SMEs to grab larger share of M2M connections, says Analysys Mason
Small and medium-sized enterprises are expected to make up an increasing share of the machine-to-machine connections market, which is expected to generate $10 billion in revenue this year, according to a recent report by Analysys Mason.
Excluding the utilities sector, SMEs will make up close one-quarter of M2M connections by 2023, up from 14.6 percent this year, representing a compound annual growth rate of 33 percent, noted Analysys Mason.
The utilities sector is the fastest-growing M2M sector and is forecast to account for two-thirds of overall M2M device connections worldwide by 2023, the research firm added.
SME growth will be fueled by declining cost for M2M hardware and services. "Operators have already been successful in selling productised M2M solutions such as fleet management to SME customers. We believe operators will find success in selling security and surveillance, some healthcare solutions and some retail sector M2M solutions to SME buyers," commented Analysys Mason.
Emerging markets are forecast to account for a greater share of M2M device connections by 2015, as the share of developed markets declines from 68 percent this year to 62 percent in 2023.
The automotive and transport sector accounted for 28 percent of total M2M connectivity revenue in 2013. This will decline to 24 percent in 2023, as the utilities sector takes a larger share.
Analysys Mason forecasts that the average revenue per connection rate will decline from $5.54 in 2013 to $3.60 by 2023. Overall, operators are expected to generate $88 billion in M2M revenue by 2023.
- see Analysys Mason's release