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

  • New revenue streams for transit operators through NFC
    May 9, 2012
    NXP has claimed the top spot in the contactless ticketing market in ABI Research’s new market analysis. Shipments of the Mifare range (Classic, Plus, Ultralight, and DESFire) remain strong despite some security concerns around the Classic product. ABI says that overall, Mifare has withstood scrutiny and demonstrates that the highest level of security is not an overriding factor in adoption with the focus on cost effectiveness, convenience, and reliability. The lack of alternative solutions has helped cement
    Read More
  • Plug-in EV sales expected to grow by 62 per cent in US in 2016
    July 8, 2016
    A new report from Navigant Research assesses plug-in electric vehicle (PEV) sales and populations in the United States and Canada, providing detailed geographic breakdowns of PEV sales and scenario-based forecasts. During the next few years, significant growth is expected in the North American PEV market. In 2016, growth will be driven by sales of the Tesla Model X, the second-generation Volt, and by the introductions of the Chevrolet Bolt 200-mile range battery electric vehicle (BEV), the Prius Prime pl
    Read More
  • IoT fleet management market to grow by more than 20 per cent by 2021
    April 24, 2017
    A new report by MarketsandMarkets estimates that the Internet of Things (IoT) fleet management market will grow fromUS$3.16 billion in 2016 to US$8.28 billion by 2021, at a CAGR of 21.26 per cent. According to the report, the key factors driving the growth of the IoT fleet management market are increased demand for optimised business operations, real-time fleet monitoring and a growing number of government mandates for fleet safety. Routing management accounted for the largest share of the IoT fleet managem
    Read More
  • Road safety market worth US$3.63 billion by 2020
    December 22, 2015
    According to a new market research report, Road Safety Market by Solution (Red Light Enforcement, Speed Enforcement, Incident Detection Systems, Bus Lane Compliance, Automatic License Plate Recognition), by Service, by Region - Global Forecast to 2020, published by MarketsandMarkets, the size of the road safety market is estimated to grow from US$2.35 billion in 2015 to US$3.63 billion by 2020, at a compound annual growth rate (CAGR) of 9.1 per cent. With an increase in the number of road fatality rate, the
    Read More

Highlighted Content