Skip to main content

Upside Opportunities for Machine-to-Machine Modules

Mobile machine-to-machine (M2M) modules -- based upon 2G technologies -- continued to dominate shipments in 2012 with over 70 percent market share, according to the latest market study by ABI Research.

As a result, module revenues did not break the $1 billion mark as hoped and the average module price continued to decline.

"Cellular M2M module price competition was intense in 2012 driven by several factors," says, Dan Shey, practice director at ABI Research.

Europe was not the traditional M2M module bellwether market and continued to decline in share of module shipments,

Meanwhile, some Chinese vendors competed aggressively in the higher volume 2G led market segments, and mobile network operators pushed hard for lower module pricing to grow total cellular connections.

However, unlike the personal cellular modem and even the smartphone market, M2M module vendors can insulate themselves from pricing competition by targeting the right industry verticals and offering additional services.

The average module price for the top vendors in the market ranged from $12 to $31. Vendors with higher average per module revenue are focused not just on application markets that seek 3G and 4G modules such as Fixed Wireless Terminals and OEM telematics.

These vendors also target industry sectors where module quality and additional services such as product integration expertise and device management services are key value components and drive customer retention.

ABI's M2M Embedded Module database provides cellular module shipment and revenue estimates for five world regions, and seven air interface technologies covering 2G, 3G, and 4G standards.

Moreover, Application segmentation is provided for 13 markets with new industry segmentation recently added. Country level data is offered for 10 countries.

Popular posts from this blog

Frontier AI Peaked. Here's What Comes Next

The prevailing narrative around artificial intelligence (AI) has been one of relentless scale. Bigger models, bigger clusters, bigger budgets. The assumption, largely unchallenged until recently, was that raw parameter count translated directly into competitive advantage. New research from Omdia suggests it's time to retire that assumption. According to the latest market study by Omdia, parameter growth in frontier AI models has slowed to around 5 percent annually since 2021, a stark contrast to the more than hundredfold expansion seen between 2019 and 2021. Enterprise AI Market Development For executives who have been making infrastructure and investment decisions based on the assumption that AI would keep demanding ever-larger, ever-more-expensive hardware, this finding deserves serious attention. The race to the top of the model size leaderboard has, at least for now, plateaued. Crucially, Omdia's analysts are not reading this as an AI winter. Alexander Harrowell, senior pri...