Date: 6th Aug 2010

Global cellular M2M module market forecast to reach $3.8 Billion in 2015

ABI Research estimates that Machine-to-Machine (M2M) communication market using cellular infrastructure such as GSM and CDMA will be worth $3.8 billion in 2015.

Machine-to-Machine (M2M) communication market has been a challenging place for cellular embedded module vendors over the past 18 months. 2007 was this market's last "good year": 2008 saw both shipment volumes and revenue decrease, says ABI.

According to ABI Research practice director Sam Lucero, "In 2009, the cellular M2M module market grew somewhat in terms of unit shipment volume, although rapidly declining module prices meant that 2009 revenue was still below that of 2007. Despite its difficulties, however, this market is on an upward path."

Falling ASPs and increased commoditization in this crowded market are the reasons given by ABI for this market's revenues in year 2010 to remain lower than those of 2007.

The release states the market is also showing some significant M&A activity. Last year, for example, Sierra Wireless acquired Wavecom; and more recently, Gemalto acquired Cinterion, a move which, Lucero says, "is likely to lead to positive results for the company, provided that Gemalto focuses on differentiating the Cinterion market offer with an end-to-end platform."