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T-Mobile & Siemens Wireless Modules--A New Force in M2M
London, England - March 13, 2008 - Strategy Analytics believes that T-Mobile Venture Fund's planned purchase of Siemens Wireless Modules business as part of a leveraged buy-out will create a new market powerhouse. With an estimated 30% of the global M2M (machine to machine) modules business, the total M2M market will be worth almost $40 billion dollars in 2011. This announcement is indicative of an accelerated consolidation in the M2M market.
"We are witnessing a shift whereby the silos of hardware, software, communications and services divided between hardware vendors, ISVs(independent software vendors), ASP (application service providers), Sis (system integrators) and mobile operators are being replaced by larger players capable of delivering integrated solutions," said Andy Brown, Senior Analyst at Strategy Analytics. He added, "Until now, this has been a major barrier to stronger growth in the M2M market."
Siemens Wireless Modules and T-Mobile will enter into a strategic partnership that will allow T-Mobile to offer Siemens Wireless Modules customers, alongside the existing modules business, a "one-stop shopping solution," including integrated data transmission and interfaces to existing applications.
"The combined strengths of Siemens, T-Mobile and T-Systems will speed the time-to-market and lower the cost of implementing an M2M solution. Combining the M2M Connect and M2M One offerings will produce a new influence in the M2M market. This action follows strategic moves by Enfora and Wavecom, other major module suppliers, and may result in some more dynamic acquisitions and shifts in the market in 2008. Other major mobile operators such as Telefonica, Vodafone and Orange may also look to extend relationships in this area to further penetrate the M2M market." said Andrew Brown, Director of Wireless Enterprise Strategies.
"Fragmentation has been a key barrier to growth in the M2M market. Strategic consolidation as exemplified here, and following Enfora late last year, will be a key factor in stronger M2M market growth," added David Kerr, Vice President, Global Wireless Practice.
Clients of the Strategy Analytics Wireless Enterprise Strategies Service can preview the table of contents and download the full report, "From Silos to Solutions: How T-Mobile Ventures Acquisition of Siemens Wireless Modules Signifies a Change of Direction in M2M."
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