Cellular M2M connections are expected to reach more than 450 million by 2018. Image credit: Viasat

[Satellite TODAY 7-29-13] In an update to ABI Research’s M2M market data, cellular M2M connections are expected to reach more than 450 million by 2018. With improving world economics, connection growth is expected to accelerate to a CAGR (Compound Annual Growth Rate) of 26 percent through 2018.

      The slower than expected migration to 3G and 4G technologies, which offer better margins per megabit of traffic, has been contributing to the declining ARPUs (Average Revenue Per User). More than 70 percent of cellular M2M connections were on 2G networks in 2012. Connection traffic and application needs have not grown enough to require 3G and 4G connections. But, another reason is disparity in M2M module pricing – 3G and 4G cellular modules are more than two times and six times more expensive than 2G modules respectively, according to ABI research.