M2M, big data combine to generate $14.8B in revenue by 2018, says ABI
The machine-to-machine analytics industry is forecast by ABI research to increase at a 53.1 percent rate over the next five years, reaching $14.3 billion in 2018.
ABI explained that the forecast includes revenue segmentation for the five components that together enable analytics to be used in M2M services: data integration, data storage, core analytics, data presentation and associated professional services.
"Analytics will play a critical role in the evolution of M2M, serving as the foundation for an increasing number of M2M business cases. In essence, such analytics-driven business cases will be about making previously opaque physical assets part of the digital data universe. M2M has thus a very synergetic relationship with the wider big data space, with growth in one industry driving also growth in the other," observed ABI senior analyst Aapo Markkanen.
Overall, the wireless M2M market is expected to generate nearly $136 billion in revenues by 2018, according to a report by Signals and Systems Telecom.
Currently, most enterprises with relevant data assets are migrating from descriptive and diagnostic insights to predictive analytics.
"Predictive analytics is becoming one of the hottest areas in the M2M value chain," explained ABI practice director Dan Shey.
"Of today's analytics establishment, SAP and IBM have woken up to the opportunity reasonably early. Of the younger companies, Splunk is an example of a firm that could develop into a true Internet of Things powerhouse if it plays its cards right. Given the far-reaching possibilities of machine learning, we are also expecting major impact from players that successfully apply it to industrial settings. Mtell appears to be making strides in this field and going forward also Grok will be one to watch," he added.
- check out the ABI release