M2M Connections Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Market Overview

The M2M Connections market was valued at USD 19.18 billion in 2020 and is expected to reach USD 26.52 billion by 2026, at a CAGR of 5.55% over the forecast period (2021 - 2026). 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.

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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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