“Mobile networks are the platform upon which the M2M industry is being built and mobile operators are at the forefront in shaping the new business models that are driving this exciting market forward,” said Hyunmi Yang, Chief Strategy Officer at the GSMA. “The study issued today points to strong growth in the M2M space over the next six years, but also highlights the measures that industry players and regulators can adopt to further accelerate market development.
“To fully unlock the M2M market opportunity for both consumers and businesses, we need industry-wide collaboration to address the current fragmented marketplace and to drive economies of scale and global interoperability, which will benefit all players in the emerging M2M ecosystem. The GSMA is supporting this industry-wide collaboration as part of its Connected Living programme, as well as other initiatives.”
At the current rate of trajectory, cellular M2M connections will grow at 26 per cent per year (CAGR) in the period between 2014 and 2020. However, according to the report, this growth rate could accelerate beyond 40 per cent a year if desirable market conditions are achieved, leading to the potential two billion cellular M2M connections globally by 2020.
There are a number of areas identified as possible growth stimulators, including: the introduction of additional government policies aimed at encouraging wider deployment of cellular M2M in key sectors such as utilities, smart cities, automotive and healthcare; reductions in M2M module costs; and the development of standardised APIs.
China and the US Continue To Lead the Global M2M Market
China and the US are already established as the first and second largest cellular M2M markets globally in terms of connections and will continue to remain so through to at least 2020. These two markets combined are forecast to account for approximately half of the global total expected by that point. China’s large cellular M2M market is attributed to significant investment by the government, underlining the important role of regulatory initiatives in stimulating M2M growth. The US market is being driven by strong growth in the automotive, smart homes and utilities sectors in particular.
On a regional basis, cellular M2M connections are expected to account for around 27 per cent of total mobile connections in North America by 2020, the highest proportion of any global region. Cellular M2M in this region currently accounts for approximately one in 10 connections.
Cellular M2M as a Percentage of Total Mobile Connections
Source: GSMA Intelligence
| Q2 2014 | Q4 2020 | |||||||
| North America | 10.5% | 27.0% | ||||||
| Europe | 6.8% | 20.4% | ||||||
| Asia Pacific | 2.4% | 8.8% | ||||||
| Latin America | 2.1% | 6.9% | ||||||
| CIS | 2.0% | 8.3% | ||||||
| MENA | 1.2% | 3.7% | ||||||
| Sub-Saharan Africa | 1.2% | 2.9% | ||||||
| World | 3.0% | 9.7% | ||||||
The full report, “Cellular M2M forecasts and assumptions: 2010-2020”, is available to GSMA Intelligence subscribers and to accredited members of the press on request.
Click here for more information on how to subscribe to GSMA Intelligence:
http://www.gsma.com/newsroom/gsmai/.
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About the GSMA
The GSMA represents the interests of mobile operators worldwide. Spanning more than 220 countries, the GSMA unites nearly 800 of the world’s mobile operators with 250 companies in the broader mobile ecosystem, including handset and device makers, software companies, equipment providers and Internet companies, as well as organisations in industry sectors such as financial services, healthcare, media, transport and utilities. The GSMA also produces industry-leading events such as Mobile World Congress and Mobile Asia Expo.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.