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Despite North America, 2G M2M Cellular Module Shipments Remain Strong as Market Neared $1.1 Billion in 2014, According to ABI Research

In the latest update to ABI Research’s M2M cellular module Market Data, 2G modules maintained over 70% of the worldwide shipments in 2013. This is despite the rapid drop in 2G shipments to less than 60% in the North American market. While the continued dominance of 2G limited 2013 M2M module revenue growth worldwide, global revenues still exceeded the $1 billion mark for the second straight year.

The strength of 2G was also reflected in the CDMA market where 1XRTT shipments grew over 100%. However, 1XRTT’s higher bandwidth cousin, EVDO, did not fare so well and actually declined in share of overall shipments.

Comments practice director, Dan Shey, “LTE M2M modules started to show their impact in 2013, not due to a dramatic increase in shipments, but on limiting growth of 3G modules. EVDO module shipments were hit the hardest. While we expect EVDO to maintain a stable share of the overall market, this technology is most susceptible to competitive forces and for replacement by other 2G, 3G and 4G technologies.”

LTE shipments will begin to accelerate in 2014 and 2015 driven initially by OEM telematics. Aftermarket telematics, which had the biggest unit shipment gains in 2013 will also maintain solid double-digit growth over the forecast period. Smart grid spending is picking up in Europe and will also contribute to a steady rise in module shipments and revenues. Supported by these three markets, M2M cellular module growth is expected to exceed 20% through 2019.

These findings are part of ABI Research’s M2M Services and Modules Market Research (https://www.abiresearch.com/market-research/service/m2m-modules/).

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.

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