The mobile M2M module market is expected to grow at a rapid pace through 2020. Four vendors are set to dominate the market.
The mobile M2M module market is expected to grow at a compound annual growth rate (CAGR) of 21 percent between 2016 to 2020. Demand is indeed expected to increase across multiple industries, including energy, oil and gas, automotive, and healthcare, according to new research by Technavio.
Market drivers include a number of government initiatives, such as the European Union’s eCall regulation, which mandates all new vehicles to be equipped with emergency call systems. “These government regulations have fueled the demand for automotive M2M modules, which, in turn, will propel this market’s growth prospects in the coming years,” said Technavio. Going forward, the analyst firm expects emerging technologies such as Firmware Over-The-Air (FOTA) to help module providers improve the quality of their modules while reducing cost and avoiding product recalls. “This technology is gaining significant traction in the market and will boost this market’s growth prospects during the predicted period.”
Fierce competition
Such a rapid, attractive growth is bound to stimulate competition within the mobile M2M module market. Technavio expects the market to witness fierce competition among several large and small vendors. “With the augmented demand for 3G and LTE modules for various M2M applications, several vendors are making high investments in R&D to develop low-priced 3G and LTE modules. Many companies have adopted M&A strategy to increase the sale of M2M modules across different geographies,” Technavio noted. The analyst firm identified four vendors, of rather different types, which are set to dominate the mobile M2M module market through 2020. These are Gemalto, Huawei, Sierra Wireless and Telit. Technavio took into account the revenue generated by the retail sales of M2M modules running on 2G, 3G, and LTE technologies as well as M2M module applications. Other vendors in the mobile M2M module market include Novatel Wireless, Option, Quectel Wireless Solutions, U-Blox, and ZTE.
2G, the U.S. dominate the market
The 2G segment accounted for 49 percent of the mobile M2M module market in 2015. Technavio expects however this share to decrease rapidly as growing M2M applications such as telemetry, video surveillance, fleet management, automotive infotainment or emergency services, require high speed and high bandwidth. “Therefore, most telecom operators are planning to decommission 2G networks and upgrade to 3G and 4G/LTE networks.”
In terms of geography, the Americas dominated the mobile M2M module market in 2015 and are expected to continue dominating the market through 2020. By then, the value of the market in the Americas is excepted to reach $2 billion. “Increased deployment of 3G and LTE technologies and the rise in usage of mobile devices are driving the demand for mobile M2M modules in this region. Moreover, the increased deployment of M2M modules in the electronic security sector will also contribute to the growth of the market in the region,” said Technavio.
IIoT New Recap: USA, Australia to cooperate on advanced smart transport; TCL, Midea Group launch new standard for smart homes; Autonomous driving startup Innoviz raises $9 million in series A funding
Smart transport: USA, Australia to cooperate on advanced smart transport
U.S. Transportation Secretary Anthony Foxx and Australian Minister of Transport and Infrastructure Darren Chester signed a Memorandum of Cooperation, which aims at enabling the two countries to exchange information, data and best practices on “the use of public-private partnerships (PPPs) in order to support infrastructure development, intelligent transportation systems and unmanned aircraft systems”, Environment News Service reports. “This agreement with the United States will provide a mutually beneficial knowledge base for delivering 21st Century transport infrastructure solutions as technology driven cities and regions become a reality. We are already seeing the results of this cooperation”, said Darren Chester.
Smart Home: TCL, Midea Group launch new standard for smart homes
Shenzen-based TCL Smart Home Technology and Midea Group’s smart home appliances platform M-Smart announced a strategic cooperation with The Alliance Technology to set up a new smart home industry standard named “iTecGenesis”, the China Daily reports. “The platform is open. For equipment manufacturers, joining into this alliance could let them connect with many service providers, such as logistics and supply chain partners, and consumers,” said Wang Gang, general manager of TCL Smart home at the launch ceremony.
Startup: Autonomous driving startup Innoviz raises $9 million in series A funding
Israel-based Innoviz Technologies, a startup developing advanced sensors and systems for autonomous vehicles, has raised $9 million in a series A financing round. Investors include Mr. Zohar Zisapel, Vertex Venture Capital, Magma Venture Partners, Amiti Ventures and Delek Investments. “The car industry is gearing up towards a revolution by the introduction of autonomous vehicles,” said Omer Keilaf, co-founder and CEO of Innoviz. “The ability to transform this vision into a reality depends on performance and cost. Current approaches compromise passenger safety by failing to include LiDAR sensors as part of the system, due to cost and performance limitations. Our groundbreaking technology will make our HD-SSL accessible to mass market, positioning Innoviz as a leading force in the manifestation and acceleration of this revolution.” Founded in 2016, Innoviz employs 30 people and expects to grow significantly throughout this year.
