The M2M segment is picking up fast this year on the back of newer and more advanced solutions on both the network end as well as on the device end, enabling more and more devices to be connected in real time to the network and to each other. Unlike rich mobile content whose growth depends on the availability of high-speed mobile broadband connection, M2M services leverage 2G, 3G and 4G LTE to establish connection and transmit real-time data.
According to the recent "The Wireless M2M & IoT Bible: 2014 – 2020" report by SNS Research, LTE powered M2M connections will be seeing the highest growth rates in years to come. SNS Research predicts that the M2M market will contribute to USD196 billion in revenues by 2020, growing at a CAGR of 21% from 2014 to 2020. It also expects M2M connections on 4G LTE to grow at a CAGR of 90% for the same period, reaching 210 million connections by 2020.
SNS highlighted in a statement that 4G LTE has the advantage of being able to support M2M applications that require the transmission of richer data and hence more bandwidth including remote video surveillance, tethering multiple WiFi connections and remote diagnostics. SNS also shared some insights including the fact that despite the low ARPU from the M2M market, mobile network operators are expected to expand further in this segment as part of their revenue enhancement strategy, capitalizing on the explosion of M2M connection that is expected to take place when regulatory intiatiatives such as EU's smart meter requirements and in-vehicle automotive safety system are implemented and as more cost-effective and easy to deploy solutions are brought to market.
The "The Wireless M2M & IoT Bible: 2014 – 2020" report covers, among others, key topics within the M2M including network connectivity, application services, network security, connective device and applications platforms and integration services and analyzes data and trends across key verticals, interface technologies and geographical areas. More details of the report is found at SNS Research.