According to research firm Infonetics Research, global machine to machine (M2M) service revenue will witness two-fold growth between 2012 and 2017, from $15 billion to $31 billion.
M2M is one of the fastest-growing segments for telecom service providers. There were 1.4 billion M2M connections worldwide in 2012. Majority of these connections comprised of personal area network (PAN)-based wireless technologies. Currently, there are 190 million M2M connections comprising of cellular and other WAN wireless technologies. More than 16 per cent of the total M2M service revenue i.e. about $2.4 billion is derived from M2M backhaul services. The automotive, transport, and logistics sector accounted for one third of the total M2M service revenue in 2012. The key revenue growth drivers for M2M industry were vehicle tracking, navigation, and delivery applications.
Infonetics research says that the cellular networks represent a potential revenue opportunity for operators, but by far the most popular way to connect to M2M services is via PAN-based wireless technologies, such as Wi-Fi, Zigbee, Bluetooth, and IP500, which do not generate connection revenue. It?s critical that mobile operators incorporate a broader view of the various M2M access technologies into their M2M strategies.
North America and Europe are the key centers of M2M service growth, accounting for 72 per cent of the total market. In 2012, China Mobile overtook AT&T in M2M connections leadership, but AT&T remains the revenue leader due to higher average revenue per connection.
