Automotive telematics and smart energy will lead M2M market growth

According to ABI Research’s new study, Cellular M2M Connectivity Services, the M2M market has become a fully mainstream segment of the cellular industry. By the end of 2011, most major mobile operators in North America, Europe, and the Asia-Pacific region had established M2M business units to focus their efforts in this fast growing market. ABI Research predicts that the market for cumulative cellular M2M connections will rise from about 110 million connections in 2011 to approximately 365 million connectio
March 22, 2012 Read time: 2 mins

According to 5725 ABI Research’s new study, Cellular M2M Connectivity Services, the M2M market has become a fully mainstream segment of the cellular industry. By the end of 2011, most major mobile operators in North America, Europe, and the Asia-Pacific region had established M2M business units to focus their efforts in this fast growing market.

ABI Research predicts that the market for cumulative cellular M2M connections will rise from about 110 million connections in 2011 to approximately 365 million connections by 2016. This represents a compounded annual growth rate of roughly 27 per cent by 2016 and translates to about US$35 billion in connectivity services revenue.

The two largest cellular M2M market segments over the forecast period, by revenue, will be automotive telematics and smart energy.  Automotive telematics, including factory-installed systems such as GM’s OnStar service, aftermarket services such as usage-based insurance, and fleet management systems, will together represent more than $15.5 billion in 2016. Meanwhile, smart energy, specifically cellular connectivity to smart meters and data concentrators, will represent more than $7.5 billion in 2016.

“As mobile operators further develop their M2M service offerings, software platforms and M2M application developer support will feature as increasingly larger components of the operators’ services,” says Sam Lucero, practice director, M2M connectivity.  “For example, AT&T announced on 9 January, 2012 that it would be reselling Axeda’s M2M application platform in a US carrier exclusive deal.  This platform will enable AT&T customers to more easily develop and deploy complex M2M applications.”

ABI Research’s new study, Cellular M2M Connectivity Services, discusses the key trends, technologies, and players impacting the cellular M2M connectivity services market.
Networking & Communication Systems Location Based Systems

For more information on companies in this article

Related Content

  • Qualcomm in pole position in ABI Research’s commercial telematics competitive assessment
    August 20, 2012
    Qualcomm Enterprise Services (QES) has been named the leading commercial telematics service provider (TSP) in the latest competitive assessment released by ABI Research. The company’s global reach, dominant market share, and intuitive product range were all fundamental to securing the top spot. Telogis, Trimble, Masternaut, and Xata complete the top five.
    Read More
  • Shipments of NFC-enabled handsets reached 30 million units in 2011
    April 4, 2012
    According to a new research report by Berg Insight, global sales of handsets featuring near field communication (NFC) increased ten-fold in 2011 to 30 million units. Growing at a compound annual growth rate (CAGR) of 87.8 per cent, shipments are forecasted to reach 700 million units in 2016. The global rise in smartphone adoption is also driving higher attach rates for other wireless connectivity technologies in handsets including GPS, Bluetooth and WLAN. These connectivity technologies are already a standa
    Read More
  • Smart parking key to sustainable urban mobility
    April 26, 2013
    Smart parking looks like a market poised to take off in the US. It could bring many benefits, not just for parking facility operators and their customers but also for society as a whole. Steven Bayless, senior director, telecommunications and telematics at ITS America, looks at some of the opportunities and challenges involved. Parking is an estimated $24-25 billion industry in the US and although highly fragmented, it is experiencing a growing trend towards consolidation and outsourcing of parking operatio
    Read More
  • Smart transportation market expected to reach US$176.49 billion in 2021
    July 3, 2015
    According to a new market report published by Transparency Market Research, Smart Transportation Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2021, the global smart transportation market was valued at US$45.10 billion in 2014, growing at a CAGR of 18.5 per cent from 2015 to 2021 to account for US$176.49 billion in 2021. The smart transportation market is primarily driven due to the emerging need for smart services across the globe. Moreover, the global increase in sa
    Read More

Highlighted Content