Consumer Electronics and Wireless M2M - 2nd Edition

Introduction

The consumer electronics market has experienced an incredible growth during the digitalisation era in the last decade. Today, dedicated devices such as PNDs, digital cameras, handheld gaming consoles and PMPs are facing fierce competition from converged multipurpose devices such as smartphones and tablets. Mobility, connectivity and personalisation are three of the most important current trends within consumer electronics. Instant access to information, using social networks and consuming and sharing media are becoming important parts of people's digital lifestyles. Due to maturing markets and stunted ARPU growth, mobile operators all over the world are showing increasing interest in the consumer electronics market. The growing desire for people to stay connected makes wireless consumer devices an opportunity for the telecom industry to expand their market beyond mobile handsets.

Consumer electronics has emerged as a new major application category for cellular M2M in the past years. Consumer M2M devices are neither classified as handsets, PCs, tablets nor traditional M2M devices. The product category includes e-readers, portable media players, gaming consoles, digital cameras, digital photo frames, PNDs, traffic information devices, personal tracking devices, wellness & fitness devices and user programmable sensor devices. The reasons for cellular connectivity vary and are often a way to meet the needs for connected features introduced in multipurpose devices. Media and entertainment devices can offer instant distribution of digital content. Imaging devices enable instant media sharing on social networks and seamless usage of cloud storage services. Personal navigation devices and speed camera warning devices can provide users with real time traffic information and other dynamic online content. Personal tracking devices and wellness products enable remote monitoring of sensor statuses such as location, blood pressure and glucose levels. Fitness applications allow for mobility that often is a necessity in these types of products.

The market for consumer M2M devices is still in its early stage. Until now, the most connected device categories are e-readers, PNDs, digital photo frames and handheld gaming consoles such as the recently introduced Sony PlayStation Vita. Berg Insight estimates that total shipments of consumer M2M devices reached 7.1 million devices in 2011. Growing at a compound annual growth rate of 39.8 percent, the shipments are expected to reach 37.9 million devices in 2016. Berg Insight estimates that the number of connected M2M consumer devices reached 12.7 million at the end of 2011. Growing at a compound annual growth rate of 38.6 percent, the number of network connections from consumer M2M devices are expected to reach 65.0 million in 2016. E-readers, PNDs, digital cameras and handheld gaming consoles will then be the most common consumer M2M devices accounting for 45 percent, 32 percent, 8 percent and 6 percent respectively of the total number of connections.

North America is currently the most important market for consumer M2M devices and accounted for about 5 million of the total device shipments in 2011. The second largest market is Europe with 1.7 million device shipments followed by the rest of world with 0.5 million device shipments. Berg Insight anticipates that North America will remain the largest region with a market share of 40 percent in 2016. Europe and the rest of world will account for 30 percent each of the connected device shipments in the same year.

Continuously decreasing prices of cellular modules and chipsets are key developments for growth in the connectivity market. The deployments of high-speed cellular networks such as HSPA+ and LTE on most markets are another important driver enabling bandwidth-hungry applications. The exploding sales of connected mobile broadband products such as tablets further illustrates the benefits of cellular connectivity and will increase the demand for other consumer M2M devices as well. The telecom industry is depending on multiple connections per user for growth but to make it attractive for consumers to have multiple devices with cellular connections, a great deal of business model innovation is required. In order for the consumer M2M market to take off, price on mobile data has to decrease and subscription fees for every single connection need to be lowered. Instead, more consumers would be willing to have multiple connections, which will allow for an increased total ARPU. Device vendors and network operators are also advised to focus on bundling compelling services and products that include the price of mobile data instead of marketing actual mobile data subscriptions.

This report answers the following questions:

• Which consumer devices offer the best potential for embedded cellular connectivity?
• What are the main drivers behind growth in Europe, North America and ROW?
• When will cellular connectivity be a common option in consumer devices?
• What are the experiences from adding cellular connectivity to consumer devices so far?
• How will the global consumer device market evolve over the next five years?
• In what ways will LTE impact the consumer M2M device market?
• How can the mobile industry contribute to the adoption of wireless technology in consumer electronics?
• Which are the leading manufacturers of consumer electronics products?

Annual shipments of consumer M2M devices with embedded
cellular connectivity, million units (World 2010 - 2016)

Table of Contents

Table of Contents

List of Figures

Executive summary

1. Introduction to consumer electronics and wireless M2M

• 1.1. The consumer electronics market
  • 1.1.1. Consumer electronics market trends
  • 1.1.2. Regional markets
• 1.2 Introduction to wireless M2M
  • 1.2.1. Value chain
  • 1.2.2. Device connectivity
  • 1.2.3. Wireless networks
  • 1.2.4. Wireless M2M applications
  • 1.2.5. The wireless M2M communication provider market
  • 1.2.6. The wireless module and chipset market
• 1.3. Wireless M2M and consumer electronics
  • 1.3.1. Mobile data device categories
  • 1.3.2. Consumer M2M devices

2. Media and entertainment

• 2.1. E-readers
  • 2.1.1. The e-book market
  • 2.1.2. The e-reader market
  • 2.1.3. E-readers and cellular connectivity
  • 2.1.4. Business models for connected e-readers
• 2.2. Portable media players
  • 2.2.1. The portable media player market
  • 2.2.2. PMPs and cellular connectivity
• 2.3. Gaming Consoles
  • 2.3.1. The gaming console market
  • 2.3.2. Mobile gaming
  • 2.3.3. Gaming consoles and cellular connectivity

3. Imaging

• 3.1. Digital cameras
  • 3.1.1. The digital still camera market
  • 3.1.2. The digital video camera market
  • 3.1.3. Digital cameras and cellular connectivity
• 3.2. Digital photo frames
  • 3.2.1. The digital photo frame market
  • 3.2.2. Digital photo frames and cellular connectivity

4. Navigation, tracking and monitoring

• 4.1. Personal navigation and traffic information devices
  • 4.1.1. The personal navigation device market
  • 4.1.2. Connected personal navigation devices
  • 4.1.3. Speed camera warning devices
• 4.2. Personal tracking and monitoring devices
  • 4.2.1. Consumer oriented personal tracking devices
  • 4.2.2. Wellness and fitness devices
  • 4.2.3. Sensor devices

5. Market forecasts and trends

• 5.1. Global market outlook
• 5.2. Market trends and drivers
  • 5.2.1. Devices
  • 5.2.2. Cellular networks, modules and chipsets
  • 5.2.3. Providing international coverage
• 5.2.4. Business model innovation
• 5.3. Market forecasts - Media and entertainment
  • 5.3.1. E-readers
  • 5.3.2. Portable media players
  • 5.3.3. Gaming consoles
• 5.4. Market forecasts - Imaging
  • 5.4.1. Digital cameras
  • 5.4.2. Digital photo frames
• 5.5. Market forecasts - Navigation, tracking and monitoring
  • 5.5.1. Personal navigation and traffic information devices
  • 5.5.2. Personal tracking and monitoring devices
• 5.6. Regional market developments

6. Consumer device vendors

• 6.1. Key consumer electronics vendors
  • 6.1.1. Samsung Electronics
  • 6.1.2. Sony
  • 6.1.3. Apple
  • 6.1.4. LG Electronics
• 6.2. Media and entertainment device vendors
  • 6.2.1. Amazon
  • 6.2.2. Barnes & Noble
  • 6.2.3. Hanvon Technology
  • 6.2.4. Nintendo
  • 6.2.5. Microsoft
  • 6.2.6. Archos
• 6.3. Imaging device vendors
  • 6.3.1. Canon
  • 6.3.2. Nikon
  • 6.3.3. Olympus
  • 6.3.4. Panasonic
  • 6.3.5. Fujifilm
  • 6.3.6. Pandigital
  • 6.3.7. Isabella Products
• 6.4. Personal navigation and traffic information device vendors
  • 6.4.1. Garmin
  • 6.4.2. Navigon
  • 6.4.3. TomTom
  • 6.4.4. MiTAC
  • 6.4.5. Coyote Systems

7. Telecom industry players

• 7.1. Mobile network operators
  • 7.1.1. China Mobile
  • 7.1.2. AT&T
  • 7.1.3. Vodafone
  • 7.1.4. Verizon Communications
  • 7.1.5. Deutsche Telekom
  • 7.1.6. Telefonica
  • 7.1.7. NTT DoCoMo
  • 7.1.8. KDDI
  • 7.1.9. Softbank
  • 7.1.10. Telenor
  • 7.1.11. KPN
• 7.2. Wireless M2M module vendors
  • 7.2.1. Sierra Wireless
  • 7.2.2. Novatel Wireless
  • 7.2.3. AnyDATA
  • 7.2.4. Huawei
  • 7.2.5. Cinterion
  • 7.2.6. Telit
  • 7.2.7. SIMCom
• 7.3. Chipset and M2M platform vendors
  • 7.3.1. Qualcomm
  • 7.3.2. Intel
  • 7.3.3. MediaTek
  • 7.3.4. ST-Ericsson
  • 7.3.5. Ericsson
  • 7.3.6. Jasper Wireless

Glossary

• Figure 1.1: Leading consumer electronics companies
• Figure 1.2: Consumer electronics market share by segment (World 2006 - 2011)
• Figure 1.3: Consumer electronics market share by region (World 2006 - 2011)
• Figure 1.5: Wireless M2M device value chain overview
• Figure 1.4: Core elements of wireless M2M solutions
• Figure 1.6: Cost versus time diagram for wireless technology integration
• Figure 1.7: Theoretical peak data rates by technology
• Figure 1.8: M2M subscriber data for the top ten global telecom operators (Q4-2011)
• Figure 1.9: Top wireless module vendors, by M2M sales and shipments (World 2011)
• Figure 1.10: Cellular chipset revenues by vendor (World 2011)
• Figure 1.11: Mobile data device categories
• Figure 1.12: Examples of consumer M2M devices
• Figure 2.1: 3G connected e-readers
• Figure 2.2: E-book revenues as share of total book sales (US 2004 - 2011)
• Figure 2.3: The book market value chain
• Figure 2.4: E-reader shipments (World 2008 - 2011)
• Figure 2.5: E-reader market shares (World 2011)
• Figure 2.6: Prices of popular e-readers (January 2012)
• Figure 2.7: E-readers with cellular connectivity (Q1-2012)
• Figure 2.8: PMP shipments (World 2005 - 2011)
• Figure 2.9: Portable media players
• Figure 2.10: Apple and Sony PMP shipments (World 2008 - 2011)
• Figure 2.11: Non portable gaming consoles
• Figure 2.12: Non portable gaming console shipments (World 2007 - 2011)
• Figure 2.13: Handheld gaming console shipments (World 2007 - 2011)
• Figure 2.14: Nintendo 3DS and Sony PlayStation Vita
• Figure 2.15: The Apple iPod Touch
• Figure 2.16: Mobile and handheld game software revenue share (EA 2009 - 2011)
• Figure 3.1: Digital camera shipments (World 2005 - 2011)
• Figure 3.2: Digital still camera shipments by region (World 2005 - 2011)
• Figure 3.3: Digital still camera vendor market shares (World 2011)
• Figure 3.4: Digital video camera shipments (World 2005 - 2011)
• Figure 3.5: Canon Ixus 510HS and Panasonic GX1
• Figure 3.6: Digital camera shipments by segment (World 2005 - 2011)
• Figure 3.7: Digital photo frame shipments (World 2005 - 2011)
• Figure 3.8: 3G connected digital photo frames
• Figure 3.9: Examples of cellular connected photo frames
• Figure 4.1: Evolution of portable navigation solutions
• Figure 4.2: Annual PND shipments and revenues (World 2005 - 2011)
• Figure 4.3: PND vendor market shares (World 2006 - 2011)
• Figure 4.4: Latest connected PNDs from Garmin and TomTom
• Figure 4.5: Connected personal tracking devices
• Figure 5.1: Consumer M2M communication market by segment (World 2010 - 2016)
• Figure 5.2: Hardware and content sales symbiosis for media and entertainment devices
• Figure 5.3: E-reader shipments and cellular connectivity (World 2010 - 2016)
• Figure 5.4: PMP shipments and cellular connectivity (World 2009 - 2016)
• Figure 5.5: Handheld gaming console shipments (World 2008 - 2016)
• Figure 5.6: Non portable gaming console shipments (World 2009 - 2016)
• Figure 5.7: Digital camera shipments and cellular connectivity (World 2008 - 2016)
• Figure 5.8: Digital photo frame shipments and cellular connectivity (World 2009 - 2016)
• Figure 5.9: PND and traffic information device shipments (World 2009 - 2016)
• Figure 5.10: Connected tracking and monitoring device shipments (World 2010 - 2016)
• Figure 5.11: Connected consumer device shipments by region (World 2010 - 2016)
• Figure 6.1: Amazon e-ink Kindle shipments (World 2008 - 2011)

Consumer Electronics and Wireless M2M - 2nd Edition published by Berg Insight AB in May 24, 2012. This report price starts from US $ 1500.

Press Release

Shipments of Consumer M2M devices will reach 37.9 million in 2016

Global Information Inc. would like to present a new market research report, "Consumer Electronics and Wireless M2M - 2nd Edition" by Berg Insight AB.

According to a new research report from Berg Insight, the number of shipped consumer M2M devices with cellular connectivity grew to 7.1 million worldwide in 2011, up from 6.4 million in the previous year. This relatively new breed of connected devices - neither classified as handsets, PCs, tablets nor traditional M2M devices - have strong growth potential. E-readers and PNDs are the most common consumer M2M devices already shipping in millions. Handheld gaming consoles, personal tracking devices and wellness devices are promising categories as well. In the next five years, shipments of consumer M2M devices are forecasted to grow at a compound annual growth rate (CAGR) of 39.8 percent to reach 37.9 million devices in 2016. "Cellular connectivity gives the freedom of being connected everywhere and there are already 12.7 million consumer M2M devices in use worldwide" says Johan Svanberg, Senior Analyst, Berg Insight. Consumer awareness, decreasing prices of modules and chipsets together with massive global deployments of high speed cellular networks such as LTE will have a positive impact on the market. "In a not too distant future, a substantial part of all content and services will be delivered through mobile channels. All companies - from device vendors, content owners to service providers - need to prepare for this change and have a well thought out mobile strategy in order to stay relevant", added Mr. Svanberg.

Key questions answered in this report:

• Which consumer devices offer the best potential for embedded cellular connectivity?
• What are the main drivers behind growth in Europe, North America and ROW?
• When will cellular connectivity be a common option in consumer devices?
• What are the experiences from adding cellular connectivity to consumer devices so far?
• How will the global consumer device market evolve over the next five years?
• In what ways will LTE impact the consumer M2M device market?
• How can the mobile industry contribute to the adoption of wireless technology in consumer electronics?
• Which are the leading manufacturers of consumer electronics products?