Connected energy, fleet and industrial sectors are accelerating M2M growth, says Yankee Group report
By 2016, global cellular M2M connections will balloon to 313 million, says a Yankee Group analyst, as more enterprises and consumers realise business benefits and improved experiences from connected devices.
Continued consolidation in the M2M industry, lower module prices and the proliferation of 4G networks have all contributed to substantial growth expectations for both connections and revenue across both well-established and green-field vertical markets. So says analyst, John Keough (pictured) in his latest report entitled, 2012 Global Cellular M2M Forecast: Connected Energy, Fleet and Industrial Drive Accelerated Growth.
Among the reports key findings are that:
* Expectations for total M2M connections in 2015 have grown from 218.5 million to 245.3 million, an increase of 12.2%. Heavy investment from M2M ecosystem players and increased interest from enterprises have created more fertile ground for M2M growth.
* M2M creates a substantial revenue opportunity. Connectivity revenue alone will amount to a US$8.3 billion opportunity in 2016 for network operators.
* Connected energy and fleet telematics are high growth areas. Aggressive government mandates and funding in the connected energy space, and well-established business models and proven return on investment (ROI) in the fleet telematics space have created high growth potential.
* Standardisation will boost industrial application connections. Work by standards groups enables OEMs to integrate modules and distribute them with fewer geographic restrictions, a crucial factor to improve the growth outlook for industrial applications.
Companies mentioned in the new report include: ADT, Alcatel-Lucent, Allianz, Allstate, AT&T, Audi, Aviva, AXA, Cantaloupe Systems, Coca-Cola, Deutsche Telekom, Ericsson, Ford, Google, IBM, Itron, Lexus, MediaTile, Mercedes-Benz, Microsoft, OnStar, Orange, Progressive, Qualcomm, Siemens, SmartSynch, TeliaSonera, Toyota, and Verizon.