The wireless M2M market is expected to account for nearly $196 billion in revenue by the end of 2020, according to a new forecast.
According to authors of “The Wireless M2M & IoT Bible: 2014 – 2020 – Opportunities, Challenges, Strategies, Industry Verticals and Forecasts”, the wireless M2M market remains a key focus of several mobile networks despite its low ARPU.
“Consequently we expect the wireless M2M market to account for nearly $196 Billion in revenue by the end of 2020, following a CAGR of 21% during the six year period between 2014 and 2020”, according to the report.
The report cites that “eyeing this lucrative opportunity, vendors and service providers across the highly fragmented M2M value chain have become increasing innovative in their strategies and technology offerings which have given rise to a number of submarkets such as M2M network security, Connected Device Platforms (CDP) and M2M application platforms.”
But mobile networks in the wake of falling ARPU are developing a wireless M2M strategy as revenue from traditional voice and data service become saturated.
“Likewise, government and regulatory initiatives such as the EU initiatives to have a smart meter penetration level of 80% by 2020 and the mandatory inclusion of automotive safety systems such as eCall in all new car models, have also helped to drive overall wireless M2M connections and revenue”, the report says.
The authors add that, “by enabling network connectivity among physical objects, M2M has initiated the vision of the Internet of Things (IoT) – a global network of sensors, equipment, appliances, computing devices, and other objects that can communicate in real time. This gives rise of a multitude of application possibilities including but not limited to location tracking, diagnostics, process automation, remote monitoring/control and even entertainment. Given the vast array of M2M and IoT applications, the industry has attracted attention from a multitude of vertical market segments.”