Friday, April 20, 2012

Cinterion leads M2M module market on volume but Sierra Wireless is tops for revenue

SCOTTSDALE, USA: ABI Research’s market share rankings of M2M cellular embedded module vendors for 2011 evaluates vendors’ market share performance for both total unit shipment volume of M2M cellular modules, as well as for total M2M revenue, including modules, terminals, software, and services.

The main companies active in the cellular M2M module market include: Cinterion, Huawei, iWOW, Neoway, Novatel Wireless, Quectel, Sagemcom, Sierra Wireless, SIMcom Wireless Solutions, Telit Communications, u-blox, and ZTE.

The rankings of the top three vendors by module unit shipment volume in 2011 are, in order, Cinterion, Telit, and Sierra Wireless. For rankings by M2M revenue, Sierra Wireless is first, Cinterion second, and Telit third.

Cinterion has been the unit shipment volume market share leader since ABI Research started tracking cellular M2M module sales in 2003. With the acquisition of Cinterion by Gemalto in 2010, the company is hoping to leverage Gemalto’s resources and complementary offerings (i.e. SIMs) to build a more comprehensive and differentiated offer in the market.

Sierra Wireless was one of the first vendors to push beyond modules to the supply of a software platform – its AirVantage hybrid connected device platform/application enablement platform (CDP/AEP). Moving away from a pure module strategy has benefited Sierra Wireless financially in the face of increasing price pressure, as is the company’s strong focus on higher-value automotive module products.

Telit Communications has been the fastest growing of the major vendors for several years now, rising from roughly 6 percent market share in 2007 to more than 20 percent market share (on a unit shipment volume calculation) in 2011. The company has, so far, brought a laser-like focus to the core business of providing customers with modules that abstract away as much supply-chain logistical complexity as possible, at aggressive price points.

Sam Lucero, practice director, M2M connectivity, states: “The biggest change from 2010 to 2011 was the rise of Telit from third place to second place in the unit shipment volume analysis. Likewise, Telit Communications displaced SIMcom Wireless Solutions at third place in the M2M revenue rankings.”

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