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Why Most M2M Forecasts are Wrong. Compass Intelligence Explains and States the M2M Market will Reach 114.7 Million Connections by Year End 2016

Why Most M2M Forecasts are Wrong. Compass Intelligence Explains and States the M2M Market will Reach 114.7 Million Connections by Year End 2016

Compass Intelligence, a global consulting and market analytics firm, released its latest forecast of the M2M market today. The cellular M2M market will reach 33.3 million connections in the U.S. in 2012 and grow to 114.7 million connections by 2016 with a CAGR of over 36%.

These findings, along with breakdowns by application and vertical market are part of Compass Intelligence’s Connected Worlds subscription service.

“Compass Intelligence was excited to launch its M2M practice last year because of the hype surrounding M2M and conflicting numbers being floated in the industry,” explains James Brehm, Senior Strategist at Compass Intelligence.

“While there are many companies providing annual data on the M2M market, most analyst firms make assumptions that are not grounded in reality. The majority of firms do not take availability of components, migration paths from 2G to 3G to 4G LTE, end-user behavior, socio-economic factors, and so on into consideration when building forecasts.”

Chart: number of cellular M2M connections in the US over 2011-2016Compass Intelligence’s forecast leans heavily on external and internal factors and is an aggregation of demand and supply-side information collected through in-depth interviews with vendors, service providers, and end users. The forecast is validated with key vendors and service providers at all levels of the M2M ecosystem, lending credibility to its high-level of accuracy.

Key findings of our most recent M2M research include the following:

  • The largest B2B vertical market is the transportation vertical, with over 40% market share.
  • Growth will come from areas where there is a demonstrable ROI, cloud computing and cookie cutter hosted applications will drive M2M adoption.
  • Industry consolidation will occur rapidly over the next 2-3 years.
  • By 2015 more than 40 percent of M2M connections in the U.S. could be running on 3G/3.5G/4G networks.

Lending to Compass Intelligence’s understanding of the M2M market place is Brehm’s participation as co-chair of M2M Evolution, a leading industry trade show.
Our participation with TMC and Crossfire Media provides unique access to members of the M2M Ecosystem many other companies simply do not have. Leading up to the recent M2M Evolution conference in Austin, I was able to spend countless hours with nearly a hundred of the top participants in the marketplace,” said Brehm.

About Compass Intelligence
Compass Intelligence, a global consulting and strategy acceleration firm, specializes in segment and vertical market intelligence for the high-tech and telecom industries; and offers clients a tailored research experience through excellent customer support. Compass Intelligence provides subscriptions and research reports, insight videos, forecasts, competitive analysis, market data and expert recommendations on multiple markets. Visit us at http://www.compassintelligence.com
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