Press Release - Consumer Electronics M2M connections will top 7 billion in 2023, generating USD700 billion in annual revenue

The key driver for adoption in the sector over the next ten years is the improvement in functionality implicit in connecting CE devices, particularly of audio-visual devices such as internet-enabled TVs

[London, UK 28^th July, 2014]

Machina Research today published its annual review of the M2M market in the Consumer Electronics sector. The key findings of the research are as follows:

• Today the count of connected devices is dominated by Audio Visual Sources (mostly Computer Gaming Consoles) and Personal Multimedia (mostly Mobile Gaming Consoles).
• By 2023 there will be almost 7.2 billion M2M connected Consumer Electronic devices in use worldwide
• The majority of devices will be connected Audio Visual Sources (2.8 billion) and Displays (1.9 billion), primarily driven by consumer demand for web-TV, smart TVs and internet audio-sources
• The White Goods market, including the fabled connected fridge, will begin to adopt M2M connectivity in the out years of the forecast, as smart metering and pro-active energy management become more prevalent
• Other emerging device categories (including Household Information Devices, and Tracking Applications) also begin to secure market traction in the outer years of the forecast period
• The total market for M2M connected Consumer Electronics will reach USD697 billion in nominal terms in 2023 (USD540 billion in real (2011) terms)
• The largest application in terms of revenue will be Audio Visual Displays, driven by consumer desire to view web-TV content. The second largest application in terms of revenue will be Audio Visual Sources, also driven by user desire to consume internet content, both audio and video
• The largest regional markets are Emerging Asia-Pacific, Europe and North America with 42%, 22% and 17% of the global revenue in 2013 and 32%, 26% and 19% in 2023
• CE will be almost exclusively the domain of Wi-Fi and other short range connectivity technologies, unless WWAN embedded module costs can be reduced significantly (to a level broadly in line these competing technologies)

Commenting on the findings, report author Emma Buckland, Principal Analyst at Machina Research, said “There is massive potential for growth in the number of connected CE devices, driven largely by the potential for connected devices to offer a better user experience than non-connected equivalents, for instance in the form of internet-enabled TVs. Over time, a second main driver starts to emerge in the form of connecting white goods to allow time-shifting of electricity usage.”

About the study

The report “Machine-to-Machine (M2M) Communications in Consumer Electronics 2013-23” provides a qualitative and quantitative analysis of the M2M market opportunity in the Consumer Electronics sector including audio-visual, personal multimedia, household information devices, white goods, network equipment and tracking applications. It provides detailed analysis of each of the application groups and 10 year forecasts (2013 to 2023) for 6 regions with detail on connections, technology, revenue and traffic. The report is available as part of the Machina Research Advisory Service.

About Machina Research

Machina Research is a technology research and consulting firm focused on the emerging opportunities associated with new forms of connected device. We provide market intelligence and strategic insight to help our clients maximise opportunities from these rapidly emerging markets. If your company is a mobile network operator, device vendor, infrastructure vendor, service provider or potential end user in the M2M, IoT, Big Data or mobile broadband space, we can help.

Contact

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

This press release is also available to download in PDF format.