Global Machine to Machine (M2M) Services Market 2023-2030

Global Machine to Machine (M2M) Services Market 2023-2030

Global Machine to Machine (M2M) Service Market Size, Share & Trends Analysis Report by Type (Managed Services and Professional Services), and by End-User Vertical (BFSI, Healthcare, IT & Telecom, Retail, Automotive, and Other) Forecast Period (2023-2030)

The global M2M service market is anticipated to grow at a CAGR of 30.5% during the forecast period. The rising adoption of IoT along with inclination of consumers towards 5G technology is a key contributor to the growth of the M2M market. There are various benefits of 5G technology; it consists of high-reliability and low latency, which in turn, fulfil the necessary requirements of sensor-connected IoT devices. Through 5G technology, there are millions of smart devices that can interact at very fast gigabit speeds across the network within a millisecond. 5G plays the role of catalyst for the innovation and deployment of IoT across industry verticals. 5G represents a paradigm shift in the architecture of communication networks, with the introduction of a range of 5G-enabled devices such as tablets, laptops, and smartphones, expected to accelerate revenue generation through the network. Through the development of 5G technology, the large base stations are expected to be replaced by small macro cells of the network, over which mm wave frequencies will be used to transmit huge data with smaller frequency range.

Low latency, ultra-low power consumption, scalability to handle an extremely large number of devices, long-term reliability, high speed and bandwidth for certain applications such as augmented reality and autonomous cars, and small data size for certain applications are key requirements for effective M2M connection. 5G technology compliments M2M connections; therefore, the growing adoption of 5G technology among internet users is driving the growth of the global M2M service market. The European Union’s project called Mobile and Wireless Communications Enablers for the Twenty-twenty Information Society (METIS) developed a user-centric 5G system concept to provide three generic services: extreme Mobile Broadband (xMBB), ultra-reliable Machine-Type Communication (uMTC) and massive MTC (mMTC).

Segmental Outlook

The global M2M service market is segmented based on type and end-user vertical. Based on type, the market is segmented into managed services and professional services. Based on end-user vertical, the market is sub-segmented into BFSI, healthcare, IT & telecom, retail, automotive, and other.

Retail Sub-Segment to Hold a Considerable Share in the Global M2M service Market

The high deployment of low-powered beacons in most of the retail stores is a key driver of this market segment. Retailers have been implementing powerful multi-channel applications to engage customers and boost sales using smart devices. There is a rise in the adoption of connected devices for applications such as payments in grocery stores, banks and financial institutions, restaurants, and entertainment spaces. The point of purchase payment methods has gained importance with the adoption of M2M technology for a wide range of business processes.

Regional Outlooks

The global M2M service market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and others), Asia-Pacific (India, China, Japan, South Korea, and others), and the Rest of the World (the Middle East & Africa and Latin America). North America held a major market share in the global M2M service. The growth of the market can be mainly attributed to the increasing role of IoT among the significant revenue-generating companies of the region, additionally driven by the deployment of connected cars, home automation, smart energy projects, and a focus on smart manufacturing. Further, increasing digitalization and technology development across industry verticals is also propelling the growth of the market in the region. The region also has strong M2M Vendors such as Intel Corp., and IBM Corp. which are contributing to the growth of the regional market.

Global M2M Service Market Growth, by Region 2023-2030

Source: OMR Analysis

Asia-Pacific to Exhibit Significant Growth in the Global M2M Service Market

Asia-Pacific is anticipated to exhibit considerable growth in the global M2M service market. The rising adoption of digital technologies along with implementation of IoT and AI in emerging economies such as China and India are a key factor driving the regional market. Further, government initiatives such as smart cities development, smart meters installation, and policies, enabling a wider deployment of cellular M2M initiatives are likely to drive the market growth. For instance, in February 2022, The Department of Telecom (DoT) mandated all M2M service providers to register with the department to address security concerns and interface with telecom companies, among other things. With 5G on the horizon and massive development projects in the M2M/IoT sector, these rules will fuel the growth of the communication sector. Additionally, this will encourage companies to create a wide range of innovative applications and solutions for the benefit of citizens.

Market Players Outlook

The major companies serving the global M2M service market include IBM Corp., Intel Corp., Ericsson, Verizon Communications Inc., and Nokia Corp. among others. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in June 2022, M2M Germany collaborated with Wattsense, a French technology company that has successfully built connectivity solutions and IT infrastructures for building management. With this acquisition, M2M has developed into a full-service provider for digitizing buildings due to the rise in IoT sensor networks, including LoRaWAN, and the exponential growth of machine-to-machine (M2M) communication and smart networking. The Wattsense system is simple to integrate, connect to the Cloud, and run using a software-as-a-service (SaaS) business model. It supports 11 major field communication protocols.

The Report Covers

Market value data analysis of 2022 and forecast to 2030.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global M2M service market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.