Global cellular M2M connections growing to more than 325 million by 2016

Mobile operators are intently focused on developing and expanding their activities in the cellular M2M market as a key growth opportunity in the face of increasing saturation and maturity of the core mobile voice/data services market.

11/28/2012


IMS Research (acquired by IHS)IMS Research (IHS Inc.) forecasts the market for cellular machine-to-machine (M2M) connectivity services to rise from approximately 107 million connections globally in 2011 to about 326 million connections by 2016. Mobile operators are intently focused on developing and expanding their activities in the cellular M2M market as a key growth opportunity in the face of increasing saturation and maturity of the core mobile voice/data services market.

A number of factors are enabling and driving cellular M2M market growth including: government regulatory initiatives (such as eCall in the European Union), the desire by corporate adopters to increase efficiency and develop new revenue models, the increasing number of tools and platforms that help to facilitate cellular M2M application development and the declining costs of components and services (including connectivity). Mobile operators have become key players in facilitating cellular M2M market growth, by establishing M2M business units, deploying connection management platforms (CMP) and taking a leading role in coordinating the cellular M2M value chain at multiple levels.

According to Sam Lucero, senior principal analyst at IMS Research, “Mobile operators are not simply providing managed connectivity services to the cellular M2M market but increasingly are ‘connecting the dots’ among M2M ecosystem players, including suppliers and developers – and this benefits the market as a whole. Examples of this proactive role by mobile operators range from establishing module supply programs to developing partnerships with platform vendors and solution suppliers to reduce overall complexity in the value chain.”

Mobile operators are providing leadership in the cellular M2M market not only to grow the overall market, including the opportunity for offering managed connectivity services to M2M application service providers (ASPs), original equipment manufacturers (OEMs) and corporate adopters, but also to expand the mobile operators’ own share of the M2M value stack. IMS Research estimates that managed connectivity accounts for only about 10 – 30 percent of the overall value in the M2M service value chain. Consequently, mobile operators are seeking to provide more value through the provisioning of value-added services to solution developers and end-to-end applications to end-users, typically through partnerships with ASPs.

A recent example of this trend toward solution enablement and ecosystem facilitation is the Telefonica Digital announcement which was made at the Smart City Expo World Congress, regarding the operator’s Smart Cities solution offering. As Telefonica Digital highlighted in their announcement: “It is an offering which will allow municipal corporations, urban service providers and entrepreneurs worldwide to integrate in a single scalable, flexible and self-managing solution the complex environment of necessary sensors and technology, which are characteristic of so-called “Smart Cities.” 

According to Lucero, “The Telefonica Digital announcement regarding its new smart cities solution offering– in conjunction with partners Streetline and Libelium – perfectly encapsulates the efforts leading global mobile operators are making to move beyond simply being a “bit pipe” to being a fully encompassing solution provider that coordinates complex technologies, business processes, and ecosystem partnerships to facilitate the development of a key M2M sector, such as Smart Cities. However, as mobile operators move more deeply into vertically-focused solution offers, they must balance the benefits of a greater share of the solution value, with the challenge of developing specialized vertical expertise in a number of different industries.”

IMS Research’s World Market for Cellular M2M Connectivity Services – 2012 Edition report provides an in-depth strategic assessment of the issues facing mobile operators and other connectivity service providers in the M2M market, regarding organizational and technology choices, partnership and value chain enablement strategies, pricing and revenue strategies, and the impact of evolving horizontal service layer standards and air interface standard evolution. In addition, the report assesses key M2M market and technology trends on a regional and application basis, provides segmented five-year forecasts of M2M connections and connection revenue, and finally assesses the competitive landscape for M2M connectivity services, including providing estimates of the number of cumulative M2M connections for leading mobile operators through the first half of 2012.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2016 Product of the Year; Diagnose bearing failures; Asset performance management; Testing dust collector performance measures
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me