The new GSMA Intelligence report, "From Concept to Delivery: The M2M Market Today," tracks the development of the M2M market since 2010 and confirms that "Connected Living" has reached maturity as operators begin to expand deployments of M2M solutions across a range of vertical sectors.
The study estimates that global M2M connections reached 195 million in 2013, growing at nearly 40 percent per year (38 percent CAGR) between 2010 and 2013. M2M connections are expected to reach 250 million this year. M2M accounted for 2.8 percent of total global mobile connections at the end of 2013, double the 1.4 percent share recorded in 2010.
“We now live in a world where all devices, machines, and gadgets can connect to the internet wirelessly, providing a wealth of real-time information that can transform people’s lives and work. For mobile operators, connecting these ‘machines’ to their networks is now a major focus,” said Hyunmi Yang, Chief Strategy Officer, GSMA. “But it’s not just about adding new types of connections: there’s an opportunity for mobile operators to add value beyond connectivity by developing M2M capabilities that reduce fragmentation and foster new services. For example, defining cross-vertical solutions in network APIs, device management, security, and big data are areas where operators can help drive the M2M market.”
According to the study, around 428 mobile operators currently offer M2M services in 187 countries; this is equivalent to 40 percent of the world's mobile operators.
The operators studied in the report are now undertaking true commercial M2M implementations, indicating that the market has moved from an initial phase to a mass-market delivery phase. Many operators also commented that they are adapting their organizational structure and business models to serve a range of vertical sectors with M2M solutions.
The report indicated that the automotive sector was one of the fastest-growing M2M markets. Indeed, consumers can now benefit from in-car connectivity and services, such as flexible Pay-as-You-Drive (PAYD) insurance based on usage and real-time traffic management.
"It's clear that the M2M market has moved from a development phase to a phase of commercial implementation," said Jurgen Hase, Vice President of the M2M Competence Center at Deutsche Telekom. "M2M is of significant strategic importance to our business, with great growth potential in a number of industrial segments. We can already see the impact it's having on our daily lives."
"M2M matters because it reorganizes workflows to reduce friction. At SingTel, we are increasingly focused on solutions that create more value for our customers beyond connectivity. We are exploring different ways to expand our offering," said Mr. Zia Zaman, Vice President, Emerging Businesses and Strategy, SingTel Group Enterprise. "Initially, our efforts were focused on ensuring we were delivering excellent connectivity. Now that we have achieved that, we are focusing on moving up the value chain."
"Our consumers are becoming more sophisticated in their use of M2M technology and are more aware of the opportunities it offers. We believe that by aligning ourselves with their approach to the market, we are creating new and stronger partnerships to help expand the adoption and use of M2M globally," said Jari Salminen, M2M Business Development at Vodafone.
¹ What is a machine-to-machine (M2M) connection? While operators and regulators are increasingly reporting on M2M connections, their definitions can vary considerably. The GSMA Intelligence M2M connection data used in the new study refers exclusively to SIM connections that enable mobile data transmission between machines. This includes SIMs used in personal computing devices such as smartphones, backpacks, tablets, e-readers, routers, and hotspots.
The first part of the report analyzes the current state of the M2M market based on new research from GSMA Intelligence. It marks the beginning of a series of qualitative and quantitative reports led by GSMA Intelligence as GSMA enhances its ability to accurately measure the global M2M market opportunity. The second part of the report is based on independent research conducted directly with operators to understand market trends and present the most accurate picture of the current M2M market. Interviews were conducted with individuals with direct responsibility for M2M at a dozen major global mobile operators.
