Global Cellular M2M Value-Added Services (VAS) Market 2017-2021
About Cellular M2M Value-Added Services (VAS)
Cellular M2M VAS is defined as the cellular value-added connectivity process within distinct SIM-enabled machines to offer connectivity over multiple wireless networks such as 2G, 3G, and 4G/LTE, or WiFi and WiMAX.
Technavio’s analysts forecast the global cellular M2M value-added services (VAS) market to grow at a CAGR of 40.64% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global cellular M2M value-added services (VAS) market for 2017-2021. To calculate the market size, the report considers the M2M VAS revenue has been considered from cellular networks only. Cellular networks include 2G, 3G, and 4G/LTE networks. It also includes the M2M VAS revenue from managed service providers and professional service providers. The M2M VAS revenue from consumer electronics, automotive, transportation and logistics, healthcare, energy and utilities, as well as retail is also included.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Cellular M2M Value-Added Services (VAS) Market 2017-2021
Technavio recognizes the following companies as the key players in the global cellular M2M value-added services (VAS) market: AT&T, Sprint, Verizon, and Vodafone.
Other Prominent Vendors in the market are: Amdocs, China Mobile, China Telecom, Digi International, Gemalto, KDDI, Numerex, Orange Business Services, Sierra Wireless, Rogers Communications, Tech Mahindra, Telefónica, Telenor, Telit, and T-MOBILE USA.
Commenting on the report, an analyst from Technavio’s team said: “The latest trend gaining momentum in the market is growth of the automotive industry by leveraging 5g technology. 5G network is expected to support developments such as autonomous vehicles, M2M and machine-to-infrastructure services, as well as IoT. Over the years, automotive manufacturers and telecom providers have been developing connectivity solutions such as IoT connectivity platforms. IoT connectivity enables the interconnectivity between two vehicles. Innumerable sensors and processors integrated into a car provide accurate and real-time information about the surrounding environment to the driver.”
According to the report, one of the major drivers for this market is declining cost of connectivity applications. The integrated telematics penetration is increasing year-over-year (YoY) worldwide due to the increased demand for smartphones and the new regulations related to the safety features of automobiles. Basic delivery of the safety features of the vehicles in the era of advancing technology does not amount to a competitive edge. Premium telematics solutions including navigation, infotainment, and vehicle-to-vehicle communication are required to satisfy the growing demands of the customers. These premium services increase the telematics retention and also average revenue per user (ARPU).
Further, the report states that one of the major factors hindering the growth of this market is lack of in-house expertise. The implementation of cloud services requires thorough technical expertise to overcome data breach issues. The cellular M2M security systems are effectively monitored using an extended cloud network. Any failure to resolve bugs would lead to virtual environmental disaster. The cloud network must be closely monitored for effective disaster management. Inadequate budgets for designing and maintaining complex cyber security programs coupled with hiring in-house expertise within organizations are also having a negative effect on the market. Additional costs are incurred for conducting training sessions related to the operation of M2M security systems. Lack of in-house expertise would cause interoperability issues while increasing the risks and complexities with respect to security systems.
AT&T, Sprint, Verizon, Vodafone, Amdocs, China Mobile, China Telecom, Digi International, Gemalto, KDDI, Numerex, Orange Business Services, Sierra Wireless, Rogers Communications, Tech Mahindra, Telefónica, Telenor, Telit, and T-MOBILE USA.