The Machine-to-Machine Market, 2012-2016, Market Figures & Trends
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The Machine-to-Machine Market, 2012-2016, Market Figures & Trends

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This presentation is an excerpt of our M2M expert's Samuel Ropert intervention at M2M World Innovation Congress 2013 in Nice. It sums up the Market Figues & Trends about the M2M market untill 2016. ...

This presentation is an excerpt of our M2M expert's Samuel Ropert intervention at M2M World Innovation Congress 2013 in Nice. It sums up the Market Figues & Trends about the M2M market untill 2016. Read more on our blog : http://blog.idate.fr/the-enormous-growth-of-internet-of-things-2/?/lang-pref/en/

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The Machine-to-Machine Market, 2012-2016, Market Figures & Trends The Machine-to-Machine Market, 2012-2016, Market Figures & Trends Presentation Transcript

  • The Machine-to-Machine Market, 2012-2016 Market Figures & TrendsSamuel ROPERT Senior consultant – M2M lead expert +33 4 67 14 44 77 s.ropert@idate.org Market & Data  M2M INNOVATION WORLD CONGRESS, September 24-26, 2013 – Nice
  • 2 • Recent years: a few major verticals - Fleet management - Industrial asset management - Security - PoS • 3 impacting verticals - Automotive (40% CAGR, 2012- 2016) - Connected consumer electronics (15% CAGR, 2012-2016) - Utilities (60% CAGR, 2012-2016) • Future - focusing on emerging segments - hundreds of million of machines in each main regional market (health, home automation). Source: IDATE M2M development by vertical industry Future M2M market growth will come from the development of new vertical markets Cellular modules evolution, by vertical, in million units Source: IDATECopyright © IDATE 2012
  • Value chain is very fragmented A combination of value chains Source: IDATE "Machine" Module Network Data Processing Services Endclient Endusers Sensors IC Gateway Modem Transport Services Middleware Viewing IS integration Distribution Smart machines Remote Server • Electronic value chain • Telecommunications value chain • Computing value chain • Value chain of the machines themselves • 3 types of players - Module manufacturers - Communication providers - Integrators
  • 4 • Sierra Wireless (including Sagemcom) • Gemalto (including Cinterion) • Telit • SimCom • Huawei ˃ Five major (cellular) players Source: IDATE M&A in the M2M module industry The M2M hardware segment is experiencing strong consolidation • Market consolidation since 2007 - Gemalto, Sierra and Telit have multiplied their acquisitions • Numerous Chinese players: Huawei, ZTE and SimCom - Pressure on price • 3G is coming (but 2G still the majority of total sales) ˃ Main trends • SigFox • Coronis • Neul ⇒ Also connectivity providers ˃ Other technology providers Acquirer Target (activity) Date Telit ILS (cloud platform services) September 2013 Sierra Wireless Sagemcom (modules manufacturer) June 2012 Gemalto Sensor Logic (platform provider) December 2011 Telit Motorola M2M (modules manufacturer) March 2011 Novatel Wireless Enfora (modules manufacturer) Nov 2010 Gemalto Cinterion (modules manufacturer) June 2010 Sierra Wireless Wavecom Dec 2008 Telit (module maker) One RF Technologies (spectrum technologies) Nov 2008 Wavecom Anyware Technologies (software) Early 2008 Enfora TeleM2M (software) October 2007 Sierra Wireless AirLink (CDMA hardware) End-2007 Elster Coronis (hardware) 2007 Wavecom (module maker) Sony-Ericsson 2006
  • 5 • Millions of machines concerned - Millions of SIM cards with data plan • Limited churn • Telco seen as leader on the M2M value chain - End-to-end offering • Low marketing costs • Limited per M2M line (ancient technologies sufficient) ˃ Business opportunities Source: IDATE Differentiation between traditional and M2M operations M2M as an opportunity for Telcos ? • (Very) Low ARPU (from 1 EUR/month/line) • Vertical and adapted offering for typical user - Compared to horizontal for a traditional user • QoS introduction => expensive tools to implement • Monopsony situation (1 huge M2M client for several MNOs) • Communication revenues forecast to be very limited - 1.1% of their total mobile revenues in 2016 ˃ … But some threats as well Copyright © IDATE 2012
  • 6 • Customer benefits (costs savings) - ROI - Higher customer satisfaction • Solutions mostly based on very mature and well-deployed technologies (both technical and economical interests) - Internet - SMS - GPRS • Public policies and regulations adopted in some vertical markets - eCall in automotive industry - Smart grid • Telco involvement in this market - Credibility (financial and technical) ˃ Drivers Drivers and barriers • Cost is still a key issue - High fixed costs (up-front costs) • Education of the market • Improvements requirement for application - Autonomy - Network coverage - Latency • Privacy & security issues - Threats from end-users • M2M market fragmentation - Numerous technologies and players - Complexity in both technical integration and supplier identification ˃ Barriers Copyright © IDATE 2012
  • 7 • Multiple alliances for technical cooperation on multinational contracts - Potential shared platform usage for global RFPs • New players arrival - Value proposition meeting clients expectations for some M2M applications o Technical requirements o Business requirements (low cost solution) - SigFox, Neul, etc • Towards SLA introduction - Introduction of SLA constraints in M2M contracts (requirement from M2M clients) - QoS could be seen as VAS while ARPU is decreasing a lot • Value is in the data management and storage - How about the Internet of Things (open loop) ? - Concerns about privacy? o RFID threats on consumer side • Discussions around embedded SIM (eSIM) - Remote activation and provisioning over-the-air (OTA) - Requirement from (global) M2M clients o Technical improvements & logistics costs savings - Ability to change the carrier over the air Different alliances Multiple trends impacting the M2M market : game changers ? SLA offering by Telenor Source: IDATE Source: Telenor Copyright © IDATE 2012
  • Tous droits réservés – Toute reproduction, stockage ou diffusion, même partiel et par tous moyens, y compris électroniques, ne peut être effectué sans accord écrit préalable de l'IDATE. IDATE et DigiWorld sont des marques internationales déposées de l’IDATE. All rights reserved. None of the contents of this publication may be reproduced, stored in a retrieval system or transmitted in any form, including electronically, without the prior written permission of IDATE IDATE, and DigiWorld are the international registered trademarks of IDATE Copyright IDATE 2012, CS 94167, 34092 Montpellier Cedex 5, France 8 Samuel has been an IDATE Consultant since early 2007. His assignments specifically involve technological expertise for connected devices, including RFID, the Internet of Things and the smart grid. He is in charge of the M2M market at IDATE. His activities focus on both technological and marketing innovation. Before coming to IDATE, Samuel worked as a consultant for NPA Conseil (a French media consulting company). He focused on the new TV technologies (IPTV, HDTV, VOD and mobile TV). Prior to this, Samuel worked for TV Breizh (TF1 Group) as a technical video assistant where he specialized in video transmission (contribution side) by satellite. Samuel graduated from the French engineering school Ecole Nationale Supérieure des Télécommunications de Bretagne. He also holds a master’s degree in Physics and in Politics from Sciences-Po Rennes. s.ropert@idate.org Read more on our blog : The enormous growth of Internet of Things, 80 Billion things connected in 2020 Samuel ROPERT, Senior Consultant DigiWorld by IDATE M2M Lead expert
  • 9 Who we are • Since 1977, IDATE has gained a reputation as a leader in tracking telecom, Internet and media markets, thanks to the skills of our teams of specialized analysts. • Now, with the support of close to 40 member companies – which include many of the digital economy’s most influential players – the newly rebranded DigiWorld Institute has entered into a new stage of its development, structured around three main areas of activity: • Time-tested analysis and consultancy Our expertise and client list > Consulting • An independent observatory Our catalogue of reports > Research • A European forum open on the world Our annual programme > DigiWorld Institute Copyright © IDATE 2013
  • 9 Who we are • Since 1977, IDATE has gained a reputation as a leader in tracking telecom, Internet and media markets, thanks to the skills of our teams of specialized analysts. • Now, with the support of close to 40 member companies – which include many of the digital economy’s most influential players – the newly rebranded DigiWorld Institute has entered into a new stage of its development, structured around three main areas of activity: • Time-tested analysis and consultancy Our expertise and client list > Consulting • An independent observatory Our catalogue of reports > Research • A European forum open on the world Our annual programme > DigiWorld Institute Copyright © IDATE 2013