Cellular M2M Module Market Study
According to ABI Research, nearly 18 million cellular modules shipped into M2M applications in 2006, including telematics, telemetry, and Wireless Local Loop. ABI Research believes this number should grow to roughly 90 million in 2012. Telematics shipments are expected to increase at moderate double-digit growth rates, while both telemetry and WLL shipments should see strong growth in excess of 30% CAGR.
According to a principal analyst at ABI, some M2M module vendors are trying to increase their share of the silicon content in the application, integrating more powerful processors and hoping to host more of the end application's total value. Other vendors provide an effective business "wrapper" around the module. This provides value by removing the burden of developing RF expertise and an RF supply chain from the application developer.
In addition, Asian vendors, who are operationally more efficient, are increasing the gross margin pressures on the North American and European vendors. A key vendor in this area is SIM Technology, based in Shanghai.
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