M2M Market Predicted to Grow by 30 Percent

By Shankar Pandiath January 02, 2013

According to a recent report by consulting and research firm IDATE, the cellular machine-to-machine market is expected to have increased by 14 percent in 2012, having reached €22 billion.

The M2M market is expected to reach 140 million modules in 2012 in volume, which is an increase of a 36 percent over 2011. According to IDATE, the M2M market is predicted to grow by 30 percent in volume to almost 370 million modules by 2015.

Since its inception in 1977, IDATE has been recognized for the capabilities of its specialized investigation teams. They are a credible and reliable resource for tracking telecom, Internet and media markets. IDATE teams are organized around key areas of expertise and are led by managers with a proven track record.

According to IDATE, the M2M space in Asia-Pacific is expected to reign and dominate Europe and North America in volume, but Europe is expected to lead in value, followed by North America. The M2M adoption is slow mow, but for sure is picking up across the globe. The M2M market will be driven by demand in the consumer electronics, automotive, and utilities industries in the coming years.

Image via Shutterstock

"The M2M market is growing very fast but its development is not spread out homogeneously over the verticals markets. Considering the automotive industry worldwide, we predict an average growth rate of 40 percent in volume until 2016. In parallel, the consumer electronics industry has an AGR of 15 percent and will represent barely a third of the M2M volume for the automotive industry in 2016," said Samuel Ropert, project manager and senior consultant at IDATE.

According to IDATE there still are several challenges and barriers that could obstruct growth in the automotive and utilities sectors. These are the initial days. There are delays and some applications in these industries which are recurrently delayed and can have a potential impact or a domino effect on the traditional M2M market.

"The utilities market is now seen as less attractive with business opportunity being somewhat limited. In fact, most smart meters will be connected to the cellular network through a concentrator and large utilities players will try to leverage their negotiation power to drive down the unit price. Finally, multiple M2M users are adopting a 'wait and see' position regarding the world economic situation," IDATE explained.

Edited by Brooke Neuman

IoTevolutionworld Contributor

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