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

The M2M Connections Market is Segmented 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.

Market Snapshot

M2M Connections Market Size
Study Period: 2018 - 2026
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 5.55 %
M2M Connections Market Key Players

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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.

By Technology
Cellular Connections
Low Power Wide Area (LPWA)
Short Range
Wide Area Fixed
By End-user Industry
Retail Sector
Banking and Financial Institution
Telecom & IT Industry
Oil & Gas
Other End-user Industry
North America
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.
M2M Connections Market Share

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.
M2M Connections Market Forecast

Competitive Landscape

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.

Major Players

  1. Cisco System Inc.

  2. Huawei Technologies Co. Ltd.

  3. Intel Corporation

  4. Sprint Corporation

  5. Verizon Communications Inc.

Cisco, IBM, Huawei, Intel

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Augmenting Applications Telematics

      2. 4.3.2 Adoption of High Speed Spectrum

      3. 4.3.3 Increasing Number of Mobile Connections

    4. 4.4 Market Restraints

      1. 4.4.1 Privacy and Security Issues

      2. 4.4.2 Lack of Standardization

    5. 4.5 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry


    1. 5.1 By Technology

      1. 5.1.1 Cellular Connections

      2. 5.1.2 Low Power Wide Area (LPWA)

      3. 5.1.3 Short Range

      4. 5.1.4 MAN

      5. 5.1.5 Wide Area Fixed

      6. 5.1.6 Satellite

    2. 5.2 By End-user Industry

      1. 5.2.1 Retail Sector

      2. 5.2.2 Banking and Financial Institution

      3. 5.2.3 Telecom & IT Industry

      4. 5.2.4 Healthcare

      5. 5.2.5 Automotive

      6. 5.2.6 Oil & Gas

      7. 5.2.7 Transportation

      8. 5.2.8 Other End-user Industry

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia-Pacific

      4. 5.3.4 Latin America

      5. 5.3.5 Middle East and Africa


    1. 6.1 Company Profiles

      1. 6.1.1 Vodafone Group

      2. 6.1.2 Texas Instruments

      3. 6.1.3 AT&T Inc.

      4. 6.1.4 Duetsche Telecom AG

      5. 6.1.5 Siera Wireless

      6. 6.1.6 China Mobile Ltd.

      7. 6.1.7 Cisco System Inc.

      8. 6.1.8 Huawei Technologies Co. Ltd.

      9. 6.1.9 Intel Corporation

      10. 6.1.10 Sprint Corporation

      11. 6.1.11 Gemalto NV(Thales Group)

      12. 6.1.12 Telefonica SA

      13. 6.1.13 Telit Communications

      14. 6.1.14 Verizon Communications Inc.

    2. *List Not Exhaustive


**Subject to Availability
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Frequently Asked Questions

The M2M Connections Market market is studied from 2018 - 2026.

The M2M Connections Market is growing at a CAGR of 5.55% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

Cisco System Inc., Huawei Technologies Co. Ltd., Intel Corporation, Sprint Corporation, Verizon Communications Inc. are the major companies operating in M2M Connections Market.

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