M2M (Internet of Things) is set to grow from 4.4 billion connected devices this year to 10.3 billion by 2018, said Vodafone.
Vodafone said in its second annual M2M Adoption Barometer study that M2M adoption has increased by more than 80 percent globally in the last year.
The study – of more than 600 executives involved in setting M2M strategy in seven key industries across 14 countries — said 81 percent recognize 4G mobile as critical for M2M adoption
Andrew Morawski, Vodafone’s head of Machine-to-Machine for the Americas, said: “We are continuing to see M2M adoption rise as organizations realize its potential for driving innovation, cost savings and productivity.”
M2M in America
The study predicts that more than half of companies in the Americas will implement M2M by 2016.
96 percent of the Americas organizations implementing M2M strategies have experienced a return on their investment (ROI) such as greater competitive advantage, customer service and productivity.
Some of the barriers include managing security concerns and challenges related to global deployment of M2M.
The study said the proliferation of 4G is also expected to improve the ROI equation for many M2M solutions and enable new ones. Today, 81 percent of the Americas organizations say that 4G mobile is very or quite important for their projects.
Automotive, consumer electronics, and energy and utilities are the front runners in M2M with nearly 30 percent adoption rates globally.
The study said automotive is the most mature of the sectors where M2M is now seen as an enabler for additional services such as remote maintenance and infotainment.
M2M adoption in energy and utilities is also growing rapidly as smart home and office services such as intelligent heating and connected security gain popularity.
Vodafone’s report shows that nearly three quarters of consumer electronics companies will have adopted some form of M2M by 2016, whether for new products, logistics or production. Current uptake is being fuelled by the use of M2M in connected devices such as smart televisions and games consoles.
57 percent of healthcare and life sciences companies will have adopted M2M technologies by 2016. Take-up in the transport and logistics sector will be driven by fleet management benefits, as M2M-led routing, job allocation and maintenance schedules become even more evident.