M2M connections in the Americas - the US, Canada and Brazil - have increased by nearly 30% since 2011 and is forecast to grow more than double in next five years, according to Vodafone's Americas findings from its third annual 'M2M Barometer' report. The report also highlights that businesses in this region are ahead of the rest of the world in the adoption of connected consumer devices and smart home applications.
The 'Vodafone M2M Barometer' found that nine out of 10 (93%) of companies in the Americas that are using M2M products and services have experienced tangible return on investment (ROI). It also highlighted that this adoption is leading to faster ROI with 41% of companies in the Americas stating that they had achieved ROI within six months from their use of M2M, experiencing increased business agility, higher customer satisfaction and direct cost savings.
According to the report, retail sector has seen the fastest growth -- up 88% year-on-year -- where typical M2M applications include in-store digital signage, smart payment systems and supply chain optimization. The M2M barometer also found strong growth in the healthcare sector (up nearly 47%) and the utilities sector (up 32%), driven by the global expansion of smart metering systems to enhance energy efficiency. Meanwhile, the automotive industry continues to embed M2M as a core technology within the designs of new vehicles, with the accelerating production of connected cars accounting for a 14% year-on-year increase in M2M adoption in the sector.
This year's research also revealed that companies are also increasingly becoming more sophisticated with their use of M2M by linking it with cloud platforms as well as pairing it with data analytics to drive the greatest impact on their businesses. In fact, 69% of sophisticated users say M2M has "fundamentally transformed" their business, said Vodacone.
Vodafone's Head of Machine-to-Machine for the Americas, Andrew Morawski
M2M is ushering in a new era for the way companies do business by connecting consumer devices, smart offices, and buildings to the Internet around the world. It's clear from this year's report that with more and more devices introduced to organizations each day, M2M solutions will continue to transform businesses -- how they operate, how they grow and how they keep customers happy.
Analysys Mason Principal Analyst, Michele Mackenzie
There are two really striking results in the Vodafone M2M Barometer Report for 2015. First, retail and healthcare stand out as sectors demonstrating considerable growth in adoption as an increasing proportion of companies transform themselves to compete more effectively in the digital economy. Second, there are some very interesting insights into the diverse measures used by companies to assess the value of M2M. There are compelling examples of cost savings; positive impacts on customer retention and the ability to unlock new revenue streams are also cited as tangible benefits that continue to drive investment in M2M.
