M2M Connections are expected to reach 1 billion by 2020, says GSMA. GSMA which represents mobile operators globally published its new Intelligence Study “Cellular M2M forecasts and assumptions: 2010-2020” at the GSMA Mobile 360 Series-North America saying that by the end of 2020, M2M communications will make up 10% of the global mobile market.
According to GSMA, there will be 10 billion total mobile connections by 2020 with cellular M2M growing to 974 million connections given the growth being experienced by this sector at time being. With more impetus, the segment has the potential of doubling its size, said GSMA, the most important push factors being government's policies in encouraging wider deployment of cellular M2M in initiatives such as smart cities, automotive and healthcare and utilities as well as reductions in M2M module costs and development of standardized APIs that will facilitiate the development of a wider range of end-user applications across various verticals.
The study said that China and US are the current market leaders in this segment - with government's push and product innovation being the major drivers in respective markets. GSMA recently published another report “Driving Innovation in Connected Living – The US Flags the Future of M2M” covering the M2M market in North America listing the major industry verticals that are driving the adoption of M2M connections. The share of cellular M2M connections as a percentage of total mobile connections is highest in this region followed by Europe at 6.8%. By 2020, the percentages will increase to 27% and 20.4%, predicts GSMA. In other markets which record rates between 1%-3%, the share of cellular M2M connections are expected to grow to around 3%-9% by 2020.
"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. 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."
- Hyunmi Yang, Chief Strategy Officer at the GSMA