Machine-to-machine (M2M) is often portrayed as a nascent industry sector. However, operators are already generating strong revenue in this sector amounting to US$10 billion worldwide in 2013 and increasing to US$88 billion by 2023, according to Morgan Mullooly, an analyst with research firm Analysys.
A new report presents the annual update of its M2M device connections forecast, which includes 10-year forecasts of connections, revenue and average revenue per connection (ARPC) for eight industry sectors and 24 M2M applications in eight worldwide regions.
The proportion of SME connections is expected to increase significantly during the forecast period
The forecast predicts that SMEs will account for an increasing percentage of total M2M device connections. Excluding connections in the utilities sector, the proportion of SME M2M connections will increase from 14.6% of total connections in 2013 to 24.6% in 2023, representing a CAGR of 33%. The utilities sector is dominated by large enterprise purchasers of M2M offerings and a large number of low-revenue connections.