Global M2M market to grow to 27 billion devices, generating USD1.6 trillion revenue in 2024

24 June 2015

Machina Research, the world’s leading provider of strategic market intelligence on M2M and the Internet of Things today published its annual guidance on the size of the M2M market opportunity

Machina Research today published its annual guidance on the growth of the M2M market worldwide. The key findings are as follows:

  • The total number of M2M connections will grow from 5 billion in 2014 to 27 billion in 2024, a CAGR of 18%.
  • Today 72% of all M2M connections are connected using a short range technology (e.g. WiFi, Zigbee, or in-building PLC), by 2024 that will have declined to 69%. The big short-range applications, which cause it to be the dominant technology category, are Consumer Electronics, Building Security and Building Automation.
  • Cellular connections will grow from 256 million at the end of 2014 to 2.2 billion by 2024, of which the majority will be LTE. Just over 50% of those cellular connections will be in the ‘Connected Car’ sector, including both factory-fit embedded connections and aftermarket devices.
  • 14% of connections in 2024 will use Low Power Wide Area (LPWA) connections such as Sigfox, LoRa and Huawei’s Cellular IoT.
  • China and the US will be neck-and-neck for dominance of the global market by 2024. China which will account for 21% of global M2M connections, ahead of the US on 20%. However, the US wins in terms of cellular connections (20% vs 15%) and M2M revenue (23% vs 19%). Third largest market is Japan with 8% of all connections, 6% of cellular and 7% of global revenue.
  • The total M2M revenue opportunity will be USD1.6 trillion in 2024, up from USD500 billion in 2014, a CAGR of 12%. This includes devices, connectivity and application revenue. The majority of the revenue comes from devices.
  • M2M today accounts for 2% of cellular data traffic. By 2024 this will have increased to 4%. Although this figure indicates a modest impact on networks, M2M devices are highly diverse and their demands on network capabilities will go beyond simply the volume of traffic, for instance with increasing signaling, or greater requirements for low latency.

Commenting on the market growth forecasts, Founder and CEO Matt Hatton said: “As ever, the expectations for growth in the M2M market are high. Over the last year we have had to adjust a few of our assumptions, mostly with regard to changing regulation such as with eCall or smart meter roll outs. The upshot is that some market growth will be delayed by a few years, which has had a knock-on effect on our forecasts. However, the overall picture is very positive, with strong growth anticipated over the next 10 years. In particular we would highlight the growing deployment of LPWA networks as a further cause for optimism in the growth of the market”.

The M2M Global Forecast & Analysis Report provides an overview of the total market opportunity in machine-to-machine, based on on-going analysis of the market as presented in the Machina Research M2M Forecast Database. Talking about the report Hatton commented: “M2M is a rapidly evolving market and through our M2M Forecast Database we are constantly monitoring and adjusting our outlook for each of the constituent elements. In that Database we have the most detailed forecasts available, tracking hundreds of applications across every country in the world. It’s a valuable exercise every year to take a step back and look at the big picture, which is what we present in this report.

Join our webinar on 15th July

Following the release of this report, Machina Research will also be hosting a webinar entitled 'Forecasting the Global M2M Opportunity'. More details, including registration HERE.

About Machina Research

Machina Research is the world’s leading provider of strategic advice on the newly emerging Internet of Things, M2M and Big Data markets. Our Advisory Service provides comprehensive support for any organisation interested in these opportunities. Our vertical market information and forecasts cover sectors such as Industry, Healthcare, Cars and Cities. Furthermore we provide guidance on commercial and technical best practice supporting all stakeholders in the sector including users, manufacturers, service providers, investors and regulators. In addition to our syndicated Advisory Service research we also undertake a wide range of client-specific custom research projects ranging from White Papers through to full go-to-market strategies. Machina Research is staffed by the leading industry analysts in the sector.

About the Report

‘M2M Global Forecast & Analysis 2014-24’ is based on data extracted from Machina Research’s M2M Forecast Database in June 2015. The database is a comprehensive quantitative analysis of the global M2M market opportunity from 2014 to 2024. It covers all M2M applications across 203 countries and 6 regions with detail on connections, technology, revenue and traffic. This report is a summary snapshot of the more detailed forecasts contained within that M2M Forecast Database.

Subscribers to the M2M Forecast Database should access the forecasts via the web tool, which includes more granular data, with country-by-country forecasts on each specific application.


For further comments or more information on this press release, please contact: Matt Hatton, CEO, Machina Research

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