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Growth for M2M Connected Device Platform Market

Connected Device Platforms (CDP) are software systems that help to facilitate the deployment and management of connected devices for machine-to-machine (M2M) applications over cellular wireless networks.

With an expected market of $2.14 billion in 2017, CDPs are typically provisioned by Mobile Network Operators (MNOs) and delivered to M2M application deployment companies as a cloud service, according to the latest market study by ABI Research.

While several large MNOs have built their own CDP, there is a clear trend in the market towards third-party-provided solutions.

“Several vendors are active in the market, including Ericsson, NSN, and NEC, among others, but the clear leader, in terms of sheer number of operator partners and market traction, is pure-play provider Jasper Wireless,” says ABI research practice director Sam Lucero.

As the M2M market becomes a more mainstream segment of the overall mobile industry, CDPs are increasingly becoming a required component of the MNOs’ service offerings.

This has made the development and provisioning of CDPs a top issue for the value chain and CDPs have now largely displaced the increasingly commoditized embedded module market as a central focal point of industry discussion and activity.

Several CDP vendors have expressed the idea that the tier-1 MNO customer base for CDPs is now largely wrapped up -- meaning, MNOs have made their selections.

While it’s true that key MNOs, such as AT&T, Verizon Wireless, Sprint, Vodafone, Orange, Telefonica, and Telenor Connexion have deployed solutions, there remains a large un-tapped potential among Tier-2 MNOs and MNOs in the APAC region and, eventually, the Middle East and Africa.

There may also be the potential for an upgrade inflection point in the near future, when MNOs that either deployed their own self-built platform, or a third-party platform, decide to bring in a new outside provider.

“Merchant market providers should be aggressively positioning themselves now to be the upgrade choice for current CDP-deployed MNOs, as well as targeting MNOs outside of the established Tier-1 players in North America and Europe,” says Lucero.

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