Skip to main content

Personal Area Networks will Drive M2M Adoption

The Internet of Things will likely become a mainstream phenomena in a few key industries before it penetrates the whole global networked economy. Therefore, it will be important to share those early-adopter applications with others, so that more broader market development can occur over time.

Infonetics Research released excerpts from its new "M2M Connections and Services by Vertical" report, which provides market size, analysis, and forecasts for machine-to-machine (M2M) connections and services by technology, vertical, and geographic region.

"M2M is one of the fastest-growing major new segments for service providers," said Godfrey Chua, analyst at Infonetics Research. "We forecast global revenue from M2M services to more than double between 2012 and 2017, from just under $15 billion to $31 billion."

That being said, what's often overlooked about M2M is that it will be delivered to the world by way of a portfolio of access technologies -- some are already being built by mobile network service providers.

Cellular networks represent the most meaningful revenue opportunity for operators, but by far the most popular way to connect to M2M services is via PAN (personal area network) wireless technologies -- such as WiFi, Zigbee, Bluetooth, and IP500, which do not generate connection revenue.

It's therefore critical that mobile network operators incorporate a broader view of the various M2M access technologies into their M2M deployment strategies.


Highlights from the M2M market study include:

  • There were nearly 1.4 billion M2M connections worldwide in 2012, with PAN wireless technologies comprising the vast majority.
  • Making up just under 190 million connections today, M2M connections via cellular and other WAN wireless technologies are projected to nearly triple by 2017, becoming the largest growth engine for operator revenue.
  • More than 16 percent of total M2M service revenue, almost $2.4 billion, is derived from M2M backhaul services.
  • The automotive, transport, and logistics sector made up 1/3 of total M2M service revenue in 2012, driven by vehicle tracking, navigation, and delivery applications.
  • North America and Europe are the key centers of M2M service growth, together accounting for 72 percent of the total market.
  • In 2012, China Mobile overtook AT&T in M2M connections leadership, but AT&T remains the revenue leader due to higher ARPC (average revenue per connection).

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

The Fastest-Growing Mobile Opportunity in 2022

The number of mobile communication subscriptions worldwide is currently estimated at 8 billion, with 6 billion on smartphone connections, from a user base of 5.9 billion unique subscribers among a global population of 7.9 billion. Fifth-generation (5G) mobile service subscriptions using a compatible device significantly grew during the COVID-19 pandemic, but 4G connections remain the dominant force within the global telecom service provider sector. While the use of mobile phones is common throughout developing nations, 4G services are still an emerging technology in many parts of the world. Overall, 5G subscriptions will likely grow from 580 million at the end of 2021 to 3.5 billion by the end of 2026. 5G Mobile Market Development According to the latest worldwide market study by Juniper Research, revenue generated from 5G mobile services will reach $600 billion by 2026 -- representing 77 percent of global network operator-billed revenue. The adoption of 5G services across consumer and