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The Wireless M2M Bible - Opportunities, Challenges, Strategies, Industry

Verticals and Forecasts: 2013 - 2018

Revision Date: 08 February 2013

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Table of Contents

List of Figures .................................................................................................19

1 Chapter 1: Introduction ............................................................................22

1.1 Executive Summary ............................................................................................................... 22

1.2 Topics Covered ...................................................................................................................... 24

1.3 Key Questions Answered ....................................................................................................... 27

1.4 Key Findings .......................................................................................................................... 28

1.5 Methodology .......................................................................................................................... 29

1.6 Target Audience ..................................................................................................................... 30

1.7 Companies Mentioned............................................................................................................ 31

2 Chapter 2: An Overview of the M2M Market ..........................................56

2.1 What is M2M Technology? ..................................................................................................... 56

2.2 M2M Architecture ................................................................................................................... 57

2.3 The Wireless M2M Business Case: What is Driving the Market Forward? ............................... 58

2.3.1 Affordable Unit Costs: Viable for a Range of New Applications ........................................ 58

2.3.2 Proliferation of Mobile Data & Broadband: The Enabling Technology behind Wireless M2M 58

2.3.3 Declining Voice Revenues: Economic Motivation ............................................................ 58

2.3.4 Different Business Model: Predictable Revenue Opportunities and No Churn .................. 59

2.3.5 Wireless Coverage is Expanding Globally ....................................................................... 59

2.3.6 Benefiting from the Mobile Handset Ecosystem .............................................................. 59

2.3.7 Government, Regulation and Compliance (GRC) Drivers ................................................ 59

2.3.8 Vertical Market Drivers.................................................................................................... 60

2.4 Challenges & Inhibitors to the M2M Ecosystem ...................................................................... 61

2.4.1 Different Business Model: Associated Risks .................................................................... 61

2.4.2 Low Revenues in Comparison to Voice and Mobile Broadband ....................................... 61

2.4.3 Declining ARPUs ............................................................................................................ 61

2.4.4 Lack of Operator Focus: Bit Carrier Not Solution Provider ............................................... 61

2.4.5 Nationally Based Operators: Scalability Challenges ........................................................ 61

2.4.6 Security Challenges ........................................................................................................ 62

2.4.7 Limited Demand for LTE Connections in the Short Term ................................................. 62

2.4.8 Integration Complexity in Non-Technical Markets ............................................................ 62

2.4.9 Investment Challenges ................................................................................................... 63

2.4.10 The Global Macro Environment....................................................................................... 63

2.5 First Major M2M Alliance ........................................................................................................ 64

2.6 M2M and the Vision of the Internet of Things .......................................................................... 64

2.6.1 A Variety of High-Performance and Low-Cost Devices .................................................... 64

2.6.2 Scaling Connectivity to Billions of Devices ...................................................................... 64

2.6.3 Cloud Based Device Management .................................................................................. 65

2.7 M2M Standardisation Bodies .................................................................................................. 66

The Wireless M2M Bible – Opportunities, Challenges,

Strategies, Industry Verticals & Forecasts: 2013 – 2018

© 2013 Signals and Systems Telecom

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2.7.1 The OneM2M Initiative .................................................................................................... 66

2.7.2 3GPP ............................................................................................................................. 67

2.7.3 China Communications Standards Association (CCSA) .................................................. 67

2.7.4 ETSI ............................................................................................................................... 67

2.7.5 GSMA ............................................................................................................................ 67

2.7.6 IEEE ............................................................................................................................... 67

2.7.7 Open Mobile Alliance ...................................................................................................... 68

2.7.8 TIA ................................................................................................................................. 68

2.7.9 NITS ............................................................................................................................... 68

2.7.10 WiMAX Forum ................................................................................................................ 68

2.7.11 Wi-Fi Alliance ................................................................................................................. 68

3 Chapter 3: Vertical Markets - M2M Opportunities, Use Cases, Applications and Case Studies .....................................................................70

3.1 Utilities and Smart Grid ........................................................................................................... 70

3.1.1 The Smart Grid ............................................................................................................... 70

3.1.2 M2M-Enabled Smart Meters ........................................................................................... 70

3.1.3 Application Case Study: Power Distribution Systems ...................................................... 73

3.1.4 Case Study: Norse Pipeline – Achieving Operational Efficiency with M2M ....................... 74

3.1.5 Case Study: O2 - Smart Metering in the UK .................................................................... 75

3.2 Automotive and Transportation Industry.................................................................................. 76

3.2.1 Safety and Security......................................................................................................... 76

3.2.2 Information and Navigation ............................................................................................. 76

3.2.3 Diagnostic Services ........................................................................................................ 76

3.2.4 Intelligent Traffic & Fleet Management ............................................................................ 77

3.2.5 Case Study: Cinterion – Diagnostics and Safety ............................................................. 78

3.2.6 Case Study: Romec – Managing Fuel Consumption,....................................................... 78

3.2.7 Case Study: Insurance Companies ................................................................................. 78

3.3 Logistics ................................................................................................................................. 79

3.3.1 Monitoring Storage Conditions across the Supply Chain ................................................. 79

3.3.2 Inventory Management & Asset Tracking ........................................................................ 79

3.3.3 Fleet Tracking ................................................................................................................. 79

3.3.4 Monitoring of Shipment Conditions.................................................................................. 79

3.3.5 Case Study: Praxair – Avoiding Tank Outages ................................................................ 80

3.4 Public Safety, Security & Surveillance .................................................................................... 81

3.4.1 CCTV and Video Surveillance ......................................................................................... 81

3.4.2 Perimeter Access Control ............................................................................................... 81

3.4.3 Detection of Liquids, Gases, Radiation and Explosives ................................................... 81




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3.4.4 Case Study: Video Surveillance in Shenzhen .................................................................. 82

3.4.5 Case Study: New Jersey Police Department ................................................................... 82

3.5 Retail and Vending ................................................................................................................. 83

3.5.1 POS Applications ............................................................................................................ 83

3.5.2 Monitoring Purchases ..................................................................................................... 83

3.5.3 Smart Product Management ........................................................................................... 83

3.5.4 NFC Enabled M2M Applications ..................................................................................... 83

3.5.5 Intelligent Shopping Applications .................................................................................... 83

3.5.6 Other Applications .......................................................................................................... 84

3.5.7 Case Study: Camelot Group – Improving Operational Efficiency for Retailers .................. 84

3.6 Healthcare.............................................................................................................................. 85

3.6.1 Telemedicine .................................................................................................................. 85

3.6.2 Remote Patient Monitoring and Care .............................................................................. 85

3.6.3 Case Study: LifeScan – Enabling Blood Glucose Monitoring ........................................... 85

3.6.4 Case Study: Respironics – Remote Diagnostics for Respirators and Ventilators .............. 86

3.7 Other Industry Verticals .......................................................................................................... 87

3.7.1 Agriculture ...................................................................................................................... 87

3.7.2 Smart Buildings and Smart Cities .................................................................................... 87

3.7.3 Construction ................................................................................................................... 87

3.7.4 IT & Networks ................................................................................................................. 87

3.7.5 Industrial Automation ...................................................................................................... 87

3.7.6 Consumer Electronics ..................................................................................................... 88

4 Chapter 4: Wireless M2M Industry Roadmap, Value Chain and Key Trends .............................................................................................................89

4.1 Wireless M2M Industry Roadmap ........................................................................................... 89

4.1.1 2010 – 2012: Proliferation of 3G M2M and Vehicular Telematics ..................................... 89

4.1.2 2013 – 2015: The Utilities Era – Rise of the Smart Grid ................................................... 90

4.1.3 2016 – 2018: The LTE Era – A Shift towards Bandwidth Hungry Applications.................. 90

4.2 The Wireless M2M Value Chain ............................................................................................. 91

4.2.1 Wireless Device Product Chain: Chipset Vendors and M2M Module Suppliers ................ 91

4.2.2 M2M Hardware Solutions ................................................................................................ 92

4.2.3 Connectivity: Mobile Network Operators, MVNOs and Aggregators ................................. 92

4.2.4 System Integrators ......................................................................................................... 94

4.2.5 Connected Device Platform (CDP) .................................................................................. 94

4.2.6 Application Enablement Platform (AEP) and Application Development Platform (ADP) .... 94

4.2.7 Vertical Market Players ................................................................................................... 94

4.3 Service and Application Platforms: Diversifying the Value Chain ............................................. 95




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4.4 Partnerships: Key to Operator Profitability .............................................................................. 96

4.4.1 AT&T .............................................................................................................................. 96

4.4.2 Telenor ........................................................................................................................... 96

4.4.3 T-Mobile ......................................................................................................................... 96

4.5 The M2M Module Market: Consolidation & Acquisitions Lead the Way .................................... 97

4.5.1 Sierra Wireless Acquires Wavecom – Q1‟2009 ............................................................... 97

4.5.2 Gemalto Acquires Cinterion – Q2‟2010 ........................................................................... 97

4.5.3 Novatel Acquires Enfora – Q4‟2010 ................................................................................ 97

4.5.4 Telit Acquires Motorola‟s M2M Business Unit – Q1‟2011 ................................................. 97

4.5.5 Sierra Wireless Acquires Sagemcom‟s M2M Business Unit – Q3‟2012 ............................ 98

4.6 Networking Requirements for M2M ......................................................................................... 99

4.6.1 Data Security .................................................................................................................. 99

4.6.2 Network Availability....................................................................................................... 100

4.6.3 Network Costs & Billing................................................................................................. 100

4.6.4 Multi-Technology Network Access (2G, 3G, WiMAX, LTE) ............................................ 100

4.6.5 Two-Way Communications Connectivity ....................................................................... 100

4.6.6 Convergence with CDP, AEP and ADP platforms.......................................................... 101

4.7 M2M Business Models for Operators .................................................................................... 102

4.7.1 Wholesale .................................................................................................................... 102

4.7.2 Bundled ........................................................................................................................ 102

4.7.3 Flexible ......................................................................................................................... 102

4.7.4 Revenue Share ............................................................................................................ 102

4.7.5 Application Based ......................................................................................................... 102

4.7.6 SLA Based ................................................................................................................... 102

4.8 M2M in the LTE Era ............................................................................................................. 103

4.8.1 The Switch from 2G to LTE: The Rise of Video Based M2M Applications ...................... 104

4.8.2 Is Speed the Only Benefit of LTE?: The Market for Latency Sensitive Applications ........ 104

4.8.3 Longevity and Economics ............................................................................................. 105

4.8.4 Scalability: Support for IPv6 .......................................................................................... 105

5 Chapter 5: Embedded Wireless M2M Module Vendors ......................106

5.1 Gemalto (Cinterion) .............................................................................................................. 106

5.1.1 Overview & Strategy ..................................................................................................... 106

5.1.2 Geographical Regions .................................................................................................. 106

5.1.3 Target Market ............................................................................................................... 106

5.1.4 Key M2M Products/Services ......................................................................................... 106

5.2 Novatel Wireless (Enfora) ..................................................................................................... 107





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5.2.3 Target Market ............................................................................................................... 107


5.3 Sierra Wireless ..................................................................................................................... 108



5.3.3 Target Market ............................................................................................................... 108


5.4 SIMCom ............................................................................................................................... 109



5.4.3 Target Market ............................................................................................................... 109


5.5 Telit ...................................................................................................................................... 110



5.5.3 Target Market ............................................................................................................... 110


5.6 U-blox .................................................................................................................................. 111



5.6.3 Target Market ............................................................................................................... 111


5.7 Others .................................................................................................................................. 112

5.7.1 Huawei ......................................................................................................................... 112

5.7.2 iWOW ........................................................................................................................... 112

5.7.3 Neoway ........................................................................................................................ 112

5.7.4 Quectel ......................................................................................................................... 112

5.7.5 ZTE .............................................................................................................................. 112

6 Chapter 6: M2M Hardware Solution Providers ....................................113

6.1 Arduino ................................................................................................................................ 113



6.1.3 Target Market ............................................................................................................... 113


6.2 CalAmp ................................................................................................................................ 114





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6.2.3 Target Market ............................................................................................................... 114


6.3 Digi International .................................................................................................................. 115



6.3.3 Target Market ............................................................................................................... 115


6.4 Libelium ............................................................................................................................... 116



6.4.3 Target Market ............................................................................................................... 116


6.5 Neul ..................................................................................................................................... 117



6.5.3 Target Market ............................................................................................................... 117


6.6 Raspberry Pi ........................................................................................................................ 118



6.6.3 Target Market ............................................................................................................... 118


6.7 Telular .................................................................................................................................. 119



6.7.3 Target Market ............................................................................................................... 119


6.8 Wipro ................................................................................................................................... 120



6.8.3 Target Market ............................................................................................................... 120


6.9 Others .................................................................................................................................. 121

6.9.1 Bosch ........................................................................................................................... 121

6.9.2 Continental ................................................................................................................... 121

6.9.3 Gemalto (Cinterion) ...................................................................................................... 121

6.9.4 Honeywell ..................................................................................................................... 121




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6.9.5 Huawei ......................................................................................................................... 121

6.9.6 ILS Technology............................................................................................................. 121

6.9.7 Ingenico ....................................................................................................................... 121

6.9.8 Itron .............................................................................................................................. 121

6.9.9 Landis & Gyr................................................................................................................. 121

6.9.10 Novatel Wireless (Enfora) ............................................................................................. 122

6.9.11 Numerex....................................................................................................................... 122

6.9.12 Schlage ........................................................................................................................ 122

6.9.13 Sierra Wireless ............................................................................................................. 122

6.9.14 SIMCom ....................................................................................................................... 122

6.9.15 Verifone ........................................................................................................................ 122

6.9.16 ZTE .............................................................................................................................. 122

7 Chapter 7: M2M MVNOs .........................................................................123

7.1 Numerex .............................................................................................................................. 123



7.1.3 Target Market ............................................................................................................... 123


7.2 KORE Telematics ................................................................................................................. 124



7.2.3 Target Market ............................................................................................................... 124


7.3 M2M DataSmart ................................................................................................................... 125



7.3.3 Target Market ............................................................................................................... 125


7.4 M2M Wireless ...................................................................................................................... 126



7.4.3 Target Market ............................................................................................................... 126


7.5 Wireless Logic ...................................................................................................................... 127



7.5.3 Target Market ............................................................................................................... 127




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7.6 Wyless ................................................................................................................................. 128



7.6.3 Target Market ............................................................................................................... 128


8 Chapter 8: Cloud-based M2M AEP and ADP Platform Providers ......129

8.1 Axeda .................................................................................................................................. 129



8.1.3 Target Market ............................................................................................................... 130


8.2 ILS Technology .................................................................................................................... 131



8.2.3 Target Market ............................................................................................................... 131


8.3 Others .................................................................................................................................. 131

8.3.1 CalAmp COLT .............................................................................................................. 131

8.3.2 Gemalto (Cinterion) ...................................................................................................... 131

8.3.3 iDigi Device Cloud ........................................................................................................ 131

8.3.4 Novatel Wireless (Enfora) ............................................................................................. 132

8.3.5 Numerex....................................................................................................................... 132

8.3.6 Sierra Wireless ............................................................................................................. 132

8.3.7 Telular .......................................................................................................................... 132

9 Chapter 9: M2M Connected Device Platform (CDP) Providers ..........133

9.1 Jasper Wireless .................................................................................................................... 133



9.1.3 Target Market ............................................................................................................... 133


9.2 RACO Wireless .................................................................................................................... 134



9.2.3 Target Market ............................................................................................................... 134


9.3 Others .................................................................................................................................. 135




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9.3.1 KORE Telematics ......................................................................................................... 135

9.3.2 Numerex....................................................................................................................... 135

9.3.3 Telit .............................................................................................................................. 135

9.3.4 Wyless ......................................................................................................................... 135

10 Chapter 10: Wireless/IT Industry Incumbents in the M2M Market .....136

10.1 Alcatel Lucent ...................................................................................................................... 136



10.1.3 Target Market ............................................................................................................... 136


10.2 ARM Holdings ...................................................................................................................... 137



10.2.3 Target Market ............................................................................................................... 137


10.3 Cisco .................................................................................................................................... 138



10.3.3 Target Market ............................................................................................................... 138


10.4 Ericsson ............................................................................................................................... 139



10.4.3 Target Market ............................................................................................................... 139


10.5 General Electric (GE) ........................................................................................................... 140



10.5.3 Target Market ............................................................................................................... 140


10.6 Huawei ................................................................................................................................. 141



10.6.3 Target Market ............................................................................................................... 141


10.7 IBM ...................................................................................................................................... 142





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10.7.3 Target Market ............................................................................................................... 142


10.8 Intel ...................................................................................................................................... 143



10.8.3 Target Market ............................................................................................................... 143


10.9 NEC ..................................................................................................................................... 144



10.9.3 Target Market ............................................................................................................... 144


10.10 Oracle .............................................................................................................................. 145

10.10.1 Overview & Strategy ................................................................................................. 145

10.10.2 Geographical Regions .............................................................................................. 145

10.10.3 Target Market ........................................................................................................... 145

10.10.4 Key M2M Products/Services ..................................................................................... 145

10.11 Qualcomm ........................................................................................................................ 146



10.11.3 Target Market ........................................................................................................... 146


11 Chapter 11: M2M Network Operators ...................................................147

11.1 Aeris Communications.......................................................................................................... 147



11.1.3 Target Market ............................................................................................................... 147


11.2 AT&T ................................................................................................................................... 148



11.2.3 Target Market ............................................................................................................... 148


11.3 China Mobile ........................................................................................................................ 149






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11.3.3 Target Market ............................................................................................................... 149


11.4 Deutsche Telecom ............................................................................................................... 150



11.4.3 Target Market ............................................................................................................... 150


11.5 Iridium .................................................................................................................................. 151



11.5.3 Target Market ............................................................................................................... 151


11.6 NTT DoCoMo ....................................................................................................................... 152



11.6.3 Target Market ............................................................................................................... 152


11.7 Orange ................................................................................................................................. 153



11.7.3 Target Market ............................................................................................................... 153


11.8 SIGFOX ............................................................................................................................... 154



11.8.3 Target Market ............................................................................................................... 154


11.9 Singtel .................................................................................................................................. 155



11.9.3 Target Market ............................................................................................................... 155


11.10 Sprint ............................................................................................................................... 156



11.10.3 Target Market ........................................................................................................... 156


11.11 Telefónica ........................................................................................................................ 157




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11.11.3 Target Market ........................................................................................................... 157


11.12 Telstra .............................................................................................................................. 158



11.12.3 Target Market ........................................................................................................... 158


11.13 T-Mobile ........................................................................................................................... 159



11.13.3 Target Market ........................................................................................................... 159


11.14 Verizon ............................................................................................................................. 160



11.14.3 Target Market ........................................................................................................... 160


11.15 Vodafone .......................................................................................................................... 161



11.15.3 Target Market ........................................................................................................... 161


11.16 Optus ............................................................................................................................... 162



11.16.3 Target Market ........................................................................................................... 162


12 Chapter 12: Market Analysis and Forecasts ........................................163

12.1 The Global Wireless M2M Market: 2013 - 2018 .................................................................... 163

12.1.1 Global Wireless M2M Market Revenue: 2013 - 2018 ..................................................... 163

12.1.2 Global Wireless M2M Market Revenue by Submarket: 2013 - 2018 .............................. 164

12.1.3 Global Wireless M2M Market Revenue by Region: 2013 - 2018 .................................... 165

12.2 Wireless M2M Network Connections: 2013 - 2018 ................................................................ 166

12.2.1 Global Wireless M2M Connections: 2013 - 2018 ........................................................... 166

12.2.2 Global Wireless M2M Connections by Technology: 2013 - 2018 ................................... 167




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12.2.3 Global Wireless M2M Connections by Industry Vertical: 2013 - 2018 ............................ 168

12.2.4 Global Wireless M2M Connections by Region: 2013 – 2018.......................................... 169

12.3 M2M Network Connectivity Submarket: 2013 - 2018 ............................................................. 170

12.3.1 Global Wireless M2M Network Connectivity Revenue: 2013 - 2018 ............................... 170

12.3.2 Global Wireless M2M Network Connectivity ARPU: 2013 - 2018 ................................... 171

12.3.3 Global Wireless M2M Network Connectivity Revenue by Industry Vertical: 2013 - 2018 172

12.3.4 Global Wireless M2M Network Connectivity Revenue by Region: 2013 – 2018 ............. 173

12.3.5 Global Wireless M2M Network Connectivity ARPU by Industry Vertical: 2013 – 2018 .... 174

12.4 M2M Application Services Submarket: 2013 - 2018 .............................................................. 175

12.4.1 Global Wireless M2M Application Services Revenue: 2013 - 2018 ................................ 175

12.4.2 Global Wireless M2M Application Services ARPU: 2013 - 2018 .................................... 176

12.4.3 Global Wireless M2M Application Services Revenue by Industry Vertical: 2013 - 2018 .. 177

12.4.4 Global Wireless M2M Application Services Revenue by Region: 2013 – 2018 ............... 178

12.4.5 Global Wireless M2M Application Services ARPU by Industry Vertical: 2013 – 2018 ..... 179

12.5 Embedded Wireless M2M Modules Submarket: 2013 - 2018 ................................................ 180

12.5.1 Global Embedded Wireless M2M Module Shipments: 2013 - 2018 ................................ 180

12.5.2 Global Embedded Wireless M2M Module Sales Revenue: 2013 - 2018......................... 181

12.5.3 Global Embedded Wireless M2M Module Shipments by Technology: 2013 - 2018 ........ 182

12.5.4 Global Embedded Wireless M2M Module Sales Revenue by Technology: 2013 - 2018 . 182

12.5.5 Global Embedded Wireless M2M Module ASP by Technology: 2013 - 2018 .................. 183

12.5.6 Global Embedded Wireless M2M Module Shipments by Industry Vertical: 2013 - 2018 . 184

12.5.7 Global Embedded Wireless M2M Module Sales Revenue by Industry Vertical: 2013 - 2018 184

12.5.8 Global Embedded Wireless M2M Module Shipments by Region: 2013 - 2018 ............... 185

12.5.9 Global Embedded Wireless M2M Module Sales Revenue by Region: 2013 - 2018 ........ 185

12.5.10 Global Embedded Wireless M2M Module Vendor Market Share by Unit Shipments: 2012 186

12.5.11 Global Embedded Wireless M2M Module Vendor Market Share by Revenue: 2012 ... 186

12.6 M2M Network Security Submarket: 2013 - 2018 ................................................................... 187

12.6.1 Global Wireless M2M Network Security Services Revenue: 2013 - 2018 ....................... 187

12.6.2 Global Wireless M2M Network Security Services Revenue by Region: 2013 - 2018 ...... 188

12.7 M2M Connected Device Platform (CDP) Submarket: 2013 - 2018......................................... 189

12.7.1 Global Wireless M2M Connected Device Platform (CDP) Revenue: 2013 - 2018 .......... 189

12.7.2 Global Wireless M2M Connected Device Platform (CDP) Revenue by Region: 2013 - 2018 190

12.8 M2M Application Platform (AEP, ADP) Submarket: 2013 - 2018 ........................................... 191

12.8.1 Global Wireless M2M Application Platform (AEP, ADP) Revenue: 2013 - 2018 ............. 191

12.8.2 Global Wireless M2M Application Platform (AEP, ADP) Revenue by Region: 2013 - 2018 192




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12.9 M2M Integration Services Submarket: 2013 - 2018 ............................................................... 193

12.9.1 Global Wireless M2M Integration Services Revenue: 2013 - 2018 ................................. 193

12.9.2 Global Wireless M2M Integration Services Revenue by Region: 2013 - 2018 ................ 194

12.10 M2M Enabling Technology Submarket: 2013 - 2018 ......................................................... 195

12.10.1 Global Wireless M2M Enabling Technology Revenue: 2013 - 2018 ........................... 195

12.10.2 Global Wireless M2M Enabling Technology Revenue: 2013 - 2018 ........................... 196

12.11 M2M Industry Verticals: 2013 - 2018 ................................................................................. 197

12.11.1 Utilities and Smart Grid Industry Vertical Revenue: 2013 - 2018 ................................ 197

12.11.2 Automotive and Transportation Industry Vertical Revenue: 2013 - 2018 .................... 198

12.11.3 Logistics Industry Vertical Revenue: 2013 - 2018 ...................................................... 199

12.11.4 Public Safety, Security and Surveillance Industry Vertical Revenue: 2013 - 2018 ...... 200

12.11.5 Retail and Vending Industry Vertical Revenue: 2013 - 2018 ...................................... 201

12.11.6 Healthcare Industry Vertical Revenue: 2013 - 2018 ................................................... 202

12.11.7 Other Industry Vertical Segments Revenue: 2013 - 2018 .......................................... 203

12.12 The North America Wireless M2M Market: 2013 - 2018 .................................................... 204

12.12.1 North America Wireless M2M Market Revenue: 2013 - 2018 ..................................... 204

12.12.2 North America Wireless M2M Connections: 2013 – 2018 .......................................... 205

12.12.3 North America Wireless M2M Network Connectivity Revenue: 2013 – 2018 .............. 205

12.12.4 North America Wireless M2M Application Services Revenue: 2013 – 2018 ............... 206

12.12.5 North America Embedded Wireless M2M Module Shipments: 2013 - 2018 ................ 206

12.12.6 North America Embedded Wireless M2M Module Sales Revenue: 2013 - 2018......... 207

12.12.7 North America Wireless M2M Network Security Services Revenue: 2013 - 2018 ....... 207

12.12.8 North America Wireless M2M Connected Device Platform (CDP) Revenue: 2013 - 2018 208

12.12.9 North America Wireless M2M Application Platform (AEP, ADP) Revenue: 2013 - 2018 208

12.12.10 North America Wireless M2M Integration Services Revenue: 2013 - 2018 ................. 209

12.12.11 North America Wireless M2M Enabling Technology Revenue: 2013 - 2018 ............... 209

12.13 The Asia Pacific Wireless M2M Market: 2013 - 2018......................................................... 210

12.13.1 Asia Pacific Wireless M2M Market Revenue: 2013 - 2018 ......................................... 210

12.13.2 Asia Pacific Wireless M2M Connections: 2013 – 2018 .............................................. 211

12.13.3 Asia Pacific Wireless M2M Network Connectivity Revenue: 2013 – 2018 .................. 211

12.13.4 Asia Pacific Wireless M2M Application Services Revenue: 2013 – 2018 .................... 212

12.13.5 Asia Pacific Embedded Wireless M2M Module Shipments: 2013 - 2018 .................... 212

12.13.6 Asia Pacific Embedded Wireless M2M Module Sales Revenue: 2013 - 2018 ............. 213

12.13.7 Asia Pacific Wireless M2M Network Security Services Revenue: 2013 - 2018 ........... 213

12.13.8 Asia Pacific Wireless M2M Connected Device Platform (CDP) Revenue: 2013 - 2018 214




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12.13.9 Asia Pacific Wireless M2M Application Platform (AEP, ADP) Revenue: 2013 - 2018 . 214

12.13.10 Asia Pacific Wireless M2M Integration Services Revenue: 2013 - 2018 ..................... 215

12.13.11 Asia Pacific Wireless M2M Enabling Technology Revenue: 2013 - 2018 ................... 215

12.14 The Western Europe Wireless M2M Market: 2013 - 2018 ................................................. 216

12.14.1 Western Europe Wireless M2M Market Revenue: 2013 - 2018 .................................. 216

12.14.2 Western Europe Wireless M2M Connections: 2013 – 2018 ....................................... 217

12.14.3 Western Europe Wireless M2M Network Connectivity Revenue: 2013 – 2018 ........... 217

12.14.4 Western Europe Wireless M2M Application Services Revenue: 2013 – 2018 ............ 218

12.14.5 Western Europe Embedded Wireless M2M Module Shipments: 2013 - 2018 ............. 218

12.14.6 Western Europe Embedded Wireless M2M Module Sales Revenue: 2013 - 2018 ...... 219

12.14.7 Western Europe Wireless M2M Network Security Services Revenue: 2013 - 2018 .... 219

12.14.8 Western Europe Wireless M2M Connected Device Platform (CDP) Revenue: 2013 - 2018 220

12.14.9 Western Europe Wireless M2M Application Platform (AEP, ADP) Revenue: 2013 - 2018 220

12.14.10 Western Europe Wireless M2M Integration Services Revenue: 2013 - 2018 .............. 221

12.14.11 Western Europe Wireless M2M Enabling Technology Revenue: 2013 - 2018 ............ 221

12.15 The Eastern Europe Wireless M2M Market: 2013 - 2018 .................................................. 222

12.15.1 Eastern Europe Wireless M2M Market Revenue: 2013 - 2018 ................................... 222

12.15.2 Eastern Europe Wireless M2M Connections: 2013 – 2018 ........................................ 223

12.15.3 Eastern Europe Wireless M2M Network Connectivity Revenue: 2013 – 2018 ............ 223

12.15.4 Eastern Europe Wireless M2M Application Services Revenue: 2013 – 2018 ............. 224

12.15.5 Eastern Europe Embedded Wireless M2M Module Shipments: 2013 - 2018 .............. 224

12.15.6 Eastern Europe Embedded Wireless M2M Module Sales Revenue: 2013 - 2018 ....... 225

12.15.7 Eastern Europe Wireless M2M Network Security Services Revenue: 2013 - 2018 ..... 225

12.15.8 Eastern Europe Wireless M2M Connected Device Platform (CDP) Revenue: 2013 - 2018 226

12.15.9 Eastern Europe Wireless M2M Application Platform (AEP, ADP) Revenue: 2013 - 2018 226

12.15.10 Eastern Europe Wireless M2M Integration Services Revenue: 2013 - 2018 ............... 227

12.15.11 Eastern Europe Wireless M2M Enabling Technology Revenue: 2013 - 2018 ............. 227

12.16 The Middle East & Africa Wireless M2M Market: 2013 - 2018 ........................................... 228

12.16.1 Middle East & Africa Wireless M2M Market Revenue: 2013 - 2018 ............................ 228

12.16.2 Middle East & Africa Wireless M2M Connections: 2013 – 2018 ................................. 229

12.16.3 Middle East & Africa Wireless M2M Network Connectivity Revenue: 2013 – 2018 ..... 229

12.16.4 Middle East & Africa Wireless M2M Application Services Revenue: 2013 – 2018 ...... 230

12.16.5 Middle East & Africa Embedded Wireless M2M Module Shipments: 2013 - 2018 ....... 230

12.16.6 Middle East & Africa Embedded Wireless M2M Module Sales Revenue: 2013 - 2018 231




17

12.16.7 Middle East & Africa Wireless M2M Network Security Services Revenue: 2013 - 2018 231

12.16.8 Middle East & Africa Wireless M2M Connected Device Platform (CDP) Revenue: 2013 - 2018 232

12.16.9 Middle East & Africa Wireless M2M Application Platform (AEP, ADP) Revenue: 2013 - 2018 232

12.16.10 Middle East & Africa Wireless M2M Integration Services Revenue: 2013 - 2018 ........ 233

12.16.11 Middle East & Africa Wireless M2M Enabling Technology Revenue: 2013 - 2018 ...... 233

12.17 The Latin & Central America Wireless M2M Market: 2013 - 2018 ...................................... 234

12.17.1 Latin & Central America Wireless M2M Market Revenue: 2013 - 2018 ...................... 234

12.17.2 Latin & Central America Wireless M2M Connections: 2013 – 2018 ............................ 235

12.17.3 Latin & Central America Wireless M2M Network Connectivity Revenue: 2013 – 2018 235

12.17.4 Latin & Central America Wireless M2M Application Services Revenue: 2013 – 2018 . 236

12.17.5 Latin & Central America Embedded Wireless M2M Module Shipments: 2013 - 2018 . 236

12.17.6 Latin & Central America Embedded Wireless M2M Module Sales Revenue: 2013 - 2018 237

12.17.7 Latin & Central America Wireless M2M Network Security Services Revenue: 2013 - 2018 237

12.17.8 Latin & Central America Wireless M2M Connected Device Platform (CDP) Revenue: 2013 - 2018 ................................................................................................................................. 238

12.17.9 Latin & Central America Wireless M2M Application Platform (AEP, ADP) Revenue: 2013 - 2018 238

12.17.10 Latin & Central America Wireless M2M Integration Services Revenue: 2013 - 2018 .. 239

12.17.11 Latin & Central America Wireless M2M Enabling Technology Revenue: 2013 - 2018. 239

13 Chapter 13: Conclusion and Strategic Recommendations ................240

13.1 Conclusion ........................................................................................................................... 240

13.1.1 M2M: A Change in the Network Operator Mindset ......................................................... 240

13.1.2 Standardisation is Key to Global Interoperability ........................................................... 240

13.1.3 Declining Module Costs and Price Elasticity: Key to Growth .......................................... 241

13.1.4 Cloud Based Data Analytics: A Growing Trend in the $3 Billion M2M Application Platform Market 241

13.1.5 Assessing the Impact of LTE: Will Operators Force a 2G to 4G Migration?.................... 241

13.1.6 Transition to IPv6: Addressing the Scalability Challenge ............................................... 241

13.1.7 Security Demands: Drivers for the $1 Billion M2M Network Security Market .................. 242

13.1.8 Self Organizing Networks (SON): Recommendations of a Changing Network Topology 242

13.2 Strategic Recommendations ................................................................................................. 243

13.2.1 Recommendations for Embedded Wireless M2M Module Vendors ................................ 243

13.2.2 Recommendations for M2M Hardware Solution Providers ............................................. 243

13.2.3 Recommendations M2M Connected Device Platform (CDP) Providers.......................... 243




18

13.2.4 Recommendations for Cloud Based Application Platform (AEP and ADP) Providers ..... 244

13.2.5 Recommendations for M2M Mobile Network Operators and Aggregators/MVNOs ......... 244

13.2.6 Recommendations for Wireless/IT Industry Incumbents ................................................ 244




19

List of Figures

Figure 1: M2M Architecture....................................................................................................................................................................... 57

Figure 2: Global Smart Meter Penetration by Region (%): 2011 - 2018 ................................................................................................. 72

Figure 3: Wireless M2M Industry Roadmap ............................................................................................................................................. 89

Figure 4: The Wireless M2M Value Chain................................................................................................................................................ 91

Figure 5: M2M MVNO Architecture .......................................................................................................................................................... 93

Figure 6: Global LTE Deployments Q1‟2013 ......................................................................................................................................... 103

Figure 7: Axeda Application and Data Integration Platform................................................................................................................... 129

Figure 8: Global Wireless M2M Industry Revenue ($ Million): 2011 - 2018 ......................................................................................... 163

Figure 9: Global Wireless M2M Industry Revenue by Submarket ($ Million): 2011 - 2018.................................................................. 164

Figure 10: Global Wireless M2M Industry Revenue by Region ($ Million): 2011 - 2018 ...................................................................... 165

Figure 11: Global Wireless M2M Connections (Millions): 2011 - 2018 ................................................................................................. 166

Figure 12: Global Wireless M2M Connections by Technology (Millions): 2011 - 2018 ........................................................................ 167

Figure 13: Global Wireless M2M Connections by Industry Vertical (Millions): 2011 - 2018................................................................. 168

Figure 14: Global Wireless M2M Connections by Region (Millions): 2011 - 2018 ............................................................................... 169

Figure 15: Global Wireless M2M Network Connectivity Revenue ($ Million): 2011 - 2018 .................................................................. 170

Figure 16: Global Wireless M2M Network Connectivity ARPU ($ per Month): 2011 - 2018 ................................................................ 171

Figure 17: Global Wireless M2M Network Connectivity Revenue by Industry Vertical ($ Million): 2011 - 2018 ................................. 172

Figure 18: Global Wireless M2M Network Connectivity Revenue by Region ($ Million): 2011 - 2018 ................................................ 173

Figure 19: Global Wireless M2M Network Connectivity ARPU by Industry Vertical ($ per Month): 2011 - 2018................................ 174

Figure 20: Global Wireless M2M Application Services Revenue ($ Million): 2011 - 2018 ................................................................... 175

Figure 21: Global Wireless M2M Application Services ARPU ($ per Month): 2011 - 2018.................................................................. 176

Figure 22: Global Wireless M2M Application Services Revenue by Industry Vertical ($ Million): 2011 - 2018 ................................... 177

Figure 23: Global Wireless M2M Application Services Revenue by Region ($ Million): 2011 - 2018 ................................................. 178

Figure 24: Global Wireless M2M Application Services ARPU by Industry Vertical ($ per Month): 2011 - 2018 ................................. 179

Figure 25: Global Embedded Wireless M2M Module Shipments (Millions): 2011 - 2018 .................................................................... 180

Figure 26: Global Embedded Wireless M2M Module Sales Revenue ($ Million): 2011 - 2018 ........................................................... 181

Figure 27: Global Embedded Wireless M2M Module Shipments by Technology (Millions): 2011 - 2018 ........................................... 182

Figure 28: Global Embedded Wireless M2M Module Sales Revenue by Technology ($ Million): 2011 - 2018 .................................. 182

Figure 29: Global Embedded Wireless M2M Module ASP by Technology ($): 2011 - 2018 ............................................................... 183

Figure 30: Global Embedded Wireless M2M Module Shipments by Industry Vertical (Millions): 2011 - 2018.................................... 184

Figure 31: Global Embedded Wireless M2M Module Sales Revenue by Industry Vertical ($ Million): 2011 - 2018........................... 184

Figure 32: Global Embedded Wireless M2M Module Shipments by Region (Millions): 2011 - 2018 .................................................. 185

Figure 33: Global Embedded Wireless M2M Module Sales Revenue by Region ($ Million): 2011 - 2018 ......................................... 185

Figure 34: Global Embedded Wireless M2M Module Vendor Market Share by Unit Shipments (%): 2012 ........................................ 186

Figure 35: Global Embedded Wireless M2M Module Vendor Market Share by Revenue (%): 2012 .................................................. 186

Figure 36: Global Wireless M2M Network Security Services Revenue ($ Million): 2011 - 2018 ......................................................... 187

Figure 37: Global Wireless M2M Network Security Services Revenue by Region ($ Million): 2011 - 2018 ........................................ 188

Figure 38: Global Wireless M2M Connected Device Platform (CDP) Revenue ($ Million): 2011 - 2018 ............................................ 189

Figure 39: Global Wireless M2M Connected Device Platform (CDP) Revenue by Region ($ Million): 2011 - 2018 .......................... 190

Figure 40: Global Wireless M2M Application Platform (AEP, ADP) Revenue ($ Million): 2011 - 2018 ............................................... 191

Figure 41: Global Wireless M2M Application Platform (AEP, ADP) Revenue by Region ($ Million): 2011 - 2018 ............................. 192

Figure 42: Global Wireless M2M Integration Services Revenue ($ Million): 2011 - 2018 .................................................................... 193

Figure 43: Global Wireless M2M Integration Services Revenue by Region ($ Million): 2011 - 2018 .................................................. 194

Figure 44: Global Wireless M2M Enabling Technology Revenue ($ Million): 2011 - 2018 .................................................................. 195

Figure 45: Global Wireless M2M Enabling Technology Revenue by Region ($ Million): 2011 - 2018 ................................................ 196

Figure 46: Utilities and Smart Grid M2M Industry Vertical Revenue by Connectivity/Application Services ($ Million): 2011 - 2018 . 197

Figure 47: Automotive and Transportation M2M Industry Vertical Revenue by Connectivity/Application Services ($ Million): 2011 -

2018 ......................................................................................................................................................................................................... 198

Figure 48: Logistics M2M Industry Vertical Revenue by Connectivity/Application Services ($ Million): 2011 - 2018 ......................... 199




20

Figure 49: Public Safety, Security and Surveillance M2M Industry Vertical Revenue by Connectivity/Application Services ($ Million):

2011 - 2018 ............................................................................................................................................................................................. 200

Figure 50: Retail and Vending M2M Industry Vertical Revenue by Connectivity/Application Services ($ Million): 2011 - 2018 ........ 201

Figure 51: Healthcare M2M Industry Vertical Revenue by Connectivity/Application Services ($ Million): 2011 - 2018...................... 202

Figure 52: Other Industry Vertical Segments Revenue by Connectivity/Application Services ($ Million): 2011 - 2018 ...................... 203

Figure 53: North America Wireless M2M Industry Revenue ($ Million): 2011 - 2018 .......................................................................... 204

Figure 54: North America Wireless M2M Connections (Millions): 2011 - 2018 .................................................................................... 205

Figure 55: North America Wireless M2M Network Connectivity Revenue ($ Million): 2011 - 2018 ..................................................... 205

Figure 56: North America Wireless M2M Application Services Revenue ($ Million): 2011 - 2018 ...................................................... 206

Figure 57: North America Embedded Wireless M2M Module Shipments (Millions): 2011 - 2018 ....................................................... 206

Figure 58: North America Embedded Wireless M2M Module Sales Revenue ($ Million): 2011 - 2018 .............................................. 207

Figure 59: North America Wireless M2M Network Security Services Revenue ($ Million): 2011 - 2018 ............................................ 207

Figure 60: North America Wireless M2M Connected Device Platform (CDP) Revenue ($ Million): 2011 - 2018 ............................... 208

Figure 61: North America Wireless M2M Application Platform (AEP, ADP) Revenue ($ Million): 2011 - 2018 .................................. 208

Figure 62: North America Wireless M2M Integration Services Revenue ($ Million): 2011 - 2018 ....................................................... 209

Figure 63: North America Wireless M2M Enabling Technology Revenue ($ Million): 2011 - 2018 ..................................................... 209

Figure 64: Asia Pacific Wireless M2M Industry Revenue ($ Million): 2011 - 2018 ............................................................................... 210

Figure 65: Asia Pacific Wireless M2M Connections (Millions): 2011 - 2018 ......................................................................................... 211

Figure 66: Asia Pacific Wireless M2M Network Connectivity Revenue ($ Million): 2011 - 2018 ......................................................... 211

Figure 67: Asia Pacific Wireless M2M Application Services Revenue ($ Million): 2011 - 2018 ........................................................... 212

Figure 68: Asia Pacific Embedded Wireless M2M Module Shipments (Millions): 2011 - 2018............................................................ 212

Figure 69: Asia Pacific Embedded Wireless M2M Module Sales Revenue ($ Million): 2011 - 2018 ................................................... 213

Figure 70: Asia Pacific Wireless M2M Network Security Services Revenue ($ Million): 2011 - 2018 ................................................. 213

Figure 71: Asia Pacific Wireless M2M Connected Device Platform (CDP) Revenue ($ Million): 2011 - 2018 .................................... 214

Figure 72: Asia Pacific Wireless M2M Application Platform (AEP, ADP) Revenue ($ Million): 2011 - 2018 ....................................... 214

Figure 73: Asia Pacific Wireless M2M Integration Services Revenue ($ Million): 2011 - 2018 ........................................................... 215

Figure 74: Asia Pacific Wireless M2M Enabling Technology Revenue ($ Million): 2011 - 2018.......................................................... 215

Figure 75: Western Europe Wireless M2M Industry Revenue ($ Million): 2011 - 2018 ....................................................................... 216

Figure 76: Western Europe Wireless M2M Connections (Millions): 2011 - 2018 ................................................................................. 217

Figure 77: Western Europe Wireless M2M Network Connectivity Revenue ($ Million): 2011 - 2018 .................................................. 217

Figure 78: Western Europe Wireless M2M Application Services Revenue ($ Million): 2011 - 2018 ................................................... 218

Figure 79: Western Europe Embedded Wireless M2M Module Shipments (Millions): 2011 - 2018 .................................................... 218

Figure 80: Western Europe Embedded Wireless M2M Module Sales Revenue ($ Million): 2011 - 2018 ........................................... 219

Figure 81: Western Europe Wireless M2M Network Security Services Revenue ($ Million): 2011 - 2018 ......................................... 219

Figure 82: Western Europe Wireless M2M Connected Device Platform (CDP) Revenue ($ Million): 2011 - 2018 ............................ 220

Figure 83: Western Europe Wireless M2M Application Platform (AEP, ADP) Revenue ($ Million): 2011 - 2018 ............................... 220

Figure 84: Western Europe Wireless M2M Integration Services Revenue ($ Million): 2011 - 2018 .................................................... 221

Figure 85: Western Europe Wireless M2M Enabling Technology Revenue ($ Million): 2011 - 2018 .................................................. 221

Figure 86: Eastern Europe Wireless M2M Industry Revenue ($ Million): 2011 - 2018 ........................................................................ 222

Figure 87: Eastern Europe Wireless M2M Connections (Millions): 2011 - 2018 .................................................................................. 223

Figure 88: Eastern Europe Wireless M2M Network Connectivity Revenue ($ Million): 2011 - 2018 ................................................... 223

Figure 89: Eastern Europe Wireless M2M Application Services Revenue ($ Million): 2011 - 2018 .................................................... 224

Figure 90: Eastern Europe Embedded Wireless M2M Module Shipments (Millions): 2011 - 2018 ..................................................... 224

Figure 91: Eastern Europe Embedded Wireless M2M Module Sales Revenue ($ Million): 2011 - 2018 ............................................ 225

Figure 92: Eastern Europe Wireless M2M Network Security Services Revenue ($ Million): 2011 - 2018 .......................................... 225

Figure 93: Eastern Europe Wireless M2M Connected Device Platform (CDP) Revenue ($ Million): 2011 - 2018 ............................. 226

Figure 94: Eastern Europe Wireless M2M Application Platform (AEP, ADP) Revenue ($ Million): 2011 - 2018 ................................ 226

Figure 95: Eastern Europe Wireless M2M Integration Services Revenue ($ Million): 2011 - 2018 ..................................................... 227

Figure 96: Eastern Europe Wireless M2M Enabling Technology Revenue ($ Million): 2011 - 2018 ................................................... 227

Figure 97: Middle East & Africa Wireless M2M Industry Revenue ($ Million): 2011 - 2018 ................................................................. 228

Figure 98: Middle East & Africa Wireless M2M Connections (Millions): 2011 - 2018 .......................................................................... 229

Figure 99: Middle East & Africa Wireless M2M Network Connectivity Revenue ($ Million): 2011 - 2018 ........................................... 229




21

Figure 100: Middle East & Africa Wireless M2M Application Services Revenue ($ Million): 2011 - 2018 .......................................... 230

Figure 101: Middle East & Africa Embedded Wireless M2M Module Shipments (Millions): 2011 - 2018 ........................................... 230

Figure 102: Middle East & Africa Embedded Wireless M2M Module Sales Revenue ($ Million): 2011 - 2018 .................................. 231

Figure 103: Middle East & Africa Wireless M2M Network Security Services Revenue ($ Million): 2011 - 2018................................. 231

Figure 104: Middle East & Africa Wireless M2M Connected Device Platform (CDP) Revenue ($ Million): 2011 - 2018 ................... 232

Figure 105: Middle East & Africa Wireless M2M Application Platform (AEP, ADP) Revenue ($ Million): 2011 - 2018 ...................... 232

Figure 106: Middle East & Africa Wireless M2M Integration Services Revenue ($ Million): 2011 - 2018 ........................................... 233

Figure 107: Middle East & Africa Wireless M2M Enabling Technology Revenue ($ Million): 2011 - 2018 ......................................... 233

Figure 108: Latin & Central America Wireless M2M Industry Revenue ($ Million): 2011 - 2018 ......................................................... 234

Figure 109: Latin & Central America Wireless M2M Connections (Millions): 2011 - 2018 ................................................................... 235

Figure 110: Latin & Central America Wireless M2M Network Connectivity Revenue ($ Million): 2011 - 2018 ................................... 235

Figure 111: Latin & Central America Wireless M2M Application Services Revenue ($ Million): 2011 - 2018 ..................................... 236

Figure 112: Latin & Central America Embedded Wireless M2M Module Shipments (Millions): 2011 - 2018...................................... 236

Figure 113: Latin & Central America Embedded Wireless M2M Module Sales Revenue ($ Million): 2011 - 2018 ............................. 237

Figure 114: Latin & Central America Wireless M2M Network Security Services Revenue ($ Million): 2011 - 2018 ........................... 237

Figure 115: Latin & Central America Wireless M2M Connected Device Platform (CDP) Revenue ($ Million): 2011 - 2018 .............. 238

Figure 116: Latin & Central America Wireless M2M Application Platform (AEP, ADP) Revenue ($ Million): 2011 - 2018................. 238

Figure 117: Latin & Central America Wireless M2M Integration Services Revenue ($ Million): 2011 - 2018 ..................................... 239

Figure 118: Latin & Central America Wireless M2M Enabling Technology Revenue ($ Million): 2011 – 2018 ................................... 239




22

1 Chapter 1: Introduction

1.1 Executive Summary

Machine-to-Machine (M2M) technology enables data communication

between machines without human intervention. Often powered by cellular

or short range wireless communication technologies, M2M facilitates

network connectivity for a vast array of devices and subsequent

monetization of the data collected from these devices.

Due to its vast array of applications ranging from location tracking, process

automation to remote monitoring/control, wireless M2M has attracted

attention from a multitude of vertical market segments including but not

limited to Utilities, Automotive, Transportation, Logistics, Public Safety,

Security, Retail & Vending, Healthcare Agriculture, Smart Buildings and

Smart Cities, Construction, IT & Networks, Industrial Automation and

Consumer Electronics.

Despite its low ARPU, the wireless M2M market has become a key focus of

many mobile network operators as their traditional voice and data markets

become saturated. Likewise, government and regulatory initiatives such as

the EU initiatives to have a smart meter penetration level of 80% by 2020

and the mandatory inclusion of automotive safety systems such as eCall in

all new car models, have also helped to drive overall wireless M2M

connections and revenue.

Consequently we expect the wireless M2M market to account for nearly

$136 billion in revenues by the end of 2018, following a CAGR of 23%

during the five year period between 2013 and 2018.

Eyeing this lucrative opportunity, vendors and service providers across the

highly fragmented M2M value chain have become increasing innovative in




23

their strategies and technology offerings which have given rise to a number

of submarkets such as M2M Network Security, Connected Device

Platforms (CDP) and M2M Application Platforms.

This report presents an in-depth assessment of the global wireless M2M

market. In addition to covering the business case, the challenges, the

industry‟s roadmap, value chain analysis, deployment case studies, and the

vertical market ecosystem, vendor service/product strategies and strategic

recommendations, the report also presents comprehensive forecasts for the

wireless M2M market from 2013 till 2018, including an individual

assessment of the following submarkets: Network Connectivity, Application

Services, Embedded Cellular M2M Modules, Network Security, Connected

Device Platforms (CDP), Application Platforms (Application Enablement

Platforms, AEP and Application Development Platforms, ADP), Integration

Services and Enabling Technologies, across six regions.

Also provided are network connectivity and application service revenue

forecasts for the following 6 vertical market segments: Utilities & Smart

Grid, Automotive & Transportation, Logistics, Public Safety, Security &

Surveillance, Retail & Vending and Healthcare.

Historical figures are also provided for 2011 and 2012. The report comes

with an associated XLS datasheet covering quantitative data from all

figures presented within the report.




24

1.2 Topics Covered

The report covers the following topics:

M2M technology and architecture

Market drivers and key benefits of wireless M2M

Challenges and Inhibitors to the wireless M2M Ecosystem

Wireless M2M standardization Initiatives

Wireless M2M opportunities, use cases and applications across industry

verticals

Wireless M2M deployment case studies

Industry, mobile network operator and vendor commitments to M2M

Wireless M2M industry roadmap: 2013 – 2018

Wireless M2M value chain assessment

Key trends in the M2M ecosystem: acquisitions, evolving requirements,

business models, cloud based analytics, network security, impact of

LTE, IPv6, module costs and price elasticity

Profiles, market positioning assessment (current strategy, target market

and products/services) and strategic recommendations for: embedded

cellular module vendors, hardware solution providers, MVNOs/M2M

connectivity aggregators, cloud based AEP and ADP providers, CDP

providers, Wireless/IT industry incumbents and mobile network

operators

Market analysis and forecasts for the M2M industry‟s revenue and

network connections:

- Wireless M2M industry revenue forecast by region and

submarkets

- Wireless M2M connections forecast by region, technology and

industry verticals




25

- Wireless M2M network connectivity submarket revenue and

ARPU forecast by region and industry vertical

- Wireless M2M application services submarket revenue and

ARPU forecast by region and industry vertical

- Embedded cellular M2M modules submarket shipments,

revenue and ASP forecast by region, technology, industry

vertical and vendor

- Wireless M2M network security submarket revenue forecast by

region

- Wireless M2M Connected Device Platform (CDP) submarket

revenue forecast by region

- Wireless M2M application platform (AEP, ADP) submarket

revenue forecast by region

- Wireless M2M Integration services submarket revenue forecast

by region

- Wireless M2M enabling technology submarket revenue forecast

by region

- Wireless M2M vertical market revenue by industry vertical

- Submarket forecasts are categorized in the following 8

categories:

Network Connectivity

Application Services

Embedded Cellular M2M Modules

Network Security

Connected Device Platforms (CDP)

Application Platforms (Application Enablement Platforms,

AEP and Application Development Platforms, ADP

Integration Services

Enabling Technology




26

- Technology forecasts are categorized in the following 6

categories:

GSM/GPRS/EDGE

CDMA-2000/EV-DO

W-CDMA/HSPA

WiMAX

LTE

Others (ZigBee, WiFi, Short Range Wireless)

- Industry vertical forecasts are categorized in the following 7

categories:

Utilities & Smart Grid

Automotive & Transportation

Logistics

Public Safety, Security & Surveillance

Retail & Vending

Healthcare

Others

- Regional forecasts are categorized in the following 6 categories

North America

Asia Pacific

Western Europe

Eastern Europe

Latin & Central America

Middle East & Africa




27

1.3 Key Questions Answered

The report answers to the following key questions.

What are the key market drivers and challenges in the wireless

M2M ecosystem?

What are the key applications of M2M across industry verticals?

How is the M2M value chain structured, how will it evolve overtime,

and what will be its impact on key vertical segments of the market?

What opportunities does M2M technology offer to mobile network

operators and other players involved in the value chain?

What strategies should mobile network operators/MVNOs, module

vendors, hardware solution providers, software platform providers

and other players adopt to capitalize on the M2M opportunity?

How big is the M2M opportunity, and how much revenue will the

industry generate in 2018?

What will be the installed base of wireless M2M connections in

2018?

Which geographical regions and industry verticals offer the greatest

growth potential for M2M services?

What is the vendor market share embedded cellular M2M modules,

how many units will ship in 2018 and how will declining ASPs impact

the sales revenue?

How will embedded cellular M2M module shipments vary by air

interface technology overtime, and will LTE take a lead in 2018?

What is the network connectivity and application service ARPU for

M2M services, and how will this vary overtime for each industry

vertical?

How big is the market for M2M network security and software

platforms?




28

1.4 Key Findings

The report has the following key findings.

The wireless M2M market will account for nearly $136 billion in

annual revenues by the end of 2018, following a CAGR of 23%

during the five year period between 2013 and 2018

At present, the M2M value chain is highly fragmented with module

OEMs, hardware solution providers, application platform providers,

device platform providers, and mobile network operators and

aggregators/MVNOs all investing across multiple segments of the

value chain, whilst still maintaining a key focus on a specific portion

Signals and Systems Telecom expects the value chain to

consolidate in the future, with a smaller number of larger and

profitable competitors across the M2M value chain

The growing presence of wireless M2M solutions within the

sensitive critical infrastructure industry is having a profound impact

on M2M network security services, a market estimated to reach

nearly $1 billion in annual spending by the end of 2018

Driven by demands for device management, cloud based data

analytics and diagnostic tools, M2M software platforms (including

CDP, AEP and ADP) are expected to account for $6 billion in annual

spending by the end of 2018




29

1.5 Methodology

The contents of this report have been accumulated by combining

information attained from a range of primary and secondary research

sources. In addition to analyzing official corporate announcements, policy

documents, media reports, and industry statements, Signals and Systems

Telecom sought opinions from leading industry players within the wireless

M2M market to derive an unbiased, accurate and objective mix of market

trends, forecasts and the future prospects of the M2M industry between

2013 and 2018.




30

1.6 Target Audience

The report targets the following audience.

Mobile network Infrastructure, embedded module and sub-

component vendors

Mobile network operators

M2M hardware solution providers

M2M software platform (CDP, AEP, ADP) providers

M2M system Integrators/consultants

M2M network security solution providers

MVNOs/M2M network connectivity aggregators

M2M enabled application developers

Investment firms

Vertical segment enterprises involved in: Utilities, Automotive,

Transportation, Logistics, Public Safety, Security, Retail & Vending,

Healthcare Agriculture, Smart Buildings and Smart Cities,

Construction, IT & Networks, Industrial Automation and Consumer

Electronics




31

1.7 Companies Mentioned

The following companies have been reviewed, discussed or mentioned in

the report:

3GPP

4Home

4M wireless

7 Layers

8ta

A1 Telekom

ABB Power & Robotics

Accenture

Aeris Communications

Aeroscout

Agri-Valley Broadband

Air Products

Aircell

AIS - TOT

Al Madar

Alaska Communications

Alcatel Lucent




32

Algar Telecom

Alien Technology

Alliance for Telecommunications, Industry Solutions (ATIS)

Amadeus

Amazon

Andorra Telecom

Antel

Appalachian Wireless

Apple

APS

Arduino

Arkessa

ARM Holdings

Armentel

Arqiva

Arrayent

Asiaspace

Association of Radio Industries

AT&T




33

AT&T Mobility

Atos Origin SA

Augere

Augusta Systems

Avea

AVIDwireless

Axeda

Axeda Corporation

Bakrie Telecom

Base Telecom

Batelco

Bayan Telecommunications

BayRICS

Beeline

Belgacome

Bell Mobility

BeST

Best Buy

Bharti Airtel




34

Bite

Bluegrass Cellular

BMW

Bosch

Bouygues Telecom

BSNL

BTC

Businesses and the Telecommunication Technology Committee of Japan

C Spire Wireless

CalAmp

Call Me

Camelot Group

CardioNet

Carolina West Wireless

Cell C

Cellcom

Cellular South

Centrica

CenturyTel




35

CETECOM

Chariton Valley Comms

Chess Communication

China Communications Standards Association (CCSA)

China Mobile

China Telecom

China Unicom

Chunghwa Telecom

Cinterion

Cisco

Claro

Clear Mobitel

Clearwire

Cobra

Cognovo

Commnet Wireless

Comtrol

Connect One

Connected Development




36

Connected Solutions

Continental

Convergence Technologies

Coronis

Cosmote

Cross Telephone

CSL Limited

Custer Telephone

DataOnline

DataRemote

Datatrade

Dedicado

Deloitte

Deutsche Telecom

Dialog Axiata

Digi International

Dish Network

DNA

DPC/AIS




37

Du

Dust Networks

E Plus

Echelon

eDevice

Eesti Telekon

ei3

Elisa

Ember

Emobile

EMT

Energy Australia Ausgrid

Enfora

Entel Movil

Entel PCS

ERA/T Mobile

Ericsson

Esprida

Etex Telephone Co-op




38

Etherios

Etisalat

European Telecommunications Standards Institute (ETSI)

Eurotech

Everything Everywhere

Feeney Wireless

Fitel

FPT Telecom

G4S

Gemalto

General Electric (GE)

General Motors

Geocell

Glo Mobile

Global Mobile

Global Smart Services

Globalstar

Globe

Google




39

GSMA

H3G

Halebop

Hertz

Honeywell

HSBC

Huawei

Hughes Telematics

Hutchison Three

IBM

ICE

IEEE

ILS Technology

iMetrik Solutions

Indosat

Ingenico

Inilex

Inmarsat

Intel




40

Iridium

Itron

iWOW

Janus Remote Communications

Jasper Wireless

Kcell

KDDI

Kordia

KORE Telematics

KPN

KT

Laird Technologies

Landis & Gyr

Lantronix

Lattelecom

Leap Wireless / Cricket

Leica

LG

LG U+




41

Libelium

LifeScan

LightSquared

LMT

Logica

Lufthansa Systems

M1

M20 City

M2M Communications

M2M DataSmart

M2M Wireless

Magticom

Manitwoc

Marvell

Maxis

MegaFon

MEMSIC

Metrik Solutions

MetroPCS




42

Microchip Technology

Millenial Net

Mobikom Austria

Mobily

Mobinil

Mobistar

Mobitel

Mobyland and CentreNet

Mocana

Moldcell

Monaco Telecom

Morey

Mosaic Telecom

Motorola Mobility

Motorola Solutions

Movicel

Movistar

MOXA

MTC




43

M-Tel

MTN

MTNL

MTS

MTS Allstream

MTS-Ukraine

Multi-Tech Systems

National Information Technology Standardization (NITS) Technical

Committee

NBN Co

Ncell

NEC

NeoConsult

Neoway

Nestlé Nespresso

NetCom

Neul

New Jersey State Police Department (NJSP)

NextGenTel




44

NextM2M

Nintendo

Nokia Siemens Networks

Norse Pipeline LLC

Northwest Cell

Novatel Wireless

nPhase

NTT DoCoMo

Numerex

O2 Secure Wireless

OAO Voentelecom

Oi

Omnilink Systems

Omnitel

Open mobile

Open Mobile Alliance

Optus

Oracle

Orange (France Telecom)




45

Orange Armenia

Orange Business Services

Orange Healthcare

ORBCOMM

P1 Networks

PA Consulting Group

Palantiri Systems

Panasonic

Panhandle Telephone Co-op

PCCW

Pedigree Technologies

Peoples Telephone Co-op

Perle Systems

Personal

Piltel

Pioneer Cellular

Plextek Group

Praxair

Precidia Technologies




46

Proteus Biomedical

PSA

Public Service Wireless

Qtel

Qualcomm

Qualcomm India

Qualcomm Life Inc

Qualcomm Wireless Health

Quectel

RACO Wireless

RasGas

Raspberry Pi

Red Bend Software

Redtail Telematics

Reliance

Respironics

RF Code Inc.

RF Monolithics

Rogers




47

Rogers Wireless

Romec

Rostelecom

S and R Communications

S&T Telephone Cooperative

Safaricom

Sagemcom

Salesforce.com

Sao Paulo Military Police

Sasktel

Saudi Aramco

Savi Technology

Schlage

SENA Technologies

SensorLogic

SFR

Siemens Water

Sierra Wireless

SIGFOX




48

Sigma Designs

SIMcom

SingTel

Sixnet

SK Telecom

Sky Brazil

SkyBitz

SkyTel

Smart Communications

Smartone Vodafone

Softbank Mobile

Sonaecom Sony

SpeedConnect

SpiceNepal

Sprint

Starcomms

Starhub

STC

Strata Networks




49

Sunrise

Swisscom

Synchronoss Technologies

T Mobile

T Mobile Slovensko

T Mobile USA

Tcell

TDC

TelaSonera

Telcel

Tele2

Tele2 Sweden

Telecom Italia

Telecom NZ

Telecommunications Industry Association (TIA)

Telecommunications Technology Association of Korea

Telefonica

Telefónica

Telefónica's O2 UK




50

Telekom Austria

Telenet

Telenor

Telenor Connexion

Telenor Magyarorszag

Telenor Objects

Telenor Sweden

Telia

TeliaSonera

Telit

Telit Wireless Solutions

Telkomsel

Telogis

Telstra

Telular

TELUS Mobility

Telvent

Tendril Networks

Teo LT




51

Texas Energy Network

Texas Instruments

ThingMagic

Three Denmark

Three Italia

Three UK

T-Hrvatski Telekom

Thumb Cellular

Tikona Digital

TMN

T-Mobile

TomTom

Transatel

Triatel

Tridium

Trimble

True Move

Tunisiana

Turkcell




52

Tyntec

U Mobile

U.S. Preventative Medicine

U-blox

UCell

UK Broadband

UME EPM

United Wireless

Unitel

US Cellular

UTC Power

V2COM

VDC

Veolia Water

Verifone

VeriSign

Verizon

Verizon Wireless

VHA




53

Videotron

Viettel

Vimpelcom

VimpleCom

VIPNet

Viva Bahrain

Viva Cell-MTS

Vivid Wireless

Vodacom

Vodafone

Vodafone New Zealand

Vodafone Portugal

Vodafone Qatar

VolvoZelitron

Vox

Wavecom

WBS

WebTech Wireless

WiFI Alliance




54

WiMAX Forum

Wind

Wind Mobile

Wipro

Wireless Logic

Woosh

Wyless

Wyless Group

Xact Technology

XL Axiata

Xplorenet

Yoigo

Yota

Zain

Ziggo4

ZTE




55

Copyright Signals and Systems Telecom Ltd, 2013. All rights

reserved.

This material is subject to the laws of copyright and is restricted to

registered license-holders who have entered into a Corporate, a Multi-User

or a Single-User license agreement with Signals and Systems Telecom

Ltd. It is an offence for the license-holder to make the material available to

any unauthorized person, either via e-mail messaging or by placing it on a

network.

All Signals and Systems Telecom research reports & databases are

intended to provide general information and strategic insights only, and

they do not constitute, nor are they intended to constitute, investment

advice. Signals and Systems Telecom and its employees disclaim all and

any guarantees, undertakings and warranties, whether expressed or

implied, and shall not be liable for any loss or damage whatsoever, and

whether foreseeable or not, arising out of, or in connection with, any use of

or reliance on any information, statements, opinions, estimates or

forecasts contained in the reports.




57

2.2 M2M Architecture

M2M is unarguably a combination of various heterogeneous electronic,

communication, and software technologies. The general architecture of

M2M networks such as those being specified in ETSI TC (technical

committee) M2M is shown in Figure 1 below.

Figure 1: M2M Architecture

Source: Signals and Systems Telecom

In reference to this architecture, M2M devices (intelligent and

communication enabled) form an M2M area network; this could be from a

small-scale home environment to a bigger environment such as a factory.

The M2M area network is connected to the communication network such as

cellular base stations through the M2M gateway. Through the

communication networks, they are connected to the M2M management

server on the M2M service platform and subsequently reaching the M2M

applications (video for monitoring, remote control etc.) on the other side of

the M2M management server.

Communications Network

M2M Service Platform/Application

M2M Management Server

M2M Applications

M2M Area Network/Devices

M2M Gateway




72

Figure 2: Global Smart Meter Penetration by Region (%): 2011 - 2018


Driven by regulatory legislations and the demand for cost effective and

efficient energy monitoring systems, Signals and Systems Telecom

estimates smart meter penetration to surpass 80% globally by the end of

2018, a trend synonymous with growing M2M penetration in the energy

sector.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015 2016 2017 2018

North America

Western Europe

Asia Pacific

Eastern Europe

Middle East and Africa

Latin & Central America




91

4.2 The Wireless M2M Value Chain

The wireless M2M value chain is complex with many significant players

across different segments of the market.

Figure 4: The Wireless M2M Value Chain


4.2.1 Wireless Device Product Chain: Chipset Vendors and M2M

Module Suppliers

Wireless chipset and module vendors form a key link in the value chain that

enables wireless M2M market applications. These vendors fundamentally

provide an embeddable hardware component that combines a wireless

baseband processor and related radio circuitry into a package that is used

to enable wireless cellular connectivity in machines and devices, such as

cars, vending machines, and utility meters, which have conventionally not

been connected directly to cellular networks.

At present the market for embedded cellular M2M modules remains highly

fragmented with industry veterans from closely linked adjacent markets

Chipset

Developers

Embedded

Cellular M2M

Module

Suppliers

M2M

Hardware

Solutions

Mobile Network

Operators,

Aggregators and

MVNOs

System

Integrators

M2M

Service

Customers

Wireless Device Product Chain Connectivity

M2M Devices Integration

Ecosystem Vertical Markets

Connected Device Platforms (CDP)

Application Enablement Platforms (AEP) and Application Development Platforms (ADP)

the wireless m2m bible - opportunities, challenges ... · the wireless m2m bible - opportunities,...

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