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

Related Content

  • August 26, 2014
    Berg Insight: 3G/4G technologies will dominate cellular M2M communications
    According to a new research report from analyst firm Berg Insight, the global cellular machine to machine (M2M) market has entered a period of transition from 2G to 3G/4G technologies. The share of cellular M2M devices connected to HSPA/LTE networks is projected to more than double from less than 20 percent at the end of 2014 to more than 50 per cent by 2018. When it comes to device shipments, 3G/4G is expected to overtake 2G already in 2017. HSPA will be the largest technology in an intermittent period unt
    Read More
  • September 9, 2015
    Global commercial telematics market ‘worth US$47.58 billion by 2020’
    According to research company MarketsandMarkets, the market for commercial telematics is expected to grow from US$20.02 billion in 2015 to US$47.58 billion by 2020. In terms of regions, Europe is expected to be the largest market in terms of market size, while Middle East & Africa and Asia-Pacific (APAC) are expected to experience an increase in market traction, during the forecast period. Latin America is expected to experience a high growth rate and adoption trend in this market.
    Read More
  • November 1, 2012
    Report forecasts growth in global markets for intelligent transportation systems
    A new report by information service provider Global Information says that intelligent transportation systems (ITS) improve public transport and traffic management to reduce traffic congestion, promote smoother and safer driving and improve coordinate and overall smarter use of transport networks. The development of intelligent infrastructures – from roads to bridges – is primarily a governmental responsibility while the domain of developing intelligent vehicles belongs to the commercial side. Both private a
    Read More
  • December 2, 2015
    Collision avoidance systems market ‘worth US$50.38 billion by 2020’
    New research from MarketsandMarkets claims that the collision avoidance systems market is expected to grow from US$31.19 billion in 2014 to US$50.38 billion by 2020 at a CAGR of 7.74 per cent. The report, Collision Avoidance Systems Market by Device, Technology, Application (Automotive, Aerospace, Railway, Marine, and Construction & Mining), and Region (North America, Europe, Asia-Pacific, and RoW) - Global Trend & Forecast to 2020, says the market is expected to be driven by the growing focus of consumers
    Read More

Highlighted Content