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Enterprises turn to M2M to gain a competitive advantage

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Enterprises are fueling the growth of machine-to-machine (M2M) connections as they strive to gain an advantage over competitors, improve business agility and lower operational costs, judges Godfrey Chua with Infonetics Research.

Around 80 percent of M2M connections occur over Wi-Fi, Bluetooth and ZigBee, but the number of cellular M2M connections is expected to take off, especially with the deployment of 4G LTE networks.

"Cellular technologies are playing an increasingly important role in enabling M2M services, comprising the vast majority of WAN [wide area network] wireless M2M connections today, over 220 million, and nearly tripling to just over 630 million connections by 2018," says Chua.

"Among the cellular generations, 2G and 3G are the majority currently, but it's LTE that will grow the fastest, starting from a small base and then expanding rapidly, supported by efforts like AT&T/GM/OnStar and other connected car initiatives, as well as China Mobile's massive LTE TDD network rollout," continues Chua.

M2M access services, in which operators' broadband services function as M2M access solutions, make up more than 16 percent of M2M service revenue, or $3 billion, according to Infonetics.

The global market for M2M services reached just over $16 billion in 2013, and there were nearly 1.7 billion M2M connections worldwide, according to the latest stats from Infonetics Research. Global revenue from M2M services is forecast to increase at an 18 percent compound annual growth rate through 2018.

For more:
- see Infonetics' release

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