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E sample 2012 2013 data card & m2 m module market
1. Multi-Client Marketing Report
Techno Systems Research
2012-2013 Cellular Data Card
& M2M Module Market
March 2013
Techno Systems Research Co., Ltd.
TSR Bldg., 7-4 Iwamoto-cho 3-chome,
Chiyoda-ku, Tokyo 101-0032
Tel: +81-3-3851-5651, Fax: +81-3-3866-4503
www.t-s-r.co.jp, info@t-s-r.co.jp
2. 《Purpose》
・ “2012-2013 Cellular Data Card & M2M Module Market” was published to help make informed
decisions for marketing strategies. This report focuses on cellular data card, embedded module, M2M
market, vendor trends.
・ This report is for the use of participating companies, which have contributed to this research report
and is prohibited for the use of outside sources.
(If you will quote report contents for the use of outside sources, please inform in advance)
《Note》
・ The data of the report, such as market expectation and market share, has some gap with the actual
number of semiconductor shipment, as the data of the report is based on the shipment quantity of the
end products.
・ The data in this report was conducted by TSR through independent survey and analysis.
・ In regards to the units used within this report, quantity is referred as M units/pcs (Million units or
pieces), US$ amounts in MUSD (Million US$: 1,000,000 US dollars).
・ Annual quantity is counted using January to December calendar year (CY).
・ Calculations are rounded up to the two decimal places. Please be advised that total market share
calculations may differ by 0.1 – 0.2 due to rounding.
・ “Mobile Computing” refers to Data Card, Mobile Router, modem embedded tablet/Notebook
All trademarks are the property of their respective owners.
All rights are reserved. No part of this publication may be reproduced in any form or by any means,
electronic, photocopying, recording or otherwise, without prior consent of the copyright owner.
While every care is taken to ensure that the data published in this report are accurate, TSR cannot accept
responsibility for any omissions or inaccuracies appearing or for any consequences arisen from the use of
this report.
3. Annotation
Standard
HSDPA: High Speed Downlink Packet Access, 3GPP Release 5
HSUPA: High Speed Uplink Packet Access , 3GPP Release 6
HSPA +: High Speed Packet Access Evolution, also called HSPA Evo, 3GPP Release 7
DC HSPA: Dual Cell High Speed Packet Access
FDD-LTE (LTE): Frequency Division Duplex-Long Term Evolution, 3GPP Release 8
TD-SCDMA: Time Division-Code Division Multiple Access, Chinese 3G standard
TDD-LTE: Time Division Duplex-Long Term Evolution, Chinese 3.9G standard
Product
CPE: Customer Premises Equipment (=Router/ Gateway)
Data Card: USB Modem/ PC Card (Express Card)
DPF: Digital Photo Frame
M2M: Machine to Machine
PC: Personal Computer (Notebook/Netbook)
Company
IFX: Infineon
MTK: MediaTek
NSN: Nokia Siemens Networks
STE: ST-Ericsson
Table/ Graph
CY: Calendar Year
M: Million/ 1,000,000
USD: US Dollar
GR%: Growth Rate
D.R.%: Decrease Rate
4. Table of Contents
1. Summary
1.1. Highlight..............................................................................................................................................1
1.2. Cellular Data Card & Module Market Forecast 2011-2017 ................................................................2
1.3. Cellular Mobile Computing Market Forecast......................................................................................4
1.4. Cellular M2M Market Forecast...........................................................................................................5
1.5. Smartphone Tethering..........................................................................................................................6
1.6. LTE for Non-handset Market Forecast 2011-2017..............................................................................8
1.7. LTE-Advanced in Mobile Computing.................................................................................................9
1.8. Mobile Computing + M2M Module Vendor Positioning ..................................................................10
1.9. Non-handset Cellular Modem Chip Vendor Positioning ................................................................... 11
2. Network and Operator
2.1. Cellular Standard Roadmap...............................................................................................................12
2.2. Mobile Subscriber Forecast Mobile Subscriber Forecast. .................................................................14
2.2.1. Non-Handset Mobile Subscriber ....................................................................................................14
2.2.2. Mobile Subscriber Forecast by Standard........................................................................................16
2.3. LTE Network Deployments by Major Mobile Operators..................................................................18
3. Mobile Computing
3.1. Mobile Computing ............................................................................................................................22
3.2. Mobile Computing Market Forecast by Application 2011-2017 .......................................................23
3.3. Smartphone-Tethering .......................................................................................................................26
3.3.1. Market Forecast Change after Smartphone Tethering ....................................................................26
3.3.2. Tethering plan from major mobile operators..................................................................................28
3.4. Mobile Computing Market Forecast by Area 2011-2017 ..................................................................29
3.5. Mobile Computing Market Forecast by Cellular Standard 2011-2017..............................................31
3.6. LTE in Mobile Computing Market 2011-2017..................................................................................33
3.6.1. LTE Penetration Ratio in Total Mobile Computing Device Shipments 2011-2017........................33
3.6.2. LTE Attach Ratio Forecast by Applications 2011-2017..................................................................34
3.6.3. LTE Market Forecast by Duplex Method 2011-2017.....................................................................35
3.6.4. LTE-Advanced Market Forecast 2011-2017 .............................................................................37
3.6.5. LTE-Advanced Market Forecast by Area 2011-2017 .....................................................................39
3.6.6. LTE-Advanced Market Forecast by Application 2011-2017 ..........................................................40
3.7. Cellular Tablet Attach Ratio Forecast 2011-2017 .............................................................................41
3.8. Cellular Notebook PC Attach Ratio Forecast 2011-2017 ..................................................................43
3.9. Device Vendor Share .........................................................................................................................44
3.9.1. Mobile Computing Device & Module............................................................................................44
3.9.2. Data Card........................................................................................................................................45
3.9.3. Mobile Router.................................................................................................................................45
3.9.4. Embedded Module....................................................................................................................................... 46
4. Other Cellular Device Market
4.1. Router/ Gateway (CPE).....................................................................................................................47
4.1.1. Product ...........................................................................................................................................47
4.1.2. Market Forecast..............................................................................................................................47
4.1.3. Major Device Vendor......................................................................................................................48
4.2. FWT (Fixed Wireless Terminal)/ FWP (Fixed Wireless Phone)........................................................49
7. 2012-2013 Cellular Data Card & M2M Module Market
Copyright Techno Systems Research Co., Ltd.
Unauthorized reproduction or disclosure prohibited by applicable laws. 1
1.1. Highlight
<Non-Handset CellularModem Market>
Cellular Modem is not only used for handsets, but also used in mobile broadband, M2M, fixed broadband. Non handset
cellular modem market is roughly 200M units, accounting for about 9% of total cellular modem market.
Market growth rate of non-handset cellular modem is higher than that of mobile phone, but market trend differs by
application. Mobile broadband device is stagnant. On the other hand, M2M market grows significantly.
<SmartphoneTethering merge Mobile Computing Device Market>
Mobile Computing (USB Modem, Mobile Router, Cellular Notebook PC / Tablet) market had been growing steadily until
2011, but fell sharply in 2012. In addition to the recession in Europe, smartphone tethering (smartphone used as mobile
router) service began to spread from second half of 2011, and affected the demand for Mobile Router and USB Modem.
Currently smartphone tethering is promoted by mobile operator in developed countries such as US and Japan. It will
continue to spread to other regions in the future.
The spread of smartphone tethering will increase the total user of mobile computing. Demand of data-centric device such
as USB modem and mobile router will be limited for heavy users.
<Automotive and Smart Meterdrive CellularM2M Market>
Cellular M2M Module is being used in various applications, but automotive and smart meter takes up much of the market
and has high growth potential.
Smart Meter is being promoted by government and power companies. The market will grow in China, Europe, Japan, and
Southeast Asia in the coming years and stable demand over a long period of time can be expected. In the automotive
sector, fleet management applications are currently expanding. Regulations such as e-call / ERA-GLONASS are expected
to expand the cellular module demand in the long term.
<LTE>
LTE is a big trend in Mobile Computing. LTE spread is fast in Mobile Computing market; 23% of the total in 2012, 80%
of total by 2016. 2G accounts for majority in cellular M2M market due to importance of network coverage rather than
data speed. LTE M2M will be deployed to LTE dedicated mobile operator from 2013.
<DeviceVendor>
In the Mobile Computing market, due to market stagnation and concentration of market share by Huawei and ZTE,
Ericsson, Novatel (PC module), Sierra Wireless, LG Innotek are withdrawing. Overconcentration and consolidation
progresses.
On the other hand, M & A is active in the field of M2M Module. There are emerging vendors such as Telit and ublox.
Module vendor like Sierra Wireless and Gemalto is not limited to the development of module but are also focused on
M2M platform and managed service.
9. 2012-2013 Cellular Data Card & M2M Module Market
Copyright Techno Systems Research Co., Ltd.
Unauthorized reproduction or disclosure prohibited by applicable laws. 3
Cellular non-handset market is composed of mobile computing, M2M module, consumer electronics, and fixed wireless
device.
The total cellular modem size (Handset + Non-handset) was 2,126M units in 2012 and expand to approximately 2,612M
units by 2017. Cellular non-handset market accounted for 9% of total cellular market in 2012 and 11% by 2017.
Cellular Non-Handset market was 199M units in 2012 and will expand to 282M units in 2017. Currently mobile
computing (data card + mobile router + cellular embedded PC + cellular embedded tablet) accounts for 56% of the market.
M2M (machine to machine) is expected to expand in the future. M2M market size was 51M units in 2012 and will reach
111M units in 2017.
10. 2012-2013 Cellular Data Card & M2M Module Market
Copyright Techno Systems Research Co., Ltd.
Unauthorized reproduction or disclosure prohibited by applicable laws. 4
1.3. CellularMobile Computing Market Forecast
Mobile computing market expanded from 2008 to 2011, but greatly reduced in 2012. Recession in Europe, tethering in
developed countries are main factors of market decline.The market will remain flat.
While data card market continues to shrink, the convenient mobile router market will expand. Mobile Router market will
overtake data card market size in 2015.
Cellular embedded tablet and notebook PC is costly and the modem attach rate is low. There are demand for cellular tablet
and cellular notebook for enterprise but the market size is small.
There are high demand for high-speed communication in mobile computing, and the spread of LTE is fast. US and Japan
is ahead in the spread, accounted for 22.4% of the market. LTE will be account for 83.5% of total shipments in 2017.
Cellular Mobile Computing Device Market Forecast, 2011-2017
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2011 2012F 2013F 2014F 2015F 2016F 2017F
MUnits
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
LTEratio
Cellular Notebook PC
Cellular Tablet
Mobile Router
Data Card
LTE %
・Tethering in devloped
countries
・Economic slowdown
Growing Mobile Router
11. 2012-2013 Cellular Data Card & M2M Module Market
Copyright Techno Systems Research Co., Ltd.
Unauthorized reproduction or disclosure prohibited by applicable laws. 5
1.4. CellularM2M Market Forecast
Cellular M2M Module market size was 51M units in 2012 and will reach to 111M in 2017. Although cellular M2M
market is affected by the legislation and economic situation, it has been adopted in various fields, and steady growth is
expected.
In 2012, transportation (Fleet Management mainly), metering (smart meter in China) grew substantially. Smart meter will
show continuous growth in China, Japan and East Asia. Demand for transportation module will greatly expand by the
impact of legislation in 2014-2015
While many cellular M2M application uses small amounts of data, network coverage is important. In addition, it is price
sensitive, therefore a high proportion are 2G. LTE will rise from 2013, and will be adopted by operators which will
terminate legacy network, and applications that require high-speed communication such as telematics. LTE ratio will
exceed 10% in 2017.
Cellular M2M Market Forecast by Vertical, 2011-2017
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2011 2012 2013 2014 2015 2016 2017
MUnits
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
LTERatio
Remote Maintenace & Control
Industrial Computing
Security
Payment
Health Care
Metering
Transportation
LTE %
Steadily growing Smart Meter: Europe, China, Japan, Asia
E-call initiative
launch
12. 2012-2013 Cellular Data Card & M2M Module Market
Copyright Techno Systems Research Co., Ltd.
Unauthorized reproduction or disclosure prohibited by applicable laws. 6
1.5. SmartphoneTethering
Tethering Hurdles
- Consumes smartphone battery
- Carrier support/promotion
Tethering Effect
- Data Card/Mobile Router demand decrease ⇒ mobile data subscription decrease
- Flat rate data plan ⇒ Pay as you go
- Convenient to use ⇒ Increase of light user
Tethering is a service that uses the smartphone as mobile router. Since 2011, North America, Japan, United Kingdom and
such began to offer tethering service. Tethering is supported on major mobile OS, and mobile operator deployment is the
key to the spread.
The spread of the smartphone tethering will decrease the demand for dedicated data communication devices. Market
growth of data card/mobile router are flat or slightly decline from 2012 in US and Japan where tethering service is
deployed. On the other hand, tethering lowers the hurdle for mobile broadband, therefore total user will increase.
The challenge for smartphone tethering is battery consumption.Therefore, the demand for dedicated device will remain.
WiFi
WiFi
LTE router
function
Tethering increase in 2012
13. 2012-2013 Cellular Data Card & M2M Module Market
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Unauthorized reproduction or disclosure prohibited by applicable laws. 7
<Smartphone has been merging various dedicated mobile devices>
<Tethering Impact to Mobile Computing Market>
Mobile computing market forecast declined significantly compared to the forecast in 2011. In 2011, data card and mobile
router market was growing and was expected to expand.To 200M units in 2015
Smartphone affects on Dedicated Device
0
400
800
1200
1600
2010 2011 2012 2013 2014 2015 2016 2017
MUnits
Smartphone shipment volume
Rich features/Router function
integrated into smartphone
Dedicated device market
decrease
Market Forecast Change after Smartphone-Tethering
0.0
50.0
100.0
150.0
200.0
250.0
2011 2012 2013 2014 2015 2016 2017
Datacard+MobileRoutershipment
0.0
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
1,600.0
Smartphoneshipment
Smartphone Forecast (as of 4Q2012)
Data Card + Mobile Router (as of 2011)
Data Card + Mobile Router (as of Jan 2013)
Smartphone -
tethering
Impact
Continuous Recession
The current forecast is 30% down in 2012.The market will be flat from 2013 affected by smartphone tethering.
14. 2012-2013 Cellular Data Card & M2M Module Market
Copyright Techno Systems Research Co., Ltd.
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1.6. LTE forNon-handset Market Forecast 2011-2017
M Units
2011 2012 2013 2014 2015 2016 2017
Cellular Non-handset 230.3 198.6 211.1 228.1 255.1 268.6 281.9
LTE 5.2 25.7 44.1 62.2 84.4 107.3 130.1
LTE % 2.2% 12.9% 20.9% 27.3% 33.1% 40.0% 46.1%
Mobile Computing 4.9 24.9 42.0 57.7 73.1 86.4 96.2
M2M 0.0 0.0 0.1 0.4 2.5 6.6 11.2
Others (Router) 0.2 0.8 2.0 4.2 8.8 14.3 22.7
LTE in cellular non-handset market will expand mainly in mobile computing market. LTE market size was 26M in 2012
and will rise to 44M units in 2013.
US and Japan will be the main market for LTE in 2013. From 2014, LTE will spread in China and Europe. Australia and
Hong Kong will all grow. (South Korea is also a market where LTE spreads fast, but mobile computing demand is very
small.)
Other than mobile computing, LTE fixed router will spread in developing countries such as India, China, Russia, and
SouthAmerica
LTE for Non-handset Market Forecast, 2011-2017
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
2011 2012 2013 2014 2015 2016 2017
MUnits
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
Others (Router)
M2M
Mobile Computing
LTE % of Cellular Non-handset
15. 2012-2013 Cellular Data Card & M2M Module Market
Copyright Techno Systems Research Co., Ltd.
Unauthorized reproduction or disclosure prohibited by applicable laws. 9
1.7. LTE-Advanced in Mobile Computing
M Units
2011 2012 2013 2014 2015 2016 2017
Cellular Mobile Computing 141.9 108.5 111.1 112.2 113.7 114.4 114.5
3G 137.0 83.6 69.2 54.5 40.5 28.0 18.3
LTE 4.9 24.9 40.7 52.1 60.8 62.4 57.9
LTE-Advanced 0.0 0.0 1.3 5.6 12.3 24.0 38.2
3G 96.5% 77.0% 62.2% 48.6% 35.7% 24.4% 16.0%
LTE 3.5% 23.0% 36.6% 46.4% 53.5% 54.6% 50.6%
LTE-Advanced 0.0% 0.0% 1.2% 5.0% 10.8% 21.0% 33.4%
LTE-Advanced (including carrier aggregation) in mobile computing will be deployed from 2013 and spread further from
2015. LTE-Advanced provides faster data speed, but RF circuit will be complicated and device cost will be higher.
South Korean operator and AT&T are leading LTE-Advanced operators. Verizon follows by introducing the service in
2014. Since South Korean mobile computing demand is small, US operators will lead the LTE-Advanced mobile
computing market.
Japan and Europe will deploy LTE-Advanced after 2015.
LTE-Advanced in Mobile Computing, 2011-2017
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
2011 2012 2013 2014 2015 2016 2017
MUnits
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%
LTE-Advanced
LTE
3G
LTE-Advanced %
* LTE-Advanced includes Rel.9 Cat4+Carrier Aggregation
16. 2012-2013 Cellular Data Card & M2M Module Market
1.8. Mobile Computing + M2M ModuleVendorPositioning
Mobile Computing
Data Card Mobile Router
Embedded
Module
M2M Remarks
Huawei ◎ ◎ ○ △
- Market leader in mobile computing
- Expanding M2M market outside China in the last year.
Sierra Wireless △ ○ △ ○
- exit from Mobile Computing (Data card and Mobile Router) business
- Expanding M2M business by acquiring Wavecom and Sagemcom
ZTE
○
○ △ △
- Has a high share in mobile computing following Huawei.
- Faces difficulty in embedded module and M2M for lack of support.
Gemalto × × × ○
- Former Cinteiron (former Siemens). Industrial M2Mbusiness only.
- Strengthening platform business after being acquired by Gemalto.
Novatel Wireless △ ○ △ △
- Pioneer of mobile router(MiFi)Revenue dependent on the N.American market.
-Acquired Enfora for M2M business.
Telit × × × ○
- M2M business only. Sales to US market expanded from acquiring Motorola.
- Increasing presence inAsian market as well. High 2G ratio.
SIMCom △ △ △ ○
- Main business in China, India, Russia facing price competitiveness.
- Low moduleASP
LG Innotek × × △ △
- Main business is telematics.
- Will soon enter the embedded module market
ublox × × × △
- Entered M2M market in 2010.
- Expanding business mainly in Fleet using connections from GPS business.
Foxconn × × ◎ ×
- Producing cellular modules as part of EMS business for iPad.
Ericsson × × △ ×
-Announced to exit the embedded module market at end of 2011.
- Currently looking for a buyer of the business.
Embedded Module: Modules for Tablets/Notebook/Ultrabook
Market Share: ◎: >30%, ○: 10-30%, △: 0-10%, ×: None
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17. 2012-2013 Cellular Data Card & M2M Module Market
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1.9. Non-handset CellularModem ChipVendorPositioning
Computing +
M2M
Mobile
Computing
M2M Remarks
Qualcomm ◎ ◎ ○
- Dominant in LTE market
-Increase competition with In-house baseband modem
Intel ○ △ ◎
- Gain market share in M2M segment
- LTE is slow
HiSilicon ○ ○ △
- Lead LTE modem development
- Gain share inside Huawei
ST-Ericsson △ △ ○
- Stable in M2M space
- Introduce LTE modem in 2013
MediaTek △ △ ○
- 2G modem increase in China M2M market
NVIDIA △ △ ×
- Delay LTE development
- Focus more to Smartphone
GCT △ △ ×
- Lead in single mode LTE market, niche
- Increase greenfield operators
Renesas Mobile △ △ ×
- Enter LTE market in 2012-2013
Spreadtrum △ △ ×
- TopTD-SCDMAmodem vendor
- Introduce LTE modem in 2013
Marvell △ △ ×
- Focus China Market
- TD-SCDMAdata market shrinks
Altair △ △ ×
- First to introduce LTE-Achipset - Less competition than multimode LTE market
- Targeting future LTE M2M market
Sequans △ △ ×
- Less competition than multimode LTE market - India and China LTE market grow
- Targeting future LTE M2M market
Market Share: ◎: >30%, ○: 10-30%, △: 0-10%, ×: None
18. Multi-Client Market Report All Rights Reserved
『2012-2013 Cellular Data Card & Module Market』
Techno Systems Research Co., Ltd
Tel: +81-3-3851-5651 Fax: +81-3-3866-4503
TSR Bldg., 7-4, Iwamoto-cho 3-chome, Chiyoda-ku, Tokyo 101-0032
Price:
Japanese report, Hardcopy only: JPY 300,000-
Japanese report, Hardcopy + PDF: JPY 390,000-
English report, PDF File: USD 4,500-
Publication Date:
Japanese: February 13, 2013
English March 8, 2013
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