Berg Insight estimated that the shipments of cellular M2M (machine-to-machine) devices reached 2.7 million worldwide in 2015. Until 2020, Berg Insight forecasts that this shipment would grow at a compound annual growth rate (CAGR) of 16.1% to reach 5.7 million.
M2M refers to the wireless communications between multiple devices. It performs the connections, and provides the device interfaces, allowing data to be transferred between machines over wireless networks. The devices that establish such M2M connection, including the cellular routers, gateways, and modems enclosed in a chassis with an output/input port is defined as cellular M2M terminals.
The most significant market development in 2015 for cellular M2M communication was seen in Asia and North America. The top four vendors in the market together generated nearly $290 million in revenues from M2M terminal sales in 2015.
Among the list of vendors, SIMCom from Asia is the main manufacturer. Cradlepoint, Sierra Wireless and Digi International are the largest vendors in North America. Other noteworthy vendors include CalAmp and MultiTech Systems in the US; Xiamen Four-Faith and InHand Networks in Asia; HMS Networks, Advantech B+B SmartWorx, NetModule, Matrix Electrónica, Eurotech, Gemalto, Dr. Neuhaus and Option in Europe and NetComm Wireless in Australia.
Commenting on the trend witnessed in the shipment of cellular M2M devices, Jonas Wennermark, M2M/IoT analyst, Berg Insight said, “A large number of small and medium-sized vendors are active on the European market, whilst the North American market is dominated by a handful of major vendors, largely due to barriers in the form of carrier certifications required for cellular devices in the region.”