Retail Cellular M2M Device Use to See Steady Growth to 2018

By Rory Lidstone January 24, 2014

In case you hadn’t heard, the M2M market is on the verge of exploding, according to pretty much every market analyst. The best example of this may be a report from Analysys Mason which states that the M2M industry as a whole will reach $88 billion by 2023. Of course, within that $88 billion, there’s plenty of room for further prediction and analysis.

Consumer M2M device shipments, for example, are expected to 13.8 million by 2017. Meanwhile, a new report from Berg Insight expects the retail M2M device segment to experience similar growth.

In particular, cellular M2M technology found in devices such POS terminals, ATMs and ticketing machines will become much more commonplace over the next four years. In terms of cellular M2M devices for retail applications, Berg expects a compound annual growth rate (CAGR) of 6.5 percent from 6.6 million units in 2013 to 9.1 million in 2018. Cellular M2M connections in the global retail industry will likewise see a CAGR of 12.6 percent to reach 33.3 million connections in 2018.

Currently POS terminals are the largest device segment in this space as they accounted for almost 90 percent of all retail M2M connections in 2013. That said, this segment is now relatively mature and as such growth should slow down somewhat in the coming years.

image via shutterstock

On the other hand, the adoption of cellular connectivity in vending machines is at a very early stage and is very much on the rise.

"Vending is the largest untapped market for wireless M2M in the retail industry" said Lars Kurkinen, senior analyst at Berg Insight, in a statement. "Every vending machine will eventually be connected, but costs for the wireless M2M hardware and subscriptions still need to come down significantly before this vision becomes reality."

As it stands, the North American market is in a strong growth phase for vending machine connectivity. Indeed, there are expected to be 1.14 million connected vending machines in the region by 2018.

Edited by Ryan Sartor

IoTevolutionworld Contributing Writer

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