After the hype, M2M see a little bounce
Published: 17 September, 2009
When it comes to writing the obituary for 2009 in a few months time, the validation which the M2M market has achieved this year will likely be one of the recorded milestones. Carriers, vendors, system integrators and chip markets have announced a plethora of M2M initiatives, partnerships and joint ventures. Having stagnated in 2008, ABI is now forecasting a 16% jump in unit shipments for 2009.
In the US, all four major operators have new partnerships in this sector. The most recent are between Sprint Nextel and M2M DataSmart, and between T-Mobile and Sierra Wireless. Meanwhile, AT&T will open a new lab to test and certify embedded wireless and M2M gadgets for its network, including devices such as netbooks and ebook readers; portable navigation devices; industrial scanners, monitors and embedded modems; and healthcare tracking devices, among others. AT&T already made an M2M splash by signing up Jasper Wireless to manage activation, billing and connectivity support for embedded wireless devices, and agreeing to power two 3G-connected ebook services - Sony's new Daily Edition and Plastic Logic's forthcoming ereader.
Back in July, Vodafone announced a new service platform for expaning into the M2M sector. Initially the platform will be targeted at smart metering, connected cars and remote equipment monitoring, with other applications to follow over time and according to demand. The 100-strong M2M division will develop and support services and applications for these segments, provide input on devices, and host the systems on Vodafone's networks.
Also in July, Verizon Wireless and Qualcomm added yet another alliance to their close relationship, creating a 50:50 joint venture focused on M2M services over wireless networks, one of the US cellcos' key growth opportunities in the coming few years.
ABI Research began tracking the cellular M2M (machine-to-machine) module market in 2003, and for five years shipments increased on average more than 25% per year. In 2007 module shipment growth peaked at a phenomenal 45%. The economic collapse of 2008 put paid to such double-digit growth rates, but even in that dismal year, the M2M market was up 4%. In fact, due to falling module prices vendors' revenues actually shrank in 2008.
However, feedback from vendors indicates that most feel the market bottomed out in the fourth quarter of 2008 and the first quarter of 2009. Starting in 2Q 2009, they report, activity seems to be picking up again. ABI Research now forecasts that 2009 will show modest growth, with unit shipments projected to be about 16% higher than in 2008, and revenue up 10%.
While recent conditions have seen some vendors exiting the market and consolidation elsewhere, the outlook is good for those who have made it through the tough times. Success in the cellular M2M module market, however, requires that some conditions be met. "Cellular M2M module vendors need customers with access to credit," says ABI's Sam Lucero. "They also need customers who recognize the operational efficiency benefits of remote monitoring and control."
More METRICS News
More M2M News
More HANDSET News
COMMENTS
Carrier Broadband Performance: Africa & Middle East
Carriers are using mobile broadband as their weapon of choice in the fight against the commoditization of voice and falling ARPU. This...
Voice over LTE: Market Analysis and Forecasts
VoLTE offer unique advantages in lowering a carrier's voice infrastructure economics and promises to improve voice quality, device...
Satellite Phones: Will Dual Mode Help the Phoenix Rise from the Ashes?
Satellite phones have followed an arduous path since their much-hyped launch more than a decade ago. The hype was followed by an e...
