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

  • Nokia sells device business to Microsoft, but retains Here
    September 4, 2013
    Nokia Corporation has signed an agreement to sell substantially all of its devices and services business and licence its patents to Microsoft for US$7.1 billion in cash, payable at closing. Following the transaction, Nokia plans to focus on its three established businesses: NSN network infrastructure and services; Here mapping and location services; and Advanced Technologies technology development and licensing.
    Read More
  • Intel investing in vehicles’ connected future
    November 30, 2012
    Prospects for a vision of vehicles fully connected to traffic information, safety and entertainment services are being boosted by a $100 million investment from Intel. Pete Goldin reports. Hear the name Intel and what comes to mind is processing power. What may not be realised is that Intel is positioned to become a major player in the automotive technologies market, including connected vehicle technology. To strengthen this position, the company’s investment arm, Intel Capital, has established a $100 milli
    Read More
  • Time for a rethink on road user charging
    February 1, 2012
    There is no value in further US VMT charging trials, except to delay the inevitable. These trials should end after completion of the University of Iowa's National Evaluation of a Mileage-based Road User Charge. There is far greater promise in unleashing private operators to commence profitable, non-tolling services, then using these for toll assessment and collection as fuel distributors are currently used to collect fuel taxation. Bern Grush writes
    Read More
  • Cohda sees interoperability as key to V2X success
    October 11, 2016
    Australian-based Cohda Wireless – one of the leading vendors in the global V2X market – sees the ability of all players to work together as crucial to the success of autonomous vehicles. “Interoperability among a wide range of OEMs, component manufacturers, hardware and software suppliers is critical to the successful implementation of V2X and the future of autonomous vehicles,” said Bernd Luebben, vice president business development with Cohda Wireless Europe GmbH.
    Read More

Highlighted Content