Major Trends in the Global System on a Chip and Mobile M2M Module Markets


The Mobile World Congress has wrapped up for another year, leaving in its wake a slew of new gadgets for the tech community to moon over. Smartphones and accessories definitely took center stage at the event, but some interesting announcements from other spheres in the mobile world shouldn’t be overlooked.

Two popular topics at the congress this year were mobile M2M as well as system on a chip technology. On the heels of major announcements in these categories, TechNavio experts have compiled a list of influential trends that are paving the way for growth in these markets.

System on a Chip (SoC)


What is it?

SoC is an integrated circuit that combines all necessary electronic components into a single microchip. These act as power stations for small and complex electronic devices such as smartphones, tablets, and portable gaming devices.

Market Projection

The Global SoC Market is posting a CAGR of 10.6 percent from 2014-2018.

Major Market Trends

  • Increased R&D Spending

SoC vendors such as Broadcom, Qualcomm, and Intel have already invested a considerable amount of time and money in their R&D department for the expansion of their product portfolio. In fact, Broadcom Corporation showcased the industry’s first 5G WiFi, Multiple Input Multiple Output (MIMO) SoC for smartphones, called the Broadcom BCM4354 at the Mobile World Congress this year.

  • Increased Production Capacity

Another major trend witnessed in the Global SoC market is the increase in production capacity. It is a classic supply and demand scenario—increasing global demand for SoCs mean that semiconductor companies are looking to increase their production capacity to meet this high demand. Major semiconductor vendors such as Qualcomm, STMicroelectronics, Broadcom, and Texas Instruments are either expanding their portfolios or investing directly/indirectly in new facilities to meet market demand.

  • Miniaturization of Electronics

The electronics industry is getting smaller. Well, their products are, at least. Miniaturization of electronics is a major trend, as can be seen in the ever-increasing number of sleek smartphones, smart watches and wearables popping up at trade shows (including many at MWC 2014). Almost all industry segments, including automotive, healthcare, and industrial vendors are following the trend, which has led to a high demand for compact SoCs.

  • Rapid Technological Advancement

Vendors in the Global SoC market are continually adding new features and launching innovative products in the market. Technological advancements mean that SoCs are displaying high performance, less power consumption, and more energy efficiency than ever before.


Mobile M2M Modules


What is it?

Very simply, M2M allows machines to communicate with each other. Devices can permit cellular access by linking through a separate M2M communication terminal, by incorporating a mobile M2M module or by adding cellular chipsets at the design stage.

Market Projection

The Global Mobile M2M Module Market is posting an impressive CAGR of 16.21 percent 2014-2018.

Major Market Trends

  • Declining Average Price of Mobile M2M Modules

One of the major trends that the market is witnessing is the sharp decline in the average selling price of mobile M2M modules. Despite the consistent growth in the total unit shipments from 2010, the average price is expected to decline significantly from 2014 to 2018. While module makers face challenges from both competing vendors and the inclination toward commoditization, the decline in the unit price is increasing the addressable market for mobile M2M connectivity.

  • Increased Adoption of 3G-enabled Mobile M2M Modules

3G technology is currently considered to be an essential element for advancing socioeconomic development worldwide, and it will be significant in the Mobile M2M Modules market. It is estimated that the 3G-enabled mobile M2M module shipments will increase from 20.00 million units in 2013 to 120.60 million units by 2018.

  • Increasing Number of Mergers and Acquisitions

Global Mobile M2M Modules is still a small, niche market, but rapid projected growth over the next few years will attract several new companies. The market could also witness many acquisitions by companies seeking to increase their market share. Sierra Wireless Inc., one of the leading M2M module providers, has achieved leadership mainly through the acquisition of Wavecom, Junxion, Sagemcom, and Airlink Communications. Similarly, Gemalto acquired Cinterion to enhance its position in the Global Mobile M2M Module Market.

  • Varied Demand and Growth in Different Geographies

Europe is witnessing large-scale adoption of mobile M2M technology with the largest applications in terms of volume generally being developed in response to local conditions. For example, Sweden and Finland, Europe’s top two consumers of electricity per capita, mainly use point-to-point GPRS for smart metering while Germany has deployed a national road toll system for trucks using GSM/GPS tracking. This compared to the Americas, where the adoption of wireless M2M modules is mainly concentrated in the automotive industry. This kind of varied demand and growth in different geographies is a trend that will propel the growth of the market during the forecast period.

For more insights into both these markets, view our Global System-on-Chip (SoC) Market 2014-2018 and Global Mobile M2M Module Market 2014-2018 reports.

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