Global M2M market revenue to total $54.3B in 2017, predicts IDATE
Global machine-to-machine market revenue is forecast by IDATE to increase 13 percent annually, reaching €40 billion ($54.3 billion) in 2017.
In addition, M2M market volume is forecast to jump 30 percent annually, reaching 470 million modules in 2017, according to IDATE stats.
M2M connectivity revenue alone is expected to reach €10 billion ($13.6 billion) by 2017, which will represent more than 3 percent of European operators' mobile data revenue.
These forecasts compare with 2013 M2M market volume of 175 million modules and revenue of €24.2 billion ($32.8 billion).
Europe is expected to be the largest market in terms of revenue, while Asia-Pacific will take the price in terms of module volume. Last year, China overtook the United States as the top market in terms of number of cellular M2M modules installed, writes IDATE lead analyst Samuel Ropert.
M2M market growth is being spurred on by the increasing use of M2M applications in the automotive, consumer electronics and utilities sectors, with other sectors expected to adopt M2M going forward, Ropert observes.
"The market offers M2M application providers with very attractive opportunities, despite the already relatively low and declining average revenue per user…[Mobile virtual network operators] are being pushed out of the market and so repositioning themselves as platform providers, while module providers will have to adapt to a market where unit prices are in free fall. Meanwhile, the top telcos are exploring new cloud and big data services that would allow them to find solid and sustainable new business opportunities," says Ropert.
IDATE's stats compare with recent estimates by market research firm Ovum that M2M revenues will reach $44.8 billion and M2M connections will total 360.9 million in 2018. The leading industries in terms of M2M revenue will be healthcare, manufacturing and energy and utilities.