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Smart Devices Are Critical Entry Point to IoT Ecosystem, IHS Markit Says

Thursday, June 28th, 2018

But as smart devices face pricing pressure, services are where the money’s at

As smart functionality makes its way into homes and businesses, two devices are gaining a foothold into broader ecosystems to maximize growth and revenue opportunities: smart speakers and smart meters. No longer simply intelligent appliances in the home, these devices are becoming key entry points into the massive Internet of Things (IoT) value chain. According to business information provider IHS Markit (Nasdaq: INFO), by the end of 2021, there will be an installed base of 328 million smart speakers and more than 1.13 billion smart electricity, water and gas meters.

“No matter the type of ‘smart’ device, device makers face the same challenge: keep costs down while increasing functionality,” saidPaul Erickson, senior analyst for connected device research at IHS Markit. “The IoT is transformational for connected devices, and vendors large and small are vying to be part of the market. Many, like Google and Amazon, are selling their devices at or below margin because they understand the long-term opportunity lies in the applications and services these devices make possible.”

Smart speakers: growth, growth, growth ahead

Smart speakers, which enable voice-based media playback, smart home control, telephony, messaging, e-commerce and informational queries, use a range of connectivity options to leverage artificial intelligence (AI) and Cloud capabilities to enable an ever-increasing range of IoT devices.

By 2021, smart speaker revenue is expected to reach $11.2 billion, up from $6.3 billion in 2018, IHS Markit says. “While many options are available to device makers to enter the home ecosystem, the cost and convenience advantages of smart speakers will ensure that demand remains strong for years to come,” Erickson said.

“The smart speaker concept is most powerful when it leverages large, established ecosystems where there is broad app and development support across devices and platforms,” Erickson said. “These ecosystems allow the speakers to access diverse information and e-commerce resources and to receive support from other smart home devices.”

Smart meters: bridging the gap between utilities and their customers

Basic utility meters only monitor power usage, limiting the ability of utility companies to interact with end consumers. Smart meters expand the capabilities of utility companies by providing more regular and informative data, allowing better usage analysis, time-of-use rates and subsidies, leakage warnings and more.

“Smart meters are revolutionizing the way utilities and consumers interact, enhancing capabilities beyond the ‘meter to cash’ process,” said David Green, research manager for smart utilities infrastructure at IHS Markit. “Smart meters will be an increasingly critical entry point into utility ecosystems aiming to create more intelligent, efficient and cleaner electricity networks.”

Like smart speakers, smart meters are anticipated to enjoy considerable growth in the years ahead. Over 188 million smart meters will be shipped in 2023, generating $9.5 billion in hardware revenues, IHS Markit says. In 2023, the installation base of smart electricity, water and gas meters will exceed 1.35 billion. “Smart meters form the backbone of the data collection system for utilities, paving the way for entirely new categories of value-added revenue,” Green said.

About IHS Markit IoT research

IHS Markit provides timely insight and analysis for more than 30 connectivity technologies in 34 application segments used for the IoT. In two newly published reports, IHS Markit provides a comprehensive overview of the smart speaker and the smart meter, offering a wide-ranging look into these pivotal devices and what lies ahead.

About IHS Markit (

IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 business and government customers, including 80 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.

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Softbank is not buying a ‘Brexit bargain’ – ARM chip designer to be bought by Japan’s Softbank

Tuesday, July 19th, 2016

Tom Rebbeck, Research Director, and Head of IoT and M2M at Analysys Mason, (global telecoms advisers) comments on the news that Softbank is to acquire UK’s Arm Holdings.

  • Softbank is not buying a ‘Brexit bargain’. The increase in ARM’s share price post-Brexit has offset the fall in Sterling. Assuming the same 43% premium, Softbank would have paid JPY3.1tr on February 19 2016, the day before the EU referendum date was announced, compared to the actual price of JPY3.3tr. The price in USD would have been more than USD4bn lower in February. Brexit hasn’t made ARM a bargain for Softbank.
  • IoT is central to the acquisition. Masayoshi Son, chairman and chief executive of Softbank, cited IoT as central to the acquisition: “ARM is going to be everywhere in internet of things”. The automotive market, in particular, appears to be a focus: “when automobiles become so smart… the automobile itself will become a super computer… ARM will be going into this market very very aggressively.”
  • It’s a surprise. Before today, we would not have included Softbank in a list of ten companies that might buy ARM; ARM is not an obvious fit with any of its other businesses (telecoms, software, device distributors, etc.), but is consistent with Softbank’s widely varying portfolio of assets.
  • Analysys Mason does not expect the ARM acquisition to affect Softbank’s telecoms assets. Softbank has a history of managing assets separately, and ARM will run as an independent unit. ARM’s position is a long way from telecoms operators in the IoT value chain. We don’t expect the ARM deal to directly impact the IoT activities of Sprint or Softbank’s Japanese telecoms operations.

For more information or to arrange an interview with Tom Rebbeck, please contact Eva Sulirova via or telephone number +44 20 7395 9000.

You can also learn more about Analysys Mason’s IoT and digital services research via

About Analysys Mason (
Analysys Mason has been a global specialist adviser in TMT for more than 30 years. Since 1985, Analysys Mason has played an influential role in key industry milestones and helping clients through major shifts in the market. We continue to be at the forefront of developments in the digital economy and are advising clients on new business strategies to address disruptive technologies.

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Analysys Mason

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fax: +1 202 331 3080

IoT Growth Is Non-Cellular LPWA’s Greatest Ally, But Its Biggest Foe Is Lack of Standards

Thursday, July 14th, 2016

London, United Kingdom – 14 Jul 2016 — The market for non-cellular (non-3GPP) M2M Low Power Wide Area (LPWA) technologies, such as LoRa and SIGFOX, holds the potential for healthy growth, says ABI Research. But with no set standard among proprietary vendors, growth will be conservative until influential vendors identify and address the challenges to widespread adoption, which include opening up the vendor ecosystem and developing a feasible revenue model for public networks.

Addressing such challenges is critical for continued growth, as proprietary LPWA technologies face fierce competition from cellular LPWA standards such as NB-IoT, EC-GSM-IoT, and eMTC that have strong backing from an open and robust cellular vendor ecosystem. Important non-3GPP LPWA technologies providers include Semtech Corporation, SIGFOX, Ingenu, Sensus, Microchip, Silicon Labs, and Kerlink.

“While network operators typically favor non-cellular LPWA technologies for their low deployment and maintenance costs, the lack of standards among proprietary vendors is a drawback to wider adoption of these technologies,” says Adarsh Krishnan, Senior Analyst at ABI Research. “The closed ecosystem is limiting market innovation and suppressing year-on-year growth.”

The Weightless SIG consortium is working on a standard-based LPWA technology to propel the market forward but remains plagued by its past failures to deliver a credible solution. It recently unveiled plans to develop its new Weightless-P technology in collaboration with Taiwanese company M2COMM. The LPWA technology is expected to be available by Q3 2016 for both public and private network deployment.

Private networks are popping up everywhere, favored by utility companies that need to cater to smart grid applications. However, public network infrastructure is gaining ground, and by late 2017 to early 2018, it will become the gateway for more intelligent and reliable LPWA technologies to come into play.

“This is one market ripe for development, and there are many application segments out there in which LPWA technologies can be utilized but did not find their place yet, such as connected agriculture and commercial building automation,” concludes Krishnan. “Once the infrastructure for nationwide public networks takes off and standardizations are set, we will start to see these new applications come out of the woodwork, and we believe it will signify big opportunity for the non-3GPP LPWA technologies.”

These findings are from ABI Research’s Non-Cellular M2M: Low-Power Wireless Access Market Update. This report is part of the company’s IoT, IoE, & M2M sector, which includes research, data, and analyst insights.

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Sensors and Connected Peripherals Outpace Smartphones and PCs for Majority of Active Wireless Connections for the First Time in History

Wednesday, July 13th, 2016

Will Top 65% of Total Active Connections by 2021

Oyster Bay, New York – 13 Jul 2016 — ABI Research forecasts the installed base of active wireless connected devices will top 47 billion by 2021, more than double the current level. Smartphones, PCs, and other “hub” devices historically commanded the leading share of total active connections, with accessories (including smartphone and PC peripherals, residential smart home lighting, and wearable devices) and sensor nodes (like Bluetooth beacons, proximity sensors, and other edge devices) rounding out the remainder. But moving forward, the latter will benefit most from continued improvements to underlying IoT infrastructure.

“A 24.1% CAGR through 2021 positions 2016 to be the first year that accessories and sensor nodes are in the majority, rising to more than 65% of total active connections by the end of the forecast period,” says Ryan Martin, Senior Analyst at ABI Research. “Now the critical question for companies is how to create a strategic framework that optimizes IoT solution ROI in concert with connected endpoint growth. Growth will be driven by a massive uptick in contextually-aware IoT endpoints across retail, advertising and supply chain, smart home, and industrial IoT markets.”

The recent convergence of low-power wide area, short-range wireless, and cellular networks represents a fertile battleground for the future of IoT enablement. While today about 55% of IoT connections can be attributed to the digital-first domain (the Internet of Digital), the emergence of low-power wide-area and short-range wireless network technologies purpose-built for the IoT puts the physical-first domain (IoT) on track to account for 65% of active wireless connections in the next five years.

The incipient IoT playing field includes everything from newly-minted specifications for Bluetooth 5 to the designation of Wi-Fi HaLow (802.11ah), LTE Cat M (followed by NB-IoT), and LPWAN technologies, such as those from Ingenu, LoRa, SIGFOX, and Thread. “Advances in mesh networking, location-aware ICs, and better utilization of unlicensed spectrum are among the key ingredients driving wireless sensor network deployments, and, in turn, the next generation of connected devices.”

These findings are from ABI Research’s Internet of Everything Market Tracker and Internet of Everything Semiannual Update. This report is part of the company’s IoT, IoE, & M2M sector, which includes research, data, and analyst insights.

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Batteries are at the heart of energy management thinking

Friday, March 11th, 2016

We need to develop innovative technologies for batteries to answer growing EV/HEV market demand and to fully exploit renewable energy generation. Batteries will increasingly be part of our daily life. Batteries, power electronic devices, photovoltaic and wind systems, energy management and electricity supply – all these market segments are connected.

Yole Développement (Yole), the “More than Moore” market research and strategy consulting company, follows the battery industry’s progress every day. But not only this – its expertise spans numerous industrial fields including compound semiconductors, power electronics, photovoltaics and more. Consequently Yole analyzes technical and market trends and identifies the synergies between different sectors.

How do EV/HEVs drive battery technology development? How will battery energy storage impact renewable energies deployment? How can batteries create themselves a “second life”? Is the idea of an electric vehicle as a source of electricity for a home a dream or reality? Yole will be providing an insight into these synergies and battery applications trends at Energy Storage Europe 2016 event, on March 16 in Dusseldorf, Germany.

Batteries are clearly at the heart of this story and the EV/HEV market segment is its closest ally. The annual demand for EV/HEV batteries will reach about 250 GWh by 2023 (Source: Energy Management for smart grid, cities and buildings: opportunities for battery electricity storage solutions, Yole Développement, May 2015). This figure shows the growing level of business opportunities for existing and new battery makers. Equally, there are numerous R&D investments exploring disruptive battery technologies. What will happen?
- Because of increasing demand coming from the EV/HEV sector, battery manufacturers will increase their production capacities. In parallel, because of the high volumes specific to the automotive sector, battery manufacturing costs will therefore decrease.

To address this growing demand, industrial companies will develop their R&D activities to produce more efficient and cheaper batteries. These innovative solutions will then be available for new market segments, such as energy storage for renewable energy systems, including wind and PV systems.

PV and wind now account for a high percentage of electricity generation in several countries. To illustrate this trend, we can look at PV inverters, which is the most important power electronics element in PV installations. PV inverter demand should reach 93.3 GW by 2021, announces Yole’s Senior Analyst, Dr Milan Rosina. 
Within these markets, players are looking for solutions to stabilize electricity grids. Batteries could be the right answer. Clearly, the deployment of new renewable energy installations will be strongly linked to the development of battery-based solutions. (Source: Opportunities for power electronics in renewable electricity generation, Yole Développement, January 2016).

And the story does not stop here. In a global approach, battery manufacturers and their partners explore new concepts to use BEVs and PHEVs as energy storage systems. Named “V2X” , this approach is an important part of global energy management thinking. It includes numerous applications such as vehicle-to-grid (V2G), vehicle-to-vehicle (V2V), vehicle-to-home (V2H) and more. This concept is in development but lot of governments and industrial companies are involved and solutions could be on the market soon.

Stationary batteries are also being considered. However, creating a second life for each battery will reduce the environmental impact of EV/HEV and make so electric mobility even “greener”.

Dr Milan Rosina from Yole will participate at the Energy Storage Europe 2016 event (March 15-17 in Dusseldorf, Germany) and will present the status of the battery market today, with a special focus on the EV/HEV market segment. His presentation, entitled “How EV/HEV drives battery technology development” takes place on March 16 at 1:30 PM.

Combining his technical expertise and his knowledge of the energy management and photovoltaic/wind industries, Yole’s analyst invites you to discover the synergies between several markets: batteries, power electronics, energy management, EV/HEV, photovoltaics and wind.
Discover an overview of this growing industry and the latest technology innovations. Register today and attend Dr Rosina’s presentation at Energy Storage Europe 2016.

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Yole Développement

Engineers Turn to Virtual Prototyping for IoT Development Challenges

Thursday, April 2nd, 2015

Driven by incessant time-to-market pressures, engineering organizations are looking for new ways to accelerate and parallelize different phases of the product development cycle – particularly in this IoT age.

A growing number of semiconductor and system manufactures are adopting virtual prototyping solutions (VPS) to address these challenges. Furthermore, the application of this technology continues to evolve beyond its original SoC design intent.

Now, more engineering organizations are using the platforms to accelerate software development and test. These evolving use cases are exposing vendors to new customer bases and revenue opportunities and are catalyzing a new phase of innovation in the ecosystem.

These critical trends and more are analyzed in VDC Research’s recently released report, The Global Market for Virtual Prototyping/Platforms Solutions. This study covers the global market for VPS for software development and verification.

VDC has defined this market to include tools and platforms that enable the creation, assembly, and simulation of hardware designs modeled at a high level of abstraction (above RTL) that offer simulation speeds fast enough to support efficient software development and verification through system simulation.

Additional insights of the research include:

Over the past year, more engineering organizations have adopted hybrid prototyping solutions with integrated virtual prototyping and emulation hardware solutions.

Revenue growth for VPS tools in the Asia-Pacific is projected to outpace other global regions by a material margin through 2017.

VPS users expect to increase their use of Application Lifecycle Management (ALM) tools in the next 3 years.

Engineers whose current projects align with Agile product development
methodologies have a high likelihood of using a VPS.

Synopsys increased its share lead over second-leading VPS vendor, Wind River, and accounts for a significant share of the overall market.

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VDC Research Group, Inc.

Internet of Things Boosts Embedded Systems Growth

Tuesday, December 16th, 2014

IC sales for IoT will climb by a CAGR of 24% in the next five years, says new report.

Since 2006, there have been more embedded systems, industrial equipment, sensor devices, instruments, meters, cameras, animals, and other objects connected to the Internet than humans using computers, smartphones, and other electronics for information technology. Until recently, steady increases in Internet-connected things have been overshadowed by major market battles in smartphones and the emergence of tablet computers, but with growth rates easing in those end-use systems segments, the enormous potential of the Internet of Things (IoT) has become the hottest topic in electronics and the IC industry.

More than a half-dozen initiatives have been launched to create market standards for IoT and to put the Internet of Things on par with the Internet of Humans in terms of wide-scale availability, ease of connection, and compatibility across platforms in different industry sectors. Assuming that missing IoT standards are developed in the next several years, web-connected things are forecast to account for 85% of nearly 29.5 billion Internet connections worldwide by 2020, according to IC Insights’ new 2015 edition of IC Market Drivers—A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits. In 2010, about 74% of the 7.7 billion Internet connections were to things, based on market data in the new IC Market Drivers report.

IC Insights estimates that sales generated by the IoT portion of systems (meaning the functions for Internet communications and sensor subsystems) will total $48.3 billion in 2014 and grow 19% in 2015 to $57.7 billion. By 2018, the market value of IoT subsystems in equipment and Internet-connected things is projected to reach $103.6 billion worldwide, which represents a compound annual growth rate (CAGR) of 21.0% from $39.8 billion in 2013 (Figure 1). More importantly, IoT functionality designed into equipment and web-enabled objects will become a pivotal factor in the sale of nearly half of all end-use systems by the end of this decade as connections to the Internet of Things becomes more common and expected by consumers and businesses.


The new IC Market Drivers report shows IoT-related semiconductor sales growing 19% to $5.6 billion in 2015 and rising by a CAGR of 24.3% in the 2013-2018 period, reaching $11.5 billion in the final year of the forecast. About 65% of the projected 2018 IoT semiconductor revenues are expected to come from ICs and 35% from optical, sensors/actuators, and discretes (O-S-D). In 2013, about 71% of the $3.9 billion in IoT-related semiconductor sales were generated by ICs ($2.7 billion) vs. a little over 29% from O-S-D ($1.1 billion, most of which was for sensors).

According to the 2015 report, and seen in Figure 2, the largest IoT semiconductor market segment through the forecast period will continue to be connected cities (which includes “smart” electric grids, roads and streetlights, and other public infrastructure applications) with sales reaching $4.2 billion—a CAGR of 15.0% between 2013 and 2018. The second-largest semiconductor IoT category—the industrial Internet—will nearly catch up with the connected cities group, primarily due to high growth in factories, logistics, and medical systems applications. Semiconductor revenues for the connected homes category will push past the $1 billion mark in 2018 with a CAGR of 32.8% from just $275 million in 2013. Connected automotive systems—mainly in passenger cars—represent a high growth potential between 2013 and 2018 with annual semiconductor sales forecast to reach $1.5 billion worldwide, which represents a CAGR of 43.8% through 2018. Semiconductor sales for wearable systems that connect to the Internet are projected to climb by a CAGR of 46.9% to $528 million in 2018 from about $76 million in 2013.


While IoT is expected to see strong growth in the next fives years, ICs used in connections to the Internet of Things represented only 1% of total integrated circuit sales in 2014. In 2018, IoT-related ICs are expected to account for about 3% of the total $348.1 billion IC market that year, according to the new report’s forecast. Beyond embedded IoT subsystems in connected applications, the proliferation of the Internet of Things will expand the use of cloud computing and web servers as well as require upgrades to the overall Internet infrastructure in order to handle growing amounts of data coming from attached systems and things by 2020. The impact of IoT on servers and the Internet is also covered in the IC Market Drivers 2015 report.

Report Details: IC Market Drivers 2015

IC Market Drivers 2015—A Study of Emerging and Major End-Use Applications Fueling Demand for Integrated Circuits examines the largest, existing system opportunities for ICs and evaluates the potential for new applications that are expected to help fuel the market for ICs.

Released in November 2014, IC Market Drivers is divided into two parts. Part 1 provides a detailed forecast of the IC industry by system type, by region, and by IC product type through 2018. In Part 2, IC Market Drivers examines and evaluates key existing and emerging end-use applications that will support and propel the IC industry through 2018. Some of these applications include the Internet of Things, automotive electronics, smartphones, personal/mobile computing (including tablets), wireless networks, digital imaging, and a review of many applications to watch—those that may potentially provide significant opportunity for IC suppliers later this decade. IC Market Drivers 2015 is priced at $3,390 for an individual user license and $6,490 for a multi-user corporate license.

Contact Information is pleased to announce the distribution of two Signals and Systems Telecom reports

Tuesday, December 2nd, 2014

As a leading provider of market research, is pleased to announce the distribution of two Signals and Systems Telecom reports, that when combined create a comprehensive analysis package. The data from these two reports indicate that M2M and wearable technology can help wireless carriers pocket as much as $116 Billion in network connectivity service revenue by the end of 2020.

In SNS Telecom’s report, The M2M, IoT & Wearable Technology Ecosystem:
2015 – 2020 – Opportunities, Challenges, Strategies, Industry Verticals and Forecasts, SNS analysts reveal that, because of the high volume of wearable devices, wireless carriers are seeing the opportunities in mixing wearable technology with their M2M offerings, which targets both consumer and vertical markets.

This report spans over 800 pages, encompassing two comprehensive reports by Signals and Systems Telecom that cover the M2M and wearable technology

The Wireless M2M & IoT Bible: 2014 – 2020 – Opportunities, Challenges, Strategies, Industry Verticals and Forecasts
The Wearable Technology Ecosystem: 2014 – 2020 – Opportunities, Challenges, Strategies, Industry Verticals and Forecasts

To learn more about the global wireless Machine to Machine market and Wearable Technologies, visit:

Mobile device companies are continuously investing in wearable devices. As a result, the market is seeing more introductions of smart bands, smart watches, and other wearable devices that collect, send and process data through mobile applications.

Despite low ARPU, M2M technology has helped wireless carriers establish new revenue streams across many different verticals, including:

Public Safety
Consumer Electronics
And more

About is the leading provider of global market intelligence products and services. With research reports from more than 720 top consulting and advisory firms, offers instant online access to the world’s most extensive database of expert insights on global industries, companies, products, and trends. Moreover,’s Research Specialists have in-depth knowledge of the publishers and the various types of reports in their respective industries and are ready to provide research assistance.

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About Signals and Systems Telecom Research Signals and Systems Telecom provides market intelligence and turnkey outsourcing services covering the telecommunications industry sector.

Developed by leading industry analysts our market forecast reports provide unique insights to the global telecommunication industry with information ranging from niche details of handset models to tracking of large network infrastructure contracts and cellular network operator metrics. Whether your focus is strategic planning, development, or marketing our reports allow you to make better decisions with self-assurance.

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New Battery and Charging Technologies Required for 8 Billion Mobile Devices in 2019

Thursday, October 9th, 2014

ABI Research forecasts that the installed base of mobile devices (smartphones, basic mobile phones, wearables, tablets, and notebooks) will reach 8 billion by 2019, providing a huge installed base for rechargeable batteries and charging solutions.

“Mobile device hardware, software, and usage have developed at an incredible rate in recent years, from network speeds, to screen resolution and size, to processing power. End user’s reliance on their smartphones also grows and grows, with mobile data usage experiencing exponential growth. One crucial part of the overall solution, battery life and charging technology, has been a laggard to date. Short battery life remains the biggest irritation to smartphone users and is a clear opportunity for handset vendors and carriers to improve the user experience by adopting new, longer-lasting battery technologies. Additionally, the growth in size-constrained wearable devices makes the problem even more acute,” comments Nick Spencer, senior practice director, ABI Research.

Battery technology has not kept pace with hardware and usage growth, still relying on Lithium and graphite batteries and one-to-one wired charging solutions (typically Micro-USB chargers). This may be about to change with new battery technology in the form of silicon anode batteries already in production, from companies like Amprius and Leyden Energy, and Germanium and pure Lithium variants experiencing recent breakthroughs in their stability becoming a possibility in the near future.

These findings are part of ABI Research’s Wearables and Smart Accessories Market Research.

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Bridge M2M Alliance Forms to Aid Multinational M2M Deployment in Asia

Thursday, May 8th, 2014

With cellular machine-to-machine (M2M) connections in Asia expected to more than triple in the coming years, local wireless operators have banded together in a group dedicated to facilitating M2M deployments in the region.

The installed base of wireless M2M connections in the Asia-Pacific (APAC) region will rise to 109.0 million in 2017, up from 32.6 million in 2012, according to IHS Technology (NYSE: IHS). By 2017, Asia-Pacific is set to be the second-largest regional M2M market, behind only Europe in total cumulative cellular M2M connection volume.

The attached figure presents the IHS forecast of cellular M2M connections in Asia-Pacific.



In January, 11 operator members of the Bridge Alliance in the Asian-Pacific region formed the Bridge M2M Alliance. The group was chartered to promote the growth of cellular M2M services in APAC.

The 11 founding Bridge M2M Alliance operators were Airtel of India, AIS of Thailand, CSL of Hong Kong, Globe of the Philippines, Maxis of Malaysia, MobiFone of Vietnam, Optus of Australia, SingTel of Singapore, SK Telecom of South Korea, Taiwan Mobile of Taiwan and Telkomsel of Indonesia. Together, these companies provide connectivity to more than 570 million mobile subscribers in the Asia-Pacific region.

The Bridge M2M Alliance will specifically address market inhibitors unique to the Asia-Pacific region.

“There are some fundamental structural challenges to the growth of multinational M2M deployments in Asia-Pacific that don’t impact other regions to the same extent,” said Bill Morelli, associate director of M2M & Internet of Things at IHS. “These problems include an overabundance of cellular air standards, major geographical barriers, and highly divergent market dynamics in different countries. The Bridge M2M Alliance could play a key role in overcoming these issues and enabling the region to attain its growth potential.”

Asia-Pacific boasts a plethora of cellular air interface standards, including CDMA, WCDMA, TD-SCDMA, and TD-LTE. This diversity makes the value proposition of a multinational deployment, either to enable one device to travel among several countries or to enable on stock-keeping unit (SKU) of a device to be shipped to multiple countries, harder to attain.

This diversity is not present in other regions to the same degree. Europe, for example, has largely standardized on GSM, WCDMA and FD-LTE.

Also, compared to regions, Asia-Pacific has more countries separated by large bodies of water, which reduces opportunities for connected devices to travel from country to country. For example, there is little chance that long-haul truck fleets will need to be tracked from South Korea traveling to China or from Australia to Japan. This situation is in contrast, again, to Europe, or North America, where there is significant movement via direct land borders.

Finally, major country-level M2M markets in Asia-Pacific are developing along more individual lines from one another than is the case in other regions.

For example, M2M in China is heavily state-driven, with strong government support for the Internet of Things and smart-city development. This parallels the country’s growing connected-car market, which is more market driven.

South Korea, in comparison, is relatively more focused on consumer connected devices and smart home applications, while the Japanese M2M market is diverse, ranging from smart-vending machines to connected cars. In contrast, the M2M markets in North America and Europe tend to be more homogenous, facilitating multinational deployments.

Despite these significant structural barriers, IHS believes there is little doubt that rapid growth will occur in multinational M2M deployments in APAC. To the extent that such deployments occur, the Bridge M2M Alliance is beneficial. Key benefits are a harmonization in commercial terms—such as service-level agreements (SLAs) and customer support, technical interoperability between different operators’ platforms and the joint development of a supporting ecosystem of technology vendors.

These findings are contained in the report, “Cellular M2M Market Tracker – Q1 2014,” in the M2M Intelligence Service of IHS.

About IHS (

IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 8,000 people in 31 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2014 IHS Inc. All rights reserved.

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