Highlights from the second edition of the report:
- Insights from 40 new executive interviews with market leading
- Overview of the payment, vending, parking, transport ticketing and
- Summary of industry trends and developments in each vertical market
- Updated in-depth profiles of 77 key players in the retail industry.
- Reviews of vendor market shares and competitive dynamics.
- Perspectives on the impact of emerging mobile payment services.
- Extensive global and regional market forecasts lasting until 2017.
The retail industry is an important vertical for cellular M2M connectivity
with 10.3 million cellular connections today and a potential market size of
nearly 80 million POS terminals, ATMs, vending machines, parking meters and
fare collection devices worldwide. Berg Insight forecasts that the number of
cellular M2M connections in the retail industry will grow at a compound annual
growth rate (CAGR) of 21.6 percent to reach 33.2 million connections worldwide
in 2017. Shipments of cellular M2M devices will at the same time increase at a
CAGR of 10.7 percent from 5.2 million units in 2011 to 9.6 million units in
2017. Cellular M2M technology enables devices such as POS terminals and ATMs
to be used at new locations where fixed line connectivity is unavailable or
impractical. The technology has a more transformational effect on markets such
as vending and parking, where machine operators need to reorganize their
operations in order to benefit from the availability of real-time information.
Wireless connectivity has become a very popular option for POS terminals and
was incorporated in nearly one third of the devices shipped in 2011. Berg
Insight forecasts that the installed base of cellular POS terminals will grow
at a CAGR of 21.4 percent between 2011 and 2017 to reach 29.4 million units
worldwide in 2017. In 2011, approximately one third of the installed cellular
POS terminals globally were in use in Europe or North America. Berg Insight
anticipates that this share will decline to less than one fifth by 2017, as
emerging markets continue to account for the vast majority of market growth
and retain higher attach rates for cellular connectivity.
Berg Insight estimates that 24 percent of the ATMs in North America and 5 - 10
percent of the ATMs in Europe were connected to cellular networks in 2011.
Wireless M2M is especially relevant for ATMs installed at off-site locations
as it offers greater flexibility, shorter deployment times and competitive
connectivity fees compared to fixed line alternatives. Berg Insight forecasts
that the number of wirelessly connected ATMs in the US and Canada will grow at
a CAGR of 12.4 percent to reach 0.22 million units by 2017. The number of
wirelessly connected ATMs in Europe are similarly projected to grow at a CAGR
of 14.9 percent to reach 0.10 million units in 2017.
The installed base of vending telemetry devices in North America reached an
estimated 0.25 million units at the end of 2011, whereas the corresponding
figure for Europe was 75,000 units. The vending telemetry market is however
still in its infancy in both Europe and North America, as penetration rates
are at 2.0 percent and 3.6 percent respectively. Berg Insight expects the
adoption rates to accelerate in both North America and Europe during the next
few years, resulting in compound annual growth rates in the range of 25 - 30
percent for both regions. Consequently, the installed base of vending
telemetry devices in North America is projected to reach 1.0 million units by
2017, whereas the installed base in Europe is forecasted to reach 0.32 million
units in the same year.
The parking industry has been one of the earliest adopters of M2M
communication technology and today approximately 39 percent of the world's
0.42 million multi-space meters are connected, primarily to cellular networks.
Connectivity has in contrast to this only recently become an optional feature
in single-space meters, and today only 3 percent of the world's 3.2 million
single-space meters are connected. Berg Insight anticipates that connectivity
will eventually be incorporated in all parking meters. Berg Insight forecasts
that 69 percent of the world's 0.54 million multi-space meters will have be
connected in 2017, whereas 18 percent of the world's 2.75 million single-space
meters will be connected in the same year.
Cellular connectivity is incorporated in an estimated 0.1 million fare
collection devices worldwide today, such as on-board ticket vending machines,
stationary vending machines and handheld ticket sales terminals. Berg Insight
anticipates that the market potential for cellular connectivity in public
transport will expand as account-based fare collection systems gain ground and
increase the need for real-time communication. However, the number of fare
collection devices that incorporate cellular connectivity is likely to remain
relatively modest, as many fare collection devices can share a communication
line with other equipment.
This report answers the following questions:
- What is the potential market size for wireless M2M communication in the
- Which are the key applications that offer sizable business opportunities?
- Which trends and developments are shaping each vertical market segment?
- Which are the leading providers of vending telemetry solutions?
- When will demand for vending telemetry solutions accelerate in Europe and
- How is the market for wireless ATM connectivity solutions developing?
- Which are the leading providers of connected parking meters?
- What is the attach rate for cellular connectivity in POS terminals by
- How is the market for public transport fare collection systems evolving?
Cellular M2M network connections in the retail industry (World 2011 - 2017)