Sierra Wireless Claims Global M2M Leadership

Sierra Wireless says it has dramatically expanded its market share for embedded modules and standalone wireless terminals, and is now the worldwide market leader in cellular Machine-to-Machine (M2M) communication devices.

Building on the acquisition of Wavecom in March 2009, Sierra Wireless M2M communication devices – including AirPrime Intelligent Embedded Modules and AirLink Intelligent Routers and Gateways – enjoyed "significant revenue growth" throughout 2009 and continue to gain momentum in 2010.

M2M product revenues totaled $221 million for the full year of 2009 (42 percent of total Sierra Wireless sales), representing the highest revenue of any cellular M2M communication product supplier in the world, Sierra says. In the first quarter of 2010, M2M product revenue increased further to $88.7 million, nearly tripling from the first quarter of 2009, and now accounts for more than half of Sierra Wireless’ total sales.

.“Before the acquisition, Sierra Wireless and Wavecom combined held the number two position in the market,” said Yoko Kaneko, analyst with Techno Systems Research. “As the company has expanded in the past year, its combined revenue from embedded modules and standalone wireless gateways has made it the indisputable market leader in cellular M2M communication worldwide.”

“We forecast strong market growth for cellular M2M devices over the next several years, as M2M continues to expand from traditional industrial applications to more consumer-facing devices, such as e-book readers and personal navigation devices,” said Tobias Ryberg, senior analyst at Berg Insight.

“I am extremely pleased with the growth we have achieved since our acquisition of Wavecom last year,” said Jason Cohenour, President and Chief Executive Officer, Sierra Wireless. “The integration has been very successful, and the synergies created from our respective product portfolios and market positions are now producing tangible results.

"We believe that our strong cash position and the fact that we are debt-free is a considerable advantage in the cellular M2M market, where the financial stability of suppliers is important to customers whose development cycles are usually long and investments often significant.."