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  4. > The Global Wireless M2M Market – 6th Edition

The Global Wireless M2M Market – 6th Edition

  • August 2014
  • -
  • Berg Insight AB
  • -
  • 260 pages

Executive summary
The global wireless M2M market performed well in 2013, displaying growth in all major world regions and vertical segments. Berg Insight estimates that shipments of cellular M2M devices increased by 13.5 percent to a new record level of 68.0 million units. Adjusted for churn, this resulted in net additions of 33.4 million M2M connections in 2013, taking the worldwide number of cellular M2M subscribers to an estimated 176.4 million. Until 2019, Berg Insight forecasts that shipments of cellular M2M devices are forecasted to grow at a compound annual growth rate (CAGR) of 20.4 percent to reach 207.8 million units. Due to the wide adoption of wireless M2M technology across many industries, a substantial share of M2M device shipments is now generated from replacement sales. Furthermore there will be a growing number of dormant devices in segments such as automotive and consumer electronics that never become activated. As a result the net increase of M2M subscribers will be substantially lower than M2M device shipments. Berg Insight forecasts that the number of cellular M2M connections will grow at a compound annual growth rate (CAGR) of 22.9 percent between 2014 and 2019 to reach 599.7 million at the end of the period.

M2M and connected devices are widely recognised as key future growth markets among the leading players in the mobile telecommunications industry. China Mobile reported 32.0 million M2M subscribers in China at the end of 2013. Vodafone is the largest international provider of M2M connectivity, as well as a major regional player in Europe, with a reported subscriber base of 15.2 million. AT&T was number one in the US market reporting 16.3 million M2M subscribers, ahead of Verizon Wireless at approximately 9.0 million. Telefónica ranked number five worldwide, with 8.6 million reported M2M subscribers in Europe and Latin America, barely ahead of China Unicom with approximately 8.5 million. Other top ten players included Softbank/Sprint, Deutsche Telekom, Telenor and America Móvil with between 6.7 million and 8.0 million M2M subscribers each.

The mega-trend driving technology adoption in Europe and North America is what Berg Insight calls the concept of connected management. The IT-revolution has created new
opportunities to collect and analyse data for the purpose of managing objects and behaviours. Connected management is based on the connection of remote devices to
applications for the purpose of managing assets & products, costs & revenues, relationships & behaviour etcetera. The connected car is a typical application area where automobile manufacturers develop solutions enabling themselves and the driver to manage the vehicle and the driving experience through a range of applications. Connected fleets is the underlying trend for most other vehicle-based applications that enable fleet operators and external stakeholders such as governments, insurance companies and financial service providers to manage vehicles, operations, risks and revenues associated to the vehicle such as taxes and insurance premiums. The Connected Enterprise is emerging as a blueprint for corporate management, based on the vision that every asset and product should be directly linked to the enterprise network, feeding data in real-time to relevant IT-systems.

China has emerged as the world’s largest market for wireless M2M communications in terms of installed base and recorded massive growth rates over the past years. The Chinese M2M market is strongly influenced by centralised planning by the national government. During the first half of 2012, the Chinese government announced a series of initiatives for the IoT sector as part of the 12th five-year plan for the period 2011–2015. IoT was selected as one of the main national strategic emerging industries, with a particular focus on smart sensors and RFID technologies. Cellular M2M technology is also finding many applications, particularly in smart grid, intelligent transportation and public safety. China’s national utility State Grid began deploying smart meters on a large scale during 2011 and expects to cover the vast majority of its customers by the end of 2015. During 2012 and 2013, the utility procured around 18 million data concentrators for the rollout, which Berg Insight believes accounted for a significant part of the reported net additions of M2M subscribers in China during the period.

Table Of Contents

The Global Wireless M2M Market - 6th Edition
Table of Contents

Table of Contents . i
List of Figures . vii
Executive summary . 1
1 Introduction to wireless M2M ... 3
1.1 Introduction .. 3
1.2 Devices 5
1.2.1 Chipsets, modules and terminals .. 5
1.2.2 SIM solutions and embedded UICC . 9
1.2.3 Device design and machine integration.. 11
1.2.4 Value chain .. 12
1.3 Networks 13
1.3.1 2G/3G cellular networks .. 14
1.3.2 CDMA networks ... 17
1.3.3 LTE networks ... 18
1.3.4 Non-cellular wireless networks and hybrid solutions .. 19
1.3.5 M2M software platforms .. 20
1.4 Applications ... 21
1.4.1 Car telematics.. 22
1.4.2 Fleet management .. 23
1.4.3 Smart grids and intelligent metering ... 24
1.4.4 Fixed wireless communication 25
1.4.5 Remote control and monitoring .. 25
1.4.6 Consumer electronics . 26
1.5 Solution providers and integrators 26
1.5.1 Device manufacturers . 27
1.5.2 System integrators .. 27
1.5.3 Vertical ASPs ... 28
1.5.4 B2B/B2C service providers . 29
1.5.5 OEMs ... 30
2 M2M technology providers 33
2.1 Wireless M2M module vendors . 34
2.1.1 Sierra Wireless . 36
2.1.2 Gemalto M2M .. 41
2.1.3 Telit .. 45
2.1.4 u-blox ... 49
2.1.5 SIMCom ... 51
2.1.6 Quectel 53
2.1.7 Huawei . 54
2.1.8 Novatel Wireless .. 56
2.1.9 Other embedded module vendors .. 58
2.2 SIM and device management solutions 61
2.2.1 Giesecke and Devrient 61
2.2.2 Oberthur Technologies ... 63
2.2.3 Mformation .. 63
2.2.4 Red Bend Software . 64
2.2.5 Safran Morpho . 64
2.3 M2M connectivity management platforms 65
2.3.1 Ericsson ... 65
2.3.2 Jasper Technologies ... 68
2.3.3 Amdocs ... 69
2.3.4 Comarch .. 70
2.3.5 nTels 71
2.3.6 Telenity 71
2.3.7 Proprietary platforms ... 72
2.4 M2M application enablement platforms 72
2.4.1 Axeda ... 73
2.4.2 Bosch Software Innovations 74
2.4.3 Cumulocity .. 75
2.4.4 Etherios ... 75
2.4.5 ILS Technology ... 76
2.4.6 ThingWorx ... 76
2.4.7 Xively ... 77
2.5 Industry analysis 78
2.5.1 3G saved the wireless module vendors .. 78
2.5.2 M2M connectivity platforms become more advanced and differentiated ... 80
2.5.3 Can M2M application enablement platforms live up to the high expectations? . 81
3 M2M communication providers . 83
3.1 Europe ... 84
3.1.1 Vodafone . 87
3.1.2 Deutsche Telekom .. 90
3.1.3 Telefónica 93
3.1.4 Orange 97
3.1.5 Telenor .. 100
3.1.6 Belgacom .. 102
3.1.7 EE .. 102
3.1.8 KPN ... 103
3.1.9 MTS ... 104
3.1.10 SFR 105
3.1.11 Telecom Italia 106
3.1.12 Swisscom .. 107
3.1.13 Telekom Austria . 107
3.1.14 TeliaSonera ... 109
3.1.15 Tele2 .. 111
3.1.16 Other M2M connectivity providers 112
3.2 The Americas ... 113
3.2.1 ATandT .. 115
3.2.2 Verizon Communications .. 119
3.2.3 Sprint . 123
3.2.4 T-Mobile USA 125
3.2.5 Rogers Communications ... 126
3.2.6 Bell Canada ... 127
3.2.7 America Móvil 127
3.2.8 Vivo 128
3.3 Asia-Pacific .. 129
3.3.1 China Mobile . 131
3.3.2 China Unicom 132
3.3.3 China Telecom .. 133
3.3.4 Softbank 134
3.3.5 NTT Docomo . 135
3.3.6 KDDI .. 136
3.3.7 SK Telecom ... 137
3.3.8 SingTel .. 138
3.3.9 Telkomsel .. 139
3.3.10 Axiata . 140
3.3.11 Telstra 141
3.4 Middle East and Africa . 142
3.4.1 Etisalat ... 142
3.4.2 Turkcell .. 143
3.4.3 Vodacom ... 144
3.5 M2M managed service providers 144
3.5.1 Aeris Communications .. 145
3.5.2 KORE Telematics .. 145
3.5.3 Maingate 146
3.5.4 Numerex 147
3.5.5 RACO Wireless .. 148
3.5.6 Stream Technologies 149
3.5.7 Telit m2mAIR . 149
3.5.8 Wireless Logic ... 150
3.5.9 Wyless ... 151
3.5.10 International mobile data aggregators .. 152
3.6 Satellite network operators .. 153
3.6.1 Orbcomm .. 154
3.6.2 Iridium 155
3.6.3 Inmarsat . 156
3.6.4 Globalstar .. 157
3.7 Mobile operator alliances 157
3.7.1 Bridge M2M Alliance . 159
3.7.2 Global M2M Association ... 159
3.7.3 M2M World Alliance .. 160
3.8 Industry analysis .. 160
3.8.1 The great game of M2M 161
3.8.2 Horizontal globalisation versus vertical specialisation .. 164
3.8.3 Strategic considerations for regional and national mobile operators ... 165
4 Key vertical markets . 169
4.1 OEM automotive .. 170
4.1.1 Automotive industry trends ... 172
4.1.2 Automobile manufacturer telematics strategies 176
4.1.3 Regional market trends . 185
4.2 Aftermarket automotive ... 190
4.2.1 Key industry players .. 192
4.2.2 Enterprise solutions - fleet management .. 194
4.2.3 Consumer solutions - SVT, usage-based insurance and vehicle financing . 198
4.2.4 Government solutions - vehicle tax collection and monitoring 200
4.3 Utilities - smart grids and metering . 201
4.3.1 Energy meters ... 202
4.3.2 Regional smart meter market trends . 204
4.3.3 Mobile communication technologies for smart grid and metering networks ... 207
4.4 Other vertical markets .. 209
4.4.1 POS-terminals ... 209
4.4.2 Security alarms .. 212
4.4.3 Consumer electronics ... 214
4.4.4 Healthcare . 215
4.4.5 Other industrial and enterprise .. 218
5 Market analysis and forecasts . 219
5.1 Market trends ... 219
5.1.1 Europe and North America ... 219
5.1.2 China . 221
5.1.3 Emerging markets . 222
5.2 Global market forecast 223
5.2.1 Devices .. 224
5.2.2 Network connectivity . 227
5.2.3 Vertical markets . 230
5.2.4 Technology standards .. 233
5.3 Europe . 234
5.4 North America .. 240
5.5 Latin America ... 245
5.6 Asia-Pacific .. 248
5.7 Middle East and Africa 252
Glossary .. 257


List of Figures

Figure 1.1: Core elements of wireless M2M solutions 4
Figure 1.2: Cost versus time diagram for wireless technology integration 6
Figure 1.3: Examples of wireless M2M modules 7
Figure 1.4: Examples of wireless M2M terminals ... 8
Figure 1.5: Comparison of SIM form factors... 9
Figure 1.6: System architecture for an end-to-end M2M solution 11
Figure 1.7: M2M device value chain overview .. 12
Figure 1.8: Top global mobile network operators by subscriber base (Q4-2013) ... 15
Figure 1.9: Top global CDMA operators by subscriber base (Q4-2013).. 17
Figure 1.10: Top global LTE operators by subscriber base (Q4-2013) 19
Figure 2.1: Top wireless module vendors, by M2M sales and shipments (World 2013) . 35
Figure 2.2: Sierra Wireless embedded modules and terminals (Q2-2014) .. 38
Figure 2.3: Gemalto M2M embedded modules and terminals (Q2-2014) ... 42
Figure 2.4: Telit embedded wireless modules (Q2-2014) 46
Figure 2.5: u-blox embedded wireless modules (Q2-2014) . 50
Figure 2.6: SIMCom embedded wireless modules (Q2-2014) . 52
Figure 2.7: Quectel embedded wireless modules (Q2-2014) .. 53
Figure 2.8: Huawei embedded wireless modules (Q2-2014) ... 55
Figure 2.9: Novatel Wireless embedded modules and integrated devices (Q2-2014) 58
Figure 2.10: M2M connectivity platform selection by mobile operator (Q2-2014) ... 67
Figure 2.11: M2M application platform selection by mobile operator (Q2-2014) . 73
Figure 2.12: Financial data for key embedded wireless module vendors (2013) 79
Figure 3.1: Mobile operators by M2M subscriber base (World Q4-2013) 83
Figure 3.2: Europe M2M connectivity market data (Q4-2013) . 85
Figure 3.3: Mobile operators in Europe by M2M subscriber base (Q4-2013) .. 86
Figure 3.4: Telefónica M2M subscribers by country (2012-2014) ... 95
Figure 3.5: Financial data for Telenor Connexion (2009-2013) . 101
Figure 3.6: The Americas M2M connectivity market data (Q2-2014) . 114
Figure 3.7: Examples of manufacturers of M2M devices certified by ATandT ... 116
Figure 3.8: Examples of manufacturers of M2M devices certified by Verizon 122
Figure 3.9: Asia-Pacific M2M connectivity market data (2013/2014) .. 130
Figure 3.10: Satellite network operator by M2M subscriber base (Q1-2014) . 153
Figure 3.11: Mobile operator M2M alliances (Q2-2014) . 158
Figure 4.1: Estimated annual production of machines by category (World 2013) . 169
Figure 4.2: Motor vehicle production, by region and country (World 2013) .. 171
Figure 4.3: Top automobile manufacturers by vehicle sales (2013) .. 173
Figure 4.4: Motor vehicle sales by market (2013)... 175
Figure 4.5: OEM truck telematics systems in Europe and the Americas ... 184
Figure 4.6: Telematics availability in the US (H1-2014) .. 185
Figure 4.7: Telematics availability in the EU (H1-2014) .. 187
Figure 4.8: Estimated number of vehicles in use (World 2012) .. 191
Figure 4.9: Financial data for key players in aftermarket telematics (FY2013/2014) .. 193
Figure 4.10: Major fleet management providers by installed base (2013/2014) 195
Figure 4.11: Major providers of private vehicle tracking by installed base (2013) . 197
Figure 4.12: Energy meter population, by region (World 2013) . 202
Figure 4.13: Energy meter shipments, by region (World 2012) . 203
Figure 4.14: Smart meter penetration in key markets (2013/2020) 204
Figure 4.15: POS-terminal installed base in major markets (World 2013) . 210
Figure 4.16: Top providers of monitored security alarms (World 2013) . 213
Figure 4.17: Home medical monitoring device categories by installed base 217
Figure 5.1: Cellular M2M device shipment forecast, by region (World 2013-2019) .. 225
Figure 5.2: Cellular M2M device revenues forecast, by region (World 2013-2019) ... 226
Figure 5.3: Cellular M2M subscriber forecast, by region (World 2013-2019) 228
Figure 5.4: Cellular M2M network revenue forecast, by region (World 2013-2019) .. 229
Figure 5.5: Cellular M2M communication market forecast, by vertical (World 2013-2019) ... 231
Figure 5.6: Cellular M2M revenue forecast, by vertical (World 2013-2019) ... 232
Figure 5.7: Cellular M2M market forecast, by network technology (World 2013-2019) 233
Figure 5.8: Cellular M2M subscriber estimates for European countries (2012-2013) ... 235
Figure 5.9: Cellular M2M communication market forecast (Europe 2013-2019) ... 238
Figure 5.10: Cellular M2M communication revenue forecast (Europe 2013-2019) ... 239
Figure 5.11: Cellular M2M communication market forecast (North America 2013-2019) . 241
Figure 5.12: Cellular M2M communication revenue forecast (North America 2013-2019) ... 242
Figure 5.13: Cellular M2M subscriber estimates for the Americas (2012-2013) 244
Figure 5.14: Cellular M2M communication market forecast (Latin America 2013-2019) ... 246
Figure 5.15: Cellular M2M communication revenue forecast (Latin America 2013-2019) . 247
Figure 5.16: Cellular M2M communication market forecast (Asia-Pacific 2013-2019) .. 249
Figure 5.17: Cellular M2M communication revenue forecast (Asia-Pacific 2013-2019) 250
Figure 5.18: Cellular M2M subscriber estimates for APAC and Middle East (2012-2013) 252
Figure 5.19: Cellular M2M communication market forecast (MEA 2013-2019) . 254
Figure 5.20: Cellular M2M communication revenue forecast (MEA 2013-2019) ... 255

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