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

  • When weather warnings get hyperlocal
    August 24, 2016
    David Crawford looks at new technologies to cope with the age-old problem of driving in bad weather. On the 10-year average, between 2005 and 2014 bad weather contributed to more than 1.5 million vehicle crashes in the US each year, resulting in more than 800,000 injuries and 7,400 deaths. These were the findings of analysis by Booz Allen Hamilton of NHTSA data which concluded that the loss of life, hospital treatment and damage to assets costs an annual average of $42bn.
    Read More
  • Visteon and Autonet partner on next generation telematics
    February 26, 2014
    Automotive electronics supplier Visteon Corporation has entered into an exclusive agreement with telematics provider Autonet Mobile, in which Visteon will integrate Autonet's telematics technology into Visteon's next-generation products for global vehicle manufacturers. Under the agreement, Visteon will lead design and integration efforts with global vehicle manufacturers and Autonet Mobile will provide software, Internet Protocol (IP) and network operation services. The two companies will provide veh
    Read More
  • Growth of passenger counting and passenger information systems market
    April 2, 2015
    According to a new market research report ‘Automated Passenger Counter and Passenger Information System Market by Application (Railway, Roadway, Airway, and Waterway), by System (Hardware, Software and Services), by Component and Device; and by Geography - Global Analysis and Forecast to 2020, the automatic passenger counting market is expected to reach US$194.17 million by 2020, growing at a CAGR of 22.2 per cent from 2014 to 2020; whereas, the passenger information system market (PIS) is anticipated to re
    Read More
  • GM to start autonomous vehicle manufacturing and testing in Michigan
    December 16, 2016
    Following the signing of the SAVE Act legislation to support autonomous vehicle testing and deployment in Michigan, General Motors is to begin testing autonomous vehicles on public roads. GM also announced it will produce the next generation of its autonomous test vehicles at its Orion Township assembly plant beginning in early 2017. Testing is already underway on GM’s Technical Center campus in Warren, Michigan and will now expand to public roads on the facility’s outskirts. Within the next few months,
    Read More

Highlighted Content