How will M2M services make more billions in a few years?

Suren Arustamyan at JeraSoft

On the back of this development in connectivity for vehicles will come other business opportunities which will add to the demand for traffic on this network. The research agency Technavio prepared a report on the market of machine to machine (M2M)-services, defining them as Value Added -services for operators.

The scope of the research included all world markets except for those in European countries. According to Technavio, in 2021 M2M-services will earn $38 billion(€32.37), and the average annual growth of the market will be 41%, says Suren Arustamyan, COO at JeraSoft.

The main factor behind this growth will be demand from business and city authorities for new mobile services, which will cause serious replenishment in the revenue streams of players in the mobile market. Mobile operators will be the winners here , since they will own the road and traffic networks, while satellite operators are assigned the sector of Internetisation of aircraft and provision of communications in the sky.

Another important direction for the market will be monitoring of transport, where all cars will include sensors to allow tracking of movement via satellite.

The researchers see the penetration of M2M-services into vehicle retail as new directions in mobile network markets. First of all, we are talking about marketing tools to inform consumers around or inside different locations and and involve them in the buying process. In due course everything else will follow – from advertising to special marketing offers.

In addition to the more traditional outdoor advertising (stands, leaflets, posters), mobile M2M-services will allow advertisers to instantly change the message content according to the tracked location of a vehicle and personalise it for the driver’s known preferences.

The entire market research has been divided into several types of industries: providers of M2M-applications and solutions, communication operators, equipment manufacturers, system integrators and manufacturers of sensors. Some mobile operators are already working to occupy specific niches in these new markets, which increases the level of competition. Companies form strategic alliances and jointly develop a solution based on the convergence of their competencies.

In addition, the researchers note that the market enters the stage of mergers and acquisitions, which in turn will allow large players to increase the geographical coverage of their solutions and services. The largest players in the M2M-market according to these researchers are; AT & T, Sprint, Verizon and Vodafone. In addition to these, Amdocs, China Mobile, China Telecom, Digi International, Gemalto, KDDI, Numerex, Orange Business Services, Sierra Wireless, Rogers Communications, Tech Mahindra, Telefónica, Telenor, Telit and T-Mobile USA are noted.

The author of this blog is Suren Arustamyan, COO at JeraSoft

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