: 118

Synopsis: Despite its low ARPU, the wireless M2M market has become a key focus of many mobile network operators as their traditional voice and data markets become saturated. Likewise, government and regulatory initiatives such as the EU initiatives to have a smart meter penetration level of 80% by 2020 and the mandatory inclusion of automotive safety systems such as eCall in all new car models, have also helped to drive overall wireless M2M connections and revenue.

Consequently we expect the wireless M2M market to account for nearly $136 billion in revenues by the end of 2018, following a CAGR of 23% during the five year period between 2013 and 2018. Eyeing this lucrative opportunity, vendors and service providers across the highly fragmented M2M value chain have become increasing innovative in their strategies and technology offerings which have given rise to a number of submarkets such as M2M Network Security, Connected Device Platforms (CDP) and M2M Application Platforms.

This report presents an in-depth assessment of the global wireless M2M market. In addition to covering the business case, the challenges, the industry’s roadmap, value chain analysis, deployment case studies, and the vertical market ecosystem, vendor service/product strategies and strategic recommendations, the report also presents comprehensive forecasts for the wireless M2M market from 2013 till 2018, including an individual assessment of the following submarkets: Network Connectivity, Application Services, Embedded Cellular M2M Modules, Network Security, Connected Device Platforms (CDP), Application Platforms (Application Enablement Platforms, AEP and Application Development Platforms, ADP), Integration Services and Enabling Technologies, across six regions.

Also provided are network connectivity and application service revenue forecasts for the following 6 vertical market segments: Utilities & Smart Grid, Automotive & Transportation, Logistics, Public Safety, Security & Surveillance, Retail & Vending and Healthcare. Historical figures are also provided for 2011 and 2012. The report comes with an associated XLS datasheet covering quantitative data from all figures presented within the report.

Key Findings:

The report has the following key findings:

  • The wireless M2M market will account for nearly $136 billion in annual revenues by the end of 2018, following a CAGR of 23% during the five year period between 2013 and 2018
  • At present, the M2M value chain is highly fragmented with module OEMs, hardware solution providers, application platform providers, device platform providers, and mobile network operators and aggregators/MVNOs all investing across multiple segments of the value chain, whilst still maintaining a key focus on a specific portion
  • SNS Research expects the value chain to consolidate in the future, with a smaller number of larger and profitable competitors across the M2M value chain
  • The growing presence of wireless M2M solutions within the sensitive critical infrastructure industry is having a profound impact on M2M network security services, a market estimated to reach nearly $1 billion in annual spending by the end of 2018
  • Driven by demands for device management, cloud based data analytics and diagnostic tools, M2M software platforms (including CDP, AEP and ADP) are expected to account for $6 billion in annual spending by the end of 2018

Topics Covered:

The report covers the following topics:

  • M2M technology and architecture
  • Market drivers and key benefits of wireless M2M
  • Challenges and Inhibitors to the wireless M2M Ecosystem
  • Wireless M2M standardization Initiatives
  • Wireless M2M opportunities, use cases and applications across industry verticals
  • Wireless M2M deployment case studies
  • Industry, mobile network operator and vendor commitments to M2M
  • Wireless M2M industry roadmap: 2013 – 2018
  • Wireless M2M value chain assessment
  • Key trends in the M2M ecosystem: acquisitions, evolving requirements, business models, cloud based analytics, network security, impact of LTE, IPv6, module costs and price elasticity
  • Profiles, market positioning assessment (current strategy, target market and products/services) and strategic recommendations for: embedded cellular module vendors, hardware solution providers, MVNOs/M2M connectivity aggregators, cloud based AEP and ADP providers, CDP providers, Wireless/IT industry incumbents and mobile network operators
  • Market analysis and forecasts for the M2M industry’s revenue and network connections:
    • Wireless M2M industry revenue forecast by region and submarkets
    • Wireless M2M connections forecast by region, technology and industry verticals
    • Wireless M2M network connectivity submarket revenue and ARPU forecast by region and industry vertical
    • Wireless M2M application services submarket revenue and ARPU forecast by region and industry vertical
    • Embedded cellular M2M modules submarket shipments, revenue and ASP forecast by region, technology, industry vertical and vendor
    • Wireless M2M network security submarket revenue forecast by region
    • Wireless M2M Connected Device Platform (CDP) submarket revenue forecast by region
    • Wireless M2M application platform (AEP, ADP) submarket revenue forecast by region
    • Wireless M2M Integration services submarket revenue forecast by region
    • Wireless M2M enabling technology submarket revenue forecast by region
    • Wireless M2M vertical market revenue by industry vertical
    • Submarket forecasts are categorized in the following 8 categories:
      • Network Connectivity
      • Application Services
      • Embedded Cellular M2M Modules
      • Network Security
      • Connected Device Platforms (CDP)
      • Application Platforms (Application Enablement Platforms, AEP and Application Development Platforms, ADP
      • Integration Services
      • Enabling Technology
    • Technology forecasts are categorized in the following 6 categories:
      • GSM/GPRS/EDGE
      • CDMA-2000/EV-DO
      • W-CDMA/HSPA
      • WiMAX
      • LTE
      • Others (ZigBee, WiFi, Short Range Wireless)
    • Industry vertical forecasts are categorized in the following 7 categories:
      • Utilities & Smart Grid
      • Automotive & Transportation
      • Logistics
      • Public Safety, Security & Surveillance
      • Retail & Vending
      • Healthcare
      • Others
    • Regional forecasts are categorized in the following 6 categories
      • North America
      • Asia Pacific
      • Western Europe
      • Eastern Europe
      • Latin & Central America
      • Middle East & Africa

Key Questions Answered:

The report answers to the following key questions.

  • What are the key market drivers and challenges in the wireless M2M ecosystem?
  • What are the key applications of M2M across industry verticals?
  • How is the M2M value chain structured, how will it evolve overtime, and what will be its impact on key vertical segments of the market?
  • What opportunities does M2M technology offer to mobile network operators and other players involved in the value chain?
  • What strategies should mobile network operators/MVNOs, module vendors, hardware solution providers, software platform providers and other players adopt to capitalize on the M2M opportunity?
  • How big is the M2M opportunity, and how much revenue will the industry generate in 2018?
  • What will be the installed base of wireless M2M connections in 2018?
  • Which geographical regions and industry verticals offer the greatest growth potential for M2M services?
  • What is the vendor market share embedded cellular M2M modules, how many units will ship in 2018 and how will declining ASPs impact the sales revenue?
  • How will embedded cellular M2M module shipments vary by air interface technology overtime, and will LTE take a lead in 2018?
  • What is the network connectivity and application service ARPU for M2M services, and how will this vary overtime for each industry vertical?
  • How big is the market for M2M network security and software platforms?

List of Companies Mentioned:

The following companies have been mentioned in the report.

3GPP

4Home

4M wireless

7 Layers

8ta

A1 Telekom

ABB Power & Robotics

Accenture

Aeris Communications

Aeroscout

Agri-Valley Broadband

Air Products

Aircell

AIS - TOT

Al Madar

Alaska Communications

Alcatel Lucent

Algar Telecom

Alien Technology

Alliance for Telecommunications, Industry Solutions (ATIS)

Amadeus

Amazon

Andorra Telecom

Antel

Appalachian Wireless

Apple

APS

Arduino

Arkessa

ARM Holdings

Armentel

Arqiva

Arrayent

Asiaspace

Association of Radio Industries

AT&T

AT&T Mobility

Atos Origin SA

Augere

Augusta Systems

Avea

AVIDwireless

Axeda

Axeda Corporation

Bakrie Telecom

Base Telecom

Batelco

Bayan Telecommunications

BayRICS

Beeline

Belgacome

Bell Mobility

BeST

Best Buy

Bharti Airtel

Bite

Bluegrass Cellular

BMW

Bosch

Bouygues Telecom

BSNL

BTC

Businesses and the Telecommunication Technology Committee of Japan

C Spire Wireless

CalAmp

Call Me

Camelot Group

CardioNet

Carolina West Wireless

Cell C

Cellcom

Cellular South

Centrica

CenturyTel

CETECOM

Chariton Valley Comms

Chess Communication

China Communications Standards Association (CCSA)

China Mobile

China Telecom

China Unicom

Chunghwa Telecom

Cinterion

Cisco

Claro

Clear Mobitel

Clearwire

Cobra

Cognovo

Commnet Wireless

Comtrol

Connect One

Connected Development

Connected Solutions

Continental

Convergence Technologies

Coronis

Cosmote

Cross Telephone

CSL Limited

Custer Telephone

DataOnline

DataRemote

Datatrade

Dedicado

Deloitte

Deutsche Telecom

Dialog Axiata

Digi International

Dish Network

DNA

DPC/AIS

Du

Dust Networks

E Plus

Echelon

eDevice

Eesti Telekon

ei3

Elisa

Ember

Emobile

EMT

Energy Australia Ausgrid

Enfora

Entel Movil

Entel PCS

ERA/T Mobile

Ericsson

Esprida

Etex Telephone Co-op

Etherios

Etisalat

European Telecommunications Standards Institute (ETSI)

Eurotech

Everything Everywhere

Feeney Wireless

Fitel

FPT Telecom

G4S

Gemalto

General Electric (GE)

General Motors

Geocell

Glo Mobile

Global Mobile

Global Smart Services

Globalstar

Globe

Google

GSMA

H3G

Halebop

Hertz

Honeywell

HSBC

Huawei

Hughes Telematics

Hutchison Three

IBM

ICE

IEEE

ILS Technology

iMetrik Solutions

Indosat

Ingenico

Inilex

Inmarsat

Intel

Iridium

Itron

iWOW

Janus Remote Communications

Jasper Wireless

Kcell

KDDI

Kordia

KORE Telematics

KPN

KT

Laird Technologies

Landis & Gyr

Lantronix

Lattelecom

Leap Wireless / Cricket

Leica

LG

LG U+

Libelium

LifeScan

LightSquared

LMT

Logica

Lufthansa Systems

M1

M20 City

M2M Communications

M2M DataSmart

M2M Wireless

Magticom

Manitwoc

Marvell

Maxis

MegaFon

MEMSIC

Metrik Solutions

MetroPCS

Microchip Technology

Millenial Net

Mobikom Austria

Mobily

Mobinil

Mobistar

Mobitel

Mobyland and CentreNet

Mocana

Moldcell

Monaco Telecom

Morey

Mosaic Telecom

Motorola Mobility

Motorola Solutions

Movicel

Movistar

MOXA

MTC

M-Tel

MTN

MTNL

MTS

MTS Allstream

MTS-Ukraine

Multi-Tech Systems

National Information Technology Standardization (NITS) Technical Committee

NBN Co

Ncell

NEC

NeoConsult

Neoway

Nestlé Nespresso

NetCom

Neul

New Jersey State Police Department (NJSP)

NextGenTel

NextM2M

Nintendo

Nokia Siemens Networks

Norse Pipeline LLC

Northwest Cell

Novatel Wireless

nPhase

NTT DoCoMo

Numerex

O2 Secure Wireless

OAO Voentelecom

Oi

Omnilink Systems

Omnitel

Open mobile

Open Mobile Alliance

Optus

Oracle

Orange (France Telecom)

Orange Armenia

Orange Business Services

Orange Healthcare

ORBCOMM

P1 Networks

PA Consulting Group

Palantiri Systems

Panasonic

Panhandle Telephone Co-op

PCCW

Pedigree Technologies

Peoples Telephone Co-op

Perle Systems

Personal

Piltel

Pioneer Cellular

Plextek Group

Praxair

Precidia Technologies

Proteus Biomedical

PSA

Public Service Wireless

Qtel

Qualcomm

Qualcomm India

Qualcomm Life Inc

Qualcomm Wireless Health

Quectel

RACO Wireless

RasGas

Raspberry Pi

Red Bend Software

Redtail Telematics

Reliance

Respironics

RF Code Inc.

RF Monolithics

Rogers

Rogers Wireless

Romec

Rostelecom

S and R Communications

S&T Telephone Cooperative

Safaricom

Sagemcom

Salesforce.com

Sao Paulo Military Police

Sasktel

Saudi Aramco

Savi Technology

Schlage

SENA Technologies

SensorLogic

SFR

Siemens Water

Sierra Wireless

SIGFOX

Sigma Designs

SIMcom

SingTel

Sixnet

SK Telecom

Sky Brazil

SkyBitz

SkyTel

Smart Communications

Smartone Vodafone

Softbank Mobile

Sonaecom Sony

SpeedConnect

SpiceNepal

Sprint

Starcomms

Starhub

STC

Strata Networks

Sunrise

Swisscom

Synchronoss Technologies

T Mobile

T Mobile Slovensko

T Mobile USA

Tcell

TDC

TelaSonera

Telcel

Tele2

Tele2 Sweden

Telecom Italia

Telecom NZ

Telecommunications Industry Association (TIA)

Telecommunications Technology Association of Korea

Telefonica

Telefónica

Telefónica's O2 UK

Telekom Austria

Telenet

Telenor

Telenor Connexion

Telenor Magyarorszag

Telenor Objects

Telenor Sweden

Telia

TeliaSonera

Telit

Telit Wireless Solutions

Telkomsel

Telogis

Telstra

Telular

TELUS Mobility

Telvent

Tendril Networks

Teo LT

Texas Energy Network

Texas Instruments

ThingMagic

Three Denmark

Three Italia

Three UK

T-Hrvatski Telekom

Thumb Cellular

Tikona Digital

TMN

T-Mobile

TomTom

Transatel

Triatel

Tridium

Trimble

True Move

Tunisiana

Turkcell

Tyntec

U Mobile

U.S. Preventative Medicine

U-blox

UCell

UK Broadband

UME EPM

United Wireless

Unitel

US Cellular

UTC Power

V2COM

VDC

Veolia Water

Verifone

VeriSign

Verizon

Verizon Wireless

VHA

Videotron

Viettel

Vimpelcom

VimpleCom

VIPNet

Viva Bahrain

Viva Cell-MTS

Vivid Wireless

Vodacom

Vodafone

Vodafone New Zealand

Vodafone Portugal

Vodafone Qatar

VolvoZelitron

Vox

Wavecom

WBS

WebTech Wireless

WiFI Alliance

WiMAX Forum

Wind

Wind Mobile

Wipro

Wireless Logic

Woosh

Wyless

Wyless Group

Xact Technology

XL Axiata

Xplorenet

Yoigo

Yota

Zain

Ziggo4

ZTE