Vodafone Barometer shows growth of M2M with projects live at 37% of firms within two years

London, UK. July 7, 2015 — Vodafone today published its third annual M2M Barometer Report, a global survey of the machine-to-machine (M2M) sector. The survey is based on interviews with 659 executives in 16 countries.

This year’s Vodafone M2M Barometer Report reveals continued strong growth in the use of the technologies, networks and services that connect a wide variety of smart devices – from household products and cars to industrial applications – to what Vodafone terms “the so-called Internet of Things” (IoT).

(Also see: Asia-Pac overtakes US in Vodafone M2M Adoption Barometer as connected consumer electronics surge, and M2M Adoption Barometer 2013 from Vodafone shows Asia Pacific will overtake Americas by 2021.)

The Vodafone M2M Barometer Report 2015 reveals that more than a quarter of all companies worldwide are now using M2M, up from 12% when Vodafone launched the first M2M Barometer report in 2013. A significant majority of early adopters are already seeing clear business advantages from M2M deployment; 81% of those surveyed have expanded their use of M2M technologies over the last year. Overall awareness of M2M and the Internet of Things increased significantly during 2014-15; 78% of all the companies surveyed – both adopters and non-adopters – told researchers that they are familiar with the new technologies.

The fastest growth in rates of adoption – up 88% year on year – is in the retail sector where typical M2M applications include in-store digital signage, smart payment systems and supply chain optimisation.

 

M2M Barometer_YoY_M2M Adoption.web

The M2M Barometer also found strong growth in the healthcare sector (up 47%) – where M2M is used for applications such as remote patient monitoring and patient record systems – and the utilities sector (up 32%), driven by the global expansion of smart metering systems to enhance energy efficiency. Meanwhile, the automotive industry continues to embed M2M as a core technology within the designs of new vehicles, with the accelerating production of so-called ‘connected cars’ accounting for a 14% year-on-year increase in M2M adoption in that sector.

 

M2M Barometer_Geographic M2M Adoption.web

Business transformation

Companies that have begun to adopt M2M technologies are already experiencing substantive benefits; 59% of early adopters reported a significant return on their investment in M2M, with a 28% year-on-year increase in the proportion of companies reporting a sizeable return on investment (RoI) impact. Businesses in the Americas that are leading in the adoption of M2M in consumer devices and smart home applications demonstrate the fastest return on investment; 41% of companies in that region reported that they had achieved a return on investment within six months. Additionally, 83% of M2M adopters stated that they had gained a competitive advantage from their M2M deployments.

The Vodafone M2M Barometer Report also found an increasing level of sophistication within many companies’ M2M applications including integration with cloud computing technologies and the advanced use of big data analytics. Companies that have invested in these services reported the greatest business impact; 69% of advanced M2M users said their companies had been fundamentally transformed by the Internet of Things.

Erik Brenneis, Vodafone Global director of M2M
Erik Brenneis: M2M … enhancing productivity and competitiveness

Vodafone Group director of Machine-to-Machine, Erik Brenneis says, “The Internet of Things is transforming more businesses faster than ever before. Machine-to-Machine technologies have as big an impact on how companies operate as the arrival of the desktop computer a generation ago, greatly enhancing productivity and competitiveness while opening up whole new fields of engineering innovation.”

Two striking results

Analysys Mason principal analyst Michele Mackenzie comments, “There are two really striking results in the Vodafone M2M Barometer Report for 2015. First, retail and healthcare stand out as sectors demonstrating considerable growth in adoption as an increasing proportion of companies transform themselves to compete more effectively in the digital economy. Second, there are some very interesting insights into the diverse measures used by companies to assess the value of M2M. There are compelling examples of cost savings; positive impacts on customer retention and the ability to unlock new revenue streams are also cited as tangible benefits that continue to drive investment in M2M.”

The survey, conducted by Circle Research, has been expanded for the 2015 report to include two new countries and small and medium size enterprises for the first time, leading to an 80% increase in interview respondents.

To download a copy of the full report click here:
http://m2m-mktg.vodafone.com/barometer2015

 

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