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Emerging M2M Ecosystem will Reach $35B by 2016

Mobile Network operators -- including Vodafone, O2, Telefonica, Verizon, AT&T and Sprint -- are putting significant resources into developing Machine to Machine (M2M) related business units.

There is an increasing sophistication in how the market is viewed by all stakeholders, with after-market installation being replaced by embedded mobile strategies and SMART (Self-Monitoring, Analysis, and Reporting Technology) systems.

Juniper Research forecasts that M2M will support total industry revenues of over $35 billion in 2016. They also predict that revenues from products and services delivered over embedded consumer electronics (CE) devices will reach $6.4 billion in 2014, as a key anchor for the evolving M2M sector within the mobile industry.


According to their latest market study, eBook sales and subscriptions will be by far the most important service offered over cellular connected consumer electronics devices.

While others have emerged, such as digital photo frames and Sony's PS Vita games console, the eReader will outweigh all other consumer electronic devices in its ability to create new streams of revenue.

"Cellular connectivity is slow to reach the lucrative gaming market since WiFi is sufficient for most use cases," said Anthony Cox, associate analyst at Juniper Research.

Embedded Consumer electronics will also be where 4G chipsets first reach the M2M and embedded chipset market -- although 4G chipset distribution is still at its very early stages.

Further findings from their market 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.

Their report includes a comprehensive analysis of the current state of play in the Embedded Mobile and M2M market and contains five year forecasts for M2M device numbers, service revenues, connectivity enablement revenues and the value of the hardware market.

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