Riding high on the increasing adoption of connected devices like smartphones and tablets, the global mobile M2M module market is expected to grow at a CAGR of 21% in next five years. Among the mobile M2M modules, LTE devices would drive the said business, says a recent report published by Technavio.
According to the report, in 2015, the global LTE mobile M2M module market was pegged at 7 million units. The same is expected to rise to 87 million units by 2020, growing at a CAGR of around 66%. The market for LTE modules is expected to grow rapidly during the forecast period, says the report titled ” Global Mobile M2M Module Market 2016- 2020″.
Most M2M applications in the automotive and energy sectors require high-bandwidth and high-speed for efficient functioning. Further, the rise in implementation of M2M applications among enterprises requires the real-time transfer of data and information among M2M devices. Hence, enterprises are increasingly adopting LTE modules. In addition, rapid deployment of LTE networks worldwide has led to a rise in LTE module shipments in developed as well as developing countries.
The global mobile M2M module market by 2G technology shipped 50 million units in 2015 and is likely to ship 54 million units by 2020, growing at a CAGR of around 2%. The cost of a 2G CDMA network is less compared to 2G GSM and 3G HSPA and are more spectrum-efficient. In addition, operators such as Aeris have been upgrading their services, which enable CDMA technology to co-exist with other technologies. Therefore, 2G CDMA is a cost-effective solution for most IoT or M2M applications.
The global mobile M2M module market by 3G technology shipped 44 million units in 2015 and is likely to ship 168 million units by 2020, growing at a CAGR of nearly 31%. With the increase in number of connected devices and demand for high-speed data and bandwidth, most service providers are shifting toward 3G networks. The demand for 3G modules is high in North America and Western Europe. However, the demand for 3G modules increased in countries in APAC such as China, Japan, and South Korea because of the rise in use of 3G modules for M2M applications.
“The demand for 3G modules is expected to increase during the forecast period. 3G connections increase data transmission speeds. Realizing the high potential of M2M technological solutions, enterprises have been using 3G connected M2M applications to handle the growing demand for M2M data collection and management. Despite the high price compared to 2G CDMA modules, 3G modules are preferred as they offer high-speed data and have wider coverage,” says Rakesh Kumar Panda, a lead M2M and connected devices research analyst from Technavio.
The report also says that favourable government regulation will be the key to the market growth for cellular M2M modules used for M2M communications across numerous sectors.