will grow from one billion in 2010 to 12 billion in 2020, of which 2.3 billion
will be wireless wide area network connections. Mobile network operators can
expect to take EUR 40 billion of the EUR 714 billion M2M market in 2020.
2020 Europe will be the biggest region for M2M, accounting for 28 percent of
connections. The biggest single markets will be the China and the US with 21
percent and 20 percent respectively.
M2M connections will increase from one billion at the end of 2010 to 12 billion
at the end of 2020, accounting for half of all global data 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 over 60 percent of the total.
70 percent of M2M devices will be connected by short-range technologies, mostly
WiFi. Of the remainder, wireless cellular technologies dominate. When
considering solely cellular connections, the most important applications
sectors are Utilities (principally smart metering) and Automotive (including
pay-as-you-drive insurance, emergency/eCall and security and tracking).
the end of 2010 M2M accounted for 2 percent of cellular connections. By 2020
this will reach 19 percent, or 2.3 billion connections.
will grow from EUR 91 billion in 2010 to EUR 714 billion in 2020, a CAGR of
22.9 percent. Europe is again the dominant region, generating revenue of over
EUR 200 billion in 2020. The US is the largest individual country with over EUR
150 billion revenue, followed by China with over EUR 110 billion.
addressable revenue opportunity for mobile network operators (MNOs) will be EUR
210 billion in 2020, of which Machina Research expects them to take EUR40
billion if they have an effective M2M strategy.
amount of revenue that will be generated simply from playing the role of
bit-pipe will be much more modest at EUR4 billion, reflecting the relatively
small amounts of traffic generated by most M2M connections. In total just 800PB
of data will be generated by M2M in 2020, less than 2 percent of total mobile
is as diverse as the business sectors that it serves. Each and every one of the
hundreds of applications that we’ve analysed has different dynamics. It’s only
by looking at each application individually that you can hope to either
forecast the market opportunity, as we have, or address the connectivity
requirements, as the throngs of device manufacturers, service providers,
network operators and systems integrators will hope to do,” said report author
Jim Morrish of Machina Research.