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.
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
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:
- Others (ZigBee, WiFi, Short Range Wireless)
- Industry vertical forecasts are categorized in the following 7 categories:
- Utilities & Smart Grid
- Automotive & Transportation
- Public Safety, Security & Surveillance
- Retail & Vending
- 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.
ABB Power & Robotics
AIS - TOT
Alliance for Telecommunications, Industry Solutions (ATIS)
Association of Radio Industries
Atos Origin SA
Businesses and the Telecommunication Technology Committee of Japan
C Spire Wireless
Carolina West Wireless
Chariton Valley Comms
China Communications Standards Association (CCSA)
Energy Australia Ausgrid
Etex Telephone Co-op
European Telecommunications Standards Institute (ETSI)
General Electric (GE)
Global Smart Services
Janus Remote Communications
Landis & Gyr
Leap Wireless / Cricket
Mobyland and CentreNet
National Information Technology Standardization (NITS) Technical Committee
New Jersey State Police Department (NJSP)
Nokia Siemens Networks
Norse Pipeline LLC
O2 Secure Wireless
Open Mobile Alliance
Orange (France Telecom)
Orange Business Services
PA Consulting Group
Panhandle Telephone Co-op
Peoples Telephone Co-op
Public Service Wireless
Qualcomm Life Inc
Qualcomm Wireless Health
Red Bend Software
RF Code Inc.
S and R Communications
S&T Telephone Cooperative
Sao Paulo Military Police
T Mobile Slovensko
T Mobile USA
Telecommunications Industry Association (TIA)
Telecommunications Technology Association of Korea
Telefónica's O2 UK
Telit Wireless Solutions
Texas Energy Network
U.S. Preventative Medicine
Vodafone New Zealand