Steep incline for M2M, IOT
The global mobile machine-to-machine (M2M) module market, on which the Internet of things (IOT) relies, is set to accelerate more noticeably in 2015 and ultimately nearly triple to $4.5 billion by 2018.
This is according to technology market research firm Infonetics' latest Mobile M2M Modules report, which provides market share, market size, forecasts, analysis and trends for mobile M2M modules by technology, vertical and region.
John Byrne, directing analyst for M2M and IOT at Infonetics, says MTM and IOT are transforming industries and creating massive opportunities around the world. "The [mobile M2M module] market will account for $1.6 billion in sales this year, driven by M2M services reported by customers of tier one mobile operators."
Last year, Gartner predicted 4.9 billion "connected things" would be in use next year - a number it said would rise to 25 billion by 2020.
Meanwhile, analysts have positioned SA as just as viable as other world markets for IOT-based technologies. A good example, says Paul Renshall, COO of Total Utilities Management Services, is BMW's ConnectedDrive, which is being heavily marketed in SA at the moment.
Here are the top five highlights from Infonetics' report, which heralds an increasingly connected world over the next few years:
1. M2M module unit shipments are today dominated by 2G, but soon 3G will rule the revenue opportunity with the shift toward broadband technologies, and 4G will emerge as the fastest-growing technology segment in terms of percentage of units.
2. Geographically, Asia Pacific is fastest, buoyed by the investments being made in China.
3. The transport segment is the largest and most important vertical sector, driven by connected car deployments.
4. Spurred on by smart grid investments, the utility segment is seeing strong growth that is expected to continue through at least 2018, as European and Asian countries scurry to meet government mandates.
5. Gemalto/Cinterion, Sierra Wireless, and Telit continue to dominate the M2M module market, together accounting for nearly two-thirds of total market revenue.