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

  • ADAS ‘fastest growing sector’ in automotive field
    July 7, 2015
    According to the latest research by RnR Market Research, Advanced Driver Assistance Systems (ADAS) has been one of the fastest-growing sectors in automotive field and is expected to register a CAGR of 32 per cent during 2014-2019. Currently, developed countries in Europe and America have had nearly eight per cent of new vehicles equipped with ADAS, in contrast to about two per cent in emerging markets. It is predicted that over 25 per cent of new vehicles will carry ADAS by 2019 globally. The Global a
    Read More
  • Embracing the wider connected car environment key to fulfilling the ITS vision
    August 3, 2012
    According to a new report from ABI Research, after more than a decade of trials and tests, the ITS industry finds itself facing important decisions regarding mandating dedicated DRSC-based technology and ensuring seamless integration with existing converged technologies, using them as a proxy to bridge the time, penetration, and cost gap of ITS infrastructure which is not expected to reach critical mass before the end of this decade.
    Read More
  • Transition to keyless automotive access systems fuels growth opportunities
    December 20, 2016
    The rising popularity of mobility services such as car sharing, rental and leasing is stoking significant interest in keyless access systems, according to Frost & Sullivan research. Following the saturation of radio frequency technology, Bluetooth low energy (BLE), biometrics and near-field communication (NFC) are poised to emerge as the next wave of wireless technologies in the automotive industry. This evolution from legacy vehicle access system to advanced access systems opens the market to specialist co
    Read More
  • Singapore’s transportation investment includes road network development
    January 11, 2016
    The construction industry in Singapore is expected to expand over the forecast period (2015–2019), supported by government investments in transport infrastructure, finds a report by Timetric’s Construction Intelligence Center (CIC). While addressing the housing needs for the middle class population and focusing on developing renewable energy sources, the government also aims to improve transport and tourism infrastructure through projects such as the MRT Masterplan–Cross Island Line, the MRT Masterplan–
    Read More

Highlighted Content