Skip to main content

Differences in Global M2M Market Dynamics

Global markets for cellular machine-to-machine (M2M) modules will experience a smooth and solid growth trajectory in coming years, according to a new ABI Research study.

The compound annual growth rate during the forecast period between 2006 and 2012 is expected to reach 31 percent. Although cellular M2M module shipment numbers in the world's three main industrialized regions -- North America (including Mexico), Europe, and Asia-Pacific are approximately equal at present, these markets differ significantly from each other in character.

ABI Research senior analyst Sam Lucero says, "North America is a significant cellular M2M market that differs from the other regional markets in three key respects: the prevalence of CDMA air-interface technology; the significant share of the market comprised of OEM telematics; and the rigorous, expensive, and time-consuming certification process required by the four main North American mobile network operators."

Europe is still considered to be the most advanced wireless market, Lucero says, in terms of its sophistication and openness to M2M, with technologies crossing a range of applications. Western Europe benefits from the ubiquity of GSM/GPRS technology, which helps promote adoption.

Eastern Europe is at an earlier stage of market development, and module vendors describe it as being more price-sensitive than the west, where a greater premium is placed on features, functionality, and reliability.

On a unit shipment basis, Asia-Pacific is the largest market, but it's characterized by a fragmented assortment of air standards, and a majority of those shipments are actually for wireless local loop (WLL) applications.

"Wireless local loop is something of a gray area within M2M," notes ABI's Lucero, "because, unlike telemetry or telematics applications, WLL is centered more on enabling standard fixed voice and data communications over cellular infrastructure. That does form the largest share of the market in the Asia-Pacific region."

This diversity of market characteristics is mirrored in the strategies, strengths and weakness of module vendors. Many are global players, but have taken very different paths to address regional mobile phone service provider markets.

Popular posts from this blog

How Cloud Fuels Digital Business Transformation

Across the globe, many CEOs invested in initiatives to expand their digital offerings. User experience enhancements that are enabled by business technology were a priority in many industries. Worldwide end-user spending on public cloud services is forecast to grow 21.7 percent to a total of $597.3 billion in 2023 -- that's up from $491 billion in 2022, according to the latest market study by Gartner. Cloud computing is driving the next phase of digital transformation, as organizations pursue disruption through technologies like generative Artificial Intelligence (AI), Web3, and enterprise Metaverse. Public Cloud Computing Market Development "Hyperscale cloud providers are driving the cloud agenda," said Sid Nag, vice president at Gartner . Organizations view cloud computing as a highly strategic platform for digital transformation initiatives, which requires providers to offer new capabilities as the competition for digital business escalates. "For example, generativ

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul