The global M2M market faces a number of macroeconomic and technical challenges, with consolidation and the “vetting” of business models set to affect the industry over the next three years, according to a new study from Infonetics Research.
“The mobile M2M module segment of the M2M market scaled to new heights in 2012 and then again in the first half of 2013, but as with any evolving industry this is happening amidst a dynamic and at times challenging environment,” said Godfrey Chua, directing analyst for M2M and connected world at Infonetics.
Chua says the near-term growth prospects of mobile M2M modules are “tempered” by a number of economic and technical challenges, including a tepid US recovery, uncertainty in Europe and the ongoing transitions between different technology platforms.
“Overcoming these challenges will be key to laying the foundation for the accelerated growth we anticipate in a few years,” he said.
Infonetics notes several recent examples of vendor consolidation – including Sierra Wireless’s (Richmond, Canada) recent acquisition of AnyData and Telit’s (London, UK) purchase of ILS Technology – and says more is to come in the months ahead.
Nevertheless, despite the industry challenges, it expects mobile M2M module revenues to almost double to $3 billion between 2012 and 2017.
In the first half of 2013, the global market generated approximately $849 million in revenues, 10% more than in the second half of 2012, according to Infonetics.
North America continues to stand out as the leading region for M2M modules.