by Brianna Crandall — August 21, 2013—With intelligent networks of building control systems on the rise around the world, TechNavio has announced the publication of its new industry report, Machine-to-Machine Communication in Intelligent Buildings Market in North America 2012-2016.
TechNavio, the technology markets research platform of Infiniti Research Ltd., recognizes the following companies as the key players in the machine-to-machine (M2M) communication in intelligent buildings market in North America 2012-2016: Sierra Wireless Inc., Gemalto N.V., Telit Wireless Solutions, and SIMCom Wireless Co. Ltd.
Commenting on the report, an analyst from TechNavio’s Telecom team said, “The major trend witnessed by the market is an increase in the number of acquisitions of small and niche vendors. As the market is fragmented and has diverse segments with diverse vendors, it is poised to grow rapidly in the coming years. The market is likely to witness the entry of several new companies, both large and small, and also witness many acquisitions by companies seeking a bigger market share. Sierra Wireless, the current market leader, has achieved leadership mainly by acquiring Wavecom, Junxion, and Airlink Communications. Many small and niche players are expected to be acquired by global leaders in this emerging market.”
According to the report, the major factor driving the market is the expansion of wireless network coverage. The wireless network infrastructure is visibly an essential necessity for wireless M2M applications. In North America, where growth is predicted to be the highest in the years to come, the deployments of 3G networks, such as HSPA and HSPA+, as well as 4G networks, such as LTE, are increasing at a rapid rate.
Further, the report states that the major challenge faced by the M2M market in North America is the declining ARPU (average revenue per user) of M2M services. The service vendors are facing tough competition in the market owing to a continuous decline in the ARPU. The constantly falling ARPU not only impacts the profit margin of service providers but also creates problems for sustainability, notes TechNavio.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry, says TechNavio. The report contains a comprehensive market and vendor landscape in addition to a SWOT (strengths, weaknesses, opportunities, and threats) analysis of the key vendors.
