M2M Connections Expected to Triple in Five Years

According to a recently published report from ABI Research, the cellular M2M connections are expected to see an impressive growth in number during the following few years, namely tripling the current 75 million by 2014. These connections, which enable machines to make wireless calls between them, are shared equally between telemetry and telematics applications, thought the latter are registering a slightly lower growth rate.

The ABI Research study also shows that the M2M connections see an expanding subscriber base too. “Unlike the cellular M2M module market, which has been hit hard by the global recession, cellular connectivity is characterized by ongoing subscriptions that, once deployed, tend not to churn or change that much,” comments M2M research practice director Sam Lucero. “So it’s an expanding installed base, and the effect of the economic crisis has just been to slow the overall growth-rate of that base to a certain extent.”

Operators that have the necessary means, as well as brand position and customer relationships, can step on the gas pedal with their M2M activities by taking advantage of the already existing technical expertise and development work. The Cellular M2M Connectivity Service Providers report from ABI Research also delivers an analysis of the market trends along with forecasts on cellular M2M connections and revenue growth for the 2009-2014 period.

Lucero also added that carriers would have great chances of success on this market if they come up with innovative M2M connectivity platforms shortly. “Many MNOs should explore opportunities to partner with (or acquire) technology enablers that are developing robust connected device platforms,” he says, and also adds that there are already a series of partnership activities in this area that can be given as examples. Thus, he points towards the partnership between AT&T and Jasper Wireless or the Verizon Wireless and Qualcomm joint venture called nPhase, not to mention the partnership between Sprint and new MVNO M2M DataSmart. T-Mobile and Sierra Wireless can also be given as an example with their partnership in Germany.