The cellular M2M market has been growing strongly over the past five years, rising from almost 8.0 million embedded cellular modules shipped in 2003 to roughly 24.5 million modules shipped in 2007. This represents more than 32% compound annual growth rate. ABI Research believes this strong growth will continue in the coming years. We expect approximately 95 million modules to be shipped in 2013, in applications ranging from telematics to smart metering to home security alarms. A key enabling factor in this steady market growth is the increasing adaptation of traditional cellular technology to meet the specialized needs of M2M applications. This adaptation is occurring in a number of areas, which we will summarize in this Insight. They include embedded SIMs (Subscriber Identity Modules), SRW (Short-Range Wireless) integration, FOTA (Firmware over the Air), module form factors, and embedded application processing.
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