The World Cellular M2M Market Technologies and Market Forecasts up to 2025

SMART VERTICALS & IOT Project leader Samuel ROPERT M20310SRA - November 2020 +33 (0)4 67 14 44 77 [email protected]

The World Cellular M2M Market Technologies and market forecasts up to 2025

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www.idate.org Samuel Ropert - Head of "Smart Verticals & IoT practice" Project leader

Samuel has been an IDATE Consultant since early 2007. He lends his technological expertise in connected devices, including M2M and the Internet of Things, to his many assignments. He is the lead IDATE IoT market expert. His activities focus specifically on technological and marketing innovations. With the vertical development of M2M and IoT markets, Samuel has cultivated an extensive knowledge of the various vertical supply chains (including industrial ones), for both market reports and consulting assignments. Prior to IDATE, Samuel worked as a consultant for NPA Conseil, a French media consulting company. He graduated from the Ecole Nationale Supérieure des Télécommunications de Bretagne. Samuel also holds a Master degree in both Politics from Sciences-Po Rennes and Physics from the Université de Bretagne-Sud.

Nikita Vlasov - IoT Consultant Contributor

Nikita joined IDATE in April 2018 as a consultant of the company’s Innovation Business Unit. He works on various topics with a major focus on IoT and internet markets, business models and policies. He also benefited from his Russian origin to conduct a study on Digital Russia – an overview and analysis of the country’s digital ecosystem and its potential development. Nikita pursued his studies in international economics and management in Ural Federal University in Russia. Before he obtained his bachelor degree in 2016, he successfully passed a semester as an exchange student in management in Telecom Ecole de Management in Evry. He arrived in France for the second time in September 2016 to complete a MSc. program in economics in Paris 1 University. He later graduated in Digital Economy and Innovation from Paris-Dauphine University.

Enlighten your digital future! © IDATE DigiWorld 2020 – p. 2 The World Cellular M2M Market Technologies and market forecasts up to 2025

Synopsis & Key questions Players analysed

.This report analyses the overriding trends and changes taking > Hardware / module market .NTT DoCoMo .KPN place in the cellular M2M market around the globe. .Sierra Wireless .Matooma .Gemalto .It explores the driving forces behind the market’s growth and .Transatel .Telit transformation, including a review of major market developments. It .Huawei provides volume and value forecasts up to 2025 for five distinct > IT /platforms market .u-blox regions comprising 29 countries overall. .PTC ThingWorx .SIMCom .IBM Watson .Altair .It also presents the quantitative evolution of cellular modules. .Microsoft Azure > Communication market .Cisco Jasper .AT&T .Verizon .Forecasts up to 2025 by region and by country: .China Mobile - Revenues for connectivity segments .Orange - Installed base of M2M subscribers .Vodafone .Telefónica .Deutsche Telekom .1NCE .Telstra

Enlighten your digital future! © IDATE DigiWorld 2020 – p. 3 Contents The World Cellular M2M Market - Technologies and market forecasts up to 2025

1. Executive Summary 3. Cellular market sizing 2. Market Structure 3.1. Drivers and barriers 3.2. The M2M cellular market 2.1. Market value chain 3.3. M2M module base is growing very fast – but very heterogeneously too… 2.2. Hardware/module market 3.4. … as with connectivity market revenues 2.3. Communication market 3.5. Geographical breakdown 2.3.1. Today many technologies are designed for IoT … 2.3.2. … but LPWA will compete with LTE IoT versions 3.6. How the technologies break down: 2G, 3G, 4G and 5G 2.3.3. Unlicensed Low-Power Wide-Area technologies 2.3.4. IoT-specific networking technologies over cellular networks 4. Overview of main players by market segment 2.3.5. LPWAN adoption by traditional MNOs 4.1. Hardware/module market 2.3.6. 5G will gain foothold in the near future too Huawei // Sierra Wireless // Telit // u-blox 2.3.7. 5G IoT Timeline 4.2. Communication market 2.3.8. Impact on telco strategies AT&T // China Mobile // Deutsche Telekom // 1NCE // KPN // Matooma // 2.3.9. Overview of main market players NTT DoCoMo // Orange // Telefónica // Telstra // Transatel // Verizon // Vodafone 2.3.10. MVNO, MVNE and MVNA 4.3. IT/platforms market 2.4. IT/platforms market IBM Watson // Microsoft Azure // PTC ThingWorx 2.4.1. Key trends in the IT/software segment 2.4.2. Rise of the IoT platforms 2.4.3. Connectivity and device-management IoT platforms About IDATE DigiWorld

Enlighten your digital future! © IDATE DigiWorld 2020 – p. 4 Tables & Figures The World Cellular M2M Market - Technologies and market forecasts up to 2025

2. Market structure . A combination of value chains . Main player positions towards technology, compared . Mapping of key technologies, by data rate and by range . Technical elements for each LPWAN technology . Deployment details, by technology . ISM bands sample . ISM bands analysis (for European region) . Cellular standards embracing IoT . IoT module cost, by type of technology . Detailed LPWAN technology selection by traditional MNOs, worldwide . Key differences between Massive MTC and Critical MTC . Requirements of massive IoT networks and time-critical networks in 5G specifications . 5G IoT timeline . Main market players in North America and Europe . Main market players in Asia-Pacific . Business relations between MNOs and MVNO/MVNE/MVNA . IoT platform types described in brief

3. Cellular market sizing . World M2M cellular market, 2019-2025 (million modules) . World M2M cellular connectivity market, 2019-2025 (billion EUR) . Cellular M2M modules/SIMs, by region (million units) . Cellular M2M connectivity market, by region (million EUR) . M2M cellular module forecasts, in China, USA, EU5 and BRICS (excl. China) (million units) . M2M cellular modules, CAGR 2019/2025, by country

Enlighten your digital future! © IDATE DigiWorld 2020 – p. 5 03 Cellular market sizing

Enlighten your digital future! © IDATE DigiWorld 2020 – p. 26 3.5. Geographical breakdown

M2M cellular module forecasts, in China, USA, EU5 and BRICS (excl. China) (million units)

> M2M cellular modules: China is leader by far ▪ Since 2012, China has led the M2M world in volumes ▪ USA is the second M2M country in terms of cellular modules installed ▪ Other countries are far behind and the gap with China will only widen in 2025 ▪ Germany will overtake other European countries to become the world’s third largest M2M market in volume, mainly due to automotive and industrial applications ▪ Among European countries, Italy and France follow in 2025, also mainly due to automotive

Source: IDATE DigiWorld in World Cellular M2M Market, October 2020 M2M cellular modules, CAGR 2019/2025, by country

> Country breakdown: heterogeneous M2M growth worldwide ▪ Germany and Brazil are the two most dynamic markets with CAGR of xx% and xx% respectively ▪ At the same time, Saudi Arabia will show the lowest growth with CAGR of only xx%

Source: IDATE DigiWorld in World Cellular M2M Market, October 2020

Fast IoT facts > Extensive IoT offering of AT&T  71.8 million connected devices by end of June, 2020 (54 million .AT&T provides various types of IoT connectivity, platform, software and IoT-associated services in June 2019) .The company has been gradually shifting from providing simple connectivity to a wide range  32 million connected cars and 5 million fleet vehicles as of of customisable solutions with the IoT platform as a cornerstone of their offering January 2020 .Today, AT&T focus on providing end-to-end solutions  No information available on IoT revenue streams  B2B and B2C IoT offerings  Offers cellular, cellular IoT (LTE-M/NB-IoT) and satellite connectivity

End-to-end IoT offering of AT&T

Hardware Connectivity Platform Services AT&T combined approach to IoT

• Control center: • Cellular • management platform AT&T-certified IoT • Licensed LPWA (NB- • DataFlow: application • Deployment services hardware: IoT/LPWA) enablement platform • IoT consulting • Devices • Multi-Network connect: • Satellite • Managed services • Modules single access to • Private LTE for • Integration • Chipsets separate platforms utilities (Control Center, Nokia WING and others)

Un peu ancien End-to-end IoT solution comme schéma Source: AT&T, 2015 Source: IDATE DigiWorld, Key IoT Verticals, December 2019

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