Machine-to-Machine (M2M) connectivity has become a key product offering from global telecom service providers and a significant new revenue stream. They've also developed complex service propositions, designed to reduce costs and increase efficiency for their wireless network customers.
Unique business models will apply emerging technology concepts to enable innovative applications for the Internet of Things (IoT). As an example, in-vehicle infotainment services, such as Apple CarPlay and Android Auto, will generate large amounts of new cellular M2M mobile data traffic.
Exponential Growth of M2M Data Traffic
Over the next five years, this explosion of new mobile applications will account for up to 98 percent of all M2M data traffic, according to the latest worldwide market study by Juniper Research. Most of that new data will be saved in hyperscale cloud object storage platforms.
Their study found that data intensive applications -- such as Internet radio, music streaming and information services -- will generate approximately 6,000 peta bytes of data per year by 2021. That's the equivalent to over 300 billion hours of music streaming.
Market Development of M2M Offerings
"The wider M2M market offers a reprieve from declining traditional voice and messaging revenues. Mobile operators are now champing at the bit to capitalize on the growth of M2M," said Sam Barker, analyst at Juniper Research.
However, their research cautioned that for mobile network operators to maximize their opportunity, they will need to evolve beyond merely providing connectivity and enablement, and offer substantive value-added services to their customers.
Moreover, according to the Juniper assessment, M2M technology will further the development of autonomous driving systems in the future. Cellular V2V (vehicle to vehicle) technology -- enabled through M2M technology -- is expected to be the cornerstone of the system over the coming years.
Consequently, mobile operators will need to ensure that their networks remain able to cope with the projected increases in data traffic, especially in urban areas. Future smart city systems, such as smart parking and smart intersections, will drive data usage and the potential strain on wireless networks.
Meanwhile, other less data-hungry M2M modules will see significant increases in adoption across an array of key industry verticals -- including healthcare, agriculture, smart metering and smart home automation.