New Study Reveals the Future of M2M Revenue

By Tracey E. Schelmetic November 27, 2012

The machine-to-machine (M2M) industry, sometimes called “the Internet of Things,” is expected to change the world. While most of us today keep at least two Internet-connected things close at hand, the number of connections is expected to soar as Web connections begin to show up in places they have never been before: our cars, our home climate and entertainment systems and even our appliances.

For this reason, the M2M industry is expected to become very lucrative and high in revenue generation.

Analyst group Juniper Research is predicting that revenues from products and services delivered over embedded consumer electronics devices (such as those smart refrigerators we’ve been hearing about) will reach $6.4 billion in 2014, as the sector emerges as a key anchor for the M2M industry.

So how do connected machines produce revenue? Consider e-books, which many people purchase directly off their e-readers, or music purchased directly on mobile phones. In fact, e-book sales and subscriptions will be by far the most important service offered over cellular connected consumer electronics devices, according to the Jupiter Research study.

But other types of revenue have begun to emerge, including digital photo frames and “freemium” games (games that are initially free to play, but require users to purchase in-game tools in order to ascend through the levels).

Other notable points from the study include:

    • M2M and embedded devices to reach close to half a billion M2M and embedded devices by the end of 2017, from a little over 130 million at present
    • The price of M2M modules will continue to reduce, particularly the price of 3G modules, as automotive and consumer electronics use-cases require improved bandwidth and latency
    • APIs from M2M specialists are becoming increasingly sophisticated increasing the level of data analysis available to those deploying M2M solutions
    • 4G chipsets, while shipping in very low volumes at present, will find their market in the automotive industry and specific applications such as live video monitoring.

For a more in-depth look at the study, visit Jupiter Research’s website.

Edited by Braden Becker

IoTevolutionworld Contributor

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