The value of the M2M module market is set to almost double during the next four years, thanks to a shift towards 3G technology, according to a new report.
Infonetics has predicted the market will start to accelerate starting from next year. The M2M module market is currently worth €1bn, having grown six percent during the past 12 months. By 2018, the researchers predicted it would be worth €2.1bn
The majority of the module market uses 2G technology but 3G is expected to dominate by 2018 with a 67% share of the market's revenues. LTE technology will be the fastest growing area during the next four years with a compound annual growth rate of 144%.
North America and Europe are the key markets for module growth but Asia Pacific is set to account for a third of revenue by 2018, thanks to investments made in China, Japan, South Korea and Singapore.
Sierra Wireless, Gemalto/Cinterion and Telit currently account for two thirds of the market, but Chinese vendors Huawei and ZTE are growing their market shares, thanks to aggressive pricing activity in the Asia markets and elsewhere.
Godfrey Chua, Directing Analyst for M2M and the Internet of Things at Infonetics Research, said: "The services built upon mobile machine-to-machine (M2M) modules, such as fleet management and connected car, are already a sizeable business and are growing much faster than traditional business lines.
"We look for the market to accelerate beginning in 2015 as M2M services inflect and module sales shift toward higher-ARPU 3G and 4G systems, ultimately just about doubling to $2.9 billion in 2018."