M2M market will reach $54 billion in 2017 report predicts
In the sixth edition of IDATE‘s M2M Market report (covering 2013-2017), the organisation forecasts that global M2M [machine-to-machine] market volume will grow by an average of around 30 per cent annually. That corresponds to 470 million modules, whilst in comparison revenue will climb by 13 per cent a year on average, to reach €40 billion ($54 billion). The bulk of revenue was generated by software and IT developments which together accounted for two-thirds of total market value. The main areas of application were automotive; consumer electronics; and utilities.
n 2013, the M2M market represented 175 million modules worldwide, generating €24.2 billion ($32.7 billion) in revenue.
That translates in to an annual growth rate of 31 per cent in volume and 11 per cent in revenue.
By 2017 over 3 per cent of European Telcos’ mobile data revenue will come from M2M connexions – which, worldwide, are expected to represent €10 billion in revenues.
China rose to the number one spot in number of cellular M2M modules installed in 2013, overtaking the USA.
Even if Asia-Pacific continues to dominate in terms of volume, however, Europe will be the biggest market in terms of revenue – ahead of North America.
It’s bad news for the M2M module providers who will have to adapt to a market where unit prices are in free fall.
Additionally, MVNOs are being pushed out of the market and so repositioning themselves as platform providers.
Nevertheless, the market offers M2M application providers with very attractive opportunities, despite the already relatively low and declining ARPUs (average revenue per user).
Meanwhile, the top Telcos are exploring new cloud and big data services which would enable them to find solid and sustainable new business opportunities.
More details on this comprehensive M2M report (which excludes satellite M2M) are available here.
Read the full Press release here.