Market Research Report
The Global Wireless M2M Market - 7th Edition
|Published by||BERG Insight||Product code||236915|
|Published||Content info||260 Pages
Delivery time: 1-2 business days
A complete set of two unique reports - offering in-depth analysis and unique insights into the global wireless M2M/IoT market on 310 pages.
This package comprises the following titles:
Berg Insight estimates that the global number of cellular M2M subscribers increased by 23 percent during 2015 to reach 265.2 million at the end of the year - corresponding to around 3 percent of all mobile subscribers. Until 2020, the number of cellular M2M subscribers is forecasted to grow at a compound annual growth rate (CAGR) of 22.9 percent to reach 744.2 million at the end of the period. During the same period, cellular M2M network revenues are forecasted to grow at a CAGR of 23.3 percent from € 8.0 billion in 2015 to approximately €22.8 billion in 2020. Meanwhile the monthly ARPU is expected to remain stable at around €2.50.
East Asia was the largest region, closely followed by Western Europe and North America. Altogether they accounted for around 76 percent of the global cellular M2M subscriber base at the end of 2015. Until 2020, the relative share of the regions is expected to decrease slightly as adoption takes off in other parts of the world. At the end of 2015, East Asia was the largest regional market with 90.4 million cellular M2M subscribers, growing 25 percent yearon- year. Western Europe came second with 59.0 million M2M subscribers and 21 percent year-on-year growth. North America ranked third with 52.5 million cellular M2M subscribers, and a year-on-year growth rate of 24 percent. Among individual countries, China was clearly number one with around 70 million M2M subscribers, ahead of the US with approximately 50 million M2M subscribers. The combined size of the EU+EFTA market was around 64 million M2M subscribers.
Berg Insight believes that M2M/IoT has reached a stage of early maturity where a number of players have capitalised on envisioned opportunities to develop substantial new businesses. At the beginning of 2015, the ten largest mobile operators in the M2M market had an estimated combined subscriber base of 164.3 million and year-on-year growth rates of 15-35 percent. China Mobile has an exceptional market position, as the dominant player in the domestic mobile industry. At the end of Q1-2015, the M2M subscriber base was an estimated 46.2 million. Vodafone and AT&T are the top international market players with their respective main bases in Europe and North America. The groups were head-to-head in terms of volume with over 21 million M2M subscribers each. China Unicom and Verizon Wireless were other top five players with 13-14 million connections each. Telefónica, Softbank/Sprint, Deutsche Telekom, Telenor and America Móvil were other top ten players with 8-12 million M2M subscribers each. A common characteristic for them all is that they are multi-regional operations across Europe, the Americas or Asia-Pacific.
Berg Insight estimates that 5.9 billion products with embedded microprocessors were sold worldwide in 2014. IoT is about networking these products as well as new device categories that can benefit from connectivity. Consumer products account for the vast majority of devices with embedded connectivity. Small appliances account for a third of the volume or roughly 2.0 billion units. Other top five categories are toys 1.0 billion, home entertainment 0.8 billion, HVAC equipment and controls 0.4 billion and home appliances 0.3 billion. Utility meters and motor vehicles are other significant categories with 0.2 billion and 0.1 billion units respectively.
Berg Insight firmly believes that the main growth segments in the IoT market until 2020 will be established products which sell in significant volumes and incorporate some form of microprocessor technology. Devices and things that do not have any form of digital intelligence today may only represent significant opportunities in the longer term, as greenfield applications normally need considerable time to reach maturity. Consumer oriented products will dominate in terms of volume as few industrial or enterprise products are produced in very large quantities. Potential exceptions are smart infrastructure (e.g. smart cities and intelligent traffic systems) and smart agriculture. Governments and local authorities may propose the deployment of massive sensor networks for resource management, security, safety, environment, traffic and other needs. Such projects will however inevitably become highly complex, expensive, controversial and difficult to implement. The likelihood for any project announced in 2016 to become fully implemented by 2020 is therefore close to zero. Smart agriculture falls into the same category. Some best practices for improved efficiency in the farming and forestry industries using connected sensors will be developed until the end of this decade. Implementing them at full scale will however take several decades and requires massive financial support from governments.
Berg Insight has identified six primary segments that are mainly consumer related and meet the mentioned criteria: energy meters, automotive, home appliances, HVAC equipment & controls, home entertainment and lighting. Moreover, connected wearables are by definition included among the major application categories. The diversity of the market is reflected in the fragmentation among IoT networking technologies due to the broad variety of application environments, communication needs and cost constraints. IoT comprises everything from premium cars with the computing power of hundreds of microprocessors powered by an engine to low-cost sensors based on basic microcontrollers running on coin-cell batteries. One size does not fit all and therefore fragmentation will remain.