Infonetics forecasts M2M services to hit $31 billion, M2M connections to top 4 billion by 2017

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Market research firm Infonetics Research released excerpts from its new M2M Connections and Services by Vertical report, which provides market size, analysis, and forecasts for machine-to-machine (M2M) connections and services by technology, vertical, and geographic region.

Analyst Godfrey Chua, who directs Infonetics Research’s M2M and Connected World program, affirms:

“M2M is one of the fastest-growing major new segments for service providers. We forecast global revenue from M2M services to more than double between 2012 and 2017, from just under $15 billion to $31 billion.”

Infonetics forecasts M2M services revenue“What’s often overlooked about M2M is that it will be delivered to the world by way of a portfolio of access technologies,” Chua adds.

“Cellular networks represent the most meaningful revenue opportunity for operators, but by far the most popular way to connect to M2M services is via PAN (personal area network) wireless technologies, such as WiFi, Zigbee, Bluetooth, and IP500, which do not generate connection revenue. It’s critical that mobile operators incorporate a broader view of the various M2M access technologies into their M2M strategies.”

M2M MARKET HIGHLIGHTS

  • There were nearly 1.4 billion M2M connections worldwide in 2012, with PAN wireless technologies comprising the vast majority
  • Making up just under 190 million connections today, M2M connections via cellular and other WAN wireless technologies are projected to nearly triple by 2017, becoming the largest growth engine for operator revenue
  • More than 16% of total M2M service revenue, almost $2.4 billion, is derived from M2M “backhaul” services
  • The automotive, transport, and logistics sector made up 1/3 of total M2M service revenue in 2012, driven by vehicle tracking, navigation, and delivery applications
  • North America and Europe are the key centers of M2M service growth, together accounting for 72% of the total market
  • In 2012, China Mobile overtook AT&T in M2M connections leadership, but AT&T remains the revenue leader due to higher ARPC (average revenue per connection)

M2M WEBINAR
Join analyst Godfrey Chua Oct. 22 at 11:00 EDT for The Business Rationale for M2M, a live webinar on M2M market drivers, key verticals, applications, challenges and real-world examples.

ABOUT THE M2M REPORT
Infonetics’ M2M connections and services report analyzes M2M market drivers, M2M ecosystem players, and M2M technologies to help businesses make informed decisions and plans related to the M2M market. The report provides worldwide and regional market size, forecasts through 2017, and trends for M2M connections and services by technology (GSM/GPRS/EDGE, CDMA2000/EV-DO, W-CDMA/HSPA, LTE, TD-SCDMA, cellular, other WAN wireless, PAN, wireless, wireline, backhaul) and vertical (utilities/smart grid, automotive/transport/logistics, security/surveillance, retail/vending, healthcare, other).
The report includes an M2M Strategies Tracker with activity by mobile operators including AT&T, China Mobile, China Telecom, Deutsche Telekom, Everything Everywhere, KDDI, KT, Orange, Sprint, Telecom Italia, Telefónica, Telenor Group, TeliaSonera, T-Mobile, Verizon, and Vodafone. To buy the report, contact Infonetics
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