Forecasts from the global analysis firm Ovum show that over the next five years, M2M (machine to machine) revenues will grow to reach US$44.8 billion (Bt1.48 trillion), with more than a third coming from Asia-Pacific.
In Ovum’s forecast, revenues will grow slightly more slowly than connections, reflecting the increasing competitiveness of the market and the extension of M2M into lower-value applications.
Total global M2M connections will more than treble from 106.4 million in 2012 to 360.9 million in 2018, at a compound annual growth rate (CAGR) of 22.6 per cent.
There will be growth across all regions, but it will be fastest in Asia-Pacific and the Middle East and Africa. Revenues in Asia-Pacific will grow to almost $15 billion at a CAGR of 26.5 per cent, between 2012 and 2018.
The most important industry verticals in 2018 will be healthcare, manufacturing, and energy and utilities, which are forecast to generate revenues of $7.9 billion, 7.1 billion, and $7 billion, respectively, by the end of that year.
This is not a forecast of the “Internet of Things”, but rather of managed and paid-for connections over public mobile networks, said Jeremy Green, principal analyst, Industry Communications and Broadband, at Ovum.
For telcos, he said there were 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.