Americas Will Remain the Largest Market for the Global Cellular M2M Connections and Services Market Until 2020, Says Technavio

The cellular M2M services market in the Americas is expected to grow rapidly during the forecast period at a CAGR of 35.77%.

The large-scale deployment of LTE network infrastructure is propelling the cellular M2M services market in the Americas. The adoption of remote monitoring and fleet management solutions will contribute to the market growth as well. In addition, the evolution of new business models from telecom operators (VAS and bundled services) is driving the market.

“Nearly 85% of the enterprises in the US have been using M2M products and services, with the support of cloud platforms and data analytics, to improve their business efficiency. This trend is likely to continue in the coming years,” says Rakesh Kumar Panda, a lead analyst at Technavio for research on M2M and connected devices.

Cellular M2M services market in EMEA

In Western Europe, M2M devices and services are predominantly used in the energy and utilities, retail, security, and transportation sectors. The cellular M2M services market in EMEA is also driven by government regulations. For example, the eCall regulation was passed for emergency services in the EU.

The mass deployment of advanced LTE networks is expected to trigger an increase in the demand for M2M services in the EU. In addition, strategic alliances between M2M solution providers to offer premium M2M services to SMEs are also boosting market revenue. The partnership between Telit and Telefonica in 2012 is one such example.

In a few African countries, including South Africa, Kenya, and Nigeria, M2M technology is widely deployed in applications such as fleet management, asset tracking, POS, and PAYG insurance. In addition, several African governments have passed regulations to enforce the smart monitoring of electricity and water meters, thereby increasing the use of M2M systems in the energy and utility sectors.

Cellular M2M services market in APAC

The cellular M2M services market in APAC will likely grow rapidly during the forecast period at a CAGR of 32.01%. The increasing penetration of high-speed broadband networks is expected to drive the cellular M2M services market in APAC.

China, being the leading country in the automotive segment, contributes majorly to the connected vehicles revenue. In addition, strategic alliances in the M2M market are expected to boost market revenues.

“Smart home M2M applications are gaining popularity in APAC with the support of reliable and high-speed broadband communications. The M2M industry in the region will benefit due to the growing use of cross-industry solutions such as mobile payments, mobile health, smart metering, and smart appliances,” says Rakesh.