M2M

This report provides an analysis of the M2M market that is currently changing shape, assessing the key technologies to accelerate such a development of this promising market, along with an examination of the positioning of the top players, the key issues to be addressed and market forecasts up to 2015 by geographical area and by type of market.

Report Highlights
Methodology

The approach adopted by the IDATE team of analysts and consultants is based on the combination of several methods:

· Field research and validation of field research data;
· Conventional tools used in industry and market analysis: segmentation, competition analysis, strategic strengths, modelling and assessment and forecasts, amongst others;
· Expert analysis of field specialists and their professional network partners.

More specifically, IDATE avails of the following human resources and tools:

1/ A multidisciplinary team of full-time consultants, specialised by business sector

IDATE analyses are performed primarily by our in-house consultants, and very occasionally by freelance market analysts. This approach capitalises on our pool of expertise through teamwork, and the constant sharing of knowledge, ideas, contacts, viewpoints and key data. Each report is drafted by a team of specialists under the direct supervision of senior consultants who are recognised experts in their field.

2/ Primary and secondary research

IDATE reports and databases are based on primary data obtained from first-hand interviews with the sector’s decision makers, and on secondary data assembled from public sources and external databases.

3/ An integrated information centre sustained by a number of tools and proprietary databases

Over the course of 30 years, IDATE has developed proprietary work methods, data structures and databases that trace the history of major developments in the sectors under study.

· Companies: The IDATE in-house data service tracks the latest news and events concerning the leading telecom, Internet and media industry companies around the globe. Innovative firms and start-ups are monitored by the market experts in the different ‘Practices’.
· Markets: IDATE databases are developed using rigorous methods to process major economic indicators (GDP, investment, exchange rates and demographics) and relate them to influential sectoral and national factors such as capex and national market dynamics).
· Technologies: IDATE has a practice-based organisation structure which enables us to track innovation efficiently. IDATE engineers ensure an in-depth understanding of the changing shapes of products and services and of the latest innovations in the marketplace.

4/ Contents of published reports

Each IDATE market report details the structures and issues at play in the market under study, the driving forces (technologies, regulation, and consumption) and the players involved. Particular emphasis is placed on market assessments and forecasts, which are developed within the framework of a core scenario. Every market report features a clear and concise presentation illustrated with tables and graphs of key market data and trends.

The drafting process of a market report is based on the following steps:

· analysis of the information available in the in-house databases, and review of analyses performed in the recent past;
· based on a preliminary segmentation and assessment of the market, and as part of an validated interview guide, analysts conduct interviews that enable them to validate working hypotheses;
· a market model is then developed, to enable testing of the hypotheses which impact market development, and the model is validated after a new round of interviews;
· and, finally, report conclusions are debated within the team responsible for the project and with expert consultants from the various fields involved;
· proofreading and editing/revision processes, prior to the editing of the final version of the report which is delivered to the client.

5/ Market assessment and forecasts

IDATE forecasts are based on:

· Primary data gathering worldwide, through desk research and dozens of interviews with the major module manufacturers and mobile operators.
· Market models which isolate key service consumption parameters and service pricing assumption.

Data for estimates and forecasts (from 2008 to 2015) is segmented by:
· geographical area,
· building blocks of M2M (hardware, software, connectivity).

Database (Excel)

Data & Forecasts 2007-2015

• By geographical area
• By revenues
• By installed base (units or SIMs)

Slideshow (pdf)

A report synopsis spotlighting the key issues
[Studien Infos ausblenden]

This report is part of a study also including an Excel database and a PowerPoint presentation.

1 Executive Summary 8
1.1 Rapid growth in M2M market 9
1.2 Automotive, consumer electronics and utilities verticals will drive M2M market . 10
1.3 Telcos seek bigger share of M2M market . 11

2 Methodology 12

3 Market structure and key factors 14
3.1 Market overview 14
3.1.1 Report coverage 14
3.1.2 Market segmentation . 14
3.1.3 Product / service trends . 16
3.2 Current market estimates 19
3.2.1 Market by segment/ platform 19
3.2.2 Market by geographical zone . 20
3.3 M2M architecture . 21
3.3.1 Triggering technologies 22
3.3.2 (Mobile) Networking technologies 22
3.3.3 Service platform . 24
3.3.4 Other key technologies 24
3.4 Consumption / Usages 26

4 Impacts on verticals 28
4.1 Vertical development . 28
4.2 Automotive . 29
4.2.1 Main challenges . 29
4.2.2 Value chain description 29
4.2.3 Main applications (current and future) 30
4.2.4 Regulatory environment and public policies as driver 33
4.2.5 Major deployments . 34
4.2.6 Market trends . 36
4.2.7 Drivers and barriers for telematics and infotainment development 38
4.2.8 Networking solutions: towards non-licenced mobile networks? . 38
4.3 Consumer electronics 39
4.3.1 Personal navigation devices: connectivity to offset the decline? 39
4.3.2 Digital reading: the growing success of e-readers . 41
4.3.3 3G connectivity: the latest feature for handheld consoles 44
4.4 Energy: a focus on smart grids and smart meters 46
4.4.1 Key points 46
4.4.2 The value chain 47
4.4.3 Main smart grid applications 49
4.4.4 Regulation 52
4.4.5 Business model 54
4.4.6 Business model adopted for these applications by the user 54
4.4.7 Key factors for market development 55
4.4.8 New deployments 55
4.5 Other verticals . 58
4.5.1 Security 58
4.5.2 Fleet management . 61
4.5.3 Maintenance 62
4.5.4 Healthcare 63

5 Market structure and player strategies . 66
5.1 Industry structure . 66
5.1.1 Value chain 66
5.1.2 Competition structure / landscape / environment . 68
5.1.3 Business models 69
5.2 Company profiles . 71
5.2.1 Module vendors . 71
5.2.2 Mobile network operators . 75
5.2.3 MVNE 84
5.2.4 Integrators, service providers and software players . 86
5.3 Strategic analysis 90
5.3.1 General aspects . 90
5.3.2 Hardware segment . 92
5.3.3 Connectivity segment . 97
5.3.4 Vertical adoption 103

6 Markets and forecasts 105
6.1 Market development factors 105
6.1.1 Analysis of growth drivers 105
6.1.2 Forecast hypotheses 106
6.2 Market forecasts 107
6.2.1 Forecasts 2011-2015 . 107
6.2.2 Forecasts by market segment, by platform 108
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Table 1: M2M market segmentation . 15
Table 2: Comparison of features of leading cellular M2M solutions 23
Table 3: Comparison of key elements in standard and M2M operator business models 26
Table 4: M2M developments by vertical market 28
Table 5: Key figures in the automotive industry in Europe 29
Table 6: Main applications in the automotive industry 30
Table 7: Major deployments by car manufacturers . 34
Table 8: Main recent M&A in the telematics market in Europe . 37
Table 9: Summary of key elements for telematics development . 38
Table 10: Top selling content on the PlayStation Store as of October 2011 . 45
Table 11: Summary of current national policies, regulation and targets for smart grids and meters, and main activities of major utilities 52
Table 12: Key M2M deployments in security industry . 60
Table 13: Key M2M deployments in fleet management industry 61
Table 14: Key M2M deployments in maintenance market 62
Table 15: Healthcare expenditure per capita in selected countries, 2007 . 63
Table 16: Key M2M deployments in healthcare industry 64
Table 17: Main acquisitions in M2M space . 68
Table 18: Market landscape for module vendors 71
Table 19: Market landscape for mobile network operators . 75
Table 20: Market landscape for MVNE . 84
Table 21: Market landscape for integrators, service providers and software players 86
Table 22: Revenue growth trends for top two players, for traditional M2M . 94
Table 23: M2M player total revenues 95
Table 24: Modules price by technology used 96
Table 25: Module makers’ positioning 96
Table 26: The main features of the competing technologies 97
Table 27: Application features including usage and ARPU . 98
Table 28: Main partnerships in operator landscape 99
Table 29: List of carriers with single point of contact 102
Table 30: Carrier positioning . 102
Table 31: Bandwidth required by M2M application . 104
Table 32: Worldwide cellular connectivity revenues . 108
Table 33: Worldwide Software and IT services revenues . 108
Table 34: Hardware and IT services revenues in Europe . 109
Figure 1: World M2M markets 9
Figure 2: Gemalto value proposition 17
Figure 3: Hybrid solution from Wavecom . 18
Figure 4: Cellular M2M modules or SIM cards, by region 19
Figure 5: Connectivity revenues in Europe, North America and Asia-Pacific . 20
Figure 6: Overall cellular M2M market, by region. 20
Figure 7: Architecture of a M2M solution . 21
Figure 8: Jasper Wireless global platform 24
Figure 9: Location API methods . 25
Figure 10: Location API pricing, Orange 25
Figure 11: ‘Mundo maquina’ pricing structure by Telefónica 27
Figure 12: Automotive supply chain . 30
Figure 13: Charging station at McDonald’s 31
Figure 14: Map of the ChargePoint network 31
Figure 15: Connected charging monitoring principle for the Renault Z.E. electric car 32
Figure 16: EV sales forecasts, in the US, 2010-2015 32
Figure 17: Description of the ITS system . 36
Figure 18: Volume of PND sold in Europe and North America 2007-2010 40
Figure 19: Google Local Search results displayed on a Garmin nüLink! 1695 . 41
Figure 20: Advertising displayed on a Garmin nüLink! 1695 41
Figure 21: Weather forecasts (up to 5 days) on a Garmin nüLink! 1695 41
Figure 22: Gas prices comparison on a Garmin nüLink! 1695 . 41
Figure 23: Inserted ads on the Kindle: screensaver and navigation menu . 43
Figure 24: Cellular-connected Kindle coverage map in the United States . 44
Figure 25: The latest Sony handheld console: the PS Vita 46
Figure 26: The value chain of M2M 47
Figure 27: Example of a smart meter: Tokyo Electric Power Company . 48
Figure 28: Example of in-home energy display device . 49
Figure 29: Demand response programming options on a Web interface . 50
Figure 30: Data management products from eMeter . 51
Figure 31: Examples of clean energies and other applications connected to the smart home . 52
Figure 32: The Linky System, by ERDF . 58
Figure 33: ‘taspo’, the age certification IC card, required for cigarette vending machines . 60
Figure 34: Bombardier maintenance application 62
Figure 35: Smart machines value chain . 66
Figure 36: StarService . 69
Figure 37: PAYG package . 70
Figure 38: AT&T Connected devices . 76
Figure 39: AT&T M2M offering . 76
Figure 40: Orange offerings . 79
Figure 41: NTT DOCOMO approach to M2M, providing device, network and service . 80
Figure 42: Telenor value proposition 82
Figure 43: Verizon’s spectrum of sales models 84
Figure 44: Jasper positioning . 87
Figure 45: Numerex DNA value proposition . 88
Figure 46: The SensorLogic Cirrus solution . 89
Figure 47: Average wholesale price per data MB for inbound roaming: EU/EEA, non-group companies (based on billed megabytes) . 90
Figure 48: M2M platform by ZTE . 92
Figure 49: Mobile traffic forecasts, 2010-2015 . 93
Figure 50: Forecast of CAGR of main mobile services, 2010-2015, World 93
Figure 51: QoS strategy at Telenor 100
Figure 52: M2M development by vertical industry 103
Figure 53: World M2M markets 107
Figure 54: World Cellular M2M markets . 107
Figure 55: Share of cellular M2M revenues in mobile data revenues in Europe 108
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