According to a new market research report, “Machine to Machine (M2M) Market Global Forecast & Analysis (2012-2017) by Hardware Components, Technologies & Applications” published by MarketsandMarkets, the total M2M market is expected to reach $85.96 billion by 2017 at a CAGR of 26.1% from 2012 to 2017.
The Machine to Machine market has been witnessing rapid growth in the past 2 to 3 years. This is mainly attributed to the rise of cloud computing technology and smartphones market. In addition, there have also been growing numbers of regulatory mandates in favor of M2M technology, which, in turn, have been driving M2M-based innovations for use across different applications. However, lack of technology awareness and the initial high cost associated with the development and deployment of the solution are slightly hindering the market growth.
Some of the key hardware components used in the development of M2M solution include sensors, actuators, RFID, memory, power module, and communication module.
The communication module is observed to hold the highest share in the M2M market and expected to grow at the highest CAGR of 32.4% from 2012 to 2017.
With respect to the technologies utilized to achieve communication, 2G networks are widely deployed as they offer sufficient bandwidth and extend support to a variety of low-cost embedded data networking modules. While this technology holds the highest share of 35.5% as of 2011, ZigBee is expected to grow at the highest CAGR of 33.8% from 2012 to 2017. This was mainly attributed to its benefits such as low power consumption, low cost, and fast connection time for end devices. Amongst the different application sectors that utilize M2M-based solutions, consumer electronics sector provides the most potential opportunities followed by automotive and transportation. With rise in government regulations to ensure the safety and security of the inmates of vehicles, automotives and transportation sector is expected to grow at the highest CAGR of 33.5% from 2012 to 2017.
The concept of partnerships amongst embedded device manufacturers, solution providers, and M2M network operators has emerged as a global ecosystem in the M2M market. This, in turn, is expected to leverage their sales and marketing channels. The M2M market space is observed to provide low marketing cost and longer life cycles. Mobile network operators (MNOs) are expected to be highly benefited by this market with loads of potential growth opportunities.
The global M2M market is expected to grow from $21.52 billion in 2011 to $85.96 billion in 2017 at a CAGR of 26.1% from 2012 to 2017. Asia-Pacific is observed to have the highest growth rate. This is mainly attributed to the growing technology awareness and rapid fall in availability of human labor for execution of critical tasks.