Reports

Authors: Jim Morrish, Director, Emma Buckland, Principal Analyst and Matt Hatton, Director.

Summary: This report M2M Global Forecast and Analysis 2011-22 is based on data extracted from Machina Research’s Forecast Database. This database is a comprehensive quantitative analysis of the M2M market opportunity from 2011 to 2022. It covers all M2M applications across 54 countries and 6 regions with detail on connections, technology, revenue and traffic.

Key findings: Global M2M connections will increase from two billion at the end of 2011 to 18 billion at the end of 2022. Connections will be dominated by two sectors: consumer electronics including cameras, music players and TVs) and intelligent buildings (e.g. security and HVAC systems). Short range technology will dominate: over 70% of M2M devices will be connected by shortrange technologies, mostly WiFi. Cellular/wireless wide area network (WWAN) connections will grow from 146 million at the end of 2011 to 2.6 billion in 2022.

The most important WWAN sector is Automotive (including pay-as-you-drive insurance, emergency/eCall and security and tracking), accounting for 60% of connections. At the end of 2011 M2M accounted for 2% of cellular connections. By 2020 this will reach 22%. In terms of revenue, M2M will grow from USD200 billion in 2011 to USD1.2 trillion in 2022, a CAGR of 18%. Two-thirds of the revenue opportunity is accounted for by devices and installation, and one-third by M2M services. Machina Research estimates that 90% of the USD400 billion M2M service revenue is accounted for by the ‘service wrap’ and 10% by the provision of connectivity. Of the USD39 billion connectivity service revenue, the majority comes from service enablement (USD29 billion) with just USD9 billion coming from the provision of basic cellular connectivity.