Embedded SIMs provide catalyst for M2M market, reaching over 50% of cellular connections

A new study from Juniper Research has found that embedded SIM cards will increasingly dominate the M2M (Machine to Machine) space, accounting for more than 50% of connections by the end of the decade.

New opportunities & business models

According to the new study, M2M: Strategies & Opportunities for MNOs, Service Providers & OEMs 2016-2021 the introduction of the GSMA’s embedded specification is likely to fuel the opportunity for service providers to offer remote provisioning of SIM cards. The study claimed that this in turn would greatly enhance the capabilities of service providers to update and augment offerings and subscriptions.

Additionally, the study argued that migration to OTA (Over The Air) provisioning would facilitate a range of new business models, potentially increasing the lifetime value of M2M subscription while also reducing costs.

The report highlighted the increased benefits that embedded SIMs would offer to customers across an array of verticals, as remote provisioning would oblige operators to compete on pricing, functionality and customisation capabilities.

Developing regions to benefit

The research claimed that the reduced cost and flexibility afforded by embedded technology could be instrumental in increasing takeup in key verticals such as agriculture within developing markets.

Research author Sam Barker commented, “By making M2M affordable, the introduction of the embedded model can in turn allow farmers in regions such as sub-Saharan Africa and developing Asia to increase their yield, boosting crop production and helping to address the rising demand for food.”

Other key findings

  • Smart Metering and Connected Car connections will comprise the majority of all cellular M2M embedded connections over the next 5 years.
  • 3G connections will comprise half of all cellular M2M connections in 2021, due to the need for an affordable and low speed service.
  • Network operators should capitalise the growth of M2M by offering customisable M2M platforms that offer a variety of simple billing models.

The whitepaper, ‘The Future of M2M’ is now available to download from the Juniper website together with further details of the full research.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

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