This report provides market trends, market forecasts, and predictions for 2011 and beyond. In this research, expert analysts examine the following: smartphone and feature phone applications, 2G, 3G, and 4G cellular networks, and M2M application development.

Robust Demand for Wireless Connectivity from Multiple Segments Propels U.S. Cellular M2M Communications Market toward Vibrant Growth

High demand for wireless connectivity from diverse verticals has buoyed prospects for the U.S. cellular machine-to-machine (M2M) communications market. A multitude of devices and endpoints can be connected through a wireless network to an enterprise’s IT backend for remote monitoring and reporting; error detection and resolution; content display and refresh usage-level tracking, and other functions. As the M2M connectivity model can be used in a wide range of industries, wireless connectivity is slated to witness a demand upswing. “The consumer electronics, utilities, retail, telematics, transportation, medical devices, and remote home and industrial monitoring as well as the automation segments are already leveraging wireless as the primary or secondary backup connectivity option to expedite daily business operations,” notes the analyst of this research service. “Additionally, new deployment models and use cases are continuously being evaluated, and many of them will ultimately lead to commercial deployment.”

Strong support from leading mobile operators has helped the market gain steam. Independent M2M service providers and M2M mobile virtual network operators (MVNOs) offer specialized access, application development, hardware, management, control and reporting, and settlement services. To drive the next phase of their growth strategies, mobile operators must maximize revenues from existing mobile subscribers by offering them additional services and target newer segments (such as M2M). Mobile network operators (MNOs) are in various stages of executing next-generation M2M strategies by putting systems and network components in place and going the extra mile to deliver greater service and support features to enhance the M2M opportunity. Mobile operators have the required resources at their disposal to support the M2M value chain and they, together with their partners, are leading the charge for wireless M2M. Independent M2M service providers and M2M mobile virtual network operators (MVNOs) such as Kore Telematics, Numerex, Wyless, M2M Data Smart, Aeris Communications, nPhase and many others lease wholesale wireless capacity from MNOs. They provide complete airtime/connectivity and development and professional services solutions for M2M deployments and have been the key enablers in the U.S. cellular M2M communication market as well.

Catering to Varying Customer Requirements is an Uphill Task for Service Providers

Supporting the widely varying requirements of different types of M2M customers can put a significant strain on the service, support, and maintenance capabilities of the service providers. The M2M ecosystem is complex, with chipset and module vendors, device OEMs, application providers, system integrators, and MNOs, and other types of industry participants co-existing to provide various solutions to M2M customers. “New types of M2M implementations generally need customized support in the form of new device types and form factor, battery management and ergonomics, new pricing models and pricing splits/revenue settlements that are supported by appropriate rating and mediation capabilities,” says the analyst. “Besides, application support, support for different network and device identifier types, OSS/BSS enhancements, organization training, regulatory requirements and others are also necessary.”

Service providers may be forced to focus their efforts on specific verticals or on specific functions/processes. Arriving at judicious decisions to maximize the growth of their businesses in a sustainable manner could become a challenge. Mobile operators already have established relationships with specialized solution providers to provide various services to M2M customers and scale up their businesses. With more enterprises relying on M2M for connecting to their in-field assets, such specialized service providers will be increasingly relied upon to provide the necessary customization to the new customers in the M2M space.

Technologies

The following technologies are covered in this research:

• Smartphone and feature phone applications
• 2G, 3G, and 4G cellular networks
• M2M application development

TABLE OF CONTENTS

1. Introduction

   1.1 Cellular Machine-to-Machine Communications

       1.1 a Introduction

       1.1 b Market Definitions

       1.1 c Segmentation

       1.1 d Forecast Methodology

       1.1 e Summary of Findings and Key Conclusions

2. Market Trends and Strategic Evaluation and Analysis

   2.1 Key Market Trends

       2.1 a Operator Partnerships with Specialized M2M Solution Providers

       2.1 b Flexible Pricing Mechanisms for M2M

       2.1 c Push to 3G and 4G (and Multi-band Capabilities)

       2.1 d Are Device Vendors Ready to Become Service Providers?

       2.1 e Mobile Operators and M2M Service Providers Are Getting Ready to Support

       2.1 f Next Generation of Interactive Voice and Data M2M Applications

       2.1 g Pricing Information – Pricing Models; ARPU; Margins

       2.1 h Vertical Specific M2M App Stores

       2.1 I Consumer Data Pricing for Enterprise M2M Applications

3. Total U.S. Cellular M2M Communications Market

   3.1 Market Dynamics

       3.1 a Industry Challenges

          i A Wide Range of M2M Implementations Puts Significant Strain on the Service, Support, and Maintenance Capabilities of the Solution Providers

          ii Mobile Operators Need to Decide the Value They Bring to the M2M Ecosystem to Be Able to Command a Premium over Simple Bandwidth Offerings

          iii Managing the Migration to Next-generation Mobile Connectivity Architecture Is a Challenge for the Industry

          iv Device and Module Certification Continues to Be a Challenge for the Industry

          v A Different Type of Approach is Needed to Measure the Performance of the M2M Business

          vi Industry Participants with Core Businesses in Non-technical Areas May Find it Difficult to Deploy Wireless M2M

          vii Traffic Management for High-bandwidth M2M Applications Could Become a Challenge

          viii Mobile Network Operators Need to Evolve Their Reporting and Management Platforms to Support the Trend of Bundled Services

        3.1 b Market Drivers

           I Strong Support of Leading Mobile Operators Helps Drive the Growth of the Industry

           ii Independent M2M Service Providers and M2M MVNOs Play an Important Role in Driving Adoption of Wireless by Different Industry Segments

          iii Strong Demand for Wireless Connectivity from Different Industry Verticals Supports the Growth of M2M

          iv Government Regulations Help Drive Cellular M2M Deployments

         v Lowering Module Costs and Lower Pricing for Mobile Data Help Drive Adoption

          vi Streamlined and Inexpensive Certification Processes Can Help the Industry by Bringing Modules and Devices to Market at a Faster Pace

          vii Ongoing Standardization Efforts Could Provide a Boost to the M2M Industry by Facilitating Seamless, Cross-vertical Deployments and Service Interoperability

          viii High-speed Wireless Networks Will Support New M2M Applications with Higher Revenue Potential

       3.1 c Market Forecasts for the U.S. Cellular M2M Communications Market

           i Market Forecasts

          ii I Competitive Analysis and Market Share Analysis

          ii Competition and Market Share

4. Consumer M2M Communications Market

   4.1 Introduction

       4.1 a Introduction to Consumer M2M

   4.2 Market Opportunity and Forecasts

       4.2 a Thoughts on the Market Opportunity

       4.2 b Market Forecasts for the Consumer M2M Market Segment

5. Transportation and Telematics M2M Communications Market

   5.1 Introduction

       5.1 a Introduction to Transportation and Telematics M2M

   5.2 Market Opportunity and Forecasts

       5.2 a Thoughts on the Market Opportunity

       5.2 b Market Forecasts for the Transportation and Telematics M2M Market Segment

6. Financial Services and Retail M2M Communications Market

   6.1 Introduction

       6.1 a Introduction to Financial Services and Retail M2M

       6.2 Market Opportunity and Forecasts

   6.2 a Thoughts on the Market Opportunity

   6.2 b Market Forecasts for the Financial Services and Retail M2M Market Segment

7. Healthcare M2M Communications Market

   7.1 Introduction

       7.1 a Introduction to Healthcare M2M

   7.2 Market Opportunity and Forecasts

       7.2 a Thoughts on the Market Opportunity

       7.2 b Market Forecasts for the Healthcare M2M Market Segment

8. Utilities and Industrial M2M Communications Market

   8.1 Introduction

       8.1 a Introduction to Utilities and Industrial M2M

   8.2 Market Opportunity and Forecasts

       8.2 a Thoughts on the Market Opportunity

       8.2 b Utilities

       8.2 c Industrial

       8.2 d Market Forecasts for the Utilities and Industrial M2M Market Segment

9. Security M2M Communications Market

   9.1 Introduction

       9.1 a Introduction to Security M2M

   9.2 Market Opportunity and Forecasts

       9.2 a Thoughts on the Market Opportunity

       9.2 b Market Forecasts for the Security M2M Market Segment

10. Other M2M Opportunities

   10.1 Introduction

       10.1 a Introduction to Other M2M Opportunities

   10.2 Market Opportunity and Forecasts

       10.2 a Market Forecasts for Other M2M Market Segments

11. Key Industry Participants

   11.1 Mobile Operator Profiles

       1.1 a AT&T

       1.1 b Company

       1.1 c Key M2M Offerings and Value Proposition

       1.1 d Conclusion

   11.2 Verizon Wireless

       11.2 a Company

       11.2 b Key M2M Offerings and Value Proposition

       11.2 c Conclusion

   11.3 Sprint Nextel

       11.3 a Company

       11.4 a Key M2M Offerings and Value Proposition

       11.4 b Conclusion

   11.4 T-Mobile USA

       11.4 a Company

       11.4 b Key M2M Offerings and Value Proposition

       11.4 c Conclusion

   11.5 Platform Providers; M2M MVNOs; Application Developers; Equipment OEMs; Others

       11.5 a Axeda

       11.5 b Company

       11.5 c Key Offerings and Value Proposition

       11.5 d Key Customers and Partnerships

   11.6 Jasper Wireless

       11.6 a Company

       11.6 b Key Offerings and Value Proposition

   11.7. KORE Telematics

       11.7 a Company

       11.7 b Key Offerings and Value Proposition

       11.7 c Key Customers and Partnerships

   11.8 M2M DataSmart

       11.8 a Company

       11.8 b Key Offerings and Value Proposition

       11.8 c Key Customers and Partnerships

   11.9 nPhase

       11.9 a Company

       11.9 b Key Offerings and Value Proposition

       11.9 c Key Customers and Partnerships

   11.10 Numerex

       11.10 a Company

       11.10 b Key Offerings and Value Proposition

       11.10 c Global Markets: Global Partnerships

       11.10 d M2M Applications for Growing 'Smart Markets'

   11.11 Silver Spring Networks

       11.11 a Company

       11.11 b Key Offerings and Value Proposition

       11.11 c Key Customers and Partnerships

   11.12 SmartSynch

       11.12 a Company

       11.12 b Key Offerings and Value Proposition

       11.12 c Key Customers and Partnerships

   11.13 Wyless

       11.13 a Company

       11.13 b Key Offerings and Value Proposition

       11.13 c Key Partnerships

   11.14 XATA

       11.14 a Company

       11.14 b Key Offerings and Value Proposition

       11.14 c Key Customers and Partnerships

LIST OF FIGURES

Chapter 3

    M2M Communications Market: Impact of Top Eight Industry Challenges (U.S.), 2010-2015
    M2M Communications Market: Market Drivers Ranked in Order of Impact (U.S.), 2010 -2015
    M2M Communications Market: Cellular M2M Connections (U.S.), 2009-2017
    M2M Communications Market: Consumer and Enterprise Connections (U.S.), 2009-2017
    M2M Communications Market: Laptops/Netbooks/Notebooks/Tablets (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues (U.S.), 2009-2017
    M2M Communications Market: Competitive Structure (U.S.), 2011

Chapter 4

    M2M Communications Market: Cellular M2M Connections in the Consumer Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Consumer Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Consumer Segment (U.S.), 2009-2017

Chapter 5

    M2M Communications Market: Cellular M2M Connections in the Transportation and Telematics Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Transportation and Telematics Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Transportation and Telematics Segment (U.S.), 2009-2017

Chapter 6

    M2M Communications Market: Cellular M2M Connections in the Financial Services and Retail Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Financial Services and Retail Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Financial Services and Retail Segment (U.S.), 2009-2017

Chapter 7

    M2M Communications Market: Cellular M2M Connections in the Healthcare Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Healthcare Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Healthcare Segment (U.S.), 2009-2017

Chapter 8

    M2M Communications Market: Cellular M2M Connections in the Utilities and Industrial Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Utilities and Industrial Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Utilities and Industrial Segment (U.S.), 2009-2017

Chapter 9

    M2M Communications Market: Cellular M2M Connections in the Security Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Security Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Security Segment (U.S.), 2009-2017

Chapter 10

    M2M Communications Market: Cellular M2M Connections in the ‘Others’ Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the ‘Others’ Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the ‘Others’ Segment (U.S.), 2009-2017

LIST OF CHARTS

Chapter 1

    M2M Communications Market: Market Segmentation (U.S.), 2011
    M2M Communications Market: M2M Categories and Sub-Categories (U.S.), 2009-2017
    M2M Communications Market: Methodology for Estimating the M2M Data Access Revenues (U.S.), 2009-2017
    M2M Communications Market: Cellular M2M Connections (U.S.), 2009-2017
    M2M Communications Market: Consumer and Enterprise Connections (U.S.), 2009-2017

Chapter 2

    Key Market Trends in U.S. Cellular M2M Communications Market
    M2M Communications Market: Pricing for 2G/2.5G, 3G/3.5G and 4G Modules (U.S.), 2009-2017

Chapter 3

    M2M Communications Market: Cellular M2M Connections (U.S.), 2009-2017
    M2M Communications Market: Consumer and Enterprise Connections (U.S.), 2009-2017
    M2M Communications Market: Laptops/Netbooks/Notebooks/Tablets (U.S.), 2009-2017
    M2M Communications Market: M2M Connections by 2G/2.5G and 3G/3.5G/4G Protocols (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues (U.S.), 2009-2017
    M2M Communications Market: Total Data Access Revenues by M2M Verticals (U.S.), 2009-2017
    M2M Communications Market: Mobile Operator Market Share by M2M connections (U.S.), 2010

Chapter 4

    M2M Communications Market: Cellular M2M Connections in the Consumer Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Consumer Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Consumer Segment (U.S.), 2009-2017

Chapter 5

    M2M Communications Market: Cellular M2M Connections in the Transportation and Telematics Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Transportation and Telematics Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Transportation and Telematics Segment (U.S.), 2009-2017

Chapter 6

    M2M Communications Market: Cellular M2M Connections in the Financial Services and Retail Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Financial Services and Retail Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Financial Services and Retail Segment (U.S.), 2009-2017

Chapter 7

    M2M Communications Market: Cellular M2M Connections in the Healthcare Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Healthcare Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Healthcare Segment (U.S.), 2009-2017

Chapter 8

    M2M Communications Market: Example of Smart Grid Architecture (U.S.), 2011
    M2M Communications Market: Cellular M2M Connections in the Utilities and Industrial Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Utilities and Industrial Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Utilities and Industrial Segment (U.S.), 2009-2017

Chapter 9

    M2M Communications Market: Cellular M2M Connections in the Security Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the Security Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the Security Segment (U.S.), 2009-2017

Chapter 10

    M2M Communications Market: Cellular M2M Connections in the ‘Others’ Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Consumption in the ‘Others’ Segment (U.S.), 2009-2017
    M2M Communications Market: M2M Data Access Revenues in the ‘Others’ Segment (U.S.), 2009-2017