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Global M2M Revenues will Reach $40 Billion by 2019

During the last couple of years, machine-to-machine (M2M) offerings have become a key part of the product portfolio at telecom service providers and a significant new revenue stream for the few specialists.

The management of devices is key to M2M offerings, and it distinguishes the capabilities from the broader Internet of Things (IoT), where any object may be furnished with wireless connectivity on an ad-hoc basis.

Juniper Research has forecast that the telematics sector will continue to outperform all other M2M markets over the next five years, in revenue terms, with one in five passenger vehicles connected globally by 2019.

Smartphone-based models have become the key disruptor for M2M, as sectors such as healthcare, consumer electronics and retail continue to evolve.

According to the latest worldwide market study by Juniper Research, the M2M sector will generate service revenues of over $40 billion globally by 2019 -- that's essentially doubling the size of today's market.


Juniper observed that the roll-out of smart metering initiatives will see rapid adoption over the next six years, driven in part by government ambitions to increase efficiency.

"Both India and China are expected to see rapid adoption of smart metering as new metering infrastructure is installed and smart cities are created," said Anthony Cox, senior analyst at Juniper Research.

The utility sector, however, is not expected to generate similar revenues to that of the connected automotive sector.

Agriculture and environmental applications are starting to emerge as important new sectors in the M2M market, with applications as diverse as wild-life and farm animal monitoring, and increasing productivity through precise field mapping.

Other findings include from the market study include:
  • The U.S. remains the leading region for M2M, ahead of Western Europe.
  • Meanwhile, China is becoming increasingly important as initiatives by their mobile service providers begin to take shape within the Asia-Pacific region.
  • Implementation of Big Data analytics will play an increasingly important role, particularly in areas such as telematics, smart metering and healthcare.

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