Pyramid predicts growth for cellular M2M

The number of cellular M2M subscriptions is expected to increase almost fourfold between 2010 and 2016, from 72 million to 282 million, according to a report from Pyramid Research.

Even though this should provide operators with long-term growth potential, the report says the diversity of the market means operators may have to address many factors to take full advantage of this sizeable opportunity.

The report provides an overview of the market, including important trends and regulatory and technological developments. It analyses the value chain, how the different elements interact and the breakdown of revenue between them. This includes an evaluation of how mobile operators approach the market. There are also market sizing and forecast details, with breakdowns by region and application.

The M2M market is dynamic, serving diverse vertical industries with a range of different devices across multiple networks.

“Growth is driven by a number of different factors including new regulations, a variety of business models, innovations, falling hardware costs and technological developments,” said Pyramid Research analyst Jan ten Sythoff.

There are a number of factors that position an operator well in the M2M market.

“One of the most important is coverage,” he said. “All M2M applications require good coverage, and it is for this reason that it is typically the largest network operators that are best positioned in M2M.

“Operators with the best coverage, excellent international roaming agreements, strong platform partnerships and an established position in the business market are best placed to gain from the M2M opportunity.”

Called “The Machine-to-Machine Market: A High-Growth Opportunity for MNOs”, the publication is part of Pyramid’s thematic report series.

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