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M2M Module Market Reached $1.5 Billion in 2012

Infonetics Research released findings from its latest mobile communications sector market study, which provides market size, analysis, and forecasts for mobile machine-to-machine (M2M) modules by technology, vertical industry, and geographic region.

Mobile network operators are deploying more M2M solutions and enterprises and consumers are increasingly adopting them across the globe -- creating a robust outlook for the overall M2M services market, as well as the mobile M2M module market.

“To put things in perspective, the mobile M2M module is just one of many technology solutions available for M2M services, one that represents less than 15 percent of active M2M connections today," said Godfrey Chua, directing analyst for M2M at Infonetics Research.

Mobile M2M modules compete against a myriad other technology solutions that enable M2M services -- including DSL and T1 lines as well as wireless technologies like WiFi, Zigbee and Bluetooth.

Many mobile network services are putting a sharp focus on -- and real resources behind -- their M2M businesses, and it’s beginning to pay off.

According to the Infonetics assessment, the fact that one of the global leaders -- AT&T in the North American market -- can speak of a billion-dollar business in this segment demonstrates the traction and growth that M2M services are experiencing to date.


Highlights of the latest market study include:
  • The global mobile M2M module market scaled to a new level in 2012, reaching $1.5 billion – that's an increase of 25 percent from the previous year.
  • While 2G technologies make up the majority of mobile M2M units now, 3G M2M is on the rise, forecast by Infonetics to grow to 56 percent of all M2M modules shipped in 2017.
  • LTE is the fastest growing mobile M2M technology segment, driven by connected car initiatives such as GM’s OnStar, China Mobile’s massive LTE-TDD network buildout, and the Chinese government’s smart cities efforts.
  • Infonetics projects a cumulative $2.6 billion will be spent over the next 5 years on mobile M2M modules for the auto/transport/logistics vertical, the key anchor for the M2M market.
  • North America and Europe are currently the main centers of mobile M2M module growth, but Asia Pacific has the fastest anticipated rate of growth due to a highly diversified economic base that creates a stratified market for M2M solutions.
  • Infonetics expects the next 18 to 36 months to bring further vendor consolidation and vetting of business models to the mobile M2M module industry.

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