Worldwide operator revenues from M2M services are forecast to more than treble over the next five years to reach €33 billion, according to a new study.
In the same time frame, total global M2M connections will more than treble from 106.4 million in 2012 to 360.9 million in 2018, at a CAGR of 22.6 percent.
Revenues in the European market will grow from €3.2 billion in 2012 to €9.2 million in 2018 (CAGR 19.4 percent) while connections will shoot up from 29.9 million to 88.2 million (CAGR 19.7 percent).
The research, carried out by Ovum, found that Asia-Pacific will be the fastest-growing region with revenues there seeing achieving a CAGR of 26.5 percent.
By 2018, a third of global M2M revenue will be generated in Asia-Pacific, Ovum predicts.
The research firm said that revenues would increase at a slower pace than connections as a result of the growing competitiveness of the market and the extension of M2M into lower-value applications.
“This is not a forecast of the ‘Internet of Things’ but rather of managed and paid-for connections over public mobile networks,” commented Ovum analyst Jeremy Green.
“For telcos there are really two opportunities: to stand back and provide the connectivity for M2M services, or to roll up their sleeves and get involved with the end-to-end provision of solutions.”
The first is a smaller opportunity but is much more straightforward for telcos to address, according to Ovum. The second is much bigger, but involves new skills and competencies, and defining new kinds of relationship with systems integrators (SIs) and software development.
The research firm predicts that most important industry verticals in 2018 will be healthcare, manufacturing, and energy and utilities, which are forecast to generate revenues of €5.8 billion, €5.2 billion, and €5 billion respectively by 2018.
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