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The cellular M2M value-added services market size is estimated to grow by USD 66.20 billion at a CAGR of 26.06% between 2023 and 2028. The market is experiencing significant expansion due to several key drivers. Primarily, the increasing demand for enhanced M2M data communication and M2M services is crucial for the efficient operation of interconnected systems. Furthermore, the escalating requirement for SatCom (satellite communication) connectivity is fueling market growth, as businesses and consumers seek dependable and extensive communication solutions. Another significant factor is the rising number of mobile computing devices, which necessitates improved connectivity and data services. Collectively, these trends shape a vibrant market landscape, with a growing focus on sophisticated communication technologies such as subscriber identification modules (SIMs) to address the evolving needs of both individuals and organizations. As these demands continue to escalate, they influence the market's development and expansion, emphasizing the importance of innovation and adaptability in the technology sector.
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The cellular M2M value-added services market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2017-2021 for the following segments.
The market share growth by the consumer electronics segment will be significant during the forecast period. The increasing integration of consumer electronics into the IoT ecosystem drives the adoption of M2M technology. A connected device offering convenience, automation, and real-time data sharing is sought by consumers.
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The consumer electronics segments showed a gradual increase in the market share of USD 4.40 billion in 2018. The demand for M2M-enabled consumer electronic devices is fueled by the growth of smart homes, in which different household appliances and equipment are interconnected and controlled remotely through mobile phones or voice assistants. M2M connectivity enhances user experiences by enabling remote control, customization, and automation of devices. Consumers value the convenience of remotely monitoring and managing their devices from anywhere.
The managed services segment of the global cellular M2M value-added services market plays a pivotal role in providing businesses with comprehensive and streamlined cellular M2M solutions for deploying and managing their M2M and IoT platforms and IoT devices. Service providers offering managed services are specialized in managing machine-to-machine devices, connectivity, and data analysis. Businesses can leverage this expertise to efficiently deploy, monitor, and maintain their cellular M2M solutions without the need for extensive in-house knowledge. M2M deployments involve multiple components, including devices, connectivity, data processing, and security. The demand for cellular M2M VAS, which, in turn, is expected to drive the growth of the managed services segment of the global cellular M2M value-added services (VAS) market during the forecast period.
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Europe is estimated to contribute 42% to the growth of the global cellular M2M value-added services market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Another region offering significant growth opportunities to companies is North America. Urbanization in North America has increased significantly in countries such as Canada and the US. According to data published by The World Bank Group, in 2022, the urban population in Canada and the US accounted for 82% and 83%, respectively, of the total population.
Moreover, the demand for luxury vehicles has risen because of this urbanization rate, as well as the stability of society in cities due to rising disposable income. Premium passenger vehicles have several advanced features to improve the on-road experiences for users. Hence, the increasing demand for several advanced technological features is driving the demand for embedded M2M technology in vehicles, which, in turn, is boosting the growth of cellular M2M value-added services (VAS) across North America.
The market is rapidly growing, driven by advancements in next-generation connectivity technologies and the increasing adoption of IoT. As digitization accelerates across sectors like healthcare and energy and utilities, the need for robust cellular M2M solutions becomes more critical. Mobile and cloud technologies, along with enhanced big data and analytics capabilities, enable more efficient M2M connections and support wireless technologies. Together, these trends contribute to a dynamic market landscape, with growing emphasis on advanced communication technologies such as subscriber identity module (SIM) to meet the evolving needs of both individuals and organizations. Key players such as AT&T, Orange Business Services, and Amazon Web Services are leading the charge in providing innovative services. The integration of AI and edge computing further enriches the market, offering value-added services that optimize internet connectivity and deliver actionable insights across industries.
The growing demand for enhanced M2M data communication is driving cellular M2M value-added services market growth. The value of data as a decision factor is becoming increasingly recognized by businesses. Enhanced M2M data communication allows for the collection, transmission, and analysis of a vast amount of data from connected devices. In order to assist businesses in optimizing processes, reducing interruptions, and making strategic decisions, these data can offer useful insight into different aspects of operations.
However, enhanced M2M data communication facilitates the timely transfer of diagnostic information for predictive maintenance applications. Improved communication of M2M data is useful to companies that have distributed devices, e.g. fleets of vehicles or equipment in distant locations. The demand for the market, which, in turn, is expected to drive the growth of the global cellular M2M value-added services (VAS) market during the forecast period.
The rising use of M2M-based digital signage in the retail sector is a key trend in the cellular M2M value-added services market. Retailers worldwide have started using M2M-based digital signage to supply users with essential particulars about their new product launches, the latest additions to product lines, and discounts. To enhance customer interaction, it uses M2M Digital Signage to send personalized advertising on the basis of customers' information such as location, gender, and age.
Moreover, m2m-based digital signage delivers information on a real-time basis. It provides better features than traditional print-based displays. It will contribute to improving the retail sector's image. In order to better reach out to customers, it will also help retailers save time and money. Such factors are expected to drive the demand for cellular M2M VAS, which, in turn, is expected to drive the growth of the global cellular M2M value-added services (VAS) market during the forecast period.
The high upfront cost of cellular M2M devices and services is a major challenge affecting cellular M2M value-added services market growth. A substantial initial investment will be needed to introduce cellular M2M devices and cellular M2M solutions and cellular M2M services. This includes the cost of purchasing M2M hardware, sensors, communication modules, and the integration of software and value-added services.
However, other communication technologies and cellular M2M solutions, such as low-power wide area networks (LPWAN) or non-cellular M2M options, may offer lower upfront costs, encouraging companies to seek effective connectivity solutions, thereby giving them an appealing alternative. Such factors are expected to hinder the growth of the global cellular M2M value-added services (VAS) market during the forecast period.
The cellular M2M value-added services market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the cellular M2M value-added services market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aeris Communications Inc. - The company offers reliable and flexible end-to-end CDMA and GSM M2M solutions for healthcare providers.
Amdocs Ltd. - The company offers Cellular M2M VAS such as Amdocs fiber services, Amdocs network planning services, and Cloud-based connected home solutions.
AT and T Inc. - The company offers AT and T M2X that includes real-time analytics, developer portal, and data security APIs among others.
The cellular M2M value-added services market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The cellular machine-to-machine (M2M) value-added services market is experiencing significant expansion, driven by the rollout of 4G and 5G networks. These advanced networks significantly enhance connectivity for intelligent systems and autonomous machines, fueling the Internet of Things (IoT) revolution. Technologies such as cloud computing, big data analytics, sensors, and actuators are disrupting industries by enabling applications like asset tracking, vaccination and delivery systems. The increasing urbanization rate and societal stability in cities have led to a growing demand for luxury passenger vehicles. However, it is crucial to address security and privacy concerns as these intelligent systems and connected vehicles become more prevalent. Major telecommunications companies are investing heavily in network infrastructure to provide connectivity and cellular M2M services for M2M applications. Legacy technologies, including 2G, 3G, 4G, GPRS, and SMS, continue to play a role, but 5G networks are set to redefine the landscape with their ultra-reliable low-latency communication capabilities.
In healthcare, real-time monitoring of patients' vital signs and medication adherence can lead to improved patient outcomes and reduced healthcare costs. In the energy sector, smart grids and smart meters can optimize energy usage and reduce wastage. In utilities, M2M solutions can be used for leak detection and predictive maintenance, reducing water loss and improving customer satisfaction. As the M2M market continues to grow, addressing security and privacy concerns is essential to fully realize the benefits of these intelligent systems and connected devices. This includes securing network infrastructure, ensuring data privacy, and implementing robust authentication and access control mechanisms. In the healthcare industry, M2M solutions can lead to improved patient outcomes and reduced healthcare costs through real-time monitoring of vital signs and medication adherence. In the energy sector, smart grids and smart meters can optimize energy usage and reduce wastage. In the utilities sector, M2M solutions can be used for leak detection and predictive maintenance, reducing water loss and improving customer satisfaction. The integration of insurance data and advanced M2M solutions will further transform sectors such as healthcare and energy and utilities.
In conclusion, the M2M market is experiencing substantial growth due to the rollout of advanced networks and disruptive technologies. In healthcare, real-time monitoring and medication adherence can lead to improved patient outcomes and reduced costs. In the energy sector, smart grids and smart meters can optimize energy usage and reduce wastage. In utilities, M2M solutions can be used for leak detection and predictive maintenance. It is crucial to address security and privacy concerns to fully realize the benefits of these intelligent systems and connected devices. Major telecommunications companies are investing in network infrastructure to provide connectivity and M2M services for various applications. Legacy technologies continue to play a role, but 5G networks are poised to redefine the landscape with their ultra-reliable low-latency communication capabilities. The integration of insurance data and advanced M2M solutions will further transform sectors such as healthcare and energy and utilities.
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Industry Scope |
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Report Coverage |
Details |
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Page number |
184 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 26.06% |
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Market growth 2024-2028 |
USD 66.20 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
21.6 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 42% |
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Key countries |
US, China, Germany, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aeris Communications Inc., Amdocs Ltd., AT and T Inc., China Mobile Ltd., Choice IoT Inc., Deutsche Telekom AG, Digi International Inc., eDevice S.A., KDDI Corp., Nippon Telegraph And Telephone Corp., Orange SA, Rogers Communications Inc., Semtech Corp., Telefonica SA, Telenor Group, Telit, Thales Group, United States Cellular Corp., Verizon Communications Inc., and Vodafone Group Plc |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the market forecast period |
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Customization purview |
If our cellular M2M value-added services market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Service
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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