Internet-of-Things module sales to double by 2018

Mobile machine-to-machine (M2M) communications market on edge of expansion

Worldwide sales of mobile M2M modules rose six per cent to reap $1.4bn (£0.83bn) last year, according to a report from researcher Infonetics.

Godfrey Chua, directing analyst for M2M and the Internet of Things at Infonetics, said the market is expected to go on picking up speed from 2015 in particular, reaching $2.9bn (£1.7bn) in four years' time, as a range of industries adopts device-to-device internet connectivity.

"Services built upon M2M modules, such as fleet management and connected car, are already a sizeable business and are growing much faster than traditional business lines," he said.

"We look for the market to accelerate beginning in 2015 as M2M services inflect and module sales shift toward higher-ARPU 3G and 4G systems."

Most modules being bought and installed are currently 2G. However, 3G is tipped to represent 67 per cent of mobile M2M sales by value by 2018, and LTE (4G) is the fastest-expanding segment.

Europe and North America are the main markets for sales of these devices at the moment, but Asia-Pacific will catch up fast as China, Japan, South Korea and Singapore continue to invest in M2M connectivity, according to Chua's research.

The leading vendors include Sierra Wireless, Gemalto/Cinterion, and Telit, which comprise almost two thirds of sales by value, he said.

The report examines market share, market size, forecasts, analysis, and trends for mobile M2M modules by technology, vertical, and region.