Fastest Growing Market:
The M2M Connections market was valued at USD 19.18 billion in 2019 and is expected to reach USD 26.52 billion by 2025, at a CAGR of 5.55% over the forecast period 2020 - 2025.
- M2M connections finds applications in a variety of ways and has advanced over the last few decades with the creation of global Internet and IP network systems, facilitating enhanced and efficient communications over long distances and between massive numbers of devices.
- The developing countries like India have identified the importance of M2M and are, therefore, focusing extensively on the increased penetration of M2M. The Government of India has recognized the importance of IT and initiated a campaign of Digital India and Make in India. The success of these campaigns will ride on proliferation of M2M in India. M2M connections in India are likely to reach 429 million by 2021 as per FICCI, this in itself is indicative of the fact that the market is expected to receive a positive boost over the forecast period.
- In February 2018, the department of telecommunications (DoT) announced to issue a policy document outlining guidelines to enable the introduction of machine-to-machine (M2M) communication services in India, which in turn will also facilitate the roll-out of the Internet of Things.
- The rising adoption of 5G technology and growing advancement in wireless communication will also enhance the machine to machine communication.
- However, Privacy and security issues and complex application development are some of the major factors hindering the growth of the studied market. Also, the high delivery cost with limited scalability is also impacting negatively to market growth.
Scope of the Report
Machine to Machine communication is direct communication between devices using any means of communication such as wired or wireless. This report segments the market by Technology (Cellular Connections, Low Power Wide Area, Short Range, MAN, Wide Area Fixed, Satellite), End-user (Retail Sector, Banking and Financial Institution, Telecom & IT Industry, Healthcare, Automotive), and Geography.
| By Technology |
| ||Cellular Connections |
| ||Low Power Wide Area (LPWA) |
| ||Short Range |
| ||MAN |
| ||Wide Area Fixed |
| ||Satellite |
| By End-user Industry |
| ||Retail Sector |
| ||Banking and Financial Institution |
| ||Telecom & IT Industry |
| ||Healthcare |
| ||Automotive |
| ||Oil & Gas |
| ||Transportation |
| ||Other End-user Industry |
| Geography |
| ||North America |
| ||Europe |
| ||Asia-Pacific |
| ||Latin America |
| ||Middle East and Africa |
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Key Market Trends
Cellular Connections is Expected to Hold Significant Share
- 5G is expected to unleash a massive IoT ecosystem that would allow networks to serve for billions of connected devices. For Instance, according to Ericsson's Mobility Report of June 2019, More than 10 million 5G subscriptions are projected worldwide by the end of 2019. This is indicative of the fact that the market is poised to grow throughout the forecast period.
- Also according to the latest update of Cisco’s Mobile Visual Networking Index (VNI) Forecast (2017 – 2022), by 2022 mobile traffic will represent nearly 20% of global IP traffic and will reach 930 exabytes annually. This in itself is indicative of the fact that M2M connections are expected to have stronger growth throughout the forecast period.
- Also, the increasing number of startups that are focused on expanding their market share is helping the number of cellular connections to grow. For instance, in August 2019, Space startup announced its plans to launch thousands of satellite ‘cell towers’ that connect to the average phone. Such instances are expected to boost the adoption of the M2M connections over the forecast period.
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North America is Expected to Hold Significant Share
- The region is home to some of the major players in the telecom industry such as the AT&T, Verizon, Cisco and many more which are continuously investing in the building up and advancing their infrastructure to keep pace with the technological advancements. This is expected to boost the adoption of M2M connections over the forecast period.
- The advent of 5G is expected to fuel the growth of M2M connections over the forecast period. This is evident from the Ericcson's Mobility Report of June 2019, that states that the region s expected to hold close to 270 million 5G subscriptions accounting for more than 60 percent of mobile subscriptions.
- Some of the prominent players in the region through research and development, strategic partnerships, and mergers and acquisitions have been able to further the technology which is expected to boost the adoption of the M2M Connections in the region over the forecast period.
- For instance, Intel and The City of San Jose, CA in order to further the City’s Green Vision initiative collaborated for a public-private partnership project. The project aims at establishing a network of Air Quality, Sound & MicroClimate Sensors, Intel and San Jose are creating a “sustainability lens” for the City based on IoT technology.
- Also in April 2018, Microsoft announced its plans to invest USD 5 billion in IoT over the next 4 years globally to support continued research and innovation in IoT. Such investments are ought to boost the adoption of the M2M connections over the forecast period.
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The competitive rivalry between the players in the M2M communications market is high owing to the presence of some major players such as Cisco, IBM, Huawei, Intel amongst others. Their ability to continually innovate their offerings has allowed the players to gain a competitive advantage over others. Through research and development, strategic partnerships, mergers & acquisitions these players have been able to attain a greater foot print.
Table Of Contents
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Introduction to Market Drivers and Restraints
4.3 Market Drivers
4.3.1 Augmenting Applications Telematics
4.3.2 Adoption of High Speed Spectrum
4.3.3 Increasing Number of Mobile Connections
4.4 Market Restraints
4.4.1 Privacy and Security Issues
4.4.2 Lack of Standardization
4.5 Industry Attractiveness - Porter's Five Force Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Technology
5.1.1 Cellular Connections
5.1.2 Low Power Wide Area (LPWA)
5.1.3 Short Range
5.1.5 Wide Area Fixed
5.2 By End-user Industry
5.2.1 Retail Sector
5.2.2 Banking and Financial Institution
5.2.3 Telecom & IT Industry
5.2.6 Oil & Gas
5.2.8 Other End-user Industry
5.3.1 North America
5.3.4 Latin America
5.3.5 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Vodafone Group
6.1.2 Texas Instruments
6.1.3 AT&T Inc.
6.1.4 Duetsche Telecom AG
6.1.5 Siera Wireless
6.1.6 China Mobile Ltd.
6.1.7 Cisco System Inc.
6.1.8 Huawei Technologies Co. Ltd.
6.1.9 Intel Corporation
6.1.10 Sprint Corporation
6.1.11 Gemalto NV(Thales Group)
6.1.12 Telefonica SA
6.1.13 Telit Communications
6.1.14 Verizon Communications Inc.
*List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS