Press Release - Machine-to-Machine connections to hit 18 billion in 2022, generating USD1.3 trillion revenue

20 December 2013

Machina Research has issued its annual assessment of the global opportunity for M2M. The latest study finds that M2M connections will grow from three billion in 2012 to 18 billion in 2022, of which 2.6 billion will be wireless wide area network connections. Total market revenue will hit USD1.3 trillion but the opportunity depends on your role in the value chain.

Machina Research, the world’s leading advisors on M2M today published its most recent report, M2M Global Forecast & Analysis 2012-22. It provides an overview of the total market opportunity for M2M globally, based on our detailed sector analysis conducted throughout the year. The key findings are:

  • Global M2M[1] connections will increase from three billion at the end of 2012 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). Between them they will account for almost 70% of the total.
  • Short range technology will dominate M2M: 73% of M2M devices will be connected by short-range technologies, mostly WiFi. Cellular/wireless wide area network (WWAN) connections will grow from 190 million at the end of 2012 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). At the end of 2012 M2M accounted for 3% of cellular connections. By 2022 this will reach 22%.
  • In terms of revenue[2], M2M will grow from USD300 billion in 2012 to USD1.3 trillion in 2022, a CAGR of 16%. 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 USD42 billion connectivity service revenue, the majority comes from service enablement (USD31 billion) with the remainder coming from the provision of basic cellular connectivity.

Commenting on the findings, report co-author Matt Hatton notes: “We are constantly tracking the global M2M market in all its diversity. While we have noted some sectors and countries where the market has developed slightly differently from expected, the overall trend continues to be for impressive growth in the sector over the next ten years”.

 

About the Report

Machina Research is a UK-based telecoms research and consulting firm focusing principally on the emerging opportunity associated with new forms of connected wireless device, specifically machine-to-machine (M2M) and mobile broadband.

The report M2M Global Forecast & Analysis 2012-22 is based on data extracted from Machina Research’s Forecast Database which tracks and forecasts 61 M2M application groups across thirteen sectors based on analysis of hundreds of individual applications. The comprehensive database comprises several million datapoints and includes ten year forecasts (2012-22) for each application group across 203 countries and six regions. For each application group and country it provides information on numbers of connections, technology type, revenue and traffic.

This report provides a regional summary of the Forecasts (i.e. no country-level information).

This press release is also available in PDF.


Contact

For more information about this report, to discuss the findings, understand more about the Forecast Database, or just to find out more about Machina Research, please contact:

Matt Hatton, Director (matt.hatton@machinaresearch.com)

Jim Morrish, Director (jim.morrish@machinaresearch.com)


[1] Machina Research defines M2M as “Connections to remote sensing, monitoring and actuating devices, together with associated aggregation devices”. It includes all forms of short range and wide area technologies. It excludes personal mobile broadband devices in the form of mobile handsets, PC/laptop connections and tablets/eReaders. 

[2] Revenue includes device cost where connectivity is integral to the device, module costs where devices can optionally have connectivity enabled, installation and integration costs, monthly subscriptions, connectivity and traffic fees.

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