On the back of strong growth in the deployment of M2M applications, 4G LTE and its predecessor, 3G are both set to benefit as most of these applications require high speed connectivity for real-time access and to handle large data volumes that will be generated when the use of these applications become widespread. Berg Insight, an analyst firm, produced a new research report saying that global cellular M2M market has entered a period of transition from 2G to 3G/4G LTE based on the shipments of connected devices.
According to Berg, the share of cellular M2M devices connected to HSPA/LTE is expected to grow to 50% by end of 2018 from less than 20% expected end of this year. The uptrend in HSPA/LTE connected devices points to several changes within the mobile broadband space, namely the widespread deployment of LTE in developed countries and some regions in Asia Pacific, increased subscriptions in 4G LTE to cater for the rich content accessed by today's mobile users and also the advanced M2M applications that require high speed connections for both device connectivity and also for end-user access to control and monitoring applications.
Berg said that by 2017, the shipments of 3G/4G connected devices will overtake the 2G connencted devices with HSPA dominating the interim period until LTE connected M2M devices become more affordable. Berg cited the recent move by AT&T, a leading communications service provider in the United States, to phase out its 2G services as one of the contributing factors in influencing device makers to move away from 2G to 3G and 4G LTE.
"Firstly, there is a general trend towards higher data consumption for most traditional M2M applications.Secondly, the automotive industry is getting very serious about realizing the vision of connected cars, which require mobile broadband connectivity. Early adopters such as GM and Audi recently introduced their first car models with embedded LTE in the US"
- Tobias Ryberg, Senior Analyst, Berg Insight