The global machine to machine (M2M) services market size is expected to reach USD 88.90 billion by 2021 with a CAGR of more than 29% during the forecast period, according to the latest market study released by Technavio. The rising demand for improved M2M data communication is the key driver responsible for the incredible growth of the market, said Technavio.
According to Technavio, M2M data communication is the next big wave in technology development. Almost all businesses have partially or completely adopted this technology to improve their operational effectiveness and efficiency. Additionally, this technology also enables real-time monitoring and management of assets, resulting in increased popularity of the market.
“The consumer electronics segment holds the highest revenue in the global M2M services market and is expected to reach a value of USD 22 billion by 2021. M2M solutions are being increasingly adopted into devices such as cameras, personal navigation devices, and health monitors, thereby driving the growth of the market segment,” says Abhishek Sharma, one of the lead analysts at Technavio for M2M and connected devices research.
This segment is displaying quick growth, driven by increasing adoption of cellular broadband networks in households and smart connected devices among consumers. Consumer devices such as televisions, refrigerators, microwave ovens, security cameras, and dishwashers can be connected to each other with a common controlling device via M2M connectivity and wireless networks.
The market research firm said that the M2M services are predominantly used in the automotive sector for remote monitoring of cars and theft recovery. Additionally, the growing demand for infotainment services in connected cars is fueling further demand for these services. The advent of 4G LTE technologies in the automotive sector is one of the key reasons enabling the high adoption of M2M services in the industry. Remote diagnostics, advanced navigational capabilities, and pay-as-you-go (PAYG) insurance models are other factors increasing the adoption of M2M solutions in the automotive industry.
“The healthcare sector is expected to be one of the fastest growing segments of the M2M services market with a CAGR of over 37% through 2021. M2M services enable the provision of facilities such as medication reminders, remote diagnostics, telemedicine services, and quick emergency communications, which is resulting in increasing popularity of these solutions in the market segment,” says Abhishek.
Technavio added that the increasing adoption of Wi-Fi in hospitals and establishment of sustainable business models by mobile operators is enabling for successful deployment of M2M services in hospitals. These solutions are expected to save billions of US dollars for hospitals, which is driving the growth of the market segment.