Enterprise adoption to push cellular M2M market to $66B by 2019


Fueled by enterprise adoption of machine-to-machine (M2M) technology, the cellular M2M market is forecast by research firm Ovum to reach $66 billion by 2019 or an aggregate of $252 billion between 2015 and 2019.

Ovum predicts that global cellular M2M connections will increase 162 percent over the next five years to reach 530 million.

The Asia-Pacific region is expected to have the most connections, with more than 200 million by 2019, followed by Europe and the Americas.

Cellular operators' revenue share of the cellular M2M market is forecast to reach $25 billion by 2019. Last year, operator revenue was comprised mostly of managed connectivity and network-level data transport. However, operators need to look beyond connectivity to tap into revenue opportunity in other areas, such as M2M integration services.

To tap into that opportunity, cellular operators should work with enterprises as partners rather than as customers, recommends Jamie Moss, senior analyst at Ovum.

"M2M is a market with unique dynamics, where the aim of the operator is to become embedded in the long-term business strategy of the enterprise, not to simply be their current service provider," says Moss.

"In order for the M2M market to realize its potential, operators must educate enterprises in the utility that connectivity brings. Enterprises should never have to become experts in connectivity, however, as that knowledge is part and parcel of the managed service that the operator must provide for them," Moss adds.

For more:
- see the Ovum release

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