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The Global M2M/IoT Terminal Market

The Global M2M/IoT Terminal Market

The Global M2M/IoT Terminal Market is a strategy report from Berg Insight analysing the latest developments on the cellular router, gateway and modem market.

This strategic research report from Berg Insight provides you with more than 100 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.

Highlights from this report:

Insights from 30 executive interviews with market-leading companies.
Summary of the M2M/IoT hardware value chain.
In-depth analysis of market trends and key developments.
Updated profiles of 25 cellular terminal vendors and 9 module vendors.
Overview of certifications required for cellular devices.
Price comparisons between terminal vendors.
Market forecasts lasting until 2020.

Executive summary

Berg Insight defines cellular terminals as standalone devices intended for connecting machines to a cellular network. These include primarily general-purpose cellular routers, gateways and modems that are enclosed in a chassis with at least one input/output port. Trackers, telematics devices and other specialised devices are excluded from this report. Berg Insight has found that 2.7 million M2M terminals were sold globally during 2015 at a total market value of approximately US$ 550 million. The Americas and Asia-Pacific were the two largest markets in terms of annual shipments during 2015. Berg Insight estimates that approximately 0.95 million terminals were sold in each region. Europe came in on third place accounting for shipments of 0.70 million terminals. In terms of revenues, the Americas is a considerably larger market than Asia-Pacific and Europe with an estimated US$ 265 million in revenues compared to US$ 140 million and US$ 130 million respectively. Average terminal prices in North America have increased as a result of a high share of 4G LTE routers and gateways in the product mix. The average price of terminals in Asia was very low due to a large share of low-cost 2G modems. Berg Insight forecasts that shipments of M2M terminals will grow at a CAGR of 16.1 percent in the next five years to reach 5.7 million units in 2020.

The M2M terminal vendor landscape is more fragmented than the M2M module market. Four M2M terminal vendors have a global market share of more than 10 percent each. Berg Insight ranks US-based Cradlepoint as the market leader with approximately US$ 90 million in revenues from terminal sales. SIMCom shipped half a million terminals in 2015 and achieved US$ 74 million in revenues. Sierra Wireless and Digi International generated US$ 63 million and US$_59 million respectively from the terminal business. These four vendors held a global market share of more than 50 percent together in 2015. Other notable vendors are CalAmp, MultiTech Systems, Encore Networks and Systech in North America, Xiamen Four-Faith, InHand Networks, Maestro Wireless and NetComm Wireless in Asia-Pacific, and HMS Networks, Advantech B+B SmartWorx, NetModule, Matrix Electrónica, Eurotech, Gemalto, Dr. Neuhaus, Westermo and Option in Europe.

Executive summary
1 M2M/IoT networking and technologies
1.1 Machine-to-machine communications (M2M)
1.2 Chipsets, modules and terminals
1.2.1 Cellular modules
1.2.2 Cellular M2M/IoT terminals
1.2.3 SIM solutions and embedded UICC
1.2.4 Device design and machine integration
1.2.5 Carrier, industry and region specific certifications
1.2.6 Value chain
1.3 Cellular M2M/IoT from 2G to 4G and beyond
1.3.1 2G/3G mobile networks
1.3.2 4G mobile networks
1.3.3 LTE Cat-M1 and NB-IoT
1.3.4 LPWA and satellite networks
1.3.5 Cost comparison for cellular and LPWA technologies
2 Market forecasts and trends
2.1 Market forecasts
2.1.1 Module vendor market shares
2.1.2 Terminal vendor market shares
2.1.3 Cellular module market forecasts
2.1.4 Cellular terminal market forecasts
2.1.5 Regional market dynamics
2.2 Market trends
2.2.1 The leading terminal vendors experienced healthy revenue growth in 2015
2.2.2 Few M&A activities on the cellular terminal market
2.2.3 The impact of macroeconomic factors on the cellular terminal market
2.2.4 Decommissioning of 2G networks drives adoption of LTE terminals
2.2.5 Small and medium-sized vendors offer modular routers and gateways
2.2.6 M2M terminal prices vary widely, targeting different market segments
3 Company profiles and strategies
3.1 M2M/IoT terminal vendors
3.1.1 ADLINK Technology
3.1.2 Advantech B+B SmartWorx
3.1.3 Beijer Electronics Group (Westermo and Korenix)
3.1.4 CalAmp
3.1.5 Cisco
3.1.6 Cradlepoint
3.1.7 Digi International
3.1.8 Dr. Neuhaus
3.1.9 Encore Networks
3.1.10 Eurotech
3.1.11 HMS Networks
3.1.12 InHand Networks
3.1.13 INSYS Microelectronics
3.1.14 Maestro Wireless Solutions
3.1.15 Matrix Electrónica
3.1.16 MC Technologies
3.1.17 Moxa
3.1.18 MultiTech Systems
3.1.19 NetComm Wireless
3.1.20 NetModule
3.1.21 Option
3.1.22 Red Lion Controls
3.1.23 Systech Corporation
3.1.24 Teltonika
3.1.25 Xiamen Four-Faith Communication Technology
3.2 Cellular M2M/IoT module vendors
3.2.1 Sierra Wireless
3.2.2 Telit
3.2.3 Gemalto M2M
3.2.4 SIMCom
3.2.5 u-blox
3.2.6 Huawei
3.2.7 ZTE WeLink
3.2.8 Quectel
3.2.9 Fibocom
3.2.10 Other cellular module vendors
List of Figures
Figure 1.1: Core elements of wireless M2M solutions
Figure 1.2: Cost versus time diagram for wireless technology integration
Figure 1.3: Examples of wireless M2M modules
Figure 1.4: Examples of wireless M2M terminals
Figure 1.5: Common features in cellular gateways and routers
Figure 1.6: Comparison of SIM form factors
Figure 1.7: System architecture for an end-to-end M2M solution
Figure 1.8: PTCRB operator members (Q3-2016)
Figure 1.9: M2M device value chain overview
Figure 1.10: Comparison of LTE-family cellular technologies
Figure 1.11: Comparison of LPWA and satellite technologies
Figure 1.12: Cost comparison for IoT technologies (2015)
Figure 2.1: Top wireless module vendors, by revenues and shipments (World 2015)
Figure 2.2: Top M2M terminal vendors, by revenues and shipments (World 2015)
Figure 2.3: Cellular IoT device shipment forecast, by region (World 2014–2020)
Figure 2.4: Cellular terminal shipment forecasts by region (World 2015–2020)
Figure 2.5: Financial data for leading M2M terminal vendors (2015)
Figure 2.6: M2M Terminal vendor mergers and acquisitions (World 2010–2016)
Figure 2.7: Examples of terminal vendors offering a modular device concept (Q3-2016)
Figure 2.8: Terminal prices by vendor (Q3-2016)
Figure 3.1: ADLINK’s IoT gateways (Q3-2016)
Figure 3.2: Advantech B+B SmartWorx terminals (Q2-2016)
Figure 3.3: Westermo and Korenix terminals (Q2-2016)
Figure 3.4: CalAmp terminals (Q2-2016)
Figure 3.5: Cisco terminals (Q2-2016)
Figure 3.6: Cradlepoint’s range of IoT/M2M terminals (Q3-2016)
Figure 3.7: Digi International’s cellular M2M terminals
Figure 3.8: Dr. Neuhaus’ cellular M2M terminals
Figure 3.9: Encore Networks’ cellular IoT/M2M terminals
Figure 3.10: Eurotech’s IoT/M2M architecture
Figure 3.11: eWON Flexy modular M2M router and gateway
Figure 3.12: InHand Networks M2M terminals (Q3-2016)
Figure 3.13: Maestro Wireless Solutions M2M terminals (Q2-2016)
Figure 3.14: Moxa M2M terminals (Q2-2016)
Figure 3.15: MultiTech Systems’ cellular M2M terminals (Q3-2016)
Figure 3.16: NetComm Wireless’ M2M terminals (Q2-2016)
Figure 3.17: NetModule’s cellular routers
Figure 3.18: CloudGate cellular M2M terminal
Figure 3.19: Systech’s SysLINK series (Q2-2016)
Figure 3.20: Teltonika’s range of cellular routers (Q2-2016)
Figure 3.21: Xiamen Four-Faith Communication Technology M2M terminals (Q2-2016)
Figure 3.22: Xiamen Four-Faith Communication Technology M2M terminals (Q2-2016)
Figure 3.23: Sierra Wireless embedded modules and terminals (Q2-2016)
Figure 3.24: Telit M2M embedded wireless modules (Q2-2016)
Figure 3.25: M2M terminals from Telit (Q2-2016)
Figure 3.26: Gemalto M2M embedded modules (Q2-2016)
Figure 3.27: Gemalto M2M terminals (Q2-2016)
Figure 3.28: SIMCom embedded wireless modules and terminals (Q2-2016)
Figure 3.29: u-blox embedded wireless modules (Q2-2016)
Figure 3.30: Huawei embedded wireless modules (Q2-2015)
Figure 3.31: ZTE WeLink embedded wireless modules (Q2-2016)
Figure 3.32: Quectel embedded wireless modules (Q2-2016)

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