M2M WAN connections are set to triple by 2018, said Infonetics Research.
Global revenue from M2M services is forecast by Infonetics to grow at an 18 percent CAGR from 2013 to 2018.
“M2M continues to gather momentum as enterprises, in the never-ending pursuit of competitive advantage, seek to find new ways of using connected technologies to improve business agility and lower operational costs,” said Godfrey Chua, directing analyst for M2M and The Internet of Things at Infonetics Research.
ABI Research in October 2013 said machine-to-machine (M2M) analytics industry will grow a robust 53.1 percent from $1.9 billion in 2013 to $14.3 billion in 2018.
Infonetics Research says cellular technologies are playing an important role in enabling M2M services, comprising the vast majority of WAN wireless M2M connections today, over 220 million, and nearly tripling to just over 630 million connections by 2018.
“Among the cellular generations, 2G and 3G are the majority currently, but it’s LTE that will grow the fastest, starting from a small base and then expanding rapidly, supported by efforts like AT&T/GM/OnStar and other connected car initiatives, as well as China Mobile’s LTE TDD network rollout,” Chua said.
Infonetics Research the global market for M2M services reached just over $16 billion in 2013, and there were nearly 1.7 billion M2M connections worldwide.
A growing list of global tier 1 players is supporting more than 10 million M2M connections each.
M2M access services — where operators’ broadband services function as M2M access solutions –make up over 16 percent of M2M service revenue, around $3 billion.
80 percent of M2M devices in 2013 were connected via personal area network (PAN) technologies such as Wi-Fi, Bluetooth, and ZigBee.
For technology vendors, it is important to build networking solutions that take into consideration the architectural requirements of the various M2M use cases that are proliferating and the portfolio of emerging connection technologies.