Cellular-based Machin to Machine (M2M) value added services (VAS) is the cellular value added connectivity process among various sim-enabled machines for providing connectivity over multiple wireless networks like GSM, GPRS, CDMA, 3G, and LTE among others. It is being rapidly adopted by many enterprises in order to ensure operational efficiency and minimize losses associated with operational breaches. With the advancements in technology, especially in embedded telematics segment, the cost of wireless connectivity has decreased, benefitting the fleet owners, heavy equipment manufacturers, and cellular-based M2M VAS application providers. Due to this, the adoption of cellular M2M VAS applications is increasing across various industrial sectors, thereby boosting the growth of cellular M2M market, globally.
By End Use:
- Wearable Devices
- Healthcare
- Consumer Electronics
- Building Automation
- Automotive & Transportation
- Others (Agriculture, BFSI, Retail, Oil & Gas, Aerospace & Defense, and Industrial)
Drivers & Restraints for the Market
The stellar growth of the global cellular M2M market can be primarily attributed to the following factors:
- Growing demand for wireless connectivity among consumers
- Growing penetration of smartphones across different industry verticals
- Decreasing cost of wireless connectivity
- Increased focus on risk assessment and management
In addition, increasing adoption of Internet of Things (IoT) and growing demand for unified M2M platform has offered potential growth opportunities which will further boost the market growth. However, factors such as lack of standardized system and issues related to security of the private data of individuals may hamper the growth of this market. Moreover, educating consumers regarding cellular-based M2M VAS applications and security issues associated with cloud and mobile technologies stand as major challenges for the market players.
Market Predictions
The worldwide cellular M2M market size which was estimated to be USD 3.22 Billion in 2015 is projected to reach USD 11.50 Billion by 2020, growing at a CAGR of 29.0% during the forecast period. Among regions, North America is expected to account for the largest market share between 2015 and 2020. However, Asia-Pacific market is anticipated to grow at the highest CAGR.
Based on application, the market for fleet application is expected to dominate the market with highest share over the forecast period due to the growing need for integrating communication between sensors. Whereas on the basis of services, manages services is the fastest-growing segment and is expected to grow at the highest CAGR, owing to the increased need among SMEs and large enterprises for deploying tools to conduct vulnerability assessment and management and enable efficient M2M communication. Among verticals, the energy & utilities sector is estimated to grow at the highest rate over the projected period. Moreover, it is increasingly being adopted by automotive and retail sectors.
The major companies operating in the global cellular M2M market include AT&T Inc., Verizon Communications, Vodafone Group PLC, China Mobile Ltd, Amdocs, Inc., Aeris Communications, Deustche Telecom AG, Sprint Corporation, Sierra Wireless, and Telefonica S.A.
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Scope of the Research
The forecasts and analysis of the global market for cellular M2M has been done by breaking it down into following segments and sub-segments:
- Application: Video Surveillance, Fleet Management, Asset Tracking, Theft Recovery, POS
- Service: Professional Services, Managed Services
- User Type: SMEs, Large Enterprises
- Vertical: Automotive & Transportation, Consumer Electronics, Energy & Utilities, Healthcare, Retail, Security & Public Safety, Others
- Geography: North America, Europe, Asia-Pacific, Middle East & Africa, Latin America
