Machine to Machine (M2M) Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Machine to Machine (M2M) Services Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The machine to machine (M2M) services market is expected to grow at CAGR of 28.61% during the forecast period (2021-2026). Currently, the world is moving toward Industry 4.0 where analytics, artificial intelligence (AI), and the internet of things (IoT) are expected to drive intelligence, decision-making, and productivity. This in return is creating a huge opportunity for the machine to machine services market.

Key Highlights

• Following this, the adoption of wired or wireless connectivity across different industries is also fueling the market. In addition, the penetration of high-speed internet connectivity and growing adoption of new connectivity technologies, such as 4G/LTE and 5G, is further driving the growth of the M2M connections market.
• For instance, in October 2018, the Cisco 819 Non-Hardened 4G LTE Integrated Services Routers (ISR) are software routers, which support for 4G LTE wireless WAN and WLAN capabilities. They are deployable and secure and are designed specifically for machine-to-machine (M2M) applications. Markets that benefit from these applications include small business, financial, healthcare, and retail. They deliver features, like highly secure data, voice, and video communications to stationary and mobile network nodes, across wired and wireless links.
• Apart from the connectivity, increasing software application integration for product enhancements, and adoption of various technologies in manufacturing products for the cost-effectiveness and to meet safety regulations are the factors which are expected to support the growth.
• However, on the contrary, the high cost of installation of this technology and its maintenance are some of the challenges faced by the market which is restraining its growth.

Key Market TrendsTelecom Industry to Witness Significant Growth Among Other End-user Verticals

• Cellular-based M2M is added connectivity process among distinct sim-enabled machines, to provide connectivity over multiple wireless networks. Cellular M2M value - added services is being incorporated in many enterprises to ensure operational efficiency and to minimize losses associated with operational breaches.
• The cellular-based (M2M) is expected to grow during the forecast period because of the introduction of government policies, which enable a wider deployment of cellular M2M in key sectors, such as utilities, smart cities, automotive, and healthcare. For instance, the European Commission had initially proposed that legislation for the introduction of the eCall public safety answering point (PSAP) system would be in place by the end of 2015. However, adoption by the EU member states has been slower than projected. Hence, most recently the deadline for implementation of the eCall PSAP system has been postponed by a few years.
• Further, Cisco predicted that by 2022, global mobile devices will grow from 8.6 billion in 2017 to 12.3 billion by 2022. Such huge growth will in return have a positive impact on the M2M market.

Asia-Pacific to Witness the Fastest Growth

• Asia-Pacific region comprises of two largest economies of the world i.e. China and India, and the development initiatives in these two regions are growing year on year. Cisco predicts that the IP traffic in the Asia-Pacific will reach 172.7 exabytes per month by 2022, growing at a CAGR of 32% which is the highest among other nations of the world. The region will also have13.1 billion networked devices or connections, up from 8.6 billion in 2017. This increase will have a pragmatic impact on M2M services market.
• Further, government initiatives, like smart cities, smart meter and policies, enabling a wider deployment of cellular M2M initiative will help the M2M services market to grow.
• For instance, in February 2018, in India, one of the fastest growing markets for M2M services, the Department of Telecommunications (DoT) approved telecom service providers to start issuing 13-digit digit numbers for SIM-based machine-to-machine (M2M) services. This scenario is expected to increase the number of M2M services provided by the telecom vendors in the region

Competitive Landscape

The competitive landscape for the machine to machine (M2M) services market is highly competitive and fragmented because of the presence of many major players. The players in this market are highly innovative. Product launches, high expense on research and development, partnerships and acquisitions, etc. are the prime growth strategies adopted by these companies to sustain the intense competition. Key market players in the global market are Huawei Technologies Co. Ltd, Cisco Systems Inc., Google Inc., Intel Corporation, IBM, and other prominent players.

• March 2019 - Nokia announced that it will partner with Pöyry, an international consulting and engineering company, and Infosys, to further enhance and accelerate the adoption of KRTI 4.0(TM), an artificial intelligence (AI) framework for operational excellence. The KRTI 4.0(TM) framework applies AI, cognitive/machine learning, and machine-to-machine (M2M) capabilities to the industrial environment and addresses complex and expensive lifecycle management challenges faced by the industry, utilities, transportation, and infrastructure organizations across operational technology (OT) systems.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

International Business Machine Corporation
Rogers Communications Inc.
Cstar Technologies Inc
Nokia Corp (Alcatel
Lucent S.A.)
Comarch Inc
Cisco System Inc
Huawei Technologies Co. Ltd
Intel Corporation
Google Inc.
Thales Group (Gemalto NV)
Amdocs Inc
EE Ltd
Verizon Communications Inc

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.