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IoT Service Revenues to Reach $20 Billion

Sophisticated cloud based APIs to address the increased complexities of the M2M industry

A new report from Juniper Research has forecast that Machine to Machine (M2M)) service revenues will reach $20 billion globally in 2015, as players across the M2M industry focus on simplifying the process of rolling out M2M for the end-user.

However, the report -- M2M & Embedded Strategies: Telematics, POS, mHealth, Metering & Buildings 2013-2018 -- observed that the monetization opportunities offered by M2M services differ significantly according to the industry to which it is being applied. Thus, while telematics is particularly positive, smart metering, despite high forecast numbers and regulatory drivers, is still struggling to find an avenue for revenue generation. However, in all sectors, service revenues will substantially exceed revenues from managing connectivity throughout the forecast period.

The report also argued that faster mobile broadband networks would impact on M2M use cases, noting that M2M service provision based on 4G LTE technology was beginning to find a market in CCTV, mobile POS (Point of Sale), digital signage and as a backup for fixed broadband services.

Specialist Players Defining Ecosystem
Meanwhile the report found that operators are increasingly deploying sophisticated cloud based APIs (application programming interfaces) to address the increased complexities of the M2M industry. However, it argued that M2M specialist players are the primary creators of the ecosystems behind M2M deployments. "Operators continue to play a fundamental role in M2M," said report author Anthony Cox, "but there is still significant scope for new players focussing on either new technology approaches, or a particular angle of the M2M market."

Further findings from the report include:

  • Ever lower chipset prices will spur the use of mobile technologies for the Internet of Things.
  • Telematics remains the anchor M2M industry sector as virtually all major vehicle manufacturers are now deploying, or planning to deploy, M2M modules in new vehicles.
  • The installed base of cellular M2M devices will approach 500 million modules by 2018, driven primarily by Telematics and in-vehicle applications.

The whitepaper, M2M ~ Towards the Internet of Things and further details of the full study can be downloaded from www.juniperresearch.com.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

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