Enterprises turning to machine-to-machine (M2M) services to get a leg up on competition

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Campbell, CALIFORNIA, February 5, 2014—Market research firm Infonetics Research released excerpts from its just-published M2M Strategies by Vertical: North American Enterprise Survey, which provides a view of the machine-to-machine (M2M) market through the eyes of end-users of M2M solutions and services.

Infonetics' M2M strategies report explores the drivers, barriers, plans, and service provider selection criteria of enterprises in 5 market segments: automotive and logistics; utility; retail; healthcare; and public safety and surveillance.

ANALYST NOTE

"So much of the discussion surrounding M2M has been focused on connections, but whether it is 20 billion, 30 billion, or 50 billion, there's no question that number is going to be huge. What hasn't been as clear is why this is happening. Why are enterprises buying M2M services?," says Godfrey Chua, directing analyst for M2M and connected world at Infonetics Research.

"We asked enterprises what's driving their decisions to adopt M2M services, and the number-one factor is the never-ending pursuit of competitive advantage," continues Chua. "This speaks to the need for M2M services to deliver a strong business case. As technologies continue to evolve and prices come down, enterprises will increasingly turn to M2M to lower operating costs, differentiate their brands, and create new revenue opportunities."

SELECT M2M SURVEY HIGHLIGHTS

  • A majority of enterprises surveyed expect the need for M2M services to increase over the coming year, validating the assumption made by the top global service providers (Vodafone, AT&T, Verizon, Orange, and Telefónica) that M2M will be a key growth area for their businesses
  • Security is a top concern among respondents, as are regulatory issues and the complexity of the M2M solutions themselves, underscoring the need for customer education in these areas
  • Just as it does in the smartphone world, network quality matters in M2M: According to enterprises surveyed, network quality is the top criteria for M2M service provider selection
  • Not surprisingly, service providers who place a strong emphasis on network reliability and performance—namely Verizon and AT&T—also have significant mindshare in M2M

M2M SURVEY SYNOPSIS

For its 26-page M2M survey, Infonetics interviewed IT purchase-decision makers at 163 organizations in North America that are procuring M2M services or will trial or deploy them by the end of 2014. The survey explores the adoption of M2M services by type (data reporting, connectivity, data storage, etc.), by M2M device (surveillance cameras, kiosks, in-vehicle systems, smart meters, tracking devices, healthcare monitoring gadgets, etc.), and by M2M access technologies (fiber, LTE, copper, etc.). Survey respondents also name who they consider the top M2M service providers to be, their annual M2M service cost per device, the length of their M2M service contracts, and more. To buy the M2M report, contact Infonetics: http://www.infonetics.com/contact.asp.