The market for M2M cellular modules and wireless terminals is predicted to grow dramatically over the next three years.
By the end of 2019 the market for cellular M2M modules is expected to reach $2.2bn, according to a new report by Beecham Research.
The numbers of modules and wireless terminal is predicted to more than double in the same period.
Despite the move to 3G and 4G and talk of 5G, Beecham Research says that 2G modules will continue to provide for the majority of new M2M connected devices for the next few years.
“This is particularly the case in Europe where there are no plans to end 2G services. But while 2G module shipments will continue to increase in volume over the period, as a percentage of total shipments they will decline from almost 80% in 2014 to just 50% by 2019,” said the Beecham Research report.
The most common applications for cellular M2M connections are likely to be in smart meters, security alarms, medical devices, parking meters and connected cars systems.
“The increasing sophistication of M2M applications is driving the need for higher speeds, including real time video in security and connected car markets and the addition of service layers on telematics applications such as job scheduling and mobile payment systems,” says David Parker, senior analyst at Beecham Research and author of the report.
“There are a number of potentially disruptive factors in the market including the timing, pricing and acceptance of new technologies like LTE-M and the rise of alternative methods of connecting objects such as mesh networks, low power wide area (LPWA) and satellite.”
M2M wireless terminal sales are expected to more than double in revenue terms in the period to 2019.
These products are much more diverse and can cost from $150 up to $2,000 for complex multi-radio gateways.
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