2015 Brazilian M2M Market

  • ID: 3727185
  • Report
  • Region: Brazil
  • 66 Pages
  • Frost & Sullivan
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Maturity of PoS and Fleet Management Segments Lead Wireless Carriers to Invest in New Applications and VAS
This research service on the Brazilian cellular machine-to-machine (M2M) market provides detailed market forecasts, drivers and restraints, as well as competitive analyses of participants from 2015 to 2021. It covers the top verticals in the Brazilian M2M market including finance, such as card payment point-of-sale (PoS) terminals; automotive, such as fleet management, telematics, and connected car services; and utilities, including electricity smart metering. Additionally, it provides lines in service (LIS) forecasts and market trends for each vertical.

- Machine-to-machine (M2M) communications is beginning to emerge as a relevant revenue source for telcos in Latin America and fulfill its long-promised growth potential. Withubiquitous connectivity becoming the norm globally and the Internet of Things (IoT) starting to become a reality, the time is ripe for carriers to fully invest in this innovative new business.

- M2M technology is key to guaranteeing the continued growth of telcos over the coming years, as revenues from traditional telecommunications services stagnate and convergent, verticalized solutions are expected to grow to represent X% of telcos’ global revenues by 2018.

- In Brazil, M2M has evolved into a highly competitive market using cellular technology, with the country’s top-4 wireless carriers being strong participants, together representing X% of data access revenues. M2M’s potential is clear; all of the new entrants in Brazil’s wireless market have chosen to focus on this segment, leveraging the low-cost structure enabled by the mobile virtual network operator (MVNO) model.

- In 2015, the market grew X% in local currency, ending the year at R$X million, or $X million. Lines in service reduced growth from X% in 2014 to X% in 2015, which shows that the market is becoming more mature and points to a trend of increasing average revenues per line (ARPL) in coming years, as the adoption of more advanced applications grows.

- In the meantime, demand for the service is still limited to a few basic connectivity applications, such as mobile-enabled point-of-sale (PoS) card payment terminals and as a backup for the GPS tracking of commercial vehicle fleets, which represent the bulk of currently active connections. However, the applications are dominated by a small number of large, national participants.

- This intense competition, vying for a limited number of clients, has led carriers to adopt increasingly aggressive prices, pushing margins to the limit. In order to bring ARPL back up, carriers are counting on the launch of management platforms for their M2M services. Although clients see the value of such solutions, demand and willingness to pay extra for the service is limited.

- Among fleet management service providers and some M2M brokers, telcos’ delay in offering M2M management platforms means these companies have already developed their own solutions better adapted to their needs. So far, only Vivo, Vodafone, and Porto Seguro Conecta have already launched basic solutions.

- Carriers in Brazil are also beginning to expand their portfolios for verticalized solutions, with a focus in more consumer-oriented applications such as connected cars, personal care, and smart homes.

- However, traditional applications are expected to dominate the market in the medium term, with the financial and automotive segments representing X% of lines in 2021.
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1. Executive Summary

2. Market Overview

3. Drivers and Restraints-Total M2M Market

4. Forecasts and Trends-Total M2M Market

5. Market Share and Competitive Analysis-Total M2M Market

6. Vertical Analysis

7. Conclusions and Future Outlook

8. Appendix
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- Porto Seguro Conecta
- Vivo
- Vodafone
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