IoT scale and new standards drive cellular module cost reductions and OEM consolidation

30 May 2017
Report type: Research Note
Author(s): Andy Castonguay
Keywords: M2M, machine-to-machine, IoT, Internet of Things, LTE-M1, LTE-NB1, narrowband, module, cellular
Companies: Altair, AT&T, China Mobile, China Unicom, Etisalat, FlexNet, Gemalto, Huawei, Ingenu, KDDI, KPN, LoRa Alliance, Novatel, NTT DOCOMO, Orange, Qualcomm, SigFox, SIMCom, SKT, Sony, Sprint, Telefonica, Telit, Telstra, TELUS, u-blox, Verizon, Vodafone
Number of Pages: 10

The cellular M2M modules market continues to face significant change and growth due to increased IoT adoption and the aggressive commercialization of next generation modules expected in 2017. The relatively low cost LTE-M1 and LTE-NB1 modules being introduced this year will help MNOs offer more competitive module prices, expanded coverage, and advanced power saving capabilities important to the success of various IoT applications. This combination will permit MNOs to target a broader set of IoT applications across multiple verticals in a way that legacy cellular modules simply could not due to technical limitations. In parallel, the growing scale of cellular M2M connections and competition has driven down the cost of conventional cellular modules even further, making the cost of IoT deployments more attractive to enterprises. This Research Note examines the changes in key market dynamics facing the module industry and pricing for cellular modules.

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