Wireless M2M market to generate nearly $136 billion in revenues by 2018, says report
The wireless machine-to-machine communications market is expected to increase at a 23 percent compound annual growth rate through 2018, reaching nearly $136 billion in revenues by then, according to a report by research firm Signals and Systems Telecom.
As mobile network operators' traditional voice and data markets become saturated, they are turning to the wireless M2M market to generate revenue. In addition, government initiatives, such as smart metering and automotive telematics mandates, are driving wireless M2M connections and revenue, the report explained.
Currently, the M2M market is highly fragmented. M2M module manufacturers, hardware providers, application platform providers, device platform providers, and mobile network operators and aggregators are investing across multiple segments of the value chain. Signals and Systems Telecom said it expects the M2M value chain to consolidate into a smaller number of larger and profitable competitors.
The increasing use of M2M products in critical infrastructure industries is spurring demand for M2M network security services.
On Thursday, Scottsdale, Ariz.-based M2M vendor RACO Wireless, announced that it had signed a carrier agreement with Canadian wireless operator Rogers Communications. The agreement enables RACO's customers to deploy M2M solutions in Canada through its Omega Management Suite platform.
RACO offers a range of M2M products to enterprises, including fleet management, physical security, telemedicine and asset management.