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

Linux Phone Standards Forum

A new Linux Phone Standards Forum (LiPS) has been founded to promote mass market adoption of Linux telephony terminals through standardization, interoperability testing and market education. The founding members include Cellon, France Telecom, FTM Labs, Huawei, Jaluna, Mizi, Open Plug and PalmSource. LiPS will support device manufacturers and operators in bringing to market Linux-based devices at lower cost (due to lower deployment costs through standardization), while facilitating the programming and development process for software and silicon vendors. The Forum said plans to work with other organizations such as the OMTP and OMA to identify requirements of distinct device categories including smartphones, feature phones, fixed-line, or converged devices. For each of these categories, or profiles, LiPS will define standard API�s that support relevant applications and services as well as a certification process for technology providers. In keeping with the open source philosophy, L

Cloud Services Gain New Momentum in Europe

Across European nations, more CIOs and CTOs are investing in public cloud services that become the essential foundation for the design and delivery of innovative digital transformation projects. Public cloud computing spending in Europe will reach $113 billion in 2022 and will double to $239 billion by 2026, growing at a 22 percent 5-year CAGR, according to the latest market study by International Data Corporation (IDC). Investments in Software-as-a-Service (SaaS) will continue to lead most of the spending in Public Cloud in Europe in 2022, but Platform-as-a-Service (PaaS) will be the fastest-growing segment. In fact, PaaS enables digital business deployment via the quick testing and production of new software applications. Public Cloud Market Development Professional services, banking, and discrete manufacturing will be among the top spenders in public cloud services, absorbing almost 60 percent of the overall public cloud services spend in 2022.  Human-centric industries are adjustin

Strategic Digital Transformation Spending Trends

Looking ahead, many Chief Executive Officers (CEOs) continue to selectively invest in new strategic digital transformation projects that enable a significant competitive advantage. Some additional investments may go towards improving existing IT infrastructure and operations.  Worldwide IT spending is now projected to total $4.5 trillion in 2022 -- that's an increase of 3 percent from 2021, according to the latest updated estimate by Gartner. For now, most CIOs will be relieved that their budget is safe from major cuts. While IT spending is expected to grow in 2022, it will be at a slower pace than in 2021 -- partly due to a 5 percent cutback on spending for personal computers, media tablets, and printers. Digital Transformation Market Development "Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exch