3G and LTE expansion will enhance global M2M and connected devices market, says Technavio
Technavio research analysts are forecasting positive growth for many segments of the global M2M and connected devices market over the next four years as several markets, including mobile VoIP, cellular M2M connections and services, and public safety LTE devices, will witness an increase in revenues.
According to the research study carried out by Technavio analysts, the global cellular M2M connections and services market is projected to grow significantly during the period 2016-2020, posting a CAGR of about 30% and 33% respectively. One fast-moving trend captivating the market is the M2M platform consolidation, which offers a single and intuitive management platform for all M2M services and solutions.
M2M platform consolidation solutions will aid in the development of new M2M solutions, which, in turn, will augment the growth of the global cellular M2M connections and services market in the coming years.
The global cellular M2M connections and services market is segmented into the following end-user industries: consumer electronics, automotive, transport and logistics, healthcare, energy and utilities, and manufacturing.
Technavio estimates the energy and utilities segment to be the fastest-growing segment during the forecast period. Factors such as the deployment of intelligent grid management and smart meters will augment the market growth rate of this segment during the predicted period.
The global mobile VoIP (mVoIP) market is also considered to be another fast-growing segment in the M2M and connected devices market, predicted to post a remarkable CAGR of about 28%. The increasing use of 3G and the advent of LTE service is the primary growth driver for this market. Telecom operators worldwide foresee a massive opportunity in carrier aggregation and hence, are investing in the deployment of the LTE-A system.
“The deployment of such systems will clearly represent the penetration level of LTE systems and will account for the upsurge that can be expected in the global mVoIP market over the next four years,” said Amit Sharma, one of the lead analysts at Technavio for ICT research.
Video sharing, screen sharing, file sharing, video and voice calls, instant messaging, CRM integration services, and virtual number service are the different product segments of the mobile VoIP market. Of these segments, the voice and video calls segment dominated this market in 2015 and is predicted to retain its hold over the market until 2020.
View Technavio’s entire M2M and connected devices market report library
With a significant increase in natural disasters and terrorism, it has become imperative for countries around the world to come up with effective measures to cope with such situations. During such circumstances, it is of primary importance to communicate the right information to the right individual for safety and security reasons.
LTE devices is one solution that enables fire personnel to access real-time information about the environment they are securing. As a result, public safety LTE devices are gaining traction in the market. Technavio predicts the global public safety LTE devices market to grow at a CAGR of over 18% during the forecast period.
Some of the key vendors for M2M and connected devices technology include Alcatel-Lucent, General Dynamics Mission Systems, and Harris for public safety LTE devices, Facebook, Skype, and Viber for mobile VoIP, and AT&T, China Telecom, and EE for cellular M2M connections and services.
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